Chapter 8

Key concepts:
Economic impact of sport: is the net change in regional output, earnings and employment that is due to new dollars flowing into the region from outside the region.

It is used to estimate monetary flow between industrial sectors, such as sports goods manufacturers purchasing fabrics from factories in the same region that produce the fabric, in order to make the apparel.
In quantitative terms it measures the independence among the economic activities within a region.

3 types of multipliers: output (sales), earning (income) and employment multiplier.

Short term economic impacts: analyze expenditures of several groups of people associated with an activity.

Direct impact: change in activity during first round of spending by visitors

Indirect impact: changes in output, earning and employment in other industrial sectors within the region due to their supply of goods and services to the industrial sectors that receive money from the visitors initial round of spending.

Induced: changes of economics activity caused by local households who spend their income directly/indirectly from visitors as they purchase goods and services.

Long term impacts benefits after a sporting event:

1) The creation and development of new facilities
2) National and international recognition of the host city, state and nation due to media exposure.
3) The community benefits, including job creation and training, youth programs and funding for projects and programs.

Steps to conduct econ impact studies:

1) Determination of the purpose and scope of the impact.
2) Select data collection method.
3) Collect and analyze data.
4) Interpret results.

Errors in conduction: not clearly defining cause or action, not clearly defining an impact region. Or by using inappropriate multipliers or misinterpreting employment multipliers, including all spending by visitors in impact calculation.