The impact of large events on tourism strategy
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1 The impact of large events on tourism strategy Roberto Daneo Managing Director of the Milano Bidding Committee for Expo 2015
2 The impact of large events on tourism strategy Introduction XX Winter Olympic Games Torino 2006 World Expo Milano 2015 World Expo Dubai 2020
3 As local economies have adapted to changing global dynamics, the hosting of international events has become more commonplace, and can p la y a sig nific a nt role in loc a l d evelopment, a c ting a s c a ta lysts for job creation, business growth, infrastructure improvement and community development. However, capturing local benefits from such events does not happen automatically or by accident. The most successful host countries and cities have a long term development plan that the event helps them to implement, and a dedicated management effort aimed at securing the benefits and the legacy for some time before the event is staged, and for severa l years a fterw a rd s. Put simply, when international events are hosted well, they become a catalyst for local development and global reach Th e Org a nisa tion for Economic Co-operation and Development (OECD)
4 La rg e interna tiona l events may w ork as trig g ers for loc a l development and b ring ta ng ib le advantages to the ho st c ity and c ountry. A m o ng st their ta ng ib le b e ne fits, mega-events a re catalysts for economic tra nsfo rm a tio ns, help upgrade urb a n infrastructure, strengthen the interna tiona l ima g e of the c ity and as a consequence strengthen a lso to urism.
5 The strategic choice to bid for a large event
6 The impact of large events on tourism strategy Introduction XX Winter Olympic Games Torino 2006 World Expo Milano 2015 World Expo Dubai 2020
7 The strategic choice to bid for a large event Th e re a re p ositive experiences: Th e Olymp ic b id of To rin o 2006 is the re sult of a p re c ise objec tive of the City Strategic Pla n approved by a ll loc a l a uthorities : 1. Rep ositioning To rin o on the w orld map and visib ility of the other sid e of the ind ustria l c ity 2. Offsetting the ind ustria l d ec line p ro c e ss started d uring the 80s by d eveloping new b usine ss opportunities linked to to urism and cultural herita g e 3. Torino, like Ba rc e lo na, re-oriented its development (not only for b usine ss but a lso for leisure) by focusing on the surround ing mountain syste m and on its cultural heritage To rin o c ity of the A lp s
8
9 Positive takeaways of Torino 2006 Games M e ssa ge s Youth and g enera l p ub lic educated through sport Great legacy Sport at the forefront Exc ellent coverage of the Games HOW? WHY? 900,000 tic ket sa les 23,000 students were present at Olympic events O lym p ic Truc e m e ssa g e s stro ng ly c o m m unic a te d Environmenta l/ susta ina b ility lega c y (HECTOR) Urb a n Regenera tion (Olymp ic Villa g e a nd Sp orting Venues) Deep cooperation with the Host Cities Participation of best athletes Exc ellent org a niza tion of sp orting c omp etition Top c la ss field of p la y + tra ining venues Globa l a ud ienc e of 3.1 b illion (More c ountries broadcasting winter Games than ever before) Quality of host broadcast allied to stunning Look of the G a m e s
10 Torino 2006 Games economic and employment impact a few numbers 1 Infra structures Investments for venue constructions Investments for road and railways constructions Investments for urban reclamation and restyling in the city of Torino Management and maintainance costs for the newly built infrastructures 2 Eve nt management Event organisation and management costs 3 Tourism attraction Tourist Projection & Average Increment Spend per visitor 4 Communication and promotion Commercial partners investments Communication and promotion investments of loca l a nd na tiona l a uthorities
11 Torino 2006 Games economic and employment impact a few numbers on domestic economy Value added increase: 17,6 b illion Job creation : Standard Labour Unit per year Employment growth: + 0,2 % GDP growth : +0,2 % p er yea r
12 Positive takeaways of Torino 2006 Games were and are reflected in numbers 2011 presences: 12'845'
13 The impact of large events on tourism strategy Introduction XX Winter Olympic Games Torino 2006 World Expo Milano 2015 World Expo Dubai 2020
14 EXPO Milano 2015 HANNOVER 2000 Humankind, Nature, Technology ZARAGOZA 2008 Water & Sustainable Development AICHI 2005 Na ture s Wisdom SHANGHAI 2010 Better city, better life The Expo is a non-commercial Universal Exposition (not a trade fair) organized by the nation which wins the candidature, with other countries participating through the diplomatic channels of the hosting nation. Each Expo has a universal theme and is held in an area which has been masterminded as a place of exchange and encounter to promote a unique experience for participants and visitors who discover and experiment with the theme. More than displaying major technological novelties the Expo s role is oriented towards interpreting the collective challenges to which mankind is asked to respond.
