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Rochester Institute of Technology RIT Scholar Works Theses 1997 Verifying the economic impact of convention attendees on the local economy in the Republic of China on Taiwan Pei-Ling Huang Follow this and additional works at: https://scholarworks.rit.edu/theses Recommended Citation Huang, Pei-Ling, "Verifying the economic impact of convention attendees on the local economy in the Republic of China on Taiwan" (1997). Thesis. Rochester Institute of Technology. Accessed from This Thesis is brought to you for free and open access by RIT Scholar Works. It has been accepted for inclusion in Theses by an authorized administrator of RIT Scholar Works. For more information, please contact [email protected]. VERIFYING THE ECONOMIC IMPACT OF CONVENTION ATTENDEES ON THE LOCAL ECONOMY IN THE REPUBLIC OF CHINA ON TAIWAN by Pei-Ling Huang A Thesis Submitted to the Faculty of the School of Food, Hotel and Travel Management at Rochester Institute of Technology in Partial Fulfillment of the Requirements for the Degree of Master of Science May 1997 ROCHESTER INSTITUTE OF TECHNOLOGY School ofFood, Hotel and Travel management Department of Graduate Studies M. S. Hospitality-Tourism Management Presentation ofThesisJProject Findings Name: Pei-Ling Huang Date: 4/16/97 SS#:------ Title ofResearch: Verifying the Economic Impact of Convention Attendees on the Local Economy in the Republic of China in Taiwan. Specific Recommendations: (Use other side ifnecessaIy.) Thesis Committee: (1) Professor Edward Steffens (Chairperson) (2) Dr. Richard Marecki OR (3) Professor Warren Sackler Faculty Advisor: _ Number ofCredits Approved: -~"':""":"'--'---'-----6 credits 1//~/97 Date Committee Chairperson's Signature t/U/97j Date Department Chairperson's Signature Note: This form will not be signed by the Department Chairperson until all corrections, as suggested in the specific recommendations (above) are completed. Cc: Departmental Student Record Fue - Original Student Thesis Reproduction Permission Statement Title ofthesis : Verifying the Economic Impact of Convention Attendees on the Local Economy in the Republic of China in Taiwan I, Pei-Ling Huang, hereby grant permission to the Wallace Library of the Rochester Institute ofTechnology to reproduce my thesis in whole or in part. Any reproduction will not be for commercial use or profit. Date: Apri122, 1997 Signature of Author: _ ABSTRACT Convention travel has been growing rapidly throughout the world in recent years and becoming a critical component of the hospitality and travel industry. Hosting of conventions, especially international conventions, can be used by host countries as part of a strategic marketing plan to publicize modern development, traditional culture, and tourism resources. It also stimulates economic growth in the hosting country. The purpose of this study is to analyze the differences between the expenditures of delegates staying in hotels and delegates not staying in hotels in each category. It was expected that most of delegates staying in hotels were foreigners and most of delegates not staying in hotels were local people. A questionnaire was developed by using the categories of the 1993 IACVB Convention Income Survey as a base and executed in Taiwan. The subsequent data allowed the comparison between expenditures of the delegates staying in hotels and the delegates not staying in hotels. ii Overall, the average spending per delegate was US$ 621.62 in this sample study. The delegate staying in a hotel spent an average of 6.79 times the amount the delegate not staying in a hotel in this 4 day meeting. Recommendations for further studies were suggested. Additional research would help Taiwan determine the economic impact of the convention industry on the local economy in the future. Such research would also serve as a base for the convention industry positioning itself to receive future government support. in ACKNOWLEDGMENTS Above all, I want to express my appreciation to my parents, sisters and brothers for your continued support and encouragement this year. Thank you for always being there when I needed help or someone to listen to my concern. This thesis is dedicated to all of you. To my committee chair, Professor Steffens, I would like to thank you for your continued guidance, advice, dedicated, and limitless time. To Dr. Marecki for helping me in the methodology of this study and analysis of data and Professor Sackler for your assistance and serving on my committee. I am grateful to Mr. Jason Yeh, President of the Taiwan Convention Association, for endorsing this survey and helping me conducting the research in Taiwan. To Mr. Chung-Hwa Tuo, Director of International Division, ROC Tourism Bureau, I would like to thank you for answering the concerns of my study. IV Finally, I would like to express my gratitude to my dear friends: Jim 8s Louise Gleason for caring for me so much, Joe Klingensmith for proofreading my thesis, Maria Connel for being my host, Dan Drake for helping me in computer. To Chia-Chi Lin, Jian-Xin Li, Benjamin M. Chen, Beng-Hooi