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After a long battle, Paris’s beloved bouquinistes will be staying put this summer. The decision, announced on 13 February by the French government, came after considerable public backlash to the police prefecture’s original plan to move part of the iconic Seine booksellers elsewhere for the inauguration of the Olympics Games on 26 July.

Meanwhile, less than six months away from the event, Parisians continue to grumble over a lack of consultations with locals, warnings of gridlocked traffic, closed metro stations, extensive video surveillance and other grievances. So for host countries, what was the point of the Olympics, again?

In academia, the debate about the potential positive and negative effects of large-scale sporting events is ongoing. Although these events are often associated with substantial economic losses, the long-term benefits are the main argument in favour of hosting them. These include the development of material and soft infrastructure such as hotels, restaurants or parks. Big games can also help put the host region on the map as an attractive place for sports and cultural events, and inspire a better entrepreneurial climate.

The pros and the cons of big sporting events?

The cost of these benefits, as the Parisians have realised, is steep. Host countries appear to suffer from increased tax burdens, low returns on public investments, high construction costs, and onerous running cost of facilities after the event.

Communities can also be blighted by noise, pollution, and damage to the environment, while increased criminal activity and potential conflicts between locals and visitors can take a toll on their quality of life. As a result, in the recent past several major cities, including Rome and Hamburg, withdrew their bids to host the games.

A common feature of the economics of large-scale sporting events is that our expectations of them are more optimistic than what we make of them once they have taken place. Typically, expenditure tends to tip over the original budget, while the revenue-side indicators (such as the number of visitors) are rarely achieved.

When analysing the effect of hosting large-scale sporting events on tourist visits, it is important to take into consideration both the positive and negative components of the overall effect. While positive effects may be associated with visitors, negative effects may arise when “regular” tourists refuse to visit the location due to the event.

This might be because of overloaded infrastructure, sharp increases in accommodation costs, and inconveniences associated with overcrowding or raucous or/and violent visitors. On top of that, reports of poverty or crime in the global media can actually undermine the location’s attractiveness.

When big sporting events crowd out regular tourists

In an article published in the Journal of Sports Economics with Igor Drapkin and Ilya Zverev, I assess the effects of hosting large-scale sporting events, such as Winter and Summer Olympics plus FIFA World Cups, on international tourist visits.

We utilise a comprehensive dataset on flow of tourists covering the world’s largest destination and origin countries between 1995 and 2019. As a first step, we built an econometric model that effectively predicts the flow of tourists between any pair of countries in our data. Subsequently we compared the predicted tourist inflow in a hypothetical scenario where no large-scale sporting event would have taken place with the actual figures.

If the actual figures exceed the predicted ones, we consider the event to have a net positive impact. Otherwise, we consider that it had a “crowding out” effect on “regular” tourists. While conducting this analysis, we distinguished between short-term (i.e., focusing just on the year of the event) and mid-term (year of the event plus three subsequent years).

Our results show that the effects of large-scale sporting events vary a lot across host countries: The World Cup in Japan and South Korea 2002 and South Africa 2010 were associated with a distinct increase in tourist arrivals, whereas all other World Cups were either neutral or negative.

Among the Summer Olympics, China in 2008 is the only case with a significant positive effect on tourist inflows. The effects of the other four events (Australia 2000, Greece 2004, Great Britain 2012, and Brazil 2016) were found to be negative in the short- and medium-term. As for the Winter Olympics, the only positive case is Russia in 2014. The remaining five events had a negative impact except the one-year neutral effect for Japan 1998.

Following large-scale sporting events, host countries are therefore typically less visited by tourists. Out of the 18 hosting countries studied, 11 saw tourist numbers decline over four years, and three did not experience a significant change.

The case for cautious optimism

Our research indicates that the positive effect of hosting large-scale sporting events on tourist inflows is, at best, moderate. While many tourists are attracted by FIFA World Cups and Olympic games, the crowding-out effect of “regular” tourists is strong and often underestimated.

This implies that tourists visiting for an event like the Olympics typically dissuade those who would have come for other reasons. Thus, efforts to attract new visitors should be accompanied by efforts to retain the already existing ones.

Large-scale sporting events should be considered as part of a long-term policy for promoting a territory to tourists rather than a standalone solution. Revealingly, our results indicate that it is easier to get a net increase in tourist inflows in countries that are less frequent destinations for tourists – for example, those in Asia or Africa. By contrast, the United States and Europe, both of which are traditionally popular with tourists, have no single case of a net positive effect.

