Messe München induces average revenue of €3.3bn a year in Germany, according to the latest IFO study.
Every euro in revenue made by Germany’s Messe München generates ten euros in revenue nationwide, according to a new IFO Institute survey, and the growth drivers are international exhibitors and visitors.
Indirect profitability of trade fairs and congresses at the Munich location has risen 25% since the last study, the IFO Institute noted.
“The latest study by IFO on indirect profitability demonstrates Messe München’s importance as an economic factor for the city, Bavaria and the federal government. Each euro made by Messe München (MMG) induces ten euros of revenue nationwide: in hotels and restaurants, at trade-fair construction companies, taxi companies, transport operators and cleaning, security and handicraft firms,” says Klaus Dittrich, CEO of Messe München.
“In the record year 2019, Messe München even induced revenue of €4.31bn nationwide. bauma, the world’s largest trade fair, induced revenue of €1.55bn alone. As regards employment, Messe München created more than 35,000 jobs and helped generate tax revenue of €846m in the record year,” Dittrich added.
Greater purchasing power
As part of its latest study, the IFO Institute for Economic Research looked at the direct and indirect knock-on effects of trade fairs and congresses in Munich, identifying the revenue and taxes that were generated and calculating the number of gainfully employed persons dependent on trade fair and congress business. The period reviewed was from 2016 to 2019.
Exhibitors and visitors to trade fairs and congresses in Munich induce average total revenue of €3.29bn a year throughout Germany. Around 80% of these purchasing power effects are in Munich (€1.77bn) and Bavaria (€0.83bn, excluding Munich). Compared to the previous IFO study from 2013 (€2.63bn), the revenue induced nationwide rose by 25%. The revenue induced for Munich alone even increased by 28%.
“That is attributable to the increase in the international spread of visitors and exhibitors, who stay longer and spend more on catering and shopping, especially in Munich,” said Horst Penzkofer from the IFO Institute, who was in charge of the study.
Messe München induces total revenue of €3.29bn and creates 27,294 jobs in Germany. Here, too, 83% of those jobs are in Munich (16,361) and Bavaria (6,281 excluding Munich). That means Messe München has created 2,900 additional jobs since the previous study by the IFO Institute in 2013.
Tax revenues increase 30%
The tax revenues induced in the whole of Germany were €646m, an increase of 32% since the 2013 study (€490m). That figure is even 38% for Munich alone. Most of the taxes go to central government and the other federal states (€396m), while €217m remain in Bavaria and €33m in Munich.
Corona effect
As an organiser of trade fairs and congresses, Messe München was hit directly and hard by the coronavirus pandemic. “We lost up to €230m in revenue in 2020,” says Klaus Dittrich. “Unfortunately, the 1:10 formula also applies negatively the other way round, i.e. the economy as a whole would lose up to €2.3bn solely as a result of the events in Munich being cancelled (during the pandemic).
“The study’s results are impressive testimony to the importance of our events for the domestic economy. A restart not only gives exhibiting and visiting companies the growth boost they urgently need, but also imparts a significant stimulus to economic activity in the entire region.”
