Primary Economic Impact of Small-scale Sports Events

Abstract

The assumption that events can have positive economic impacts has increased interest in their hosting by many destinations worldwide. Although attendees are a constitutive part of events, scarce research has empirically analyzed their behavior from an economic standpoint. In particular, further exploratory research is required on (1) how much money event attendees spend at events, and (2) the extent to which event attendee expenditures positively affect the host region. A better understanding of these two aspects is crucial for any kind of economic impact assessment. This study examines three World Cup ski-jumping events in Norway during the winter of 2012–2013. Altogether, 870 spectators were interviewed at the venues in Vikersund, Trondheim, and Oslo. Prior research has estimated that the proportion of spectators contributing to a positive economic impact is between 10% and 60%. The current study shows that the share of this spectator group at the World Cup ski-jumping events in Norway lies in the lower part of the range. Furthermore, the study shows that though the total number of spectators was significant (137,000), the primary economic impact on the host region was modest, amounting to less than NOK 9 million.