Balls at the HOFBURG Vienna deliver a 7 to 10 million Euro stimulus to the Austrian economy. Despite the prevailing economic climate the average spend is EUR 196 per person and ball. Increasing numbers of foreign visitors (15 % of total) and ballgoers from outside Vienna (32 %) are attending the traditional Viennese balls at the Hofburg.
Background information
The 17 traditional Viennese balls at the HOFBURG Vienna draw 50,000 to 55,000 visitors to the city in January and February each year. Each ball brings between 2,500 and 5,500 dance enthusiasts to the imperial venue — reason enough to take a closer look at the economic impact of the Viennese ball season in the first half of 2009. The HOFBURG Vienna commissioned a study by Krems Research and students at the IMC FH Krems University of Applied Sciences on the attractiveness and economic impact of balls at the Hofburg. The empirical research involved interviewing a sample of 550 attendees of six representative balls. These included large events such as the Kaffeesiederball (Coffeehouse Owners’ Ball) and the Jägerball (Hunters’ Ball), those of professional and interest group associations such as the Wiener Ärzteball (Viennese Physicians’ Ball) and the Hofburg Gala der Wiener Wirtschaft (Hofburg Gala of Viennese Commerce), and student balls like BOKU-Ball (ball of the Viennese University of Natural Resources and Applied Life Sciences) and the Rudolfina Redoute. The survey yielded insights into guests’ countries and regions of origin, reasons for attendance and spending habits. Visitors were also asked about the impact of the global economic crisis and new Austrian anti-corruption legislation. “A detailed economic impact study shows the importance of the Hofburg balls not just for the tourist industry but also for the economy as a whole, while the sociological analyses shed light on their social role,” explained HOFBURG Vienna Managing Director Renate Danler. Among the interesting findings is the fact that, while the ball season as such is highly popular,whether the Hofburg is the venue plays a key part in the choice of event and in guests’ satisfaction.
Study findings
Country of origin and overnight stays
Almost 85 per cent of guests attending balls at the HOFBURG Vienna come from Austria. Half are from Vienna (primarily the 1st, 13th and 19th districts), followed by Lower Austria (17 % of all Austrian visitors), Upper Austria (about 7 %) and Styria (3 to 4 %). The remaining 15 per cent are from countries all over the world, with Germany accounting for the largest share (over 55 % of foreign guests). The UK and USA (each 7 %), Italy and Switzerland (each 5 %) were also well represented. Over 21% were from other EU member states and further afield (e.g. Australia and Canada).
About 45 per cent of ballgoers from outside Vienna stayed in the capital for one night and some 35 per cent for two to three nights. Approximately 20 per cent of the total stayed longer (four nights or more), giving a big boost to the hotel and tourist industries. Alongside private invitations (over 60 %) visitors from outside Vienna chiefly used four star accommodation (over 16 %) followed by five and three star hotels (each about 10%). There was little call for pensions and inns (just under 1% combined). A look at incoming and outgoing travel shows that 5 per cent travelled by air, 15 per cent by rail and other public transport, and 40 to 55 per cent by taxi.
Spending
Total spending at balls held at the Hofburg amounted to over 10 million Euros, or an average of € 196 per ballgoer. Food and beverages accounted for the largest share of expenditure (37 %), followed by ball tickets and table reservations (25 %). Clothing (14 %) and transport (12.3 %) were other significant outlays, while hairdressing and accommodation ranked fifth and sixth (3.9 % and 3.6 %, respectively). Since the analysis excludes complimentary tickets it is likely that total expenditure was in fact higher.
The global economic crisis and anti-corruption legislation
Before the survey was conducted in early 2009 the global economic crisis and Austrian anti-corruption legislation were expected to have a negative impact on visitor spending. However this was not found to be the case. About 70 per cent of all ballgoers spent the same amount as before. Of the respondents who reported a change in their spending, some 80 per cent actually spent more at the Hofburg balls than in previous years, and a only 15 per cent indicated that they had spent less. Respondents were not asked about the reasons for changes in spending.
Economic impact of Viennese balls at the Hofburg
Krems Research was able to calculate the impact of balls held at HOFBURG Vienna on Austrian and Viennese GDP on the basis of the visitor spending statistics. The average spend was € 196.80 per person. This translates induced GDP of € 258.30 and value added of € 145.60 per person at national level. The total value added generated by balls held at Hofburg amounted to 7.5 million Euros, while regional value added for Vienna was 10.2 million Euro or € 198.40 per guest.
Over 50 per cent of value added in Vienna was accounted for by public and personal services, followed by retail distribution and consumer goods (22 %), equipment leasing and business-related services (13 %). Transportation and accommodation ranked fourth and fifth (approximately 4.2 % and 3.6 %, respectively).
Reasons for attendance — entertainment ahead of networking
An interesting aspect of the study is the findings on visitors’ reasons for attending one of the 17 balls at the Hofburg. Over half of the respondents (51 %) cited entertainment as their chief motive for attending, followed by dancing (45 %) and social contacts (27 %). Around a quarter of those asked indicated that their attendance was not purely for private reasons, citing business (16 %) or professional (9 %) commitments. This suggests that balls held at the HOFBURG Vienna are not just important in terms of social encounters, and business and customer contacts also play a major part. Accompanying persons, too, reflected this trend. More than five per cent were accompanying colleagues, and almost three per cent were attending with business partners or their firms. Many visitors cited their appreciation of Viennese ball traditions (16 %) or of the unique atmosphere of the Hofburg (9 %) as their reason for attending.
