Impacts of Major/Mega Events on the Economy and Communities of Host Areas


Major events extensively fit into two classifications: cultural and sporting (Tallon, 2014). Basically, Bowdin et al. (2012) accept that major occasions are those occasions that influence entire economies plus have impact on worldwide media consideration. These occasions are for the most part created in aggressive spheres and incorporate occasions, for example, the Olympic Games, World Athletics, FIFA and UEFA Football Championships. Trademark occasions, as indicated by Bowdin et al. (2012), allude to occasions that get to be so nearly related to the place that they get to be emphatically connected. Among exemplary illustrations of trademark occasions are the Carnival in Rio, the Tour de France, the Edinburgh International Festival, the Jazz Festival of Juan les Pins in Antibes, and the International Motorcycle Rally in Faro. Such occasions are culturally extraordinary and unique, with occupant groups helping the tourism income, making a feeling of local pride and worldwide investment (Appendix 1).

Mega Events impacts on Host country economics.

Much accentuation is frequently set on the economic effect part of the way because of the way that the managers of the event and government have to meet budget targets plus to legitimize the expense, and halfway in light of the fact that these effects are most effortless to survey (Horne, & Manzenreiter, 2004). As indicated by Jago, et al, (2010), “the monetary effect of an occasion on an area is the net whole of the financial outcomes of the majority of the money inflows as well as outpourings that happen due to an occasion.” Substantial commitment to the monetary effect appraisal is a cost that happens after an occasion. The portion of the expense, which speaks to “new cash” into the territory, i.e. cash that is not yet in the locale, is especially critical (Horne, & Manzenreiter, 2004)and regularly gives new open doors and preferences for groups living there, also. Various techniques can be utilized to survey the economic effects of occasions.

As indicated by Florek, Breitbarth and Conejo 2008 economic profits are frequently utilized to advocate facilitating major sport occasion. On the other hand, economic profits may be convoluted to foresee and along these lines a bit risky reason. Case in point, in 2006 FIFA World Cup, Germany’s arranging board earned €140 million from the competition, which is more than anticipated, yet tourist just used about €50 million in Germany, 50% of what was normal. What’s more, the vast majority of it was for food and beverages with no paramount effect on retail (Florek, Breitbarth and Conejo 2008). Gratton, Shibli, & Coleman, (2005) point out that even, for example, major occasions as F1 Grand Prix races and the Olympics, has not generally clear monetary profit for the urban communities that have host the occasion. They call attention to that, generally, organizing significant games events frequently brings about the loss of cash for the city government despite the fact that the city itself can profit extraordinarily regarding additional incomes in the city. Matheson (2006) gave sample while amid the 2002 World Cup in South Korea, the number guests from Europe to the region was higher than normal, yet this increment was balanced by a comparable measure of diminishing in customary tourists and business explorers, which did not give such incredible economic boost.

Bowdin et al. (2012)  perceived that the arranging of an event might likewise produce more extensive monetary impalpable profits and expenses, for example, created by the improvement and development costs, extra marketing and business advancement, and expanded property estimations, long haul tourism advancement, local’s movement and end of business. Intangible assets are difficult to measure as precisely and unbiased as are the monetary effects, yet they ought to be considered when assessing the general financial effect on the local individuals.

Be that as it may in the meantime there may be some negative angles, for example, local merchandise can get to be more costly on the grounds that visitors may pay more, shops may stock items for tourist and not ordinary products required by local people, obligation hazard for the city and expanded assessment, costs build that does not decrease after the event ends (Matheson, 2006). As an illustration, Jones (2001) alludes to the Olympic Games as a major event in which convenience that needs to be provided for participant, travellers, and promoters makes a considerable measure of pressure and issues with lodging and land market. A flood of voyagers can likewise cause or worsen crowding, traffic blockage, and expanded costs, as well as local people’s ways of life may be uprooted or upset.

