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Box 1. New Zealand Major Events - Leverage and legacy planning
The New Zealand Government, through New Zealand Major Events (NZME) invests in events that generate significant immediate and long-term benefits that align with both the Government’s Major Events Strategy and wider government objectives. Given that the government is investing taxpayer dollars, a strong emphasis is placed on maximising leverage and legacy opportunities that will provide both short-term and long-term benefits to the community and country as a result of hosting the event.
New Zealand Major Events describes leverage and legacy as the broader and longer-lasting national and local benefits that are set in motion then realised by an event:
Leverage opportunities - These are the additional benefits that can be developed around the event itself. These benefits are likely to be outside the immediate scope of current planning for the event and additional action is likely to be required to maximise the benefits for the respective sport/art, region and country.
Legacy opportunities - These are the lasting or long-term benefits that can be accrued beyond the event. Exploring these opportunities requires a deliberate and focused action plan to ensure that lasting positive benefits are delivered to the respective sport/art, region and country.
The concept of leverage and legacy is about understanding and acknowledging the broader benefits that an event can deliver to the wider community and country, and is one that must be integrated into the overall vision and objectives for events.
Leverage and legacy planning needs to underpin the whole approach to an event and it is important that it begins during the initial feasibility and bidding stages. Creating a positive and lasting legacy requires deliberate effort, strong leadership, sustained commitment and attention. A well-structured and managed leverage and legacy plan is essential to ensuring event organisers, key partners and investors get the most out of an event. Source: New Zealand Major Events (December 2016).
Economic impacts
Domestic and international visitors play a significant role in contributing to the success of events through direct participation (e.g. in meetings, conventions), and direct and indirect event-related expenditure which is generally accepted to be higher per day, if not per trip, than leisure visitors. For example, the direct contribution of such events to the visitor and wider economy includes:
Total direct expenditure, which incorporates all domestic and foreign expenditure associated with the delivery of the event and includes:
spectator/attendee spending (including all accommodation, ticket sales, other purchases, taxes and tips), including that of companions (e.g., spouse and family) and any additional spending made before or after an event due to extended stays;
participant/exhibitor spending, including any spending outside the event, but as a result of their involvement in the event, and;
the cost of event production, including the costs incurred in developing stadia and other relevant infrastructure, and for example, by convention centres for products and services relating to hosting events.
Increases in new full-time equivalent (FTE) jobs in various sectors (including hospitality, construction, retail trade, and professional services);
Increases in household consumption associated with higher levels of employment and greater household income.
Visitors coming to a city or region for an event will contribute to a more buoyant economy, with visitor expenditure having a multiplier effect on incomes throughout related supply chains. Well-managed events can attempt to focus this effect on local businesses with supply chains able to develop and expand to take advantage of increased business opportunities. Furthermore, a well-planned, diverse and appealing events calendar can more evenly distribute major events throughout the year, and create demand for accommodation and visitor services outside of traditional peak periods. This can have the effect of driving economic growth and employment throughout the year for (often regional) destinations that are otherwise susceptible to seasonal cycles of visitation.
In addition, major events provide a pretext for external investment that might not otherwise exist. But this does not mean that the investment comes free or without opportunity costs. It is clear that in a global economy, the hosting of major events is an activity that offers cities and nations a means to host the world for a short period of time, and to project a desired image or brand through global media. Such events, when designed and managed with vision and discipline, can also be successful in their own terms and yield lasting benefits for the cities that host them; by leveraging the event as a catalyst to drive wider city, regional or national development plans.
Selected country examples of the types of economic impacts associated with major events are outlined below:
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