What are Advanced Measures?
Adjustments can be made to the Direct Economic Impact figure to capture secondary impacts on the host economy. In most cases, the information required to undertake these adjustments is not readily available, can be speculative, and has additional resources implications. However, should such information be available and reliable then it is possible to assess the Total Economic Impact. As a matter of practise, any adjustments should only be undertaken following the calculation of the Direct Economic Impact.
Routes to Measurement
The most common way in which the calculation of Total Economic Impact is made is to take the Direct Economic Impact and apply a ‘multiplier’. The application of the multiplier, once determined, is a straightforward process, but the data and analysis required to calculate an accurate multiplier can be extremely difficult and require the study of complex economic interrelations within a defined geographical area.
Similarly the estimate of the GVA per workforce job requires the application of data from Government sources and is also considered as an Advanced Impact. A definition and further information on GVA can be found in the resources section below. In practice, these Advanced Measurements will need to be handled by professional companies or research bodies that are skilled in working with complex economic data.
Further guidance on measuring Total Economic Impact, including detailed information on multipliers and additional considerations for larger events, can be found in the Resources section below.
Reporting on Economic Impact
It is important that any economic impact findings are presented in a transparent manner that allows the reader to trace how the results have been derived. The rationale for this is to ensure comparability when trying to reconcile economic impact estimates for two or more events, or for the same event over time. The Resources section below provides further information on standardised reporting of methodology and reporting.