POLITICAL

AND
ECONOMIC
IMPACTS
WEEK 4
 ECONOMIC IMPACTS OF EVENT & FESTIVAL
POSITIVE IMPACTS
Increased expenditures
Creation of employment
Increase in labour supply
Increase in standard of living
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NEGATIVE IMPACTS
Price increases during event
Real estate speculation
Failure to attract tourists
Better alternative investments
Inadequate capital
Inadequate estimation of costs
of event
 POLITICAL IMPACTS OF EVENT & FESTIVAL
POSITIVE IMPACTS NEGATIVE IMPACTS
Enhanced international recognition of Economic exploitation of local
region and values population to satisfy the ambitions of
the political elite
Development of skills among Distortion of the true nature of the
planners event to reflect elite values
Failure to cope
Inability to achieve aims
Increase in administrative costs
Use of events to legitimate unpopular
decisions
Legitimation of ideology and
socio-cultural reality
3
APPROACHES TO EVENT
IMPACT ASSESSMENT

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 THE MULTIPLIER EFFECT
1. Multipliers measure the amount of money spent that is not leaked out of the
region due to further spending on products and services not sourced from
within the study region.
2. In some regions that are dependent on importing goods and services the
amount of money left in the local economy is less than that spent by
consumers.
3. This is because some regions and towns are dependent on goods and services
from outside the region and are not very self-sufficient.

5
1. The inclusion of
secondary impacts
provides a more accurate
assessment, as it
recognizes the
interdependence of
different sectors within a
region and how reliant a
region or town is on
importing goods and
services.
2. This is measured using
multipliers by calculating
the leakage of new
expenditure in the area.