International Sports Events On A Countrys Economy Tourism Essay

Sport presents is popular as of all time before. The figure of athletics competitions is increasing and are catching the attending of every one of all ages. Some of them are known as Major International Sports Events or ‘mega athleticss events ‘ . Examples of such competitions are Olympic Games, Football World Cup, Commonwealth Games and some other International Championships. They are going more and more celebrated these yearss. The figure of states and metropoliss that want to host these sorts of athletics competitions is increasing ( Milena M. Parent, twelvemonth, p. 147 ) . Obviously, the ground for this is that ‘mega featuring events ‘ may convey a major figure of short-run and long-run economic benefits to the hosting country.

It is known that hosting a ‘mega featuring event ‘ is highly dearly-won. Baade and Matheson ( 2004 ) province, that hosting such event requires big sums of outgo on the substructure every bit good as on security ( as cited in Maassoume Barghchi, Dasimah bt. Omar, & A ; Mohd Salleh Aman, 2009, p. 189 ) . However, there are a scope of positive effects including economic effects that ‘mega featuring event ‘ can convey to the hosting country. Matos ( 2006 ) distinguishes three chief benefits of such events, which are called ‘holy three of mega events benefits ‘ , viz. economic growing, substructure bequests and image publicity ; economic benefits are responsible for warranting ‘mega event ‘ , covering all the investings and outgos ( as cited in Florek, Breitbarth, & A ; Conejo, twelvemonth, p. 80 ) . Equally far as ‘mega event ‘ is justified, it can be considered as a successful ‘mega event ‘ . Sydney Olympic Games, which was held in the twelvemonth 2000, can be a good illustration of a successful event. The games regenerated the whole economic system of Australia. In the sentiment of Bob Carr, the Premier of South Wales, Sydney Olympics is a mark of betterment of Australian economic system and a cardinal for its farther development ( Locum Destination Review, 2001, p. 33 ) .

On the other manus, economic impact is hard to foretell and to measure before the sporting competition. Therefore, non every ‘mega athletics event ‘ can be successful, which means that non all economic impacts are positive. Ritchie, Shipway and Cleeve ( 2009 ) affirm that “ the costs associated with hosting a mega sporting event, such as the Olympics may outweigh the positive benefits for some occupants, who may cut down or retreat their support for the event ” ( pp.145-146 ) .

The Impact of ‘mega events ‘ on a state ‘s economic system is a really controversial subject to discourse, because few researches were conducted on this.

Positive Impact of Hosting International Sports Events on a Country ‘s Economy

Elmer Sterken ( 2006 ) affirms that forming Major International Sports Event such as the Olympic Games and Football World Cup needs investings equal to about 10 to 20 billion U.S. dollars. She besides states that, given this sum of finance, economic effects are doubtless good ( p. 376 ) . Economic benefits may follow from investing and sponsorship, touristry, telecommunications etc. The ground for this is the celebrity of ‘mega athleticss events ‘ , as it involves foreign investors, tourers, mass media, and communicating organisations.

It is by and large known that investing plays a major function in the economic growing of local country. As mentioned before, hosting a ‘mega athleticss event ‘ requires tonss of finance, because new athleticss installations must be improved and built and certainly new substructures must be created. For illustration, as the demand of FIFA, Football World cup host state must supply at least 8 modern bowls. All the outgos and investings done are likely to convey much more net income alternatively.

Sing an substructure development, this may take to the technological advancement and better productiveness in the economic system of host state.

As for building sector, which include featuring locales, adjustment for participants and installations for functionaries and the media, it is besides expected to be really good, as it is likely to supply new extra workplaces during the pre-event stage of the competition. In other words it can be stated that due to the substructure development unemployment can be reduced to some extent. For case, harmonizing to the statistics, due to the Olympic Games in Barcelona at least 88,7 per cent diminution in unemployment was registered from 1986-1992 ( Brunet, 2005, p. 9 ) .

In add-on, there is another long-run positive impact of investing on local economic system. Being already extremely developed, substructure of the state automatically cut the costs for hosting another ‘mega athleticss events ‘ in the hereafter, even if following event ‘s organisation cost may transcend the old one.

The following economic impact major international athletics events may convey to the host state is touristry development. Nowadays ‘mega athleticss events ‘ , like Olympic Games and FIFA World Cup are supposed to be big touristry finishs, as they attract a major figure of people. Therefore 1000000s of people from all over the universe tend to go to them every clip they are held.

As a consequence, touristry every bit good as substructure development promote occupation creative activity, because a batch of markets, hotels, amusement installations like dark nines etc. are most likely to be created for the foreign visitants.