Put differently, the large-scale sporting events in Asia and Africa helped promote their host countries as tourist destinations, making the case for the initial investment. In the US and Europe, however, those in the last few decades brought little return, at least in terms of tourist inflow.

Ivan Savin is associate professor of quantitative analytics and a research fellow at ICTA-UAB at the ESCP Business School in Europe.

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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In late 2023, I embarked on my first Formula One race experience, attending the first-ever Las Vegas Grand Prix. I had never been to an F1 race; my interest was sparked during the pandemic, largely through the Netflix series Formula 1: Drive to Survive.

But I wasn’t just attending as a fan. As the inaugural chair of the University of Florida’s department of tourism, hospitality and event management, I saw this as an opportunity. Big events and festivals represent a growing share of the tourism market – as an educator, I want to prepare future leaders to manage them.

And what better place to learn how to do that than in the stands of the Las Vegas Grand Prix?

The future of tourism is in events and experiences

Tourism is fun, but it’s also big business: In the United States alone, it’s a US$2.6tr industry employing 15 million people. And with travellers increasingly planning their trips around events rather than places, both industry leaders and academics are paying attention.

Event tourism is also key to many cities’ economic development strategies – think Chicago and its annual Lollapalooza music festival, which has been hosted in Grant Park since 2005. In 2023, Lollapalooza generated an estimated US$422m for the local economy and drew record-breaking crowds to the city’s hotels.

That’s why when Formula One announced it would be making a 10-year commitment to host races in Las Vegas, the region’s tourism agency was eager to spread the news. The 2023 grand prix eventually generated US$100m in tax revenue, the head of that agency later announced.

Why Formula One?

Formula One offers a prime example of the economic importance of event tourism. In 2022, Formula One generated about US$2.6bn in total revenues, according to the latest full-year data from its parent company. That’s up 20% from 2021 and 27% from 2019, the last pre-Covid year. A record 5.7 million fans attended Formula One races in 2022, up 36% from 2019.

This surge in interest can be attributed to expanded broadcasting rights, sponsorship deals and a growing global fan base. And, of course, the in-person events make a lot of money – the cheapest tickets to the Las Vegas Grand Prix were US$500.

That’s why I think of Formula One as more than just a pastime: It’s emblematic of a major shift in the tourism industry that offers substantial job opportunities. And it takes more than drivers and pit crews to make Formula One run – it takes a diverse range of professionals in fields such as event management, marketing, engineering and beyond.

This rapid industry growth indicates an opportune moment for universities to adapt their hospitality and business curricula and prepare students for careers in this profitable field.

How hospitality and business programmes should prepare students

To align with the evolving landscape of mega-events like Formula One races, hospitality schools should, I believe, integrate specialised training in event management, luxury hospitality and international business. Courses focusing on large-scale event planning, VIP client management and cross-cultural communication are essential.

Another area for curriculum enhancement is sustainability and innovation in hospitality. Formula One, like many other companies, has increased its emphasis on environmental responsibility in recent years. While some critics have been skeptical of this push, I think it makes sense. After all, the event tourism industry both contributes to climate change and is threatened by it. So, programmes may consider incorporating courses in sustainable event management, eco-friendly hospitality practices and innovations in sustainable event and tourism.

Additionally, business programmes may consider emphasising strategic marketing, brand management and digital media strategies for F1 and for the larger event-tourism space. As both continue to evolve, understanding how to leverage digital platforms, engage global audiences and create compelling brand narratives becomes increasingly important.

Beyond hospitality and business, other disciplines such as material sciences, engineering and data analytics can also integrate F1 into their curricula. Given the younger generation’s growing interest in motorsports, embedding F1 case studies and projects in these programmes can enhance student engagement and provide practical applications of theoretical concepts.

Racing into the future: Formula One today and tomorrow

F1 has boosted its outreach to younger audiences in recent years and has also acted to strengthen its presence in the U.S., a market with major potential for the sport. The 2023 Las Vegas race was a strategic move in this direction. These decisions, along with the continued growth of the sport’s fan base and sponsorship deals, underscore F1’s economic significance and future potential.

Looking ahead in 2024, Formula One seems ripe for further expansion. New races, continued advancements in broadcasting technology and evolving sponsorship models are expected to drive revenue growth. And Season 6 of “Drive to Survive” will be released on Feb. 23, 2024. We already know that was effective marketing – after all, it inspired me to check out the Las Vegas Grand Prix.

