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Assessing the Impact of the FIFA World Cup Germany 2006TM – Some Methodological and Empirical Reflections

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  • Gerd Ahlert

    (GWS - Institute of Economic Structures Research)

Abstract

Big tourist events have undoubtedly a considerable economic dimension. The spectators of these events buy entrance tickets, use the traffic system and take advantage of the services of the restaurant and hotel business. The organizers invest in the extension of tourism facilities and traffic networks and provide the means of production for the smooth running of the event. Especially big sports events are important advertising media. Furthermore, the rights of television broadcast and the contributions of sponsors are an important source of finance. For the respective region, carrying out such an event often means a strain e. g. regarding the volume of traffic. At the same time the event may lead to a lasting improvement of the regional infrastructure. Last but not least the regions' image will be improved by carrying out the event only due to the media coverage. Assessing the impact of tourist events is rather difficult because such events have always significant regional economic effects but not necessarily appreciable overall economic effects (comp. Ahlert, 2001, p. 116). Only in the case of international tourist events their spending determine definitely positive the outcome on regional as well as on national economic level, but especially in the case of such major international tourist events the positive macroeconomic effects are associated with substantial external effects. The paper gives an overview of various economic studies – cost-benefit analysis (Rahmann et al., 1998; Kurscheidt, Rahmann, 1999), impact analysis (Ahlert, 2000; Meyer, Ahlert, 2002; Ahlert, 2005) and regional studies (Meyer, Ahlert, 2000; Wegweiser GmbH, 2004) which have been prepared in Germany in the past to identify the potential tangible and intangible effects of the FIFATM World Cup 2006. It explains the strength and weakness of the different approaches and how these different types of analysis can perfectly fit together for identifying the potential regional, sectoral and national socioeconomic effects. Besides that, the paper shows what kind of mistakes respective misinterpretation of such studies and their results can be frequently observed.

Suggested Citation

  • Gerd Ahlert, 2007. "Assessing the Impact of the FIFA World Cup Germany 2006TM – Some Methodological and Empirical Reflections," GWS Discussion Paper Series 07-6, GWS - Institute of Economic Structures Research.
    • Handle: RePEc:gws:dpaper:07-6
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    References listed on IDEAS

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    1. Gerd Ahlert, 2001. "The Economic Effects of the Soccer World Cup 2006 in Germany with Regard to Different Financing," Economic Systems Research, Taylor & Francis Journals, vol. 13(1), pages 109-127.
    2. Gerd Ahlert, 2005. "What does Germany expect to gain from hosting the 2006 Football World Cup – Macroeconomic and Regionaleconomic Effects," GWS Discussion Paper Series 05-4, GWS - Institute of Economic Structures Research.
    3. Gerd Ahlert, 2004. "TSA for Germany: database of the satellite account and perspectives for integration into a sectoral disaggregated macro-econometric model," GWS Discussion Paper Series 04-3, GWS - Institute of Economic Structures Research.
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    1. Gerd Ahlert, 2006. "Auswirkungen des zusätzlichen Incoming-Tourismus während der FIFA WM 2006 auf die gesamtwirtschaftliche Entwicklung," GWS Discussion Paper Series 06-1, GWS - Institute of Economic Structures Research.

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    More about this item

    Keywords

    FIFA World Cup; event; impact analysis;
    All these keywords.

    JEL classification:

    • Z21 - Other Special Topics - - Sports Economics - - - Industry Studies

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