There has been wide recognition of the economic impact that sports events can generate for hosting cities with the direct (visitors’ or participants’ initial expenditures on goods, hotels and services, etc.), indirect (the increases in employment opportunities, promotion of cities’ profile and popularity, etc.) and induced effects (a rise in household income, etc.). The main aim of this study is to summarize and develop schemes for developing a research study about economic impact of hosting sport events on countries or cities by reviewing former studies about economic impact of sport events on counties or cities who host the sport events.
Agha, Nola, and Marijke, Taks. “A Theoretical Comparison of the Economic Impact of Large and Small Events.” International Journal of Sport Finance. 1 Jan 2016, pp. 199-216.
This article aims to determine whether smaller events have more possibilities to create positive economic impact than bigger events by developing a theoretical model. It introduces two strategies that allows a combination of analysis in supply and demand, including event resource demand (ERD) and city resource supply (CRS). Also, the authors classify previous academic studies conducted decades ago on economic impact attributable to sport events for comparing different sizes and levels of sport events in a way that does not contain hundreds of variables in analysis that could let to bias. The results show that small-scale sports events are more possible to have a positive economic impact and hosting multiple smaller sized events is a better strategy than hosting a big event (212).
This study fits my topic very well since it provides a different perspective (the size of the events) for considering the economic impact attributable to the sport events.
Allan, Grant J, el at. “The Impacts of Temporary but Anticipated Tourism Spending: An Application to the Glasgow 2014 Commonwealth Games.” Tourism Management: 59 (2017) 325-337.
This article talked about the economic impact of tourism costs produced by these non-Scottish tourists attributable to the Commonwealth Games, an international multi-sport event, in Glasgow in 2014. It stresses that even though input-output methods have been extensively applied these might not always be suitable for analyzing the economic impact of sporting events. Applying a more flexible Computable General Equilibrium (CGE) approaches with AMOS (a single-region CGE modelling frame- work.) is becoming more popular. Specifically, over the period of the Glasgow 2014 Commonwealth Games, Glasgow hosted 690,000 visitors, of which 440,000 were “day visitors” (those who did not stay overnight) and 250,000 stayed at least one night (326). The total expenses the authors estimated in Scotland by non-Scottish visitors to the city is £175.5 million, contributing to a cumulative impact on GDP with £19.6 million.
A very professional study that provides more updated methods for my topic research. It could be used as a reference guide for those who have the interest in the economic impact study of sport events on communities where the sport events are held.
Angel, Barajas, el at. “Beyond Retrospective Assessment. Sport Event Economic Impact Studies as a Management Tool for Informing Event Organization.” European Research on Management and Business Economics, 22 (2016): 123-130.
This article analyses the economic impact of the Rally Ourense (a car- racing competition), a two-day sport event in Spain. It is conducted with surveys and interviews of the different agents, including spectators, competitors, media and organizers in 2009, 2010 and 2001 editions of the Rally Ourense. The result shows that the events have a positive economic impact on Spain who host the event with total inflows of approximately 4,204,086 Euro generated by participants in these three successive editions (128).
This study provides my research topic with positive perspective about economic impact of sporting events on hosting counties. It also can play a good guide for Spain to predict economic impact on future Rally Ourense.
Choong-Ki, Lee, el at. “Critical Reflections on the Economic Impact Assessment of a Mega-event: The Case of 2002 FIFA World Cup.” Tourism Management. www.sciencedirect.com. 3 Mar 2004, pp. 595-603.
This study attempts to estimate the expenditures of event-related visitors in 2002 FIFA World Cup in South Korea. By using two questionnaires for collecting data and input and output analysis, the authors divided results into three categories, including the estimation of direct and indirect World Cup tourists (232,800 of total tourist arrivals during the game.), the estimation of direct expenditures associated with World Cup (per capita is $2242.), and the estimation of total economic impact of the World Cup (US$1.35 billion of output (sales), $307 million of income, and $713 million of value added for South Korea.) (598-599).
