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Why measure Economic Impacts?
Economic impact measurement has become a powerful and persuasive tool for those looking to capture and evidence the financial benefits that can result from the hosting of a major event. Measuring economic impact not only allows public sector bodies to evaluate their economic return on investment, but it also demonstrates how events drive economic benefits - allowing event organisers develop practices which maximise these benefits.
The 'economic impact' of a major event refers to the total amount of additional expenditure generated within a defined area, as a direct consequence of staging the event. For most events, spending by visitors in the local area (and in particular on accommodation) is the biggest factor in generating economic impact; however, spending by event organisers is another important consideration. Economic Impact studies typically seek to establish the net change in a host economy - in other words, cash inflows and outflows are measured to establish the net outcome.
Choose a level of Impact
Economic impacts have been broken down into three categories based upon the ease with which they can be measured. Further details on this categorisation can be found here.
Basic Economic Impacts capture headline spectator and attendee numbers, as these a re a strong indicator of likely economic impact
Intermediate Economic Impacts usually involve survey work to calculate the 'direct economic impact' figure from the event
Advanced Economic Impacts consider adjustments to the 'direct economic impact' figure, usually to measure the subsequent effects of increased spending in the host economy