Sports and Events - Analyses of Value

7/31/2019 Sports and Events - Analyses of Value

1/19

Presented by Darryl Moodie on behalf of Dr Anneline Chetty


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Presentation

Program

1. Objectives of Tourism Research undertaken

on selective events for the eThekwini Council

by Focus Marketing and Eureka MarketResearch Specialists

2. Measurement Methodology

3. Economic and Marketing findings

4. Some conclusions going forward


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Objectives

1. To calculate the Socio-Economic Impact of

tourists on various events in the eThekwini region

- Summer 2011/2012, Tourism Indaba, Top Gear,Durban July Handicap, Manchester United vs

Amazulu, various Winter Season events 2012;

2. To ascertain perceptions of tourists to eThekwini

and their recommendations in order to assist the

eThekwini Council improve their service offerings


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Measurement

Methodology

Measuring the Economic Impact of Tourists

What did we want to measure?

1. The net injection of new money into the eThekwini economy by local and international tourists,organisers and sponsors; PLUS

2. The subsequent Induced (or Multiplier) effects that ripple through the eThekwini Economy from the

new employment and new spending created by these events;3. Marketing perceptions and recommendations for the events and Durban as a whole.

So how do we do this?

1. Primary research a statistically significant random sample of tourists at each event to ascertain:-

1. Whether they came to eThekwini specificallyto see the event;

2. What they spent directly at the event and Indirectly on accommodation, restaurants, touring etcwhilst in eThekwini;

3. The number of nights they spent in eThekwini as a result of the event;

4. Various marketing perceptions and recommendations relating to eThekwini as a holidaydestination;

2. Secondary research - amongst organisers, sponsors and tourism service providers to ascertain:-

1. How much non-eThekwini based organisers and/or their sponsors spent directly oninfrastructure and Indirectly on media/marketing and/or Corporate Social Investment witheThekwini based suppliers;

2. The ruling Expenditure Multiplier that existed at the time (Source: Bureau for EconomicResearch, Grant Thornton, UKZN Graduate School of Business) ;

3. How various tourism providers fared during the events


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Measurement

MethodologyMeasuring Economic Impact of Tourists

Mathematically:-

The total number of international tourists (that came specifically for the event) xdaily spend x no of days

PlusThe total number of domestic tourists (that came specifically for the event) x dailyspend x no of days

PlusThe total spend made by organisers/sponsors on the event

(infrastructure/marketing) using money from outside eThekwini region

EqualsThe total Direct and Indirect Spend in eThekwini (the net injection of new

funds)

PlusThe extra spending (spending multiplier effects) of all the people employed by

the creation of the event


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Measurement

Methodology

There is also a need to Measure Longer Term Impactson tourism and local confidence levels

1. The Quality and Size of the event and the vibe it creates impacts future tourism through word of mouthendorsements and has a positive influence on localconfidence levels which increases the multiplier effect;

2. The extent and quality of Media and Marketing spendoutside of eThekwini Quantity and Quality (promoting theeThekwini region) impacts on future Tourism;

3. Corporate Social Investment spending inside eThekwiniimpacts on future entrepreneurial development.


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Case Studies

Total Econ Impact

SummerSeason2011/2012

TourismIndaba2012

TopGear(tba on13 Sept)

DurbanJuly2012

ManchesterUnited2012

WinterBeachEvents2012

TotalWinterSeason2012

Total

Impact

R4,3bn R55,9m n/a yet R125m R8,2m R6m R2,6bn

% Value

change

year ago

+12% +6% n/a yet n/a yet n/a +15% +15%

% Real

change

(inflation

adjusted)

+6% +0% n/a yet n/a yet n/a +9% +9%

% tourist

numbers

+12% -6% n/a yet n/a yet n/a +6% +6%


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Average Spend

per Day

SummerSeason2011/2012

TourismIndaba2012

TopGear

DurbanJuly2012

ManchesterUnited2012


TotalWinterSeason2012

Ave

Spend

per day

R581 R1563 R1298 R1873 R753 R856 R856

Ave

Spend

per day -

Internats

n/a R1629 R1419 R1972 R918 R1015 n/a

Ave

Spend

per day

DomesticTourists

n/a R1467 R1126 R1683 R613 R785 n/a


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Number of

Tourists

TourismIndaba 2012

Top Gear(to bereleased 13September)