Although this study is published 14 years ago it contains desirable content that could provide useful historical data for studies focusing on this field. However, the results might not be reliable since it only applies input-output model for analyzing the data.
Gratton, Chris, el at. “The Direct Economic Impact of Major Sports Events: a review of ten events in the UK.” Sociological Review, vol. 54, no. 2, 2006, pp. 41-58.
This article provides an overview of studies in economic impact of ten major sports events (all World or European Championships) on the UK. In general, it compares the differences in economic impact between the U.S and the U.K. in terms of the usage of stadiums (both pro-stadiums and Olympic stadium). The results show the range of financial benefits generated by these events. Specifically, the World Snooker Championship in 2002 generated more than 2,265,092 Euro, which is the highest money earner among these ten events. In contrast, the 1997 European Junior Swimming Championships generated the least with 257,802 Euro (55-56).
Overall, a very practical study that analyses the economic impact of sport events by comparing the situation in different countries. However, it fails to provide a clear purpose of the study with too many directions.
Hector, Jimenez-Naranjo, el at. “Cost–benefit Analysis of Sport Events: The Case of World Paddle Tour.” European Research on Management and Business Economics. 28 April 2015, pp. 131-138. Web. 2 July 2015.
This article analyses the socio-economic impact of the Paddle Tournament “Caceres International Open 2013” (tennis event) in Caceres city in 2013 by applying different methods, including satellite accounts, input-output tables and contingent valuation method. It identifies the social effects produced by the championship, like the participants’ satisfaction and promotion of the image of the community. The result shows that the positive socioeconomic impact of the tournament is obvious, having a benefit of 973,975.44 Euros and a total cost of 70,350 Euros (137).
This study combines tourism and sport events that could provide my research study with a different respective. Also, it makes the results more reliable by applying different methodologies to analyze the data.
Huang, Haiyan, and James J. Zhang. “Assessing the Economic Impact of Three Major Sport Events in China: The Perspective of Attendees.” Tourism Economics. 6 June 2014, pp. 1277-1296.
This article analyses the economic impact of Formula One Grand Prix, the ATP World Tour Masters 1000 and the Shanghai International Marathon on China. It estimates various categories of participants during the games, quantifies the total costs produced by participants, and conducts an evaluation of economic impact by applying the input and output model. The result shows that major sport events can be served as way to contribute to the host cities in terms of economic impact.
Although this study could be reliable by involving full-categories of participants who could contribute to the economic impact during the games it fails to provide readers with a clear purpose statement.
Klimko, Patrik. “The Economic Impact of Mega Sports Events.” Economic Review. 2 Feb 2017, pp. 149-159.
This study analyses the economic impact of sport events in terms of GDP and game related cost by comparing the four Olympic Games, including 2000 Sydney, 2004 Athens, 2008 Beijing, and 2012 London. According to the result, GDP growth slows in the Olympic year in all four countries (151). Specifically, the GDP in China had a fall of 4.5% and other three host countries also showed a slightly drop in their GDP growth after the Olympics. Also, it reveals that the sports-related costs in Sydney, Athens, Beijing, and London are at USD$2,9 billion, USD$ 5.04 billion, USD$ 42.27 billion and USD$ 9.17 billion, respectively (152).
This study objectively assesses the economic impact of Olympic games in these four countries and provides the fact that hosting an event for cities or countries may not be desirable. However, this study fails to show a clear research method for the data collection.
Konecke, Thomas, el at. “Direct regional economic impact of Germany’s 1. FC Kaiserslautern through participation in the 1. Bundesliga.” Soccer & Society. 14 Aug 2015, p. 988-1011.
This study estimates the cash flows produced by the 1.FC Kaiserslautern, a popular soccer club in Germany, for its city (Kaiserslautern, Germany) and state (Rhineland-Palatinate) in 2010 and 2011. It basically applies three-step model to calculate the data, including capturing the spending of spectators, the influence of club’s business activities, and total primary economic impact. The results show that this club generated an additional cash flows of approximately 16.5 million Euros and 25.8 million Euros for its state and city, respectively (1002).
