Mega-event essay

International TourismManagement 1

Is it appropriate for a city or a region to establish a mega-event?
What are the benefits and disadvantages for the host?
During the past twenty years Sport has experienced a considerable development, both
at the level of the number of practitioners, as financial masses involved. Becoming a social
and economic phenomenon major. It has turned into an industry important involving many
public and private actors. Actually, the major sporting events highly publicized, such as the
Olympic Games, world cups, offer exceptional showcase Organizer cities. Eighteen of the
greatest sports appointment show impact on host countries, affect both urban, economic,
environmental, that tourism.
As it claimed Gouguet and Nys (1993):
"A time where economic competition is more intense, cities and regions are a dual purpose:
to be known internationally and display an image of dynamism and efficiency to support the
tourist population flows and the entry of investors."
It is also important to note that, the mega sports vents exert different types of positive and
negative effects on an economic plan that non-economic. The reasons to host a mega-event as
the Olympic Games appear to often elusive to economists. The net economic benefits are
rarely positive; the quantifiable benefits are difficult to measure. Yet, countries compete
fiercely to host these events.
Mega event and tourism
Must be distinguished events to local character of the large-scale sports events. “How
are mega-events separate from other events?” A mega-event can be viewed in two main
respects: first, with regard to its internal characteristics that is, primarily its duration and its
scale, and second, in respect of its external characteristics, which mainly take account of its
media and tourism attractiveness, and its impact on the host city. Only the latter are likely to
exert a significant impact on the economic activity of a city or region. As could be expected,
these are the Games Olympic of summer and the World Cup of football in attracting visitors.
These sport events are implemented, to increase tourism demand in organizing region.
According to the definition of Kurscheidt and Rahmann (1998) a mega-event is:
"A sporting event of international scope that can be organized in the same way anywhere in
the world, according to the same rules, regardless of the economic or cultural, political
context in which it occurs. (Olympic Games summer and Winter Paralympic Games, the
World Cup of football, rugby, cricket, Golf).”
Indeed, such gatherings directly benefit construction, distribution, tourism in General and in
particular, hospitality as well as other traditional sectors such as employment.

They create opportunities for development in computing and telecommunications, protection
of the environment, the industry of sport, as well as in other emerging sectors, without
neglecting economic development.
The actual event only lasts only a few weeks, certainly, but the preparations begin up
to a decade in advance and may require considerable investment spending; and some are
doing well, while others do not achieve the expected results. The main advantage that a host
country withdraws from the World Cup is the increase in tourism during the three years
preceding the competition. Thus, these countries tourism has increased an average:
In general the number of international visitors, in the host cities, increases by an average of
approximately 25% in the second year following the games. In addition, the Olympic Games
are an important engine of growth. They are evidence of the ability of the city to host major
events of international class. A study published recently by two American economists shows
that major competitions of this size, result in a significant increase in trade for the host
country, likely because these events give the signal that the host country is now a rising
power.
The ideal course is to have a sporting event in high social profitability with high
economic benefits. However some events have a strong economic impact but low social
utility. This may meet with sports events with strong negative externalities, be they social
(hooliganism, terrorism) or environmental (infringements of the environmental pollution).
There again, a serious evaluation of these externalities is required.
Actually, these events are different types of effects on the economy of the host regions. It
should be distinguished if the benefits and costs that they generate are actual or pecuniary, if
they occur in the short or long term, if they are tangible or intangible, and if they have a
private or external.
Real and monetary effects:
The Organization of a sports event generates costs and actual or pecuniary profit. The
first, influence on the well-being of the community. Thus the Organization of a mega-vent
allows better known a region and result, an influx of tourists, the region has a real advantage.
Hand part, the cost of construction of sports infrastructure and management is a real cost
related to the conduct of a demonstration.
The benefits and monetary costs do not affect the well-being of the community: they
had a re-distributive impact. The Organization of a major sporting event involves many cost
construction or renovation of the existing equipment. But this provides extra work to the
Organizer region. To meet the increased demand, they must hire additional staff.
Year FIFA Three years before Two years before One year before during
Increase in % 4% 6% 11% 13%

