Evaluating event economic impact : rigour versus reality?

Purpose – The purpose of this paper is to focus on the methodologies used to evaluate major events. It aims to establish the most practically-relevant methodology for analysing the economic impact of routinely-held major events and to identify the key methodological issues for future consideration.

Design/methodology/approach – The paper draws on empirical research undertaken by the Sport Industry Research Centre using the direct expenditure approach (DEA).

Findings – The DEA is the most pragmatic and cost-effective method for evaluating the economic impact of medium-sized major events. However, the approach is only as robust as the quality of data utilised to derive estimates. Key emerging methodological issues are measuring attendance, consideration of direct first-round leakage and treatment of organisational spend and event surplus/deficit.

Research limitations/implications – The DEA limits the measurement of economic impact to first-round spending associated with an event. It is not suitable for measuring large-scale mega-events that require a more holistic and advanced method of event evaluation.

Originality/value – The paper considers the methods used to evaluate events in the context of balancing academic rigour with the everyday practical realities and constraints facing event organisers and researchers. It discusses existing and emerging methodological considerations and techniques for dealing with these. The paper will be of particular interest to researchers and practitioners from the event industry carrying out or commissioning economic impact studies.