Mega Events impacts on communities

Notwithstanding economic events outcomes, occasions have other positive and negative consequences for host communities. They can restore the social and cultural life of the local individuals, fabricate group pride, give a feeling of character, build group cooperation and pride of the territory or upgrade the picture of a terminus (Burbank, et al, 2001). It has been recommended that socio-cultural effects happen as an after-effect of the exceptional cooperation in the middle of visitors and destination area populace. Entire destination gets to be “obvious” as an event happens, so it has genuine chance to create socio-cultural effects (Jones (2001). Host community disappointment can debilitate the long haul accomplishment of an event and hence the acknowledgement by local people is key for the congruity of the event (Matheson, 2006).

Fredline et al (2003) recognized that dissimilar to economic effects, social effects of events can be hard to measure independently since huge numbers of them can’t be measured, as well as they regularly influence contrastingly different parts of the group.

Tourism can support community pride as guests decide to visit the spot which is as it should be. Decently introduced towns and generally kept up offices for guests help them to feel welcome and can help the feeling of group pride. Events and festivals give a chance to community social improvement (Getz, 2008) and “bring a feeling of having a place and imparting to the community, fervour, display and respect toward oneself realized by being the center of global consideration” (Fredline et al, 2003). Events and coordinators of the celebrations utilize the subjects of society and history to create and get ready yearly occasions to draw in guests. These celebrations give chances to the local groups to impart their society and, likewise, they help the local people to make and create its own personality.

Some of the negative impacts are named by Deery, & Jago, (2010) that “incorporate a scope of against social practices, prostitution, wrongdoing, swarming, and interruption of community life, community distance and dislodging”. Major events draw consideration of expansive swarms and there is an incredible plausibility of introverted conduct development, concerning case In America’s Cup defense there was perceived 36% expansion in captures for hostile to social conduct (Fredline et al, 2003).

The choice to hold an occasion, particularly a huge scale occasion, is basically a political choice (Fredline et al, 2003). As per Barker et al (2002) events and their ensuing attention can prompt critical status repercussions relating at both macro- and micro-political levels. Political angles, on the other hand, can just as work to the drawback of tourism occasions. The potential for terrorist or politically inspired movement, showings, and blacklists to use the exposure created by worldwide events is not extraordinary. Such political motivation at real occasions have incited exhibitions at the 1981 Springbok rugby visit to New Zealand and 1998 Commonwealth Games, blacklists of any number of Olympic Games, and terrorist assaults at the 1972 and 1996 Olympics (Fredline et al, 2003). So there is an incredible hazard and addressing for local community, when holding major occasions


As indicated by Faulkner (2003) event organizers and the tourism business in most cases, in this way, take a grave hazard in disregarding community effects of an event. Jago, et al (2010) infers that the best move ought to make the manifestation of a consultative or group based methodology to planning. For the accomplishment of any event, the host populace, open organization and event coordinators must cooperate. All these specified groups need to recognize and anticipate effects and after that to oversee them to accomplish the best adjust for everybody. It is not generally simple and straightforward; however events can be more valuable when everybody is included.

Events make some payment of local’s life, yet until everybody is educated, included and comprehend the events potential, it could bring huge conceivable outcomes, preferences and well. Events does draw in an inexorably crowd, as well as shape world tourism examples, highlighting new tourism ends and making enduring legacy in the host communities or nations.




Barker, M., Page, S. J., & Meyer, D. (2002). Modeling tourism crime: The 2000 America’s cup. Annals of Tourism Research29(3), 762-782.

Bowdin, G., Allen, J., Harris, R., McDonnell, I., & O’Toole, W. (2012). Events management. Routledge.

Burbank, M., Andranovich, G., & Heying, C. H. (2001). Olympic dreams: The impact of mega-events on local politics. Lynne Rienner Publishers.

Deery, M., & Jago, L. (2010). Social impacts of events and the role of anti-social behaviour. International Journal of Event and Festival Management1(1), 8-28.

Florek, M., Breitbarth, T., & Conejo, F. (2008). Mega event= mega impact? Travelling fans’ experience and perceptions of the 2006 FIFA World Cup host nation. Journal of Sport & Tourism13(3), 199-219.