The salary of the employees in the construction sector will therefore tend to increase. This is a
gain for the latter but, for the community as a whole; it is not a real benefit. Indeed, these
wage growth will be offset by a relative decrease in the pay of workers in other sectors.
Short-term and long-term macroeconomic effects:
In this crisis period, which lasts for 5 years now, some skeptics this is developed
before the arguments to justify committed investment on major sporting events. In strict
economic terms, it may indeed seem naive to defend the construction of new stadiums or
grandiose ceremonies funding. These events are indeed very expensive: when London won to
host the games in 2012, the British have earned the right to spend 5.5 billion pounds, a sum
already multiplied by three at the time it is. But these costs are not offset by income earned
during the event, and if the economy is temporarily spurred, may wonder about the real utility
of less publicized equipment or new stages. The opening ceremonies of the Beijing Games in
2008 would have cost them only at least $100 million, a considerable amount when we know
that 100 million live on less than 1 dollar a day. It is true that, short-term benefits are
essentially spending of visitors and organizers during the planning and organization of the
event. These expenses are a net injection in the local economy, stimulating the production or
promoting job creation. However, these effects are temporary: there is generally the level of
economic activity its initial shortly after the conduct of the event. But, they can have lasting
effects leading to a permanent increase in the level of economic activity of the city or the host
region. This phenomenon may result, for example, improvement of the knowledge of the
region with the extensive media coverage that comes with the large-scale sports events. This
will foster the growth of the tourism sector of the Organizer region (Appendix 1). The
construction and improvement of general infrastructure - roads, telecommunications... -
accompanying the Organization of major events also have an impact long term on the local
economy, with better accessibility and the reduction of the cost of communications.
The most advantageous for the nucleolus Organizer regions is to implement strategies
to maximize the benefits of long term. This is characterized by the phenomenon of inflation
(real-estate speculation). A paper published with Mark Spiegel, considers the economic
impact of mega-events, by observing their impact on international trade. However, the use of
different models shows that the home of a mega-event has a positive impact on the exports of
the host country. This effect is statistically robust, permanent, and especially it is high - with a
30% gain for the country which hosted the Olympic Games. The home of such an event seems
almost always associated with a commercial opening, and the borders of the host country
(Appendix 2).
Also impact leads to reconsider the costs associated with the home of a mega-event.
Indeed, there are many negative effects that appear to long term. Number of subjects have
been and are still widely discussed in the media about these mega-vents. As aspects of the
human rights, the environment, to the degradation of the infrastructure, this cannot be
maintained due to lack of means.

The degradation of the natural landscape and natural heritage are intangible values. The
environmental damage nevertheless correspond to a real cost that it integrate in the decision to
organize a sporting event. It is felt by unsightly infrastructure building and the destruction of
natural resources such as water. A large amount of additional water is necessary for the
preparation of the games and for the duration of the competition, which requires countries,
like China or the South Africa, to drain some provinces already suffering severely from
drought. The Beijing authorities said they had managed to stop the rain in limited areas by
launching chemicals into the clouds. The air quality is also affected at these events. The
construction of additional sites did not improve the situation, the building creating of many
greenhouse gas emissions and resulting operating at full power electric surroundings. The
reality is that many excesses appear at these events: deportation of the poor to maintain a
good image. Similarly, the strict rules of FIFA are the cause of damage to local businesses.
South African companies that had hoped to take advantage of the windfall were crowded out
(Appendix 3).
However the host cities can expect conscientious decision-making, long-term, public
policies. Consider the example of China: Creation of a green belt in Beijing, adoption of
cleaner fuels, development of wind energy, and improvement of public transport… The
Olympic Committee seeks by all means to reduce the environmental impact. It is said that the
OJ 2012 will be particularly ecological. The idea is that this green space and this protected
natural area of sustainably transform this part of London (Appendix 4).
But the disadvantaged population remains always seriously affecting these prejudices. But the
disadvantaged population remains always seriously affecting these prejudices. Notably in the
host country that are developing (China or South Africa).
Tangible and intangible effects:
The intangible benefits are made including the pleasure experienced by the audience,
the sense of pride felt by the inhabitants of the city or organizer region or improving the
image of the region. For the region hosts, issues related to this event is not just athletes, or
even economic. They are also political and social. Take the example of the Qatar which for
some years to obtained the Organization of numerous mega-vents such as: FICSA to 2022,
World Handball for 2015, the world of Athletics of 2017, the football in 2011 Asia Cup and
the Asian Games in 2007. The Qatari candidature for FIFA was not a country but a region, the
Middle East, and of a civilization, the Arab Muslim world.
Policy issues: this event is likely to strengthen both the solidarity between the countries of the
region and the quality of the dialogue among civilizations. In addition, give the feeling to the
young Arabs that they are not made in the bans of the nations is of critical importance.
The issue is also social: the dynamics of opening of Arab societies, initiated a few years, will
be reinforced. The Qatari was bearer of universal messages: for the Qatar, organize the World
Cup is a highly symbolic act in a certain vision of the world, more United and solidarity.
(Appendix 5).

