TOUR2010 Lecture 11: TOUR2010 Week 11
TOUR2010: Applied Economics for Tourism. Semester 2, 2017.
Week 11: Economic Analysis and Events - Lecture Notes
Events- why?
- Increasing in numbers important for tourism
- Economic analysis of events, important to:
o Private sector, community groups, government
Significance of events- potential benefits
- Increased visitation – bringing new money
- Fundraising for community groups, charity
- Fundamental component of a tourism development strategy
- Generating increased investment in the short and longer term
- Enhancing the impact of a city/region, facilitating business networking and civic pride
- Recreational opportunities for local residents
- Social & cultural benefits
- Demonstrate good environmental management
Significance of events- potential costs
- Adverse environmental impacts such as noise, congestion, disruption to local
businesses & community backlash
- Add to government debt
- If poorly run, could damage impact of the region
Some events are privately run and profitable
- Capture demand for a usually commercially marketed experience (music concerts)
- Entrance can be limited to paying customers
- Use privately owned facilities/ hired facilities
Assessment of privately run events:
- Financial assessment relevant to promoters
- Flow on impacts not of interest to them
- External benefits or costs?
Rationale for government support for special events
- Governments often asked to provide financial support for special events, including
funds to construct or upgrade required facilities
- May be under provision of events if they rely on private funding
o Often private firms cant capture financial benefits of services provided
o Communities may benefit from direct and flow on economic impacts of
events
o May be positive externalities not able to be captured by private firms
Tourism & Events QLD new strategic plan 2013-2017
i. Contribute to QLD economy
ii. Attract visitors to QLD
iii. Enhance the profile of QLD
iv. Foster community pride in QLD
Issues for economic evaluation
- Evaluation should be appropriate to scale of event and investment
- Prediction required to assist decisions on whether to find events
- Post event evaluation vital for accountability
- Challenges:
o Lead times can be long for mega events
o Cost over-runs
o Inflated multipliers
o Non-market costs and benefits not valued
o Enthusiastic decision makers
Who needs what evaluation?
- Private businesses= financial analysis of profit or loss
- Community group = net funds raised
- Government = various measured of impacts, returns, benefits
Economic Analysis of events
Document Summary
Week 11: economic analysis and events - lecture notes. Economic analysis of events, important to: private sector, community groups, government. Fundamental component of a tourism development strategy. Generating increased investment in the short and longer term. Enhancing the impact of a city/region, facilitating business networking and civic pride. Adverse environmental impacts such as noise, congestion, disruption to local businesses & community backlash. If poorly run, could damage impact of the region. Capture demand for a usually commercially marketed experience (music concerts) Entrance can be limited to paying customers. Flow on impacts not of interest to them. Governments often asked to provide financial support for special events, including funds to construct or upgrade required facilities. Tourism & events qld new strategic plan 2013-2017. Evaluation should be appropriate to scale of event and investment. Prediction required to assist decisions on whether to find events. Challenges: lead times can be long for mega events, cost over-runs.
