Modeling Resident Spending Behavior During Sport Events: Do Residents Contribute to Economic Impact?

in Journal of Sport Management
Restricted access

Purchase article

USD  $24.95

Student 1 year subscription

USD  $84.00

1 year subscription

USD  $111.00

Student 2 year subscription

USD  $159.00

2 year subscription

USD  $208.00

The role of residents in the calculation of economic impact remains a point of contention. It is unclear if changes in resident spending caused by an event contribute positively, negatively, or not at all. Building on previous theory, we develop a comprehensive model that explains all 72 possible behaviors of residents based on changes in (a) spending, (b) multiplier, (c) timing of expenditures, and (d) geographic location of spending. Applying the model to Super Bowl 50 indicates that few residents were affected and positive and negative effects were relatively equivalent; thus, their overall impact is negligible. This leaves practitioners the option to engage in the challenging process of gathering data on all four variables on all residents or to revert back to the old model of entirely excluding residents from economic impact. From a theoretical perspective, there is a pressing need to properly conceptualize the time variable in economic impact studies.

Agha is with the University of San Francisco, San Francisco, CA. Taks is with the School of Human Kinetics, University of Ottawa, Ottawa, Ontario, Canada.

Address author correspondence to Nola Agha at nagha@usfca.edu.
  • Agha, N., & Taks, M.A. (2015). A theoretical comparison of the economic impact of large and small events. International Journal of Sport Finance, 10(3), 199–216.

    • Search Google Scholar
    • Export Citation
  • Baade, R.A., Baumann, R.W., & Matheson, V.A. (2008). Selling the game: Estimating the economic impact of professional sports through taxable sales. Southern Economic Journal, 74(3), 794–810.

    • Search Google Scholar
    • Export Citation
  • Bay Area Census. (2016). Retrieved from http://www.bayareacensus.ca.gov/

    • Export Citation
  • Breen, H., Bull, A., & Walo, M. (2001). A comparison of survey methods to estimate visitor expenditure at a local event. Tourism Management, 22(5), 473–479. doi:10.1016/S0261-5177(01)00005-X

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Coates, D., & Depken, C.A. (2009). The impact of college football games on local sales tax revenue: Evidence from four cities in Texas. Eastern Economic Journal, 35(4), 531–547. doi:10.1057/eej.2009.29

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Cobb, S., & Olberding, D. (2007). The importance of import substitution in marathon economic impact analysis. International Journal of Sport Finance, 2(2), 108–118.

    • Search Google Scholar
    • Export Citation
  • Controller’s Office. (2016, May 9). Super Bowl 50: City budget impact report. Office of the Controller, City and County of San Francisco. Retrieved from http://sfcontroller.org/sites/default/files/SB%2050%20May%209%202016.pdf

    • Search Google Scholar
    • Export Citation
  • Crompton, J.L. (1995). Economic impact analysis of sports facilities and events: Eleven sources of misapplication. Journal of Sport Management, 9(1), 14–35. doi:10.1123/jsm.9.1.14

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Crompton, J.L. (2006). Economic impact studies: Instruments for political shenanigans? Journal of Travel Research, 45, 67–82. doi:10.1177/0047287506288870

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Crompton, L.J., & Howard, D.R. (2013). Costs: The rest of the economic impact story. Journal of Sport Management, 27(5), 379–392. doi:10.1123/jsm.27.5.379

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Davidson, J. (2016, February 1). Super Bowl opening night features players, media and characters. The Sacramento Bee. Retrieved from http://www.sacbee.com/sports/nfl/super-bowl/article57855723.html

    • Search Google Scholar
    • Export Citation
  • Davies, L., Coleman, R., & Ramchandani, G. (2013). Evaluating event economic impact: Rigour versus reality? International Journal of Event and Festival Management, 4(1), 31–42. doi:10.1108/17582951311307494

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Furnham, A., & Argyle, M. (1998). The psychology of money. New York, NY: Routledge.

  • Gelan, A. (2003). Local economic impacts: The British Open. Annals of Tourism Research, 30(2), 406–425. doi:10.1016/S0160-7383(02)00098-1

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Getz, D. (1991). Festivals, special events, and tourism. New York, NY: Van Nostrand Reinhold.

  • Gratton, C., & Taylor, P. (2000). Economics of sport and recreation. London, UK: Spon.

  • Griffiths, W., Hill, R.C., & Judge, G.G. (1993). Learning and practicing econometrics. New York, NY: John Wiley & Sons.

  • Jones, I. (2015). Research methods for sports studies. 3rd ed. London, UK: Routledge.

  • Késenne, S. (2012). The economic impact, costs and benefits of the FIFA World Cup and the Olympic Games: Who wins, who loses? In W. Maennig & A.S. Zimbalist (Eds.), International handbook on the economics of mega sporting events (pp. 270–278). Cheltenham, UK: Edward Elgar.

