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The impact of mega-events on tourist arrivals

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Author Info

  • Johan Fourie
  • Maria Santana-Gallego

Abstract

While a mega-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. Although ex ante expectations are that tourism numbers would increase significantly during such an event, a growing literature points to the careful appraisal of possible tourist displacement, i.e. 'regular' tourists that change their behaviour when a mega-event is held, either shifting their trip to a different time or different location. This may result in reduced tourism gain, or even loss. In general, results suggest that mega-events promote tourism but the gain is dependent 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- or off-season.

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Bibliographic Info

Paper provided by Economic Research Southern Africa in its series Working Papers with number 171.

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Length: 23 pages
Date of creation: 2010
Date of revision:
Handle: RePEc:rza:wpaper:171

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Related research

Keywords: Mega-events; panel data; development; international tourism;

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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. African tourism
    by Johan Fourie in Johan Fourie's Blog on 2012-04-14 10:39:50
  2. Explaining African tourism
    by Johan Fourie in Johan Fourie's Blog on 2012-04-14 10:39:50
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Cited by:
  1. Wonho Song, 2010. "Impacts Of Olympics On Exports And Tourism," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 35(4), pages 93-110, December.
  2. Johan Fourie & Maria Santana-Gallego, 2011. "The Determinants of African Tourism," Working Papers 260, Economic Research Southern Africa.
  3. Jaume Roselló Nadal & María Santana Gallego, 2012. "Climate change and global international tourism: An evaluation for different scenarios," DEA Working Papers 52, Universitat de les Illes Balears, Departament d'Economía Aplicada.

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