Chua, Yat-Wei Chan, Kate, Kai-Kei Lai and Tung-Feng Hsieh, I am indebted to all of you for helping me in proofreading, typing, computer, English and always being there whenever I need help. I am so lucky to have friends like you. You are always my invaluable treasures. TABLE OF CONTENTS ABSTRACT ii ACKNOWLEDGMENTS iv LIST OF TABLES ix LIST OF FIGURES x CHAPTER I. INTRODUCTION AND STATEMENT OF STUDY Introduction 1 Background 4 Problem Statement 12 Purpose of the Study 14 Significance of the Study 15 Definitions of Terms 16 Hypothesis 16 Scope and Limitations 17 Long range Consequences 18 CHAPTER II. REVIEW OF THE LITERATURE The Growth of Meetings Industry 20 International Meetings 23 Taiwan's Convention Industry 28 Economic Impact 31 Multipliers 38 VI CHAPTER III. METHODOLOGY Population and Sample Size 46 The Research Instrument 50 Procedures 58 Period of Data Collection 62 Method of Analysis 62 CHAPTER IV. RESULTS AND FINDINGS Respondents 64 Mode of Transportation 65 Accommodations 67 Delegate Expenditures 69 Breakdown of Delegate Expenditures by Citizenship 72 Breakdown of Delegate Expenditures by Accommodations 73 Comparison of Daily Expenditure between Sample and INRE 85 Findings from this Study 89 CHAPTER V. CONCLUSIONS AND RECOMMENDATIONS Conclusions 93 Recommendations 97 BIBLIOGRAPHY 100 vn APPENDICES A. A Letter from Jason Yeh, President of the TCA ( 1 ) 105 B. A Letter from Chung-Hwa Tuo, Director of 107 International Division, ROC Tourism Bureau C. Taipei Visitor's Guide 110 D. The 1993 IACVB Convention Income Survey 122 and Methodology E. Questionnaire in English 135 F. Questionnaire in Chinese 137 G. A Letter for asking cooperation of the TCA 139 H. A Letter from Jason Yeh, President of the TCA (2) 141 I. The Raw Data of this Survey 143 J. A Letter to Chung-Hwa Tuo, Director of International 151 Division, ROC Tourism Bureau for Currency Issue K. A Letter to Jason Yeh, President of the TCA for 1 54 Currency Issue vin LIST OF TABLE 5th Table 1. Agenda of the Annual Meeting of the ASCVS 48 Table 2. List of Attributes in the 1993 IACVB Convention 52 Income Survey Table 3. Convention Attendees by Citizenship 64 Table 4. Transportation to Convention 66 Table 5. Accommodations 68 Table 6. Breakdown of Delegate Expenditures 69 Table 7. Breakdown of Delegate Expenditures by Citizenship 73 Table 8. Delegates Staying in Hotels VS. Delegates 74 Not Staying in Hotels Table 9. Delegates Staying in Hotels 75 Table 10. Delegates Not Staying in Hotels 75 5th Table 11. Registration Fees for the Annual Meeting 79 of the ASCVS 87 Table 12. Comparison of Daily Expenditures 94 Table 13. Formula of Estimating Total Expenditures by Event Delegates IX LIST OF FIGURES Figure 1. Map of Taiwan Location and Its Neighboring Countries 7 Figure 2. Map of Taiwan 9 Figure 3. Economic Impact on the Community 35 Figure 4. Flow of the Tourist Dollars in the Local Economy 36 Figure 5. Convention Attendees by Citizenship 65 Figure 6. Transportation to Convention 67 Figure 7. Breakdown of Delegate Expenditure 70 CHAPTER I INTRODUCTION AND STATEMENT OF STUDY INTRODUCTION Convention travel has been growing rapidly throughout the world in recent years indeed, its importance appears to be steadily overtaking that of pure tourism. How is it that meetings will overtake traditional tourism and become more vital to the travel and hospitality industries as a major economic engine? Hosting of conventions, especially international conventions, can be used by host countries as part of a strategic marketing plan to publicize modern development, traditional culture, and tourism resources. It also stimulates economic growth in the hosting country. For instance, according to the 1994 Convention Liaison Council (CLC) study, the meetings industry contributed US$ 80.7 billion to the U.S. gross national product (Successful Meetings, 1995). The expenditures, therefore, by convention attendees had a considerable impact on the country's economy. Not only do conventions, meetings, and expositions stimulate convention related spending such as hotel, food, and beverage expenditures but also they impact other leisure and retail markets. These expenditures provide a source of local tax revenues and support a significant number of local jobs, thereby stimulating economic growth in the country. Conventions, meetings, and expositions also introduce new visitors to countries which may often result in return visits to those countries for business or pleasure travel. Convention bureaus can calculate the economic impact of expositions business in their countries conventions, meetings, and by statistics and confirm that dollars clear and statistically valid spending a positive financial invested in convention marketing and services have impact on the country. According to the 1993 International Association of Convention and Visitor Bureaus (IACVB) Convention Income Survey which included 73 Bureaus in the United States, the United Kingdom, Canada and Australia, the average spending per delegate is US$ 638.20 during a 3.48 day stay.

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