In part 4 of our international tourism blog series, we discussed the importance of cultural sensitivity as tourism increases in developing countries. In this blog, we will focus on how hosting international conferences can stimulate a country’s hospitality and tourism sector. Organizing global conventions requires an extensive amount of planning, data gathering, and business acumen. One of the most important decisions made is location. Attendees, reporters, and small enterprises will flock to the chosen venue. This presents a prime opportunity for significant amounts of resources and capital to be exchanged. But is it possible for a singular event to revitalize an entire economy?
Germany would definitely agree. In 2014, Berlin hosted 131,000 special events and hosted a record breaking 11 million participants, according to the Berlin Convention Office. 7 million people stayed at the German capital overnight, with approximately 25% of all hotel stays stemming from convention business. A globalized world allows for such opportunities to freely exchange goods and services. The country seems to be improving at an annualized pace of 2.8%, which was mainly propelled by private consumption gaining considerable momentum.
It is clear that large, global events draw crowds that might stimulate economic activity in the short run, but what about stable retainable returns that do not contain cyclical risks? Toronto's Convention and Visitors Association explored this phenomenon this year. According to Toronto Tourism, many representatives are prone to extending their stay, bring family, and often times “inspired to return again for a pleasure trip to explore the region.”
We hope you enjoyed our blog series on the impacts of international tourism. Let us know what you think about the industry’s growth potential by leaving a comment below!