Knock on effect of eventsPosted on February 5th, 2020 in Blog, Event Legacy, Event News, Experience Economy, Leadership, Uncategorised
How can local events boost the economy and engage communities
Events can bring in big money. Not only are they of benefit to those directly involved in the event, but they are also a boon for local businesses. While hotels are one obvious beneficiary, cafes, restaurants and other nearby attractions can all benefit from an influx of people.
Below, we look at some examples of events from around Australia have proven to bring people and money into their communities.
Sydney’s New Year fireworks
Sydney has one of the best-known New Year’s Eve celebrations in the world, which brings a huge crowd of people to the city to witness the fireworks, concerts and a myriad of other activations that come with the changing of the year.
More than a million people flock to the foreshore (with a billion more watching from TVs around the world) who, according to official sources, spend more than $133million in the local economy.
A lot of this will go towards accommodation. According to Booking.com, the majority of travellers at this time of year opt for hotels over hostels and apartments and many of those are international travellers planning long stays in Sydney and wider Australia.
It’s not just hotels that benefit from this event, but people also eat out, visit attractions and go shopping during their stays.
The Supercar races tour the country and one of the most recent additions to the circuit is Newcastle.
First held in 2017, the three-day event attracted almost 83,000 people from outside Newcastle into the city which the council estimates as having a $30m economic impact on the local area.
City of Newcastle highlighted that not only did the city experience financial gain, but the exposure of the area to a new audience (both in-person and on TV) is likely to lead to increased tourism in the future – and increased income for the area.
The most recent race, held in late 2019, saw 154,000 people at the track, which was supported with pop-up events throughout the city to spread the flow of money.
Regional spaces all around Australia have the opportunity to use events – whether they’re sporting, cultural or something else – to drive visitors and income to their areas.
Sunshine Coast’s major return on investment
One of the key things to remember when looking at how much money you’ve brought in is to consider how much money you’ve spent. Ideally, you want to see a positive return on investment and the higher the return, the better.
An independent review of the Sunshine Coast’s Tourism and Major Events Levy found that for every dollar spent by the council on events, it was getting a return of $32 for the area. For the council’s $5.2m annual spend on events, it worked out to roughly $166m income for the local area.
Not many events or areas receive quite that ROI, but you can find out how to get closer to that number. One of the key people behind the strategy and execution of events in the Sunshine Coast is Simon Latchford, CEO of Visit Sunshine Coast. Simon CEO of Visit Sunshine Coast. Simon, who is speaking at The Business of Events conference, will cover the economic return as result of a strong business event development and acquisition strategy.
Springvale Snow Fest
Springvale, a suburb of Melbourne with a population of around 22,000, is home to an annual snow festival.
First held in 2013, the family-friendly festival brings in real snow, hosts ice sculpting demonstrations and does plenty more to create a winter wonderland. It has won Best New Event and Best Tourism Event for Victoria at the Australian Event Awards.
In 2017, more than 42,000 people attended the event (roughly twice Springvale’s population) who spent an estimated $590,000 in the area. The event has been growing year-on-year, meaning these figures are likely to be even higher now.
Unlike other events – like the Sydney NYE fireworks – the majority of visitors to Springvale come from within driving distance, showing that even smaller scale events can have huge benefits.
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