3. Measures the effect of business activity on
the economy in a given area, by measuring
changes in economic growth (output or
value added) and associated changes in
employment.
ECONOMIC
IMPACT
4. Why measure Economic Impacts?
Economic impact measurement has become a powerful
and persuasive tool for those looking to capture and
evidence the financial benefits that can result from the
hosting of a major event. Measuring economic impact
not only allows public sector bodies to evaluate their
economic return on investment, but it also demonstrates
how events drive economic benefits - allowing event
organisers develop practices which maximise these
benefits.
5. The 'economic impact' of a major event refers to
the total amount of additional expenditure
generated within a defined area, as a direct
consequence of staging the event. For most
events, spending by visitors in the local area (and
in particular on accommodation) is the biggest
factor in generating economic impact; however,
spending by event organisers is another important
consideration. Economic Impact studies typically
seek to establish the net change in a host
economy - in other words, cash inflows and
outflows are measured to establish the net
6. POSITIVE IMPACT
-in bound international tourism earning foreign exchange
-inbound visitor spending:taxation revenue,income for
firms,purchase more goods and services
-the revenues associated with the sector can be used to
improved a destination's infrastructure and services,such as
roads, airports and fire protection, and other facilities, such as
parks, theatres and ovals. All of these developments also brnefit
the local population
-A community's investment image can also be improved by
these developments, by attracting businesses or new residents
looking for a better quality of life
-tourism also provides a way of diversifying a community's
economic base,especially when they may greatly rely on a
narrow range of activities or services
-tourism can also lead to job creation
NEGATIVE IMPACT
- Outbound international tourism losing through
foreign exchange, tourism, expenditure leaves
less for local company
- Increased crime rates leads to increased cost
of crime prevention and police services
- Opportunity cost, as investment in tourism
leaves less money for other endeavors
-The promises if income and employment
generation are undermine by leakage and
poorly paid job
-It can be argued that the jobs created by
tourism can be considered "bad " due to
seasonality and underemployment
7. Tourism can generate jobs, improve
6infrastructure and diversify a
community's economic base
- tourism can potentially create 'bad'
jobs, lead to leakages and result in
increased crime rates.
9. Secondary
- indirect: respending through local business
transactions (Eg. restaurant staff member buys
beef for the restaurant)
- induced: additional income for personal, non-
tourism related use (Eg. restaurant staff
member buys beef for their own barbecue)
- free from geographic boundaries, it doesn't
matter how or where the money is spent.
