Economic Impact

The ‘economic impact’ of a major event refers to the total amount of additional money injected into a defined area, as a consequence of staging the event. Economic impact studies seek to establish the net change in a host economy – in other words, money inflows and outflows within a defined geographical area measured to establish the resulting net outcome.

ASOIF Common Indicators for Economic Impact, and their links to the UN SDGs

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UNDERSTANDING EVENT IMPACT DATA:
Benchmarking for Better Insights

Interpreting event impact data to determine whether a study result is favourable can be challenging, especially without access to historical event data or comparisons from similar events.

After reviewing over 20 event impact studies, our consultants have created a benchmark database to help clients contextualize and better understand their impact study results.

One significant metric is the average length of stay within the host economy (ASOIF Reference Code: EC-S2.2). Based on data from events lasting between 1 and 11 days, the average stay for visiting spectators* ranges from 1.6 to 4.1 days. 

* The length of stay of participants involved in events will be higher than it is for spectators

Factors to be considered when analysing spectator length of stay:

  1. Host City Characteristics: Variables such as the city’s proximity to other populated areas, size, and ease of travel can significantly affect the length of stay.

  2. Event Duration: While longer events might suggest longer stays, this isn’t always the case. For example, attendees of a one-day event often extend their stay (e.g. a long weekend), while visitors to a week-long event often only attend for part of the time.

  3. Distinguishing Days vs. Nights: A two-day stay typically equates to one night. These figures are different and should not be confused when calculating economic impact.

  4. Paying Stayers Only: To calculate visitor accommodation expenditure accurately, only data from paying stayers (e.g. hotel guests) is relevant. Those staying with family or friends don’t contribute directly to accommodation revenue.

  5. Day Visitors: Visitors attending the event for just the day and not staying overnight also have an economic impact, (e.g. through expenditure on meals or visits to local attractions).

By understanding these nuances, clients can more accurately assess the economic impact of their events and make informed decisions based on robust data comparisons.

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