I’m more sure than ever that big events like this will play a major role in the future of tourism – a message I’ll be imparting to my students. And in my free time, I’m planning to enhance my quality of life in 2024 by synchronising my vacations with the F1 calendar. After all, nothing says “relaxing getaway” quite like the roar of engines and excitement of the racetrack.

Rachel J.C. Fu is chair and professor of the Department of Tourism and Hospitality Management, director of the Eric Friedheim Tourism Institute, and affiliate professor of the Department of Information Systems and Operations Management at the University of Florida.

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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Climate activists lined the road to this year’s Burning Man festival in Nevada to call out the “privileged mindset” of the Silicon Valley types who flock there – and the waste involved in creating a temporary city in the desert.

Only a couple of days later, disaster struck. Unprecedented rain – 20mm in 24 hours – turned the desert into mud, trapping the 70,000 festival goers.

As you might expect, the internet went wild with schadenfreude. But there’s a deeper issue here. This is not the first – and won’t be the last – outdoor festival upended by unprecedented weather. It was only a month ago when the World Scout Jamboree in South Korea was crippled by intense heat and typhoons, forcing its abandonment. Last year’s Splendour in the Grass festival in northern New South Wales turned into a mudpit after unprecedented rains.

Outdoor festivals are a summer rite of passage for many. Warm weather makes them possible. But summer’s when we often see the wildest weather too. As climate change loads the dice, we’ll see more festival disruptions, more often.

Summer may no longer be the right time for festivals

The biggest music festivals are usually held in summer months: Glastonbury in the United Kingdom and Tomorrowland in Belgium are held in the northern hemisphere summer, in late June and late July respectively. America’s Coachella festival takes place in April, but it’s in a desert where daytime temperatures over 30℃ are the norm.

As the world heats up, summer may soon be too risky for festival organisers. Creating large festivals is expensive and logistically challenging. Wipeouts from extreme weather events pose major financial risks.

When we go to festivals, we leave behind our houses and easy access to water. Many people camp in tents with relatively little protection from the elements.

During heatwaves, it’s particularly important to stay out of the heat and sun in the middle of the day and to stay hydrated. This isn’t always possible at festivals. Many of us underestimate the effect of heat on our bodies.

Extreme rainfall is very challenging for organisers. Managing tens of thousands of muddy, stuck people is hard – especially if it’s too difficult to bring supplies in. That’s why Burning Man organisers had to call on their attendees to conserve food and water.

If you have tens or even hundreds of thousands of people exposed to the heatwave or rainfall, it can pose a risk to their health. Evacuating large numbers of people is logistically very challenging.

As the climate changes, we can expect more frequent and more severe extreme weather. This will make the job of festival organiser much harder.

Organisation matters

Well-organised festivals are much safer. If organisers think ahead and put contingency plans and adequate infrastructure in place, the chaos from extreme weather events can be much better managed.

For instance, during the trouble-stricken Scout Jamboree in Korea, there were real concerns over the intense heat, given children are more vulnerable.

But the heat shouldn’t have been a surprise. The event was held at the height of summer – albeit in a year of record breaking heat. So organisers should have anticipated heat and put in place better strategies to manage extreme weather. A simpler solution might have been avoiding the middle of summer.

What are we likely to see in the future?

Extreme weather hitting festivals isn’t new. The legendary 1969 Woodstock festival in New York State was also a mud pit.

What is new is the increased frequency and intensity of these events. Climate scientists have warned of these effects for decades. Now they’re arriving.

As we heat the planet, we’re getting more frequent, intense and longer-lasting heatwaves across the world. We also know we’re seeing more and more intense short-duration downpours which cause flash flooding.

It stands to reason we can expect to see more upheaval and health concerns at outdoor festivals.

What can be done? Expect to see festival dates move to shoulder seasons rather than midsummer. Some locations may no longer be viable. Last year’s Burning Man sweltered, with temperatures of 40℃.

If festival organisers don’t want to move date or location, the minimum response they’ll need is to actively plan to manage extreme weather and ensure key infrastructure like water and toilets are able to cope with heat or floods.

If the world keeps pumping out greenhouse gas emissions at high rates, we could see some summer festival locations get much hotter – rising 4–8℃. That’s because land areas in summer are expected to heat up quicker than the global average. Those higher temperatures would make it impossible to safely host a festival.

Andrew King is a senior lecturer in climate science at the University of Melbourne. This article is republished in accordance with the Creative Commons. Read the original article here.

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