This study has a very clear purpose that addressing the discussion of whether this club generates positive impact to the city or the region after being funded by the public and it successfully meets its purpose at the end. This study provides the government and the public in Germany with a useful information for re-considering the discussion.
Kwiatkowski, Grzegorz, el at. “Economic Impact of Events and Festivals on Host Regions – Methods in Practice and Potential Sources of Bias.” POI.J. Sport Tourism. 22 Dec 2015, pp. 247-252.
This study reviews the articles specializing in economic impact of sports events on hosting counties or cities for concisely summarizing the methodological strategies and their critical discussion. It stresses the main problem that the process of assessing the economic impact of events is very controversial and has negative connotations due to the biases that occur when the process is driven by subjective and political pressure (250). Finally, it provides two recommendations for analyzing the economic impact on communities who host sport events, including 1) paying attention on the reliable measurement of attendance and 2) the data of visitors and tickets sales should be re-examine due to the repeating viewing and visiting that could led to double-counting.
A very desirable article that provides the sources of bias that could be served as a good reference guide for the future studies to avoid the bias and improve the accuracy of the analyses in economic impact of sporting events.
Li, Shina, and Leo Jago. “Evaluating Economic Impacts of Major Sports Events – A Meta-Analysis of The Key Trends.” Current Issues in Tourism. 29 Sep 2012, pp. 591-611. Web. 19 Nov 2012.
This study reviews three main methods that use for evaluating the economic impact of major events over the past 20 years, including multiplier analysis, input–output modelling, and computable general equilibrium (CGE) modelling. For the future research, it provides three recommendations: 1) research should continuously add the updated information that is useful in this field, improving the depth of understanding of main elements about the assessment procedure, 2) research should implement more consecutive bases for enhancing the prospects in knowledge consolidation related with this field, and 3) putting efforts on advancing modelling software (601).
A very professional study that could contribute to my research study with advanced methodology and suggestions for analyzing the economic impact of sport events on hosting countries or cities.
Luo, Qiuju, and Xiangyu, Lu. “Study on the Net Economic Impact of Mega Sport Events: Perspective of Visitors’ Expenditure (Case Study of the 2010 Guangzhou Asian Games).” International Journal of Tourism Sciences. 03 June 2015, pp. 36-80.
This article analyses the economic impact of the Guangzhou Asian Games in terms of the expenditure produced by the game. The data are collected by surveys and are evaluated by input-output model. The authors classify the visitors into four types, including event visitors, causals (those who visit the host city for other reasons), avoiders (those who cancelled or changed plan for the Game), and residents. The results show that the Asian Games generates 722,074 visitors and contributes to the city with ¥2,709,247,693 financial inflows. It stresses that the main benefits are in non-monetary returns, like the reconstruction of urban spatial structures, and the improvements to the city’s image and the environment (72).
A well-structured study that provides a very clear procedure of conducting an assessment in economic impact of Guangzhou Asian Game. However, it only uses one model (input-output) to collect and analysis data that might create bias.
Zhang, Mark, el at. “Residents’ Perceived Social-Economic Impact of the 2008 Beijing Olympic Games.” ICHPER—SD Journal of Research in Health, Physical Education, Recreation, Sport and Dance. 1 Nov 2013, pp.19-25.
This article examines whether the Olympic Games is a big factor to affect quality of Beijing citizens’ life in terms of the social-economic and to affect their continuous support to the Games. The research is conducted by using questionnaires and according to the data the rate of citizens’ support for the Games does not decline after 2 years of the Games. Also, it reveals five social-economic changes: culture enrichment, basic living, entertainment opportunities, environment, and national pride by conducting factor analysis (23). Moreover, the increasement of Entertainment choices and the promotion in National Pride are the main reasons why Beijing citizens are willing to continuously support the Games hosting.
This article has a very clear structure. However, the procedure of collection of data is not detailed that might create bias to the results and might not be reliable.