| 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. |