    • Search Google Scholar
    • Export Citation
  • Kwiatkowski, G. (2016). Economic impact of event attendees’ spending on a host region: A review of the research. Event Management, 20(4), 501–515. doi:10.3727/152599516X14745497664398

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Lee, S. (2016, February 2). 10 ways San Francisco has fumbled its Super Bowl festivities (so far). Newsweek. Retrieved from http://www.newsweek.com/san-francisco-super-bowl-super-bowl-50-super-bowl-city-421857

    • Search Google Scholar
    • Export Citation
  • Matheson, V.A., & Baade, R.A. (2006). Padding required: Assessing the economic impact of the Super Bowl. European Sport Management Quarterly, 6(4), 353–374. doi:10.1080/16184740601154490

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Mills, B.M., & Rosentraub, M.S. (2013). Hosting mega-events: A guide to the evaluation of development effects in integrated metropolitan regions. Tourism Management, 34, 238–246. doi:10.1016/j.tourman.2012.03.011

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Neter, J., & Waksberg, J. (1964). A study of response errors in expenditures data from household interviews. Journal of the American Statistical Association, 59(305), 18–55. doi:10.1080/01621459.1964.10480699

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Nielsen. (2016, February 8). Super Bowl 50 Draws 111.9 Million TV Viewers. 16.9 Million Tweets. Retrieved from http://www.nielsen.com/us/en/insights/news/2016/super-bowl-50-draws-111-9-million-tv-viewers-and-16-9-million-tweets.html

    • Search Google Scholar
    • Export Citation
  • Preuss, H. (2005). The economic impact of visitors at major multi-sport events. European Sport Management Quarterly, 5, 281–301. doi:10.1080/16184740500190710

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Preuss, H., Kurscheidt, M., & Schütte, N. (2009). Ökonomie des Tourismus durch Sportgroßveranstaltungen: Eine empirische Analyse zur Fußball-Weltmeisterschaft 2006. Wiesbaden, Germany: Springer Gabler Verlag.

    • Search Google Scholar
    • Export Citation
  • Rascher, D.A., & Goldman, M.M. (2015). Tracking the dollars: How economic impact studies can actually benefit managerial decision making. Sport & Entertainment Review, 1(1), 15–19.

    • Search Google Scholar
    • Export Citation
  • Raymos, J. (2016, January 25). PG&E telling downtown SF employees to work from home, but some businesses left in Super Bowl cold. CBS SF Bay Area. Retrieved from http://sanfrancisco.cbslocal.com/2016/01/25/pge-telling-downtown-sf-employees-to-work-from-home-but-some-businesses-left-in-super-bowl-cold/

    • Search Google Scholar
    • Export Citation
  • Repucom. (2016). Super bowl 50 host committee community impact study highlights positive impact on San Francisco bay area. Retrieved from http://repucom.net/super-bowl-50-host-committee-community-impact-study/

    • Export Citation
  • Ritchie, B. (1984). Assessing the impact of hallmark events: Conceptual and research issues. Journal of Travel Research, 23(1), 2–11. doi:10.1177/004728758402300101

    • Crossref
    • Search Google Scholar
    • Export Citation
  • San Francisco Municipal Transportation Agency. (2016). Getting around during super bowl 50. Retrieved from https://www.sfmta.com/sites/default/files/pdfs/2016/SB50-General-Ltr_1.21.16.pdf

    • Export Citation
  • Shank, M.D., & Beasley, F.M. (1998). Fan or fanatic: Refining a measure of sports involvement. Journal of Sport Behavior, 21(4), 435–444.

    • Search Google Scholar
    • Export Citation
  • Solberg, H.A., & Preuss, H. (2007). Major sport events and long-term tourism impacts. Journal of Sport Management, 21(2), 213–234. doi:10.1123/jsm.21.2.213

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Super Bowl 50 Host Committee. (2016). Super bowl insight. Retrieved from http://www.cipherbsc.com/superbowlinsight/superbowl50insight/reader.html?contextId=P4&isExternal=_external

    • Export Citation
  • Swan, J.E., & Epley, D.E. (1981). Completion and response rates for different forms of income questions in a mail survey. Perceptual and Motor Skills, 52, 219–222.

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Taks, M., Girginov, V., & Boucher, B. (2006). The outcomes of coattail-marketing: The case of Windsor, Ontario and Super Bowl XL. Sport Marketing Quarterly, 15(4), 232–242.

    • Search Google Scholar
    • Export Citation
  • Taks, M., Késenne, S., Chalip, L., Green, B.C., & Martyn, S. (2011). Economic impact analysis versus cost benefit analysis: The case of a medium-sized sport event. International Journal of Sport Finance, 6(3), 187–203.

    • Search Google Scholar
    • Export Citation
  • Wilton, J.J., & Nickerson, N.P. (2006). Collecting and using visitor spending data. Journal of Travel Research, 45(1), 17–25. doi:10.1177/0047287506288875

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Yun, G.W., & Trumbo, C.W. (2000). Comparative response to a survey executed by post, e-mail, & web form. Journal of Computer-Mediated Communication, 6(1). doi:10.1111/j.1083-6101.2000.tb00112.x

    • Search Google Scholar
    • Export Citation
All Time Past Year Past 30 Days
Abstract Views 159 160 21
Full Text Views 24 24 3
PDF Downloads 10 10 3