The impact of mega-sport events on tourist arrivals

Stellenbosch Working Paper Series No. WP20/2010
 
Publication date: 2010
 
Author(s):
[protected email address] (Department of Economics, University of Stellenbosch)
María Santana-gallego (Department of Economics, La Laguna University, Spain)
 
Abstract:

While a mega-sport event is scheduled at least once every year somewhere in the world, these events are rare occurrences for the host cities and countries. The benefits of such events seem lucrative; the very fact that many countries bid to host these events suggests that the benefits – be they tangible or intangible – more often than not outweigh the costs. Using a standard gravity model of bilateral tourism flows between 200 countries from 1995 to 2006, this paper measures a very direct benefit of such mega-events: the increase in tourist arrivals to the host country. In general, results suggest that mega-events promote tourism but the gain varies depending on the type of mega-event, the participating countries, the host country’s level of development, and whether the event is held during the peak season or off season.

 
JEL Classification:

L83, F19

Keywords:

Sport mega-events, tourism, World Cup, Olympic Games, trade

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1 March 2021
Even with the release of data showing a record high unemployment rate in 2020Q4, it turned out to be a fairly good week for the SA economy. Daily new COVID-19 infections remained well contained, while the second batch of 80 000 J&J vaccines arrived (albeit controversially with the grounded SAA being the carrier). In addition, relative to the October...

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