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.
The Direct Economic Impact is a measure of the total amount of additional expenditure within a defined geographical area, which can be directly attributed to staging an event. Based on visitor and organiser spending, Direct Economic Impact is an assessment of the net increase in spending as a result of the event.
Many event organisers also wish to capture the Total Economic Impact. This step is designed to make adjustments to the Direct Economic Impact to capture the subsequent ‘secondary impacts’ of additional spending within the host economy. Effective calculation of the Total Economic Impact requires previous studies to have been carried out which analyse detailed interactions and interdependencies within the host economy itself.
eventIMPACTS provides guidance on measuring both the Direct Economic Impact and the Total Economic Impact. The relevant issues within each stage, which are often overlooked or misunderstood, are discussed and illustrations are provided where appropriate. An online Calculator has been included so that organisers can forecast the approximate scale of economic impact of their event, based on achieving certain numbers.
Download - Economic Toolkit (.pdf, 419kb)
Download - 2016 Case Studies (these cover a variety of events and may be helpful when using the economic calculator)