In this paper, we will be discussing the economic impact study on 2010 Arctic Winter Games conducted by Econometric Research Limited by using the Sports application of Sports Impact Model Alberta (SIMA) developed by themselves. Further, we will explain about how it has been conducted and the key findings and conclusions of the study along with my recommendations.
The economic impact study on 2010 Arctic Winter Games was conducted by Econometric Research Limited. The study has been conducted by using the Sports application of Sports Impact Model Alberta (SIMA). This model helps in capturing the economic impact of sports related expenditures at the economic regions and in the province level. Location theory and Input-Output analysis can be integrated with the help of new technology used in this model (Downward, Dawson & Dejonghe, 2009). Statistics Canada publishes the economic and technical databases, which can be used in this model. The input data, used in this study, reflects the incremental expenditures of games and their visitors (Event Analysis and Economic Impact Study, 2010).
2008 financial data is provided by Statistics Canada, the Travel Survey of Residents of Canada and the International Travel Survey in this study. Online purchase of tickets helped to track the geographic identity of the buyer, but walk up ticket sales disabled to track the identity of the purchaser. The online ticket purchasers belong to Alberta residents excluding Grade Prairie residents, Canadian residents excluding Alberta residents, Alberta residents including Grade Prairie residents, USA residents and International residents excluding USA residents. The event lasted for 7 days. The assumption made that 40% spectators were from Grande Prairie and the near by area in the study, did not stay overnight. Athlete costs, volunteer expenditures, and capital expenditures are not included in the study (Event Analysis and Economic Impact Study 2010).
Separate estimation of economic impacts of incremental tourism and operational expenditures is done in this study for the identification of the total impacts of the Arctic Winter Games in Grande Prairie on the provincial, local and national economies. It was found from the study that approximately $1.25 million is spent by visitors on food, travel and accommodation, in Grande Prairie in 2010. The expenditure done on the operations by the organizers was about $6.41 million to sustain the games. The overall economic impact of the above mentioned expenditures were projected to have exceeded $10.8 million in Alberta of which, Grande Prairie accounts for $7.29 million.
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Siegfried, J., & Zimbalist, A. (2000). The economics of sports facilities and their communities. The Journal of Economic Perspectives, , 95-114.
Canada’s ability to maintain a healthy income is important, for without it, Canada’s economy would not be functional. This is where Canada’s three main exports come into play. In 2013, Canada earned 133 billion dollars in exporting Mineral products, 123 billion dollars of that coming from mineral fuels, oils, products of their distillation, bituminous substances, and mineral waxes (Ibid.). With such a booming mineral industry, Canada receives a large income from mining that can be invested in schools, jobs, public projects, and many other important areas . Also, the earnings can be devoted towards small businesses looking to expand by using government funding programs, which helps support and expand Canadian economy (Mentor Works). Overall the money is used for activities that support the Canadian economy and make numerous people’s lives better.
The National Hockey League (NHL) is one of the most popular sports in the United States. The professional sports industry is based on profit, competition, and growth. This industry which includes, baseball, football, basketball and hockey has the ability to generate approximately $8 billion in revenues annually. This revenue is generated from, ticket profits, media revenues, licensing fees for names and logos, merchandising revenues, endorsements, luxury sky boxes, parking fees, and concessions. One famous hockey team is the New York Islander’s (NYI), who became the dominant team after winning the 1983 finals. Their fame quickly diminished in 1984 when they lost the Stanley cup finals against Edmonton Oilers, four games to one. The Islanders have not won another title since that time which resulted the team to enter a slump that would be difficult to recover from as fan attendance and sales began to decrease for the team. With fans on their last legs the New York Islander’s management team must attempt to pull this team from the miserable slump they are in. Management must develop a...
This research will jump forward in time to the late 1990’s and early 2000’s. Starting from youth hockey where the interest in the sport is developed, was a great way to see why there has been an increase in the popularity of the sport across the nation, especially in regions not normally known as hockey areas. According to USA Hockey and the NHL, youth hockey has been on the rise for the last decade in almost every state. This research is aimed at finding out where and why this increase is happening.
Financial aspects and profitability of college athletic programs is one of the most important arguments involved in this controversy. A group of people expresses that college athletic programs are over emphasized. The point they show on the first hand, is that athletic programs are too expensive for community colleges and small universities. Besides, statistics prove that financial aspects of college athletic programs are extremely questionable. It is true that maintenance, and facility costs for athletic programs are significantly high in comparison to academic programs. Therefore, Denhart, Villwock, and Vedder argue that athletic programs drag money away from important academics programs and degrade their quality. According to them, median expenditures per athlete in Football Bowl Subdivision were $65,800 in 2006. And it has shown a 15.6 percent median expenditure increase fro...
Noll, Roger, and Zimbalist, Andrew. Sports, Jobs, and Taxes: The Economic Impact of Sports Teams and Stadiums. Brooking institutions press, Summer 1997. Vol. 15 No. 3.
One of the many positives externalities that professional sports teams can generate is increasing the city’s revenue. With a city having a professional sports team, the people that
“Sochi by the numbers: The mind-boggling numbers behind the 2014 winter olympics.” 2014. Radio Free Europe Documents and Publications, January 27. http://search.proquest.com/docview/1491821936?accountid=14749. Accessed April 23, 2014.
While sports for the spectators are merely entertainment, the economics of the industry are what drives businesses to become involved. Sports have become more of a business entity rather than an entertainment industry due to the strong economic perception of the over all industry. There are several instances in which economics may contribute to the effect on the sports industry, such as: the success of a team, the price of a ticket, the amount of money an athlete will make, and the amount of profit a team will make. The success of an...
Ziakas, V & Costa, C 2011, ‘The Use of an Event Portfolio in Regional Community and Tourism Development’, Creating Synergy between Sport and Cultural Events, vol. 16, no. 2, pp. 149-175.
The economic impact of media sports illustrates the central importance to our culture. For example: Statistics shows that Americans spend more than 60 billion of dollars annually on sports (it is between 1% or 2% of Gross National Product). Being a star in media sports in America means receiving a temporary income in 6 or 7 figures.
Every two years the Olympic Games take place on the world’s stage. People are mesmerized as they cheer on their home team. Whether it be the summer or winter games, for two weeks, biannually, people are inundated with the games. But, many may fail to realize the competition and game behind the Games. This is the never ceasing game of the bidding process and subsequent creation and construction of new Olympic venues as newly selected host cities prepare for their opportunity to host the Olympics. But this little known game has only a few select winners, and their prize is not a medal, rather it is huge financial gains. The losers are many, and they are the most vulnerable inhabitants of the city, the poor; they are not simply losing out on a medal, they are losing their homes.
Sports stimulate national economies when there is an event hosted within the country. When countries come together, they help the host country’s economy. A few examples of this are the World Cup and the Olympics. The World Cup is one of the most influential events which benefits the economy where the event is being held. Sports being played within the country contribute to the economy as well. American football is a sport which contributes to the American society because it brings a lot of fans, and the fans will do anything in order to be a part of that culture. To bring the people together there has to be advertisement and when both come together, the economy starts to grow because everyone is cooperating. Although this is positive...
The commercialization of sports is illustrated by the amount of money that is involved in sport. Stakeholders in the sector are using lots of money to improve their performances with an objective of making profit. Sport has changed its form and dimension and longer only a source of entertainment, but a...