This report is to determine how much sporting events can contribute to inward investment. 2 types of investment can be gained: short-term and long-term, as seen in figure 1.

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Victoria Pauling

Centre Number: 27216

Candidate Number: 6126

Word Count: 1649

Contents

Introduction - page 2

Analysis - page 3

Conclusion - page 10

Bibliography - page 13

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Introduction

Major sporting events are popular international events with sports people competing from many countries across the world. These events are watched by a large worldwide audience and can act as a focus for inward investment. Inward investment is income coming into a region from another region.

This report is to determine how much sporting events can contribute to inward investment. 2 types of investment can be gained: short-term and long-term, as seen in figure 1.

Short Term Investment

Long Term Investment

* Huge increase in tourists during the event.

* Improved infrastructure and redevelopment in the host city.

* Increased income for hotels, restaurants and retail.

* Top regional and national sporting facilities.

* Increase in visitors to tourist places in the host city.

* New businesses moving into the area.

* Income from sale of merchandise and increased sales of souvenirs.

* Increase in tourism due to publicity and promotion of the city/country.

* Increased use of public transport.

* Increased number of jobs available.

* Increased income for airlines and increased use of airports.

* Set up of relationships/links with countries abroad.

* Income from the sale of broadcasting rights

* Increase in the country's GNP.

* Income from sponsorship

* Income from ticket and programme sales.

Figure 1

These areas of investment will be studied in the report and three case studies will be used to support the points raised: 2 MEDCs (Australia and England) and one NIC (South Korea).

The summer Olympics held in Sydney, Australia in 2000, focused strongly on investment, especially from businesses. The focus on industrial development, investment attraction and tourism was greater than for any other Olympic Games.

The second case study is the Manchester Commonwealth Games, the largest sporting event held in the UK since the 1948 Olympics. They too focused on investment from businesses as well as a major regeneration programme in East Manchester, which was largely brought about by the Games.

Also in 2002, South Korea jointly hosted the football World Cup with Japan, with their aim being to showcase the country to tourists and potential investors. Many peoples view of South Korea is a history of political struggle and war, and so the World Cup was seen as a way to show the rest of the World South Korea in the 21st century.

Figure 2 shows how the case studies will be used.

Case Study

Use

Sydney Olympics

Short-term - tourism, broadcasting rights, ticket sales and sponsorship.

Long-term - The Business Development Programme and related organisations and overall inward investment from the Olympics.

Manchester Commonwealth Games

Short-term - tourist industry and public transport.

Long-term - regeneration programme, cumulative causation, sports infrastructure and after use, business investment.

South Korea World Cup

Long-term - improving the country's image, tourism, business investment.

Figure 2

Analysis

In the short term, the host city of a sporting event will see an increase in visitors. During the Sydney Olympics, 1.3 million extra tourists visited Australia. This increase in tourists therefore led to increased income for the tourist industry during the event. Shops, bars, hotels and restaurants all benefited from the Games, with the city centre seeing an increase in trade of 27%, along with many tourist places. Sponsorship and broadcasting rights are other large sources of short-term investment. Sydney made $680 million from sponsorship and $1.1 billion from the sale of broadcasting rights from the Olympics.
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Major sporting events can also bring long-term investment. The media plays a key role in maximising this by gaining the host city, and the country as a whole, publicity. Major sporting events are broadcast to a worldwide audience along with other programmes about the event, and many newspaper articles are written worldwide.

Visiting spectators can be a source of inward investment as they are able to see the host city for themselves. The Commonwealth Games was expected to present a vibrant and attractive image to visitors and it was anticipated that this would have a positive ...

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