Economic Impact Assessment of Mega-Events in the United Kingdom and Brazil. (September 2019)

• Record Type: Journal Article
• Authors: Wan, Shui Ki; Song, Haiyan
• Is Part Of: Journal of hospitality & tourism research. Volume 43:Number 7(2019)
• Page Start: 1044
• Page End: 1067
• Publication Date: 2019-09
• Subjects: mega-sport events -- Olympics -- economic growth -- counterfactual -- panel data; Hotel management -- Study and teaching -- Periodicals; Restaurant management -- Study and teaching -- Periodicals; Food service management -- Study and teaching -- Periodicals; 647.068
• DOI: 10.1177/1096348019851838
• Languages: English
• ISSNs: 1096-3480

Abstract

Hosting mega-events is often perceived as a way to stimulate economic growth through tourism. However, the cost of infrastructure investments and promotion may outweigh the benefits generated by the mega-events. Measuring the impact of such events on a hosting country's economy is not easy, especially as mega-events generally involve many sectors of a destination's economy. In this study, we adopt a panel data approach to evaluate the impact of the London Olympic Games, Brazil World Cup, and Rio Olympic Games on the economic growth of the respective destinations. Using cross-sectional correlations between countries, we construct scenarios in which the hosting countries did not hold the mega-events and then estimate the time-varying impact of the events on the economy. The developed and developing countries exhibit different results.