UNIV.-PROF. MAG. DR. ERICH THÖNI Department of Public Economics and Public Finance

1. UNIV.-PROF. MAG. DR. ERICH THÖNI Department of Public Economics and Public Finance University of Innsbruck (Austria)

2. „Sport event impact evaluation in a social-economic aspect“ Valutazione dell‘impatto di un evento sportivo dal punto di vista socio-economico Evaluation de l‘impact d‘un événement sportif sous l‘aspect social-économique • UNIV.-PROF. MAG. DR. ERICH THÖNI Department of Public Economics and Public Finance University of Innsbruck (Austria) • Conference on „Un grande evento di sport: gli effetti sul territorio“ 28.-29.October 2004 Torino (Italy)

3. Socio-economic ex-ante evaluation of the Winter Universiade Innsbruck/Seefeld 2005University of Innsbruck, July 2, 2004 Univ.-Prof. Dr. Erich Thöni Mag. Tassilo Philippovich Department of Public Economics and Public Finance

4. Problem/Aim of the study • Austria – holding “World Winter Games for Students” for 2nd time (after 1968) • Universiades – “special” events (high level of volunteer work, multidimensional effects as the goal) • Analysis of the Winter Universiade 2005 takes place in 3 steps: • First step: ex-ante analysis (November 2003 to March 2004) Demonstration of socio-economic effects • Second step: Questioning (January 2005) Closer examination of individual parts, especially the “tourism part” • Third step: ex-post analysis (April to July 2005) Review of and changes to first step • The following explanations are geared at the above first step, the ex-ante analysis!! • The study is based on the data from February 9, 2004!!

5. Special remarks on the project “Winter Universiade 2005” • Basic facts: • Approx. 1,500 athletes and 500 officials from • 50 countries (total of 2,050 participants and officials) • Approx. 1,150 workers for 69 medal events in more than 10 winter sports disciplines, including: 850 volunteers • 150 persons from the media plus “welcome visitors” • Cooperation agreements with the University of Innsbruck, Management Center Innsbruck and the Kufstein Polytechnical College

6. Special remarks on the project “Winter Universiade 2005” • Total budget - approx. € 8.5 mil • approx. € 6.5 mil from governments (federal, state, local) • approx. € 1.9 mil from sponsors, participant fees and other sources (subsidies, admission, merchandising ....) • approx. € 7.5 mil in expenditures take effect in Tyrol

7. Special remarks on the project “Winter Universiade 2005” • Tab.: Budget of Winter Universiade 2005 (Updated: February 9, 2004) • Source: own table

8. Direct expenditures made by OC Primary income effects Subsidies Indirect expenditures Additional tax made by visitors income for the state to the skiing event Secondary income effects Multiplier-/ accelerator effects Payments • Advance payments • Savings • Imports • Direct taxes Theoretical remarks and consequences • Diag.: Flow-chart diagram of effects of expenditures, i.e. a (skiing) sporting event • Source: own diagram according to Thöni in 2001 Method of analysis: Socio-economic survey of costs and benefits in connection with a limited multiplier analysis, supplemented by positive and negative qualitative effects.

9. Theoretical remarks and consequences • Assumptions for the assessment of this paper: • Analysis for the region of Tyrolfrom 2002 to 2005 • Assumptions: no investments made by the Organising Committee, no crowding out effects within economic or public sector (except for marginal effects in tourism), no effects on prices • “Regionalized multipliers” of 1.5 or 2.3 • Assessment of volunteer work – acc. to plausibility • Assessment of university research (acc. to ISOC) • Assessment of the effects on tourism: • Innsbruck/Seefeld/Hochfilzen-Fieberbrunn • Overnight stays and daily expenditures for (actual) participants (incl. officials), welcome visitor program, media • Assessment of the governmental income effects: • Only income tax of full-time employees (acc. to ISOC)

10. Results • - Detailed results of overnight stays: • Total overnight stays 20,625 • - Detailed results of daily visits: (acc. to ISOC)60,000 • - Detailed results of TV production: • total TV time 80 – 100 hrs. • - Detailed results of “employment effect”: • Full-time employees marginal (17) • Total (peak) incl. volunteers 1,153

11. Results • - Tangible effects: • Income effect I (Variant I) (Variant II) € 8,715,000.-- 7,825,000.-- • Income effect II multiplicative associated (Variant I) (Variant II) incl. research € 13,147,500.-- 18,188,300.-- • Tourism effect (minimal variant) € 1,221,750.-- multiplicative associated (Variant I) (Variant II) € 1,832,650.-- 2,828,107.-- • (Volunteer work (minimal basis) € 416,500.--) (-“- (“expert variant”) € 511,000.--) • Governmental income effect € 199,080.-- • University/HE research € 75,000.--

12. Results • Intangible effects: Positive: • Sports gender and sports trainee effects • Health and education effects • Marketing and destination effects • Candidacy and other image effects • Information effect and network effect • Effects on leisure and experiences Negative: • Effects of burden on citizens • Effect of crowding out in tourism • Ecological effect