WORLD CUP AND OLYMPICS: YOU TOO CAN BE A WINNER

Celso SchvartzerDream Factory Sports

MAJOR EVENTS

• What do we mean by a “major event”?

• What motivates communities to host events?

• What is happening around the world?

MAJOR EVENTS

• What do we mean by “major event”?– While it is generally agreed that special

events:• Profile a region• Engender a sense of resident pride • Act as a catalyst for economic growth/regeneration

– …there is less agreement regarding what constitutes a ‘major event.’

MAJOR EVENTS

• Major events have an extraordinary and unique character. Typically they:– Subject the host economy to influences that

are significantly different to its normal operating function, and create significant economic activity

– Are widely publicized– Are of short duration

MAJOR EVENTS

– Involve geographical and spatial concentrations of unusually large and temporary flows of spectators, participants and visitors

– Require special organization for security, accessibility and transport

– Pressure existing infrastructure (such as transport), which are often under stress at normal times

MAJOR EVENTS

• What motivates communities to host events?

• Economic impact• Media exposure

MAJOR EVENTS

– In this case we define economic impact in its broadest terms including, for example:

• Direct financial impact• Capability development• Indirect financial impact• Re-engagement of disengaged peoples• Regeneration• Social changes, which generates economic

impacts

MAJOR EVENTS

• What is happening around the world? Current trends– Sporting events sector is growing– Extreme Professionalization of the Sector– Government-backed intervention is increasing

• Event strategies• Increased city/country competition• More sophisticated leveraging strategies

MAJOR EVENTS

• Examples of increased Government intervention– South Africa

• Quickly realized the role which events could play in nation building.

– IRB Rugby World Cup– FIFA World Cup in 2010– Bidding for IRB Rugby World Cup again in 2011

– China

THE PLACE OF MAJOR EVENTS

– Africa• Nigeria and Ghana are looking to emulate South

Africa, with the latter already considering a bid for the FIFA World Cup in 2050 – an indication if nothing else of the long term vision and commitment which is usually a prerequisite to success.

– Middle East• a number of Gulf countries (UAE, Bahrain and

Qatar) have committed significant funding towards attracting major events with event tourism seen as a fundamental component of their drive to capture more tourism expenditure in their countries.

RIO 2016 AND WORLD CUP

• Olympic Games

– 10.000 or more athletes– One single city – Almost 200 nations represented (media)– 17 days duration

RIO 2016 AND WORLD CUP

• World Cup– 32 countries– 12 cities in Brazil– less then 1.000 athletes.– One month duration

• Two Different Experiences for Spectators

RIO 2016 AND WORLD CUP

• They are not by themselves.

FIFA World CupFinal Draw

FIFA Fan Fest™

RIO 2016 AND WORLD CUP

RIO 2016 AND WORLD CUP

RIO 2016 AND WORLD CUP

• They are not by themselves.

RIO 2016 AND WORLD CUP

• And much more:

– Base Camps and training fields.– Hundreds of Conferences, Fairs and Other

business related events.

RIO 2016 AND WORLD CUP

• What motivates communities to host events?

• Economic impact• Media exposure

RIO 2016 AND WORLD CUP

The potential economic and social impacts of big events are directly associated to four essential pillars:

Planning Capacity• Objectives

• Resources

• Goals and Timetable

Capacity of making investments viable

Synergy between Governmental levels

Involvement of local community

RIO 2016 AND WORLD CUP

The 2014 Brazil World Cup is set to be the most profitable tournament ever for FIFA.

World football’s governing body expects to generate an income of $3.8bn for the 2011-2014 period – of which more than 95 per cent will come from the World Cup in Brazil. 

For 2010, the forecast is $3.2bn, while FIFA generated revenues of $2.1bn in 2006.

Jerome Valcke, FIFA's secretary general, has revealed that agreements signed with sponsors for the 2014 World Cup have already surpassed contracts closed four years before the 2010 World Cup. 

Source: Estado de S. Paulo

THE PLACE OF MAJOR EVENTS

• Economic Impacts

– Tourism– Services– Infrastructure

OPPORTUNITIES

• Economic Impacts - Stakeholders

OPPORTUNITIES

• Economic Impacts - Stakeholders

Community

Spectators

Sponsors andlicensees

Media

Suppliers

Government

Athletes

Sporting Organizations

OPPORTUNITIES

• Tourism

– Significant contributor to event economic impact

– Significant beneficiary of media exposure and media value driven by major events

– Not just “recreation” tourism: Meetings, Incentives and Conventions

– Business visitation leads to tourism

OPPORTUNITIES

• Tourism Opportunities

– Hotels and other accommodation– Transport Services– Cultural and Recreational Events– Food Services– Tourist attractions – Tourist Information

SYDNEY 2000 AND AUSTRALIA

– ATC Brand Stock Research found that all markets included in the research claimed to:

• Have greater knowledge about both Sydney and Australia.

• Feel more positively about Sydney and Australia. • Be more interested in visiting Sydney and

Australia.

SYDNEY 2000 AND AUSTRALIA

• The Numbers– In 2000, visitor arrivals to Australia increased by

11% (to 5 million) and continues to grow

– 110,000 Games time specific visitors

– Conventions and business travel – Increased convention bid wins by 34% winning 210 events attracting A$1billion (1993-2000)

• 49% of delegates planning pre/post convent tours• Average business tourist spend A$801per day;

more than 9 times the average tourist

OPPORTUNITIES

• Services Opportunities

– Legal– Events Production– Advertising and Promotion– Health Services and Insurances– Broadcasting and Communication– A.S.O.

OPPORTUNITIES

• Infrastructure

– Construction of venues, hotels and other– Airports and Bus Terminals– Telecommunication – Security– Environment/Sanitary Structure

OPPORTUNITIES

“The Games weren’t just a 17-day event, but a decade of opportunity.”

John Morse, Chief Executive

Australian Tourist Commission

THANK YOU!

Celso Schvartzercelso@dreamfactory.com.br