The Effect of Sports on Economy!

The Rugby World Cup is just one of the countless sports that have an unforetold impact on the lives of the public, most especially those of the sports fans and enthusiasts. What is not apparent is its subtle economic impact that is not often felt by the crowds in the arena.

As early as the 1990s, the academia has been conducting research on the influence of sporting events on the economy. Events such as the British Open Golf Championships in 2004 creates a significant difference on the local economy, says Sheffield Hallam Sports Industry Research Centre Head Professor Simon Shibli.

The researchers conduct surveys on audiences ranging from spectators to corporate delegations. They also analyse event budgets, and study where the money comes from and how it is being spent.

According to Shibli, the cost can reach up to £75m, especially in host areas such as the Wirral and Liverpool. He explains, “Fans and tourists bring in money that normally wouldn't be there. This money benefits accommodation providers, local travel, shops – even car parks.”

Construction of new sports stadium also has a huge influence on various sectors such as construction, tourism, sports retail, and leisure. Gym memberships observe a significant increase during the course of sports tournaments. According to Les Budd of The Open University Business School, “The Giro D’Italia in Northern Ireland stimulated increased cycling and created more interest in the country as an activity holiday destination.”

Adds Professor Chris Brady, director of the Centre for Sports Business at Salford University, sales for TV and tablet usually increase during sporting events. He declares, “There is also the feel good factor that such events generate and when people feel good they spend. However, the evidence does not suggest that there is any lasting effect; we soon revert to the norm.”

The long-term effects on the economy are derived from the rising infrastructure and increasing land values. However, tourists coming in due to the attraction of the sporting fixtures  have a more immediate influence on the local economic activity. Says Omari Williams of the University of Derby, a tourism report by Visit Britain reveals that tourists attending the 2011cEnglish football matches resulted in an increase of £706 million to the economy in 2011. “Winter sports such as football and rugby are extremely attractive tools for tour operators to entice visitors to Britain during quieter periods,” adds Williams.

Moreover, Dr Andrew Cooke of the Nottingham Business School warns, “It's important to identify where the assumptions lie, what has been omitted and who actually sponsored the evaluation in the first place.” 


Source: http://www.independent.co.uk/student/shu/economic-impact-of-sporting-events-10260570.html