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The impact of mega-events on tourist arrivals

Author

Listed:
  • 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.

Suggested Citation

  • Johan Fourie & Maria Santana-Gallego, 2010. "The impact of mega-events on tourist arrivals," Working Papers 171, Economic Research Southern Africa.
  • Handle: RePEc:rza:wpaper:171
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    File URL: http://www.econrsa.org/node/194
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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 15:39:50
    2. Explaining African tourism
      by Johan Fourie in Johan Fourie's Blog on 2012-04-14 15:39:50

    Citations

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    Cited by:

    1. Groizard, José Luis & Marques, Helena & Santana, María, 2014. "Islands in trade: Disentangling distance from border effects," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy (IfW), vol. 8, pages 1-46.
    2. Morley, Clive & Rosselló, Jaume & Santana-Gallego, Maria, 2014. "Gravity models for tourism demand: theory and use," Annals of Tourism Research, Elsevier, vol. 48(C), pages 1-10.
    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.
    4. 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.
    5. Dennis Coates, 2012. "Not-So-Mega Events," Chapters,in: International Handbook on the Economics of Mega Sporting Events, chapter 23 Edward Elgar Publishing.
    6. Johan Fourie & Jaume Rosselló & Maria Santana-Gallego, 2015. "Religion, Religious Diversity and Tourism," Kyklos, Wiley Blackwell, vol. 68(1), pages 51-64, February.
    7. Johan Fourie & María Santana-Gallego, 2013. "The determinants of African tourism," Development Southern Africa, Taylor & Francis Journals, vol. 30(3), pages 347-366, September.
    8. Jaume Rosselló & Maria Santana-Gallego, 2014. "Recent trends in international tourist climate preferences: a revised picture for climatic change scenarios," Climatic Change, Springer, vol. 124(1), pages 119-132, May.

    More about this item

    Keywords

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

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • F19 - International Economics - - Trade - - - Other

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