DurbanJuly 2012

ManchesterUnited 2012


Total

Attendance

10811 n/a 55000 51894 20000

Locals from

eThekwini

667 n/a 30544 46318 15747

International

Tourists

7744 n/a 256 113 1205

Domestic

Tourists

2400 n/a 24200 5463 3048


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Perceptions - Summer 2011/2012

0 10 20 30 40 50 60 70

Friendliness of local people

Personal safety

Climate

Parking

Events

Parks & green areas

Beach cleanliness

Beauty of the landscape

Souvenirs

Quality of urban design

Crowding on the beaches

Quality to price ratio

Entertainment

Bush and Animals (Big 5)

Percent

Highly dissatisfied

Dissatisfied

Neutral

Satisfied

Highly satisfied


12/19

Perceptions Tourism

Indaba

0

10

20

30

40

50

60

70

Local % International % South African % Total %

Excellent

Good

Fair

Poor


13/19

Perceptions of the Winter Season Events

Event

SA open Beach

Volleyball%

Aquafest

Beach Party%

Flavours of Dbn/Red Bull

Night Surfing%

Fact Durban

Rocks%

Durban July%

MU Football%

Total%

Very poor 1.0 1.8 .5

Poor 2.0 2.7 4.5 1.1 1.2 2.0

Fair 11.1 18.2 9.9 18.9 16.5 9.9 14.2

Good 64.6 52.5 61.3 59.5 52.7 59.3 58.4

Excellent 24.2 26.3 24.3 17.1 29.7 29.6 24.8

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0


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Perceptions about Durban Overall

amongst respondents at Winter Season

eventsEvent

SA open Beach

Volleyball%

Aquafest Beach Party%

Flavours of Dbn/Red Bull

Night Surfing%

Fact Durban

Rocks%

Durban July%

MU Football%

Total%

Very satisfied 47.1 21.4 28.9 37.0 38.5 38.5 34.9

Satisfied 52.9 53.6 66.7 63.0 48.7 61.5 57.5

Neutral 14.3 4.4 5.1 4.3

Dissatisfied 2.6 .5

Very dissatisfied 10.7 5.1 2.7

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0


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What Visitors think eThekwini can

do to improve its service offeringsPercent

More entertainment 31.3Better advertising/marketing of events 17.2More entertainment for children 10.9Improve safety 7.8Reduce prices 4.7Reduce queues 4.7More seating 3.1More space for spectators 1.6Clean beaches 1.6Parking 1.6More signage 1.6Clean toilets 1.6Other 12.5Total 100.0

Wh t i it thi k Th k i i


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What visitors think eThekwini

can do to improve restaurant

facilities Percent

Offer greater food variety including halaal 43.3

Bigger/popular franchises should be represented 10.0

Reduce food prices 16.7

Improve customer service 16.7

Improve hygiene/cleanliness 6.7

Other 6.7

Total 100.0

Wh t i it thi k Th k i i


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What visitors think eThekwini

can do to improve other

facilities PercentImprove cleanliness (CBD in particular) 20.8

Require cheaper accommodation 16.7

Signage/guides 16.7Provide more parking 12.5

Provide more events 4.2Improve security 4.2

Improve marketing 4.2

More clean toilets 4.2

Other 16.7

Total 100.0


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Some Conclusions

1. Create more international style events and/orInternationalise current events in order to attract moredomestic and international tourists;

2. Encourage tourists to stay longer through:-1. Discount tour packages linking key tourist attractions. Must

be made available at point of purchase of event tickets;

2. More effective use of tour operators and tour guidesspecifically during events;

3. Ensure quality of events meet international standardsto encourage Word of Mouth marketing;

4. Influence event organisers to include exposure oneThekwini in external advertising campaigns


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Questions & Contact Details

Darryl MoodieTel: 031-827 6425

Cel: 078-526 5165

Web: www.focusmarketing.co.za

Documents

Sports and Events - Analyses of Value