15 The Theme and its challenge Exp o 2015 wa nts to fa c e a significant challenge of our age Is it possible to grant good, healthy, sustainable food for everybody? An opportunity for constructive d ia log ue, international cooperation, new strategies to imp rove the q ua lity of life that will se e Countries and world c itizens as lead ing a c tors of a global movement 15
16 Expo impacts on tourism - benchmark International arrivals in the hosting Country in the year of Expo Expo s generate significant benefit on national tourism industry On average 5% more tourists arrive in the hosting country during the Expo year On a Re giona l basis, Expo can generate up to 60-70% incremental arrivals Incremental tourism on a Regional ba sis Vancouver ( 86) Brisbane ( 88) +68% +15% Source: Previous documents on Expo; analysis on World Travel & Tourism Council data 16
17 Expo Milano 2015 impacts on tourism During the 6 months of the Ev e nt 20 millions visitors from all over the world a re expected Expo Mila no 2015, b e c a use of its international relevance, represents a unique challenge and opportunity for the tourism industry According to a stud y p ub lished by Bocconi University, 9,4 bln of incremental value added c ould be obtained with a good management of the tourist inflows during Expo Milano 2015 (*) + 1,2 billion as a permanent legacy effect (*) The pubblication, carried out by the Centro di Ricerca CERTeT - Università Boc c oni, b a sed a lso on empiric a l evid enc es of simila r events (e.g Winter Olympics Games of Turin) 17
18 The impact of large events on tourism strategy Introduction XX Winter Olympic Games Torino 2006 World Expo Milano 2015 World Expo Dubai 2020
19 Expo Dubai 2020: candidate city Staging an Expo to remember 2021 will be the 50th a nniversa ry of the UAE Th e UAE is logistic a lly w ell placed to ho st a World Expo : two Th ird s of the world s population now lives within an eig ht-hour flig ht of Dubai Just under nine million visito rs made the trip here la st year Unriva lled connectivity, based on 59 million passengers in Dubai Airp ort, stro ng logistic s and w orld -c la ss infrastructure a re at the heart of the b id. The theme: Connecting minds, creating the future Susta ina b ility: Intellig ent So u rc e s of Ene rg y and Water Mobility: New Syste m s of Logistic s and Transportation Opportunity: New Pa ths to Economic
20 Sources of Visitor s Incremental Expenditures Visitors Projection & Average Increment Spend per visitor
21 Sources of Visitor s Incremental Expenditures Expenditures generated specifically due to Dubai Expo 2020 VISITORS INCREMENTAL SPEND IN EUR BILLIO NS TO TA Visitors % Hotel & Restaurants Retail and 47% 29% HO TEL & RESTA URANTS TRANSPO RTA TIO N 20% RETA IL L Transportation Recreation 4% GOV T Government % 1. Accommodation 2. Food & Beverages 3. Telecom 1. Air Fare (Dubai based carrier) 2. Local Transportation 1. Retail such as shopping, souvenirs etc. 2. Expo tickets & other recreation 1. Visa 2. Airport landing fee
22 The impact of large event on tourism strategy Roberto Daneo Managing Director of the Milano Bidding Committee for Expo 2015
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