During the ‘mega athletics event ‘ 1000000s of people are able to travel to the hosting state to watch it. Besides they can buy hotel suites, repasts, drinks, transit, tickets on the games or lucifers etc. This means that touristry boosts the outgo and promotes an addition in retail trade, which is really good for the hosting economic system. In add-on, foreign visitants will doubtless be interested in the celebrated and historical topographic points of the host state, which means a batch of sightseeing will be done. Nowadays, touristry is the most dependable factor for immense economic growing. Brad R. Humphreys ( twelvemonth ) believes that economic system of Poland and Ukraine will significantly profit in a direct manner from the touristry development during the association football competition EURO 2012 ( p. 9 ) .

When hosting a ‘mega featuring event ‘ it is really of import to be able to supply the addition of consciousness of hosting state as a touristry finish. For that intent, engagement of the media is necessary. Morphet ( 1996 ) has affirmed that media is really indispensable portion of advancing the host are as a touristry finish ( as cited in Malfas, Theodoraki, & A ; Houlihan, 2004 p. 213 ) . The ground for that are media-related advertizements and commercials can pull non merely tourists, but besides foreign sponsorships and investing. This, in bend, is really good for the economic system of the hosting state.

All the mentioned impacts are really of import for the hosting country and before the forming a ‘major athletics event ‘ they should be profoundly analyzed on a peculiar state in order to win.

Negative Impact of Hosting International Sports Events on a Country ‘s Economy

Economic impacts of ‘major athleticss events ‘ like Olympic Games or FIFA World Cup are really hard to foretell. Thus there is no 100 per cent warrant that peculiar ‘mega event ‘ will convey more positive results instead than negative 1s. For illustration, forming such events may take to the troubles in the life low-income population ( Malfas et al. , 2004, p. 213 ) .

Equally shortly as a peculiar state or metropolis has won a command for ‘major athletics event ‘ the readying is started. As mentioned before, new substructure and athletics installations should be created for the event. At that minute authorities normally halt house-building plants and sometimes evict occupants in order to construct up new bowls and roads need for the ‘mega event ‘ . That is a immense loss of money for the authorities. Furthermore it may negatively act upon the societal life of the state, because a batch of people will hold to apportion to other topographic points, likely more expensive than old 1s. The 1996 Atlanta Games is a good illustration for this. The committee group, which studied the societal life at that place, affirmed that 15000 occupants lost their abodes and 9500 units of available houses were lost ( Malfas et al. , 2004, p. 213 ) .

Furthermore during the ‘mega athletics event ‘ monetary values can lift. This will straight impact the population outgo, as it will well travel down. This is besides relevant to the touristry of local country, because high monetary values might diminish the figure of tourers ‘ reachings. This, in bend, cuts the foreign visitants ‘ outgo.

Failed Major International Sports Events: Reasons

Equally far as there are some disadvantages of hosting a ‘mega athletics event ‘ , they can lift to important jobs, either economic or societal. The ground for this is that a batch of issues are non considered before the event. Besides few researches have been conducted on benefits of major events. That is why presents there is no warrant of success in hosting major athletics events. For illustration, in most instances hosting states made immense net incomes in their budgets, but non every of them had long-run positions.

After Montreal Olympic Games, which was held in 1976, the metropolis came up with the serious support jobs. The Games left the bequest of shortage support and it took more than 2 decennaries to this metropolis to manage that job, refunding the costs of forming that event. Ritchie et Al. affirm that this is due to the misdirection of outgos, as costs related to hosting such events may alter over a clip ( p.146 ) . Precisely after Montreal Games, economic impacts and development issues started to be studied.

It is besides true that many researches frequently skip societal and cultural impacts, because they are considered to be negative 1s and it is hard to mensurate them ( Ritchie ) . However they are, in fact, they are linked with economic impacts. For illustration, 2002 FIFA World Cup ‘s economic benefits were much lower than expected. As many people believe, that was because association football was non a major type of athletics in Asia.


As athletics is well developing these yearss, it tends to carry on more and more International Sports Events. Some of them have already reached a position of ‘mega featuring events ‘ like Olympic Games and FIFA World Cup. That means a batch of readying and outgo is required to host these events. It is obvious fact that the chief ground why tonss of states and metropoliss command for hosting such events is that it may convey a batch of economic benefits to the local country. The impacts may be short- and/or long-run every bit good as positive ( touristry development, new substructure, regeneration of a state ‘s economic system ) or negative ( high monetary values and evicting occupants ) . However these effects are hard to be examined and evaluated. Furthermore athleticss governments frequently ignore some societal and cultural impacts. As a consequence, some of the states and metropoliss, which host a peculiar ‘mega athletics event ‘ , do non derive the expected results. In order to win in forming a ‘mega event ‘ all the impacts should be profoundly investigated towards the hosting state.