1. Economic Impact Studies on Sports Events: a tool for decision-making
Angel Barajas
Ekaterinburg, 17th November 2017
Economic Impact Studies on Sports Events: a tool for decision-making

2. Agenda General idea Basic ideas on Impact Analysis
Relevant elements in sport events
Financial figures about Mega Events (OG)
Economic impact of MotoGP in Valencia
Economic impact of Marathon in Valencia

3. General idea Sport events can have positive or negative impact.
Decisions about organizing an event should consider:
the features of the event and
the features of the host city/region/country.
Critical points:
Investments
Canon
Limiting factors
Intangibles mater but how to measure them? Ex-post studies

4. General idea Positive NPV – is this the reason to organize an event?
What if any other alternative investment provide a higher NPV?
Tax payers could decide (referenda)
Low level of taxes … State own companies…

5. Economy under observation
Impact Analyses
Basic requirement:
Measurement of the total change of the (city) structure due to the staging of an event.
What is …
entering | new
leaving | disappearing
rejected | not coming
(ex)changed
completeness/ preciseness
Pecuniary changes
Emotions (economic)
Infrastructure
nominal monetary change
Economy under observation
resources entering
resources not coming
(crowding-out)
re-distribution
resources leaving
(crowding out)
negative
ambivalent
positive

6. Relevant element in sports events
Sport elements:
Direct influence on tourism.
Encourage the attendance of spectators and participants non-residents/foreign.

7. Relevant element in sports events
Tourism elements:
Increase economic impact.
Increase tourist attraction.
Long-terms effects

8. Financial relevance of Olympics

9. Financial relevance of Olympics

10. Financial relevance of Olympics

11. Financial relevance of Olympics

12. Economic impact from attendees to World Championship MotoGP
Economic Impact of MotoGP in Valencia
Distribution of spectators' expenses
Total Spending (€)
Average Spending (€)
Tickets
5,106,022.37
76.20
Accommodation
3,445,304.41
104.59
Food & Beverages
3,277,890.15
45.12
Transport by road
1,807,713.09
30.82
Transport by train
36,325.74
23.00
Transport by air
1,960,687.32
395.00
Merchandising
1,946,021.65
40.30
Leisure
1,416,929.39
62.80
Other expenses
606,933.13
46.38
MotoGP Grand Prix generate an increase of the GDP of some €27 mill. 0.24% of tourism in Valencia ( visitors)
Source: Martí-Selva & Puertas-Medina (2012)
Economic impact from attendees to World Championship MotoGP
(thousands €)
Direct
Indirect
Inducted
Total
Wages
7,438
278
3,191
10,907
Companies' profit
8,317
391
7,383
16,090
Taxes 18 16
221
256
GDP
15,694
685
10,697
27,077
Employments (persons)
421 13
142
575

13. Economic Impact of Valencia Marathon
Valencia Marathon generate an impact of 6.5 million €, 140 employments and a ROI of 3,2 (7,049 participants).
Source: Instituto Valenciano de Investigaciones Economicas, Maudos (2012)
National visitor
Foreign visitor
Average daily expenses
94.8
111.7
Number of visitors
4,081
2,248
Size of the group (persons)
2.3
3.4
Days in the city 2
4.2
Total expenses (€)
2,112,276
3,578,003
Source: Instituto Valenciano de Investigaciones Economicas, Maudos (2012)

14. All that glitters is not gold.
To Conclude
All that glitters is not gold.
Economic impact analysis could help to improve the impact.
Economic impact analysis should not be used to justify the organization of an event.

15. Economic Impact Studies on Sports Events: a tool for decision-making
Angel Barajas
Ekaterinburg, 17th November 2017
Economic Impact Studies on Sports Events: a tool for decision-making