Korea Trade Review (무역학회지)

Korea Trade Research Association (한국무역학회)
권호 표지
DOI QR코드

DOI QR Code

Strategies for Improving Financial Management Performance of Exhibition and Convention Centers in Korea Based on Financial Ratio Analysis

재무비율분석에 기초한 한국 전시컨벤션센터의 재무적인 경영성과 개선전략

  • Yongsuk Kim (KOTRA Acadmy, KOTRA (Korea Trade & Investment Promotion Agency))
  • Received : 2021.06.26
  • Accepted : 2021.08.29
  • Published : 2021.08.30
Download PDF
⟨ Previous Next ⟩

Abstract

This study suggests improvements in the management performance of the five largest exhibition and convention centers in Korea through financial ratio analysis. For this research, the financial ratios of each center were compared to the average of the centers as well as to the overall industry average during the past five years. According to the analysis results, the stability and growth ratios of the centers were excellent, but the profitability and activity ratios were poor. In particular, the ratios of profitability were in state of urgent need for improvement because they were at the level of severe deficits. It was analyzed that sales increase can be the key factor to improve centers' operation income and net profit to improve profitability. This study recommends measures to increase sales by using centers' facilities and their functions. The first is to actively host large-scale international meetings and conventions that only exhibition and convention centers can accommodate. The second is to attract brand exhibitions through strategic alliances with global Professional Exhibition Organizers (PEOs). Lastly, it is to organize sports and cultural events that are appropriate for incentive tours of associations and corporations.

