Economic Impact of Sports Events
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In the world today, there is a significant economic impact of sports events. Over the years, sports events have proven to be powerful catalysts, both within the sports industry and outside it.
Within the sports industry, sports events serve as platforms for teams to compete, carve out names for themselves, and stake their claim in the history books as the best. Outside the sports industry, they have helped transform local communities and foster economic growth, notable among host regions or cities.
Have you ever wondered why most countries bid to host sports events despite the fact that they have to borne the expenditure of these events with their taxpayers money? Not to mention the fact that the financial benefits of these events do not go to them but rather the Sports Federation handling the events? This is because of the economic impact of sports events.
In this article we’ll take a look at some of the economic impact of sports events.
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Economic impact of sports events
As mentioned already, despite the fact that most countries have to bear the expenses that come with hosting a sport event, even without benefiting from the profits made by organizers in the course of these events, a lot of them still bid for upcoming events with the hope of winning the bidding process. This is as a result of some of the benefits that come with hosting a sport event.
What then are some of the economic impact of sports event?
1. Investment in infrastructures
Whenever a sport event is to be held in a country, there is always the need for infrastructures to be provided or developed to ensure the smooth running of that event. Hence, investors from different parts of the world coming to invest in the building or development of these infrastructures.
For instance, a sport event like the FIFA World Cup requires a host country to have standard stadiums with state of the art facilities for games to be played in, a good road or railway transportation system for fans to move around cities to watch these games, standard hotels for fans and players to lodge in within the duration of the tournament, to mention a few. So, for a country to host the World Cup, these infrastructures have to be provided.
One of the economic benefits of building these infrastructures is that it provides more employment opportunities in the host country. Building stadiums, good transport systems and standard hotels means you have to employ poeple to get the job done. This can in turn help improve their standard of living and the country’s economy in the bigger picture.
Also, the building of infrastructures can also help improve the country’s construction industry. The purchase of top quality equipment for the building of these infrastructures means more profit for the construction industry and the state of the economy at large.
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2. Tourism revenue
Countries hosting sports events often get people from different parts of the world coming to visit and be part of these events either as athletes or supporters. The economic benefits of these visits is a significant increase in tourism revenue.
During the course these events there is always an increase in the number of hotel bookings, restaurants visits, transportation services, among others. People spend more on transportation, food, drinks and accommodations, all of which have a positive impacts on the host country’s economy.
As a result of the media coverage gotten during these sports events, some of these countries still attract visitors even years after the end of the events. This shows the kind of impact sports events have on host countries and cities.
3. Stimulation of local businesses
During sports events, local businesses tend to benefit more, and when these local businesses are experiencing significant rise in sales, it contributes to the growth of their country’s economy.
Poeple who visit the host country of a sport event will likely visit local restaurants and eateries, shopping complexes, boutiques, tourist centers, etc. Uber drivers and other public transport drivers will also make more money from driving people around cities or from one location to another.
4. Media exposure and advertisement
Sporting events are known to attract a large number of media, both print and broadcast, traditional and online, from different parts of the world. As such, most organizations and brands are always willing to pay any amount of money to have their products, services or image promoted in countries where these events are being held because they know that a huge number of viewers all over that world will see them. This is mostly particular among multinational organizations and brands.
These multinational organizations and brands pay to have their products and services advertised in stadiums, on radio stations, TV stations, billboards, sidewalks, and even on online platforms.
These advertisements generate revenue for media owners, broadcasting networks and government, and in turn help improve the economy in both host countries and beyond.
5. Merchandise sales
Another means through which sports events impacts the economy is through the sale of merchandise.
During sports events, fans love to show their affiliation with a player or athlete, or support for their team by purchasing scarves, caps, wrist bands, jerseys, and other branded items.
This is where local and online merchandise stores come in and generate a lot of revenue.
Sometimes, as a result of the desperation of fans to get these merchandise, some of these stores can go to the extent of offering them on limited edition and at a higher price in order to generate more revenue.
The same thing applies to fans who are not ablw to attend the sport event physically. Most of them resort to buying these merchandise from online and e-commerce merchandise stores just to own a piece of the event experience.
In conclusion, sports events have a positive economic impact both in their host countries or cities and beyond. From the provision of infrastructures to tourism revenue, profit for local businesses, profit for media houses and broadcasting networks, to even profit for local and online merchandise stores, all of which have positive impact on the economy. domestic product per capita, hosting a mega sport event, hosting a megasport event