Sporting, cultural and business events can create long-term economic benefits for their hosts that are not captured by more immediate impact assessment measures.
For example, while the cash value of investment in event infrastructure is reflected in direct and total economic impact calculations, the effects of that investment in generating future opportunity for further value creation are not. Similarly, events such as trade fairs and business conventions can build relationships and make connections that increase trade over years ahead.
Repurposing unused space can be another catalyst for positive long-term economic and environmental impact, particularly for the cultural events the OECD recognises as important anchors of urban regeneration programmes.
What to measure
The OECD and ASOIF recommend using the following measures to understand an event’s long-term economic impacts:
- Event-related spending on new/upgraded venues (ASOIF reference EC-IN2.1)
- Event-related spending on new/upgraded equipment
- Event-related spending on new/upgraded transport systems (ASOIF reference EC-IN2.2)
- Event-related spending on regeneration of regions/areas
- Event-related spending on accessibility
- Quantity of unused space repurposed for event (m²)
- Number of research projects directly associated with the event
- Investment value of research projects directly associated with the event
The OECD considers these impacts to contribute towards the UN SDGs Decent Work and Economic Growth (Targets 8.2 and 8.3), Industry, Innovation and Infrastructure (Target 9.1) and Sustainable Cities and Communities (Target 11.2).
Long-term economic impacts: How to measure them
Monitoring investments in permanent infrastructure made by event organisers and hosts is a good starting point for measurement of long-term economic impacts, beginning with venues, equipment, transport and accommodation that will remain in use post-event. Measures of these investments should always quantify the value of actual, rather than budgeted, expenditure.
Long-term economic impact assessment in action
Case study: 2022 Hijinx Unity Festival