Keywords

References

  1. Ahn, Yi-Sook and In-Sung Kang (2014), "Study on the Factors Influencing on Profitability of Local Public Enterprises: Focusing on Local Public Enterprises in Gyeonggi Province", Public Policy Review, 28(1), 151-175. https://doi.org/10.17327/IPPA.2014.28.1.007
  2. Association of Korea Exhibition Industry (AKEI) (2020), 2019-allnew.PDF. Available from http://akei.or.kr/data/business/2019_allnew.PDF (accessed June 20, 2021) 
  3. Choi, Jung-Ho (2013), "The Adoption of IFRS and Value Relevance of Accounting Information", Korean Accounting Review, 38(1), 391-424. 
  4. Fenich, G. G. (1995), "Convention Center Operations: Some Questions Answered", International Journal of Hospitality Management, 14(3/4), 311-324. 
  5. Go, F. and W. Zhang (1997), "Applying Importance-Performance Analysis to Beijing as an International Meeting Destination", Journal of Travel Research, 35(4), 42-49.  https://doi.org/10.1177/004728759703500407
  6. International Convention and Congress Association (ICCA) (2020), The International Association Meetings Market 2019, ICCA Statistics Report, Country & City Rankings, Amsterdam: Author, 16-28. 
  7. Jang, Mi-Hwa and Yeong-Il Yoon (2017), "The IP Analysis on Convention Destination Attributes of Daegu - Focused on Convention Industrial Workers of Daegu -", Korea Trade Exhibition Review, 12(3), 69-90. 
  8. Ji, Hye-Kyung (2017), "A Study on the Characteristics of Business Performance in Fashion Company Focused on Financial Ratio Analysis", Journal of the Korean Society of Costume, 67(7), 103-117.  https://doi.org/10.7233/jksc.2017.67.7.103
  9. Kang, Hwang-Muk and Chang-Woo Nam (2017), "An Analysis of the Factor Affecting Profitability of Local Public Enterprises: Focused on the Metropolitan Government Development Corporations of the Country", Journal of the Korean Urban Management Association, 30(1), 97-116.  https://doi.org/10.36700/KRUMA.2017.03.30.1.97
  10. Kim, Bong-Seok (2009), "A Study on the Foreign Exhibitor's Objectives and Choice Attributes of Participating Korean Trade Fairs using IPA", Journal of Hospitality and Tourism Studies, 11(2), 146-162. 
  11. Kim, Duk-Su, Hwon Yoon and Seong-Ho Kill (2008), "A Scheme for Convention Center Market Segmentation", Journal of The Digital Architecture-Interior Association, 8(1), 39-47. 
  12. Kim, Ji-Eun, Won-Seon Park and Hee-Sup Han (2013), "Investigation of the Differences in Internaftional-Convention Tourist' Preferences for Convention", Korea Journal of Tourism and Hospitality Research, 27(2), 257-271. 
  13. Kim, Si-Joong and Chang-Soo Kim (2005), "An Analysis of Financial Ratio for the Convention Venue", Journal of Tourism Management Research, 9(3), 75-90. 
  14. Kim, Su-Sung and Won-Seok Choi (2016), "A Study on Tax Accounting Issues on Preparing the Consolidated Financial Statements according to the Quasi-Government Agencies's Adoption of K - IFRS", Journal of Taxation and Accounting, 17(3), 157-187. 
  15. Kim, Tae-Chil, Bong-Seok Kim, Taek Lim and Soon-Kuen Bae (2014), "Economic Analysis of Exhibition & Convention Center Using a Cost-Benefit Analysis", International Journal of Tourism and Hospitality Research, 28(2), 19-35. 
  16. Kim, Yong-Suk (2018), An Empirical Study on the Factors Affecting the Performance, Satisfaction, and Loyality of Korean Pavilion Exhibitors to International Trade Fairs (Doctoral Dissertation), Seoul: Dankook University, 16-17. 
  17. Ko, Seung-Hee and Eun-Joo Yoon (2016), "A Study on the Success Factors of the MICE Integrated District - Focused on Gwangju Metropolitan City -", International Journal of Trade Fairs and Exhibition Studies, 11(2), 61-80. 
  18. Lee, Do-Heon (2009), "The Relationships among Intellectual Capital Knowledge Management Activity and Organizational Effectiveness in Korean Exhibition and Convention Centers", Journal of Tourism and Leisure Research, 21(2), 27-47. 
  19. Lee, Hee-Seung and Ki-Hong Kim (2007), "An Analysis of the Competitiveness of Korea's Major Convention Centers", The Business Studies, 8(4), 29-46. 
  20. Lee, Nam-Kuk (2015), "A Study on Financial Soundness of the Local Public Enterprises : A Case of Busan Matropolitan City", Journal of Local Government Studies, 27(1), 137-158.  https://doi.org/10.21026/jlgs.2015.27.1.137
  21. Lee, Se-Jun, Ji-Ho Ryu and Yi-Tae Kim (2017), "A Study on the Financial Ratio Analysis of Convention Centers", Journal of Tourism and Leisure Research, 29(6), 255-274. 
  22. Lee, Won-Bong (2003), "An Exploratory Study for Effective Development of Convention Industry Focusing on DaeJeon", Journal of Hospitality and Tourism Studies, 5(2), 147-164. 
  23. Lee, Young-Bin (2014), "The Effects of Convention Center Service Scape and Urban Image on the Behaviour Intention: Focusd on the Visitors in Kimdaejung Convention Center", International Journal of Tourism and Hospitality Research, 28(12), 61-73. 
  24. Meeting Professionals International (MPI) (2018), Leading MICE Industry Association Come Together to Make the Industry Stronger. Available from https://www.mpi.org/media/press/leading-mice-industryassociations-come-together-to-make-the-industry-stronger (accessed March 25, 2021) 
  25. Messe Duseldorf GmbH (2021), Annual Report 2019. Available from https://www.messe-duesseldorf.com/cgi-bin/md_home/lib/pub/object/downloadfile.cgi/MD_GB2019_engl_web.pdf?oid=4325&lang=2&ticket=g_u_e_s_t (accessed June 20, 2021) 
  26. Oppermann, M. (1996), "Convention Destination Images: Analysis of Association Meeting Planners' Perceptions", Tourism Management, 17(3), 175-182.  https://doi.org/10.1016/0261-5177(96)00004-0
  27. Park, Ja-Yeon and Seong-Seop Kim (2012), "An Economic Impact Analusis of Convention Industry Using Inter-Regional Input-Output Approach", Journal of Tourism and Leisure Research, 24(2), 177-196. 
  28. Park, Jung-Hoon and Chang-Woo Nam (2016), "A Recognition of Members in Revitalizing Method of Local Convention Center: Focusing on Profitability Creation Factors", Public Policy Review, 30(4), 229-254.  https://doi.org/10.17327/IPPA.2016.30.4.009
  29. Rashid, C. A. (2018), "Efficiency of Financial Ratio Analysis for Evaluating Companies Liquidity", International Journal of Social Sciences & Educational Studies, 4(4), 110-123. 
  30. The Global Association of the Exhibition Industry (UFI) (2018), World Map of Exhibition Venues, 2017 Edition (Revised January 2018), Levallois-Perret, France: Author, 5-14. 
  31. The Global Association of the Exhibition Industry (UFI) (2021), Events Approved by UFI. Available from https://www.ufi.org/membership/ufi-approved-events/search/ (accessed May 10, 2021) 
  32. Uugantsetseg, N. (2018), Business Performance between Competitive Firms through Using Financial Ratio -Focused on Financial Ratio Analysis- (Master's Thesis), Korea: Wonkwang University, 5-28. 
  33. Weber, K. (2001), "Meeting Planners' Use and Evaluation of Convention and Visitor Bureaus", Tourism Management, 22, 599-606. 
  34. Weber, K. and A. Ladkin (2004), "Trends Affecting the Convention Industry in the 21st Century", Journal of Convention and Event Tourism, 6(4), 47-63.  https://doi.org/10.1300/J452v06n04_04
  35. Won, Gu-Hwan (2011), "The Effects of the Financial Ratios on Value Added Productivity in Local Public Enterprises", The Korea Journal of Local Public Finance, 16(2), 115-145.  https://doi.org/10.22785/KALF.2011.16.2.115
  36. Yang, Lee-Na and Si-Joong Kim (2014), "An Analysis of the Financial Ratios of Hotels and Convention Centers in Jeju Province", Journal of Tourism Management Research, 18, 121-133. 
  37. Yoo, Ye-Kyung and In-Sin Kim (2014), "A Study on the Structure of Mobile Information Quality of Convention Centers Influencing Behavioral Intention", The e-Business Studies, 15(3), 277-296.  https://doi.org/10.15719/GEBA.15.3.201406.277