Economic and Intangible Benefits of SPort

Question 1

Establishing geographic area of impact,

Answer 1

province/region/city, usually reflects funding source, displaced spending - spending that would occur in the area anyway

Question 2

Economic impact analyses

Answer 2

expenditure approach, estimate attendance at an eve,t survey attendees to find spending associated with event, apply multiplier to account for recirculation if money in local economy, income approach

Question 3

Multiplier

Answer 3

the degree which spending induces additional rounds of spending

Question 4

Substitution effect

Answer 4

if attendees spend money on an event instead of something else in the local economy - reallocation of expenditures, not net increase in economic activity

Question 5

Time switching

Answer 5

visit to city already planned, scheduled simply rearranged to accommodate event, no new economic activity

Question 6

Casual visitors

Answer 6

someone in area for unrelated purpose but attends event while they are in town

Question 7

Incremental visitors

Answer 7

those who come to a region for the purposes of the event - direct spending fully attributable to the event

Question 8

Indirect spending

Answer 8

recirculation of $ in the economy after direct spending on the event

Question 9

Induced spending

Answer 9

how direct and indirect impacts affect earnings and employment

Question 10

Direct spending usually recirculated in 5 ways

Answer 10

other private businesses in same economy, employers in same economy, local government, non-local government, employees/businesses outside the local economy

Question 11

Leakages

Answer 11

spending that does not remain in the local economy (4&5)

Question 12

Issues with over estimation

Answer 12

crowding out, reverse time switchers

Question 13

Crowding out

Answer 13

may discourage economic activity in areas that are already popular tourist destinations, where activity occurs during peak visiting times, need event spending simply supplanting spending that would otherwise occur

Question 14

Solutions to issues with over estimation

Answer 14

ignore local residents in impact estimates, exclude time switchers and casual, consider costs and opportunity costs

Question 15

Total economic impact =

Answer 15

direct spending + indirect spending + induced spending

Question 16

Mega events

Answer 16

huge infrastructure costs, huge operating costs

Question 17

Intangible benefits

Answer 17

psychic impact, impacts received by those not directly involved, may be used to justify subsidy to build infrastructure or host event

Question 18

Psychic impact

Answer 18

the emotional impact that a community receives by virtue of hosting an event

Question 19

Contingent valuation method

Answer 19

survey methodology, respondents asked their willingness to pay an increase in taxes to see an increase in a public good (or avoid losing)

Question 20

CVM; Pittsburgh

Answer 20

1999 NHL Penguins in bankruptcy, CVM study to see if WTP high enough to buy team, 51.5% willing to pay to keep team, residents who lived during cup years WTP higher, aggregate $48.3mill

Question 21

CVM; Alberta amateur sport and recreation

Answer 21

WTP to expand sports and rec programs, higher than for any pro sports team in US, suggests public goods value of amateur sport and rec higher than spectator sport