The Economic Impact of the Ryder Cup

MAJOR EVENTS AND FESTIVAL IMPACTS | SEMINAR | WEEK 4

Seminar Overview

Economic impacts explained

Economic impacts critiqued

The Ryder Cup introduced

The Ryder Cup 2014 in Scotland

Group activity: The Ryder Cup 2010 in Wales

Group discussion

Economic impacts explained

Economic impact of a major event refers to the total amount of additional expenditure generated within a defined area as a direct consequence of staging the event.

Three components: Direct impact | Indirect impact | Induced impact

Events can have positive and negative economic impacts.

The value of events is often measured in economic terms.

Economic impact studies try to establish the net change in a host community.

Consider impact on local, regional and national level.

Return on investment as key measures.

The use of figures to legitimise the decision to invest in an event.

Economic impacts critiqued

Where do the figures come from? Question statistics.

Economic impact studies as a means of justifying expenditure.

Who conducted the research? Potential for bias.

How to measure impacts? Diverse and theoretically fragile.

Where does the money go? Not all remains within local area.

What are the costs really? Construction, infrastructure cost.

Who makes the decisions? Residents vs decision makers.

The Ryder Cup introduced

The biggest team competition in world golf

Held biannually and contested by the best golfers from the USA and Europe

First official Ryder Cup took place in 1927, initially between USA and GB

USA dominance in the 60’s and 70’s led to expansion of GB team to include Europe

Venue alternated between USA and initially England, then in 1973, hosted by Scotland (Spain 1997, Ireland 2006, Wales 2010)

The Ryder Cup 2014 in Scotland

http://golf.visitscotland.com/the_2014_ryder_cup.aspx

Scotland’s Ryder Cup Bid:

1. Cultural Issues – ‘Home of Golf’

2. Sport Development – ‘intro to golf for kids’

3. Economic Issues – Golf tourism promotion

The Ryder Cup 2014 in Scotland

Bidding for Ryder Cup part of wider Golf Tourism Strategy

Promotes images of Scotland (not just Gleneagles) in order to stimulate wider tourism as well as golf tourism

£200m worth of benefit to the Scottish economy (McSherry 2001)

Place marketing, Image promotion, Media coverage

The Ryder Cup 2014 in Scotland

Used as a marketing strategy to stimulate golf tourism but can it be sustained?

Constraints on economic benefits of quasi-rural setting – but still £24m investment from public purse

Conflicting messages in strategy?

The Ryder Cup 2010 in Wales

Ryder Cup 2010 in Wales http://www.youtube.com/watch?v=nGsCA4ONf30

Held at Celtic Manor Resort – Newport Wales

Initial economic impact estimate of £73million for the week before the event

Direct Impact of £53.9million for Wales

South East Wales saw an impact of £48.7million

Newport saw an impact of £18.5

70% of the impact contributed by consumer spending

The Ryder Cup 2010 in Wales

172 companies were represented at the 2010 Ryder Cup

250,000 visits to the competition was recorded over the event

One third of the audience were from Wales

Half were from the rest of the UK

10% were from overseas – 69% of these said they would return for a short holiday

89% of people were golf enthusiasts!

Group activity

Read the short executive summary of the Ryder Cup 2010 Economic Impact Studyhttp://www.rydercup.com/2010/europe/news/economic_impact_032311.cfm

Discuss the document in your small group and provide a critique (use flipchart paper)

Present and discuss your findings and comments with the rest of the class