Intangible value in preserving the Sports Arenas

See, Chan Ken (2017): Intangible value in preserving the Sports Arenas.

Abstract

The UEFA European Championship (Euro) is among the world's most important sporting events staged nowadays. Apart from tremendous excitement among football fans, such a major event has a number of other implications, above all of economic nature. This is due to the necessity of preparing suitable infrastructural base, increase tourist traffic, potentially greater demand for labour etc. Despite growing interest in the staging of such events, the literature does not provide a straight answer as to the economic grounds for the submission of bids. This study, as one of the few concerned with the Polish circumstances, is intended to determine what significance should be attributed to stage the Euro 2012 in one of Polish host city. The aim of this study is to estimate the willingness-to-pay (WTP) among the community of the Pomeranian region, in connection with intangible benefits and costs stemming from hosting the Euro 2012 in Gdansk. A survey conducted among 407 respondents was the source of information. The results of the study show that the average value of WTPbenefit for the whole sample was 45,72 PLN2012 and WTPcost was 3,86 PLN2012. The aggregate values for the whole region was in terms of benefits and costs 396,6 million PLN2012 and 33,49 million PLN2012 respectively. The results thus confirm the existence of both intangible benefits and costs associated with the event. However, it should be noted that the importance of the net benefits is insignificant and does not compensate for the massive expenditure from public sources.

• Item Type: MPRA Paper
• Language: English
• Keywords: Euro 2012, CVM, WTP
• Subjects: H - Public Economics > H4 - Publicly Provided Goods > H40 - General

References

Carson, R. T. 2000. Contingent valuation: A user’s guide. Environmental Science and Technology, 8, 1413–1418.

Crompton, J.L.2004. Beyond Economic Impact: An Alternative Rationale for the Public Subsidy of Major League Sports Facilities. Journal of Sports Management, 1,42-43.

Dziegielewska, D.A., & Mendelshon, R. 2007. Does “No” mean “No”? A protest methodology. Environmental and Resource Economics, 38, 71–87.

Essex, S., & Chalkley, B. 1998. Olympic Games: catalyst of urban change. Leisure Studies, 3,187-206.

Fourie, J., Santana-Gallego, M. 2011. The impact of mega-sport events on tourist arrivals. Tourism Management, 32, 1369.

Harris C.C., Driver B.L., McLaughlin M.J. 1989. Improving the contingent valuation method: A psychological approach. Journal of Environmental Economics and Management, Vol. 17, 213-229.

Johnson, B.K., Whitehead, J.C., Mason, D.S., & Walker, G.J. 2012. Willingness to pay for downtown public goods generated by large, sports-anchored development projects: The CVM approach. City, Culture and Society, 3, 201–208

Levin, P.T. 2010. Failed Mega-Events as Urban Development Engines? The Planned Olympic Village for Stockholm 2004. Stockholm. Retrieved February 27, 2012 from http://su-se.academia.edu/PaulTLevin/Papers/191927/Failed_Mega-Events_as_Urban_Development_Engines

Mitchell R.C., Carson R.T. 1989. Using surveys to value public goods: the contingent valuation method. Resources for the Future, Washington D.C.

Noll, R.G., & Zimbalist, A. 1997. The Economic Impact of Sports Teams and Facilities. In R.G. Noll, & A. Zimbalist (Eds.), Sports, Jobs, and Taxes (pp.55-91). Washington: The Brookings Institution Press.

Owen, J. G. 2006. The intangible benefits of sports teams. Public Finance and Management, 3, 321-345.

Preuss, H., & Werkmann, K. 2010. Contingent valuation method: The value of the Olympic Winter Games in Munich 2018 for German citizens. Paper presented at the 2nd European Conference in Sport Economics in Cologne.

Walker, M., & Mondello, M.J. 2007. Moving Beyond Economic Impact: A Closer Look at the Contingent Valuation Method. International Journal of Sport Finance, 2, 149-160.

Whitehead, J.C.2005. Environmental risk and averting behavior: Predictive validity of jointly estimated revealed and stated behavior data. Environmental and Resource Economics, 32, 301-316.

Wicker, P. 2011. Willingness-to-Pay in Non-Profit Sports Clubs. International Journal of Sport Finance, 6, 155-169.

Wicker, P., Prinz, J., & von Hanau, T. 2012. Estimating the value of national sporting success. Sport Management Review, 15, 200-210.

Zawadzki, K. 2013, Euro 2012 Economic Impact on Host Cities In Poland, Lap Lambert, Saarbruecken.

Zawadzki K., Wasilczuk J., Impact of the Euro 2012 on the Pomeranian Region and Its Small and Medium Enterprises in Terms of Competitiveness, IUP Journal of Business Strategy 10,2, 22-37.

Zawadzki K., 2016. Public Perception of Intangible Benefits and Costs in the Valuation of Mega Sports Events: The Case of Euro 2012 in Poland, Eastern European Economics, 54, (5), 437-458.