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The impacts of temporary but anticipated tourism spending: An application to the Glasgow 2014 Commonwealth Games

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  • Allan, Grant J.
  • Lecca, Patrizio
  • Swales, Kim

Abstract

An extensive literature attempts to identify the economic impact of tourism expenditure. While Input-Output methods have been widely applied these may not always be appropriate for such applications and there is a growing use of more flexible Computable General Equilibrium (CGE) approaches. This paper uses a multi-period Scottish CGE model to estimate the system-wide effects of the temporary tourism expenditure related to the Glasgow 2014 Commonwealth Games. We quantify the sensitivity of our results to model specification, focusing in particular on how investment and consumption decisions are made and shifted over time to accommodate the temporary tourism shock. As part of this analysis we identify the pre-announcement period that optimises the present value of the economic impact. Whilst the empirical results apply to a specific event, our results have implications for similar analyses applied to mega events and other temporary phenomena affecting tourism expenditure, such as terrorism attacks or epidemics.

Suggested Citation

  • Allan, Grant J. & Lecca, Patrizio & Swales, Kim, 2017. "The impacts of temporary but anticipated tourism spending: An application to the Glasgow 2014 Commonwealth Games," Tourism Management, Elsevier, vol. 59(C), pages 325-337.
    • Handle: RePEc:eee:touman:v:59:y:2017:i:c:p:325-337
    DOI: 10.1016/j.tourman.2016.08.014
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    Cited by:

    1. Zhang, Cheng & Zhou, Xinxin & Zhou, Bo & Zhao, Ziwei, 2022. "Impacts of a mega sporting event on local carbon emissions: A case of the 2014 Nanjing Youth Olympics," China Economic Review, Elsevier, vol. 73(C).
    2. Claudio Calero & Lindsay W Turner, 2020. "Regional economic development and tourism: A literature review to highlight future directions for regional tourism research," Tourism Economics, , vol. 26(1), pages 3-26, February.
    3. Abeer Elshennawy & Khalid Siddig, 2023. "Terrorism and inbound tourism in Egypt: Economy‐wide and distributional impacts," Review of Development Economics, Wiley Blackwell, vol. 27(3), pages 1910-1933, August.
    4. Sartori, Martina, 2017. "CGE modeling for the economic assessment of mega-events: A tentative cookbook," Conference papers 332841, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    5. Martina Sartori, 2017. "Hosting a Mega-Event: Is it Good or Bad for the Economy? General Equilibrium Models as a Litmus Paper Test," Working Papers 2017: 21, Department of Economics, University of Venice "Ca' Foscari".
    6. Adeola, Ogechi & Evans, Olaniyi & Hilson, Ebo, 2018. "Tourism and economic wellbeing in Africa," MPRA Paper 93685, University Library of Munich, Germany.

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    More about this item

    Keywords

    Economic impact; CGE modelling; Mega-events;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

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