Fredline, L., Jago, L., & Deery, M. (2003). The development of a generic scale to measure the social impacts of events. Event Management8(1), 23-37.

Getz, D. (2008). Event tourism: Definition, evolution, and research. Tourism management29(3), 403-428.

Gratton, C., Shibli, S., & Coleman, R. (2005). Sport and economic regeneration in cities. Urban studies42(5-6), 985-999.

Horne, J. D., & Manzenreiter, W. (2004). Accounting for Mega-Events Forecast and Actual Impacts of the 2002 Football World Cup Finals on the Host Countries Japan/Korea. International Review for the Sociology of Sport39(2), 187-203.

Jago, L., Dwyer, L., Lipman, G., van Lill, D., & Vorster, S. (2010). Optimising the potential of mega-events: an overview. International Journal of Event and Festival Management1(3), 220-237.

Jones, C. (2001). Mega‐events and host‐region impacts: determining the true worth of the 1999 Rugby World Cup. International Journal of Tourism Research,3(3), 241-251.

Matheson, V. (2006). Mega-Events: The effect of the world’s biggest sporting events on local, regional, and national economies.

Robinson P, Wale D, Dickson G. (2010). Events Management. CABI Tourism Texts. Oxfordshire. UK

Tallon, A. (2014). Festivals, carnivals and urban regeneration. Journal of Urban Regeneration and Renewal7(4), 301-306.

Appendix 1

Notting Hill Carnival:

As per Robinson et al (2010) proposed that the Notting Hill Carnival in London began to present the Afro – Caribbean society to Britain and pulls in a huge number of guests consistently. The carnival has created monetary effect on the local area the late 1980s. In 2004 the more noteworthy London authority did itemized exploration taking a gander at the general financial effect of the carnival. Notting Hill Carnival has created a tremendous monetary effect for the host group throughout the most recent decade. The fair coordinators accept that exposure and advancement of the occasion create profits for London as enhanced picture and rehash appearances.

The monetary effect has a dispatched by the London development organization for the benefit of the Mayor’s Carnival Review Group found that in 2002, the Notting Hill Carnival produced give or take £93 million and backed what might as well be called 3,000 full-time occupations that happens each August Bank Holiday weekend in the city of Notting Hill is a multi-million pound pay creating occasion. But then, the route in which the Carnival is as of now seen has been formed more by wrongdoing figures than its sure social and monetary commitment to London’s economy and social dynamism. In the event that it is legitimately underpinned and resourced, the Carnival can possibly help essentially more. The historical backdrop of the Notting Hill Carnival and the explanation behind its presence are immovably established in the beliefs of opportunity, solidarity and group strengthening. But such a large amount of the dialect and open deliberation about the Carnival has been focused on how the occasion ought to be contained. Until the foundation of another group based Carnival arranging body in 2003, most of the Carnival expressions group were not one or the other fairly spoken to inside the Carnival administration structure, nor lawfully qualified for impact it.

The estimation of the Notting Hill Carnival, in social, monetary and social terms, has gotten little distinguishment previously. Parts of the more extensive fair expressions group have communicated their developing bafflement at the path in which the Notting Hill Carnival has been depicted in the media and the absence of distinguishment stood to them for the social and creative improvement and instructive work that they attempt inside schools and their groups. This will help:

  • The Notting Hill Carnival as a group of investment can interface together by an imparted vision and concern. The historical backdrop of the Carnival plainly exhibits how, in antagonistic conditions, a social occasion turned into a vehicle for group self improvement, a development towards independence, strengthening, investment and contribution;
  • Offers a meaning of the Carnival expressions as radiating from the social conventions of Africa, Latin America and the Caribbean. It contends that from a mixed bag of points of view, the Carnival expressions are amazingly profitable in pushing new learning plans and in addition multicultural mindfulness inside the classroom and in advanced education;
  • Provides rich illustrations of the cultural, social, human and erudite capital that has constantly existed inside the Notting Hill Carnival and the more extensive Carnival expressions industry.


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