Total Economic Impact

A queue of people outside a ticket office

Total Economic Impact

Advanced Economic measures primarily involve making judgements about longer-term economic activity, or economic decisions that people may or may not have made were it not for the event taking place. In other words, there is an increasingly high level of complexity involved in making a robust link between the event and the stated impact.

The Total Economic Impact builds on the calculation made to determine the Direct Economic Impact. Whereas the Direct Economic Impact assesses additional 'first-round' spending resulting from an event (e.g. a direct transaction between say a visitor and a local restaurant), the Total Economic Impact seeks to capture the knock-on benefits to the host economy (e.g. the additional money spent in the local area by that restaurant as a result of the increased business).

Other economic impact considerations for larger events have been referenced. These introduce concepts such as displacement and import substitution and Gross Value Added (GVA) which are generally felt to be more applicable to the very largest scale international events. 

Estimating Total Economic Impact

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.




  • Overview of The Economic Impact Calculation >

    Economic impact is an important consideration when bidding to secure major events, particularly in cases where organisations seek support from the public sector to help fund staging costs ...

  • Calculating the Total Economic Impact Step 6 >

    Using the direct economic impact from steps 1-5 to calculate the total economic impact ...

  • Estimates of GVA per workforce job and expenditure to GVA ratios for regions and nations of the UK >

    Find out more information about GVA ...

  • 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 ...

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