Literature Review – Economic Impacts
Table of Contents
2.1 Economic Impacts on Events. 3
2.2 Economic impacts of events. 4
2.5 Contradiction and controversy. 6
1 Introduction
Events and their impact on society range between multiple realms. It is considered necessary that the effects of and from the event are studied adequately and analysed with precision and accuracy. With trends shifting within the society and the audiences, differences in the games are considered quite common. The need to ensure that the event reaches the exact motive for which it was planned is amongst the many aspects that impact the development itself and society. The literature review which follows is considered to dwell over the economic impacts hailing to and from the events. Don't use plagiarised sources.Get your custom essay just from $11/page
2 Literature Review
2.1 Economic Impacts on Events
According to the book authored by Getz and Page (2016), a planned event is considered to be quite economically impactful from society. Society trends are considered to be economically derailing or beneficial for society. In relation to economics, the concept of demand and supply are integral. In this regard, economic thoughts impact the pricing strategies for the event. Based on the capacity of the audience to afford the game, the ticketing and other entry and amenities shall be priced. This would display the impact of economic factors ion society. In the research by Agha and Taks (2015), the economic implications for events are considered equally important when it comes to the fact that the scale of an event shall be regarded as dependent on them. With currency changes and travel costs, all falling into the reign of the economy might deter or appraise the event. With this, it can be considered that the scale of the game is thought to play a significant role in the economic impacts which would affect it. A smaller, more locality based event has been observed to have lower incidences of the economy. With more significant events catering attendees from beyond the borders as well, the economy plays a more significant role in their behaviours and the rate of attendance. Groothuis and Rotthoff (2018) in their study have mentioned the fact that the use of the more significant and more structured aspects of the economy which include rates of conversion with foreign currency and other expenses of abode shall be a player that impact the event and its success.
Thus it can be considered that the success and profitability of an event are profoundly impacted by the economic aspects of the particular host country or the region where the event is to occur. This is specifically with one-way impacts associated with the economy on the event rather than the event drawing effects on the economy.
2.2 Economic impacts of events
The research by Lee et al. (2017) mentions the fact that events have significant economic effects on society. The study suggests the fact that mega-events are considered to bring substantial economic benefits to the host country or the locality where the vent is hosted. This is considered to be quite pivotal for the area. The economic impacts can be listed with respect to aspects such as opening new avenues for employment, raised business activities and multiple other factors such as the internal circulation of wealth being faster during the event days. It was further considered in the research by Warnick et al. (2015) that special events are supposed to bring about several growth prospects of the host society. It essential that events for leisure or special occasions are held frequently to provide a stable economy to the area. With numerous activities for businesses and economic benefits being instated with such events, the growth in the marketplace is pivotally observed. Thus hosting events for any occasion which engage a large part of the society has significant economic impacts. Ranging from earning and profitability to the growth in ventures being established even temporarily allows the events to contribute to economic growth significantly. Kwiatkowski (2016) mentioned that attendees and their increased spending in an event are considered to be a meaningful economic impact. The expenditure can be listed within the business growth and the earnings for the host region. Further, in the case of international events, the earning may be considered a foreign exchange with hefty amounts being converted to local currencies allows higher economic returns from the competition. Thus considering the fact that events hosted and arranged to enable the dispersal of income and profits across multiple business sectors and not only limited to the event management. In this regard, the need to ensure that the events are considered to bring about well-structured aspects of economic impacts which are generally beneficial for the host country or the locality.
2.3 Theories
Framework for knowledge of planned events has been mentioned in the book authored by Getz and Page (2016). The structure suggests the various aspects included in developing an event for better opportunities to succeed and thus help grow the pointers to the success of the event economically and with other relevant elements.
The model mentions the pivotal position of events to the experience economy. The growth of event knowledge allows for the better positioning of the business opportunities for event managers and increase the role which they play within the economy. The growth is thus considered to be mentioned within the framework with different policies being required for more significant events and accordingly be developed effectively to support the existing economic errands and create new trends for growth in it. It can, therefore, be considered that the use of the more significant and more structured aspects of planning and development are inducted into the positioning of an event and increase its effectiveness with the designed initially objectives being achieved. This is observed and the outcome of the event, which can also be stated as its impact, both on the society and the economy of the region.
2.4 Empirical Areas
In light of the research, Andersson and Lundberg (2013), an event and the economy are mutually inclusive events. Either of the two witnesses the impact of the other on its success or growth. The event brings significant earning and profitability to the economy with its success, and in case of a more significant event, the returns are considered to help churn the wheel of the economy with higher smoothness. The event is deemed to be this brings about several growth aspects for the economy. It was mentioned in the research by Kim et al. (2015), the need to ensure that the use of the more significant and more structured aspects of an event is observed in the form of not just economic stability but may also cause a burden on an already unstable economy. The financial instability may be considered an economic impact of the event which is with respect to the adversity that the arrangements and management of such a significant event would increase the costs and drainage of finances for the entity. Dwyer et al. (2016) mentioned that economic impacts from numerous special events are considered to bring about a number of economic outcomes. The consequences are not just positive but may be harmful as well. The study supports the previous claims for increased costs being incurred and failure to earn the invested amount can result in a deficit. However, in the case of positivity, the host country can witness short economic appraisal.
2.5 Contradiction and controversy
The section details between the inconsistencies observed amongst the considered literature in the section above. A significant disagreement is found within the literature where benefits and adversities in the form of economic impact are considered by the researchers. While the researchers like Warnick et al. (2015) found the events to have a more significant effect on the economy rather than that of the economy on occasion. It was mentioned in the research by Groothuis and Rotthoff (2018) it was suggested that the events were under the influence of the economy on the contrary to the previously mentioned research. The experience-based economy is considered to cater the earnings, profits and revenues generated from large scale events which add to the economic growth. However, the highlight of the above-mentioned section that events have a higher impact on the economy rather than the opposite case as has been considered by some of the researchers.
3 Conclusion
The considered literature is considered to have significant learning from the previously conducted researches over the topic of events and their economic benefits. The need to ensure that the use of the fundamental aspects of event management and implementation to carry out an event lead to outcomes which benefit or deficit the economy. The large scale events have been observed from the literature above to bring about significant addition to knowledge for a further developed study, especially over the economic impacts of the events. In this regard, the literature review has had a specific focus on economic impacts which can further be considered to expand into the social impacts realm and region when it comes to significant events being held by host countries.
4 References
Getz, D. and Page, S., 2016. Event studies: Theory, research and policy for planned events. Routledge.
Lee, C.K., Mjelde, J.W. and Kwon, Y.J., 2017. Estimating the economic impact of a mega-event on the host and neighbouring regions. Leisure Studies, 36(1), pp.138-152.
Warnick, R.B., Bojanic, D.C. and Xu, F., 2015. Using a trade market analysis technique to refine measurements for economic impact analysis of special events. Journal of Travel Research, 54(1), pp.52-65.
Kwiatkowski, G., 2016. The economic impact of event attendees’ spending on a host region: A review of the research. Event Management, 20(4), pp.501-515.
Andersson, T.D. and Lundberg, E., 2013. Commensurability and sustainability: Triple impact assessments of a tourism event. Tourism management, 37, pp.99-109.
Agha, N. and Taks, M., 2015. A theoretical comparison of the economic impact of large and small events. International Journal of Sport Finance, 10(3), pp.199-216.
Groothuis, P.A. and Rotthoff, K.W., 2016. The economic impact and civic pride effects of sports teams and mega‐events: do the public and the professionals agree?. Economic Affairs, 36(1), pp.21-32.
Kim, W., Jun, H.M., Walker, M. and Drane, D., 2015. Evaluating the perceived social impacts of hosting large-scale sport tourism events: Scale development and validation. Tourism Management, 48, pp.21-32.
Dwyer, L., Jago, L. and Forsyth, P., 2016. An economic evaluation of special events: Reconciling economic impact and cost-benefit analysis. Scandinavian Journal of Hospitality and Tourism, 16(2), pp.115-129.