What Impact Do International Sports Events Have On Local Employment Rates During The Event Preparation Phase?
Introduction
International sports events, exemplified by the Olympics and World Cup, have a profound impact on local employment rates, especially during the preparation phase. This critical phase is marked by a significant rise in job opportunities across multiple sectors to accommodate the surge of visitors and the complexities of hosting large-scale sporting events. However, the long-term sustainability of these jobs is a topic of frequent debate among economists and policymakers.
Direct Employment Opportunities
The preparation phase for international sports events often results in a notable increase in direct employment opportunities within local economies. This job growth is largely driven by heightened demand in construction, hospitality, and event coordination. Key factors influencing job creation include:
- The construction of sports venues and necessary infrastructure improvements generates a plethora of job opportunities for local workers, though many roles may be temporary or contractual in nature.
- The hospitality industry experiences a surge in hiring at hotels and restaurants to meet the needs of the increased visitor population, with potential reductions in staff once the event concludes.
- Event management companies expand their team to handle coordination, security, and logistics, resulting in more temporary employment without long-lived positions.
Indirect Employment Effects
In addition to direct employment, international sports events generate significant indirect employment effects. These jobs are associated with sectors supporting the event without direct involvement in its management. Some examples include:
- Suppliers, including catering and transportation services, typically hire additional workers to fulfill demand during the event, but such positions are often temporary.
- Local vendors and farmers may enjoy a rise in sales, prompting them to hire more staff, although the need may fluctuate with the event's timing and magnitude.
- The service sector, encompassing cleaning and maintenance services, sees increased demand leