The Impact Of Events On Host Areas Tourism Essay Example

contribute positively to the improvement of society hosting them. Therefore, events have become a popular method for attracting visitors to a region.

According to Grosbois (2009), events have a significant impact on host communities and stakeholders. Ritchie & Smith (1991) argue that hosting a global mega-event can have both positive and negative effects on a center or region, attracting international attention. The way this process is managed can determine whether these changes have a lasting positive and shaping effect on the city. Event tourism not only impacts the economy but also the lives of societies, serving as a lifeline for many destinations (Gawler Visitor Information Centre, 2005).

According to Bowdin (2006), all events have a direct influence on their participants. It is important to minimize and evaluate the negative effects on communities compared to the benefits that tourism brings. The effects of an event can be categorized into various dimensions, as identified by Ritchie (1984). These dimensions include economic, tourism and commercial, physical, sociocultural, psychological, and political aspects.

Social impacts encompass various effects that can influence the well-being of local residents, including economic outcomes, political issues, and environmental effects. These impacts are interconnected and contribute to overall reactions towards an event (Fredline et al, 2003). This article specifically examines how events can potentially affect the economic system and communities in host countries.

Types of Events

The term "event" in the tourism field encompasses a range of categories with distinct characteristics. These include mega-events like the Olympic Games as well as smaller events such as regional festivals (Fredline et al, 2003).

The categorization of events varies in terms of time frame and diversity. According to Bowdin (2006), events can be classified based

on their size and scale: Mega-Events, Hallmark Events, Major Events, Cultural Events, and Business Events. Additionally, events can also be categorized based on their purpose and motive for holding or attending the event, rather than the specific sector they belong to. Mega events can be broadly divided into sporting and cultural categories (Mintel, 2010). Overall, Bowdin et al. emphasize the importance of considering these factors when classifying events.

According to Bowdin et al. (2006), mega-events are events that have a significant impact on entire economic systems and receive widespread media attention. These events are usually held in competitive fields and include examples such as the Olympic Games, FIFA and UEFA Football Championships, and World Athletics.

Bowdin et al. (2006) also define hallmark events as events that become strongly associated with a specific location. Some well-known examples of hallmark events include the Carnival in Rio, the Tour de France, the Edinburgh International Festival, the Jazz Festival of Juan les Pins in Antibes, and the International Motorcycle Rally in Faro.

The significance of events for destinations lies in their contribution to tourism revenue and the promotion of local pride and international involvement. These events eventually become synonymous with their respective locations, such as the Rio de Janeiro Mardi Gras being inseparable from Rio de Janeiro itself. The rise of mega sports events can be attributed to advancements in mass communication technologies that connect people globally, the transformation of professional sports through media business consolidation in the late 20th century, and the various benefits these mega-events bring to host cities, regions, and countries (Horne and Manzenreiter, 2006).

Importance of Events for Destination Branding

According to Jago et al (2003), events have gained increasing

importance in destination branding.

Event tourism can serve as a means to increase awareness, both domestically and internationally. The Olympic Games coverage greatly raised the profile of Calgary, with top-of-mind awareness increasing from about 19% to over 43% in the U.S., and from 10% to 40% in Europe (See Appendix 1: Example 1). Local branding efforts also contribute to the development of regional identity on a national and global scale (Gawler Visitor Information Centre, 2005). France and Roche (1998) argue that mega-events have become an opportunity for urban renewal. A prime example of this is the 1992 Olympic Games in Barcelona, where the city underwent significant preparation for the event, revitalizing it and positioning it as a tourist attraction in Spain (Moragas & Botella, 1995).

According to Robertson and Guerrier (1998), the Barcelona Olympics had a significant impact on both the city's image and Spanish tourism. Previously, Spain was mainly known for its beach vacations. However, events like the Barcelona Olympics, as well as other non-capital cities such as Seoul, Los Angeles, Adelaide, Calgary, and Victoria, have proven that major sporting events can elevate the status of smaller provinces and attract international attention. These large-scale events are seen as a means to promote long-term growth and attract domestic investments. Additionally, hosting mega sporting events can greatly enhance the image of the country itself. Florek (2007) examines how Germany's image evolved among a consistent group of New Zealand football fans before, during, and after their visit to the 2006 FIFA World Cup.

According to the finding, the alleged 'soft factors' such as safety, peaceable locals, and a multi-cultural environment had the greatest impact on the image. Matheson (2006) suggests

that mega-events have significant intangible benefits, including national and international recognition. Supporters of the athletics could enjoy their visit to the city and potentially return in the future, boosting tourism revenue. Additionally, corporate visitors may visit the city's production facilities and company headquarters.

Television viewers may choose to visit the host city in the future based on their impressions from watching a mega-event broadcast. Hosting an important event can elevate the city's status and establish it as a renowned conference or world-class travel destination (Matheson, 2006). Conversely, if the event is not successful, it can generate negative opinions and attitudes that could damage the destination's reputation (see Appendix 1: Example 2) (Fredline et al., 2003). The media plays a vital role in raising awareness about the host city or region, which is supported by Malfas et al. (2004) (see Appendix 1: Example 3). Research has demonstrated that television coverage of the English cricket tour to the West Indies resulted in a tourism increase of up to 60% for the islands.

Moreover, according to Malfas et al. (2004), the 1988 Winter Olympic Games had a significant impact on Calgary's reputation in Europe and the United States compared to other Canadian cities. In addition, Richards and Wilson (2004) state that many cities are now utilizing cultural events as a means to enhance their image, facilitate urban development, and draw in visitors and investments. This trend is a result of the increasing rivalry between cities to attract important stakeholders like consumers, investors, and politicians. As a result, cities must discover inventive approaches to differentiate themselves from their competitors.

Signature buildings, like the Guggenheim museum, the Tate Modern gallery, and the Baltic

Flour Mills, play a crucial role in establishing a city's image and competitive advantage. These iconic structures are becoming increasingly important in long-distance competition, despite their high cost. Events are a popular and affordable way to promote and recognize different locations, generating significant media attention. According to Yeoman (2004), events can also extend tourist seasons and introduce new seasons into the life of a community.

According to Boo and Busser (2006), the development of new festivals is seen as a strategy to extend the lifespan of destinations. For example, the Glasgow festival Gaelic connections, which takes place in January, exhibits a great way of extending the tourism season.

Impacts of Events

Economic impacts of Events

The economic impact of events is often emphasized, partly because event organizers and governments need to meet budget targets and justify costs, and partly because these impacts are the easiest to measure (Pasanen et al, 2009). According to Jago and Dwyer (2006), the economic impact of an event on a region is the net sum of the economic effects resulting from cash inflows and outflows caused by the event. A significant aspect of economic impact assessment is the cost that arises after an event. The portion of this cost that represents "new money" into the area is crucial.

Money that has not yet entered the area is a unique and important import, providing new opportunities and advantages for the local community (Pasanen et al, 2009). There are various methods to assess the economic impacts of events (see Appendix 1: illustration 4). Economic benefits are often used to justify hosting large sporting events (Florek, 2007). However, predicting these benefits can be complicated and somewhat risky. For

instance, during the 2006 FIFA World Cup, Germany's organizing committee earned ˆ140 million from the tournament, which exceeded expectations. However, tourists only spent about ˆ50 million in Germany, half of the anticipated amount.

In addition, according to Florek (2007), most of the impact on retail was for food and drinks with no significant effect. Mules and Faulkner (1996) also argue that even large-scale events like the F1 Grand Prix races and Olympics often do not bring clear economic benefits to the hosting city. They suggest that while major sporting events can result in extra income for the city, the city government often ends up losing money overall. Matheson (2006) provides an example from the 2002 World Cup in South Korea, where an increase in European visitors was offset by a decrease in regular tourists and business travelers, resulting in limited economic gain.

Many states, parts, and metropolises internationally are now highly sought after for particular events. Governments often offer generous funding incentives and allocate large amounts of money to upgrade the necessary facilities for these events (Dwyer et al, 2005). However, Carlsen and Taylor (2003) caution that major tourism and sports facilities may not be utilized much after the event. Mega-events like the Olympics can be seen as unprofitable investments. The cost of hosting mega-events such as the Olympics and World Fairs is typically very high, resulting in negative short-term returns and rarely recouping the expenditure (Getz, 1997). Nonetheless, event tourism development using existing properties often brings a range of benefits to the hosting communities.

The enhancement of infrastructure, encompassing electricity, H2O, and telecommunications, in addition to the availability of services like banks, roads, and transportation, coupled with

fresh investments, all contribute to bolstering community life. The 1992 Barcelona Olympics serves as a notable illustration of how a mega-sporting event can be utilized for this purpose. During these games,"significant investments were made in new transportation systems and revitalizing the coastal area. As a result, there is now a newly constructed marina, leisure facilities, and appealing sandy beaches." Such events attract increased investments and visitors leading to job creation and economic growth in the respective city or region. It is crucial to acknowledge that although a mega-sporting event may generate numerous jobs not only directly associated with the event but also within tourism, retail, and construction sectors; emphasis should be placed on the quality and duration of such positions. Typically speaking,the service-related jobs created by sporting events tend to be part-time,pay low wages,and are temporary.

According to Pasanen et al. (2009), the theatrical production of an event can have both positive and negative economic effects. These effects include development and building costs, additional marketing and business development, increased property values, long-term tourism promotion, local resettlement, and the closure of businesses. It is important to consider these intangible benefits and costs when evaluating the overall economic impact on the local community. However, there are also potential negative aspects. For example, local goods may become more expensive due to increased demand from tourists, stores may prioritize tourist merchandise over everyday items for locals, and there could be a risk of debt for the city along with increased taxes. Furthermore, price increases that occur during the event may not decrease once it ends (Fredline et al., 2003).

Using the Olympic Games as an example, Jones (2001) points out that

mega events like this can create pressure and issues with accommodation and the real-estate market for athletes, tourists, and sponsors. Additionally, an influx of tourists can lead to overcrowding, traffic congestion, increased prices,and displacement or disruption of normal community lifestyles.

The rise in dining costs at the new eating establishments in Auckland's Viaduct Basin was one example of the inflationary effect of the event. Additionally, there was an evident increase in rental costs for properties in downtown Auckland, leading to the displacement of renters due to development projects (Hall, 1992).

Impact of events on communities

In addition to their economic impact, events have both positive and negative effects on the communities they host. They can breathe new life into the cultural and social aspects of local residents, foster community pride, establish a sense of identity, encourage community involvement, enhance the area's reputation, and promote a sense of pride in the local community (Pasanen et al, 2009).

The interaction between tourists and a destination's population has been suggested to result in socio-cultural impacts. When a specific event takes place, the entire destination becomes "visible", providing an opportunity for socio-cultural impacts to develop (Small et al., 2005). The satisfaction of the host community is crucial for the long-term success of an event, making their acceptance of the event essential (Small et al., 2005). Teo (1994) defines the social and cultural impacts of event tourism as how tourism contributes to changes in value systems, ethics, behavior, individual behavior, family relationships, collective lifestyles, creative expressions, traditional ceremonies, and community organization. Fredline et al. (2003) have observed that unlike economic impacts, measuring social impacts of events can be challenging due to their subjective nature

and their varied effects on different members of the community. Despite the potential difficulties in measuring socio-cultural impacts, various systems and scales have been developed for this purpose (see Appendix 1: example 7). Tourism can foster community pride as visitors actively choose to visit a destination for a specific reason.

According to the Gawler Visitor Information Centre (2005), well-presented towns and well-maintained installations contribute to visitors feeling welcome and foster a sense of community pride. Festivals and events, as noted by Getz (1997), offer opportunities for cultural development within the community and create a sense of belonging, sharing, excitement, spectacle, and self-esteem due to the international attention they receive (Fredline et al, 2003). Liang et al (2008) state that events and festival organizers utilize themes of culture and history to prepare annual events that attract visitors. These festivals not only allow the local communities to showcase their own culture but also help them establish and develop their unique identity.

The community's involvement in active athletics significantly increased in the years following the Barcelona Olympic Games. After the 1992 Games, approximately 50,000 new clients joined the city's athletics centers. During this time, the participation of women in sports also grew from 35% in 1989 to 45% in 1995. Additionally, in 1994, over 300,000 individuals took part in various athletic events held on the streets of Barcelona, including competitions, endurance contests, bike cycling festivals, and roller-skating festivals (Malfas et al, 2004). These examples demonstrate how increased engagement in sports can have a positive impact on the quality of life for local residents. However, it is important to acknowledge that there can also be negative impacts associated with such

activities. Shone & Parry (2004) highlight these negative impacts as including anti-social behaviors, crime, congestion, herding, prostitution, disruption of community life, community disaffection, and displacement.

Mega featuring events attract large crowds and can lead to an increase in antisocial behavior. For instance, during America's Cup defense, there was a 36% increase in apprehensions for anti-social behavior (Faulkner, 2003). The decision to hold such an event, especially on a large scale, is a political one (Richards and Wilson, 2004). According to Barker et al. (2002), events and their subsequent promotion can have significant political ramifications at both macro- and micro-political levels. However, political factors can also negatively impact tourism events. It is not uncommon for terrorist or politically motivated activities, protests, and boycotts to take advantage of the publicity generated by international events.

Political controversies during major events, such as the 1981 Springbok rugby circuit to New Zealand and the 1998 Commonwealth Games, as well as boycotts and terrorist attacks at Olympic Games, have raised concerns about the safety of hosting mega-events (Barker et al, 2002). The impact on the environment is also a significant issue, particularly with regards to traffic congestion, parking, crime, hooliganism, noise pollution, littering, energy and water consumption, and waste generation associated with hosting major and mega-events (Pasanen et al, 2009). The negative consequences of event tourism occur when visitor activity exceeds the environment's capacity to manage these impacts within acceptable limits of change (Lorant, 2009). Uncontrolled activities present potential threats to natural and built locations worldwide, causing land degradation (erosion), increased pollution, soil contamination, habitat loss, pressure on endangered species, and heightened risk of forest fires, among other effects.

'(Lorant, 2009). This rupture often

raises pressure and can force local populations to compete with tourists for the use of essential resources. Companies and organizations should consider principles of sustainable planning and development to have a more "friendly" impact on the environment. Examples of these activities can be seen at the Sziget Festival, where 'Clean Air Action Group' increased the number of portable toilets or created automatic volume-control devices for the waste collecting system (Raj and Musgrave, 2009)'.

Another example is The London 2012 Olympic Games, which has implemented an Environmental Management System (Bowdin, 2006). According to Heckbert (2009), funds generated for community development will be used for projects such as redeveloping the business district, preserving and restoring historic buildings, planting trees, and installing holiday decorations. These improvements are expected to outweigh any short-term negative environmental impacts. Heckbert (2009) identified the negative effects that the local community of Mdina, a walled city in the cultural center of the Maltese islands, acknowledged. Tourism accounts for 40 percent of the economy. Residents of Mdina complained about visitor invasions that block roads, litter streets, cause noise, and dress inappropriately (Heckbert, 2009).

In addition, some residents expressed dissatisfaction with services such as street lighting, improved tourist paths, invasion of privacy, and "loss of peace for the public good without compensation from either government or tour operators" (Hackbert, 2009). Therefore, when tourist attractions outside the area begin to grow stronger connections, local residents may become irritated and experience a negative economic impact. It is important for local residents to understand the significance and advantages of tourism to their region, including tourism's contribution to economic activity in the area. Alongside other adverse effects and limited community input, locals

may become resentful and frustrated with tourism.

According to Barker et al (2002), locals may focus on the negative aspects of tourism events, but it is important for them to recognize the positive benefits to the community. The Gawler Visitor Information Centre (2005) suggests that involving the community in the planning and execution of event tourism can lead to a more positive attitude and greater profitability. Moscardo (2007) argues that even if an event attracts a large number of tourists and generates revenue, without community engagement, it will have little impact on regional development. In other words, the event will remain disconnected from the local area.

Decision

Event tourism is often seen as a way to improve the economic and social well-being of communities. The importance of events in promoting tourism is expected to grow in the future. However, it is important to remember that this growth is not just about economic development, but also about addressing social and cultural factors that are crucial for the success of both events and destinations. Faulkner (2003) emphasizes that event planners and the tourism industry as a whole take a significant risk by ignoring the community impacts of an event.

Hall (1991) suggests that the most effective approach to planning should be in the form of advisory or community-based action. In order for any event to succeed, the host population, public administration, and event organizers must collaborate. All of these parties must identify and anticipate impacts and then manage them to achieve the best outcome for everyone (Bowdin, 2006). While it may not always be easy or simple, events can be more beneficial when everyone is actively

engaged. Events have an impact on the local community, but with proper communication, involvement, and understanding of their potential, they can bring significant opportunities, benefits, and positive outcomes.

Events not only attract a progressive audience, but also influence world tourism trends, showcasing new tourist destinations and leaving a lasting legacy in the host city or countries.