External effects:
Costs that do not result in the payment of monetary compensation are external costs.
Thus, costs related to the Organization of a sports event are imposed on the population as a
noise, "too full", or congestion. These costs include harm to the influx of the lap times.
Indeed, we note recent year, an effect of eviction of tourists and local for major sports events.
Thus, the Athens OJ (2004), if being held at the height of the summer season, tourism
decreased by 32%. As of the 2006 football World Cup, had no impact on the tourism
visitation in Germany. Benefits are related to the improvement of the General infrastructure.
In Montreal, the 1976 Olympic Games made known Montreal as a destination of interest in
the West. They have also left their architectural and tourist traces. Today, the Olympic
Stadium is considered one of the main tourist attractions of the city. The sport is still the
honor. On the velodrome, it was transformed to receive the Biodôme, a stunning
reconstruction of the most beautiful ecosystems of the Americas. Apartments were built in the
former Olympic village. In contrast, if these infrastructures are not maintained this will cause
an extreme Visual therefore cost.
We have examined the mega sporting events and their forms of impact on the host city
and country. Due to the increasing size, the staging of mega-event currently involves
considerable investment in both sporting facilities, and supporting infrastructure and services,
transportation and telecommunications. Various interests are involved ranging from the
commercial, with their concern to maximize profit, to the governmental, with their concern
for political, social and economic benefits. Specifically for the host cities, the benefits to be
derived from staging the mega-events can be enormous and various. Drawing examples from
recent mega-events, the discussion on impacts has highlighted positive as well as negative
ones. In effect, economic benefits are the prime motive for all the interests involved in the
hosting of the mega sport events, be it the local Government, which seeks urban development
of the region through infrastructure made for the staging of the event, or the corporation that
becomes a sponsor of the event to attract publicity. While bidders battle for the kudos of
winning the hosting of a mega-event, the desired economic, fiscal, social, cultural and
political outcomes are expected to justify their actions. Despite this many problems and
damage arise from these events. A problem which has developed more and more over 15
years and that of terrorism. Effects of such a mass of population concentration increases these
risks. This is why the cost for the security of the civilian and one cost is more heavy.
Despite the setbacks in these events, the population remains faithful to the
appointment and infatuation is not near falling.

Appendix 1:
“In June 2009, in a small village of Finland, I found myself in the company of a
colleague in the single bar where it was used to eat. Seeing a small television, I watched
organized in South Africa Confederations Cup and I am excited to me on the face of an
advertising spot on Rustenburg (northwest province) [one of the 10 cities that are home to the
world], animals of its natural park, Sun City and its inhabitants of all colors. Having regard to
the astonishment of the bartender, we explained him that we were in South Africa. He then
told us that there was strictly aware nothing in football, but that this country had a great place,
and that he would visit. The other guys in the bar approached and began to chat with us. They
wanted all learn more about our continent, Africa. In a few moments, their prejudices were
gone. There, in an isolated village of the Arctic Circle, the South Africa was only one point
dark at the end of a dark continent south. This is that I understood that we had already won
the World Cup, before even the first time.”
* Professor ofEconomics atthe University of Stellenbosch
Appendix 2:
In July 2001, Beijing was given the Organization of the twenty-ninth Olympiad. Just
two months later, China concluded negotiations with the WTO, formalizing its commitment
to liberalize its trade successfully. And is not an isolated case. Rome has been awarded the
games in 1960 in 1955, the year that the Italy began the steps leading to the convertibility of
its currency, has joined the United Nations, and especially began negotiations which would
lead two years later to the Treaty of Rome creating the EEC. The games in Tokyo (1964)
coincided with the arrival of the Japan to the IMF and the OECD. Barcelona has been
awarded the games in 1992 in 1986, a year after the Spain joined the EEC. The decision to
assign to the Korea games of 1988 has coincided with the liberalization policy of the country.
The correlation is also the only Olympic Games - the football World Cup was held in the
Mexico in 1986, year that marked the beginning of the commercial opening and entry into the
GATT.
Appendix 3:
Energy Central was built specially for the complex sports of Stratford and produces 20
to 30% of all of the necessary energy from bio fuels. Sustainable materials have been
preferred for the construction of buildings and rain waters are collected and reused. The
proximity of the river made possible the operation of this area to make habitat for species
such as kingfishers or otters, and more than 2000 trees were planted to allow the creation of a
green space that will endure after the end of the OJ.
Appendix 4:
For example, viewers were forced to use the Budweiser in stages and were therefore
deprived of South African beers such as Castle, Black Label or Windhoek. The general
impression of South Africans is that they have so far nothing removed from this partnership
with FIFA.

Appendix 5:
“This vision embodied by His Highness the Emir, declines in various areas: diplomacy first,
very active peace, Sudan to the Lebanon and in Libya; culture and education then; the
dialogue among civilizations, in particular between the East and West; the humanitarian
commitment, also, the Qatar each year devoting 0.7% of its gross income to help developing
countries.
The 2022 world offers the opportunity to Qatar to strengthen its policy of openness, dialogue
and tolerance. It is also, for the Middle East, an additional chance for peace and stability. It is
these values and these hopes that the Qatar will organize in 2022 World Cup.”
*Mohamed Jaham Al Kuwari, Ambassador ofthe Qatar in France

References:
Affaire stratégique. 2011. Le Qatar Hyper-puissance du sport [online]. [Accessedon 30 October 2011].
Available from:
http://pascalbonifaceaffairesstrategiques.blogs.nouvelobs.com/archive/2011/01/29/le-qatar-hyper-puissance-du-
sport.html
LeMonde.fr . 2010. Qatar et la FIFA [online]. [Accessedon 5 November 2011]. Available from:
http://www.lemonde.fr/idees/article/2010/12/17/pourquoi-le-qatar-a-emporte-l-organisation-de-la-coupe-du-
monde-2022_1455030_3232.html
Telos. 2009. JO [online]. [Accessedon 18 November 2011]. Available from:
http://www.telos-eu.com/fr/article/jo_correlations_inattendues
M. Malfas (2005). Impacts of the Olympic Games as mega-events.
Time COLES and C. Michael HALL (2011). International business and tourism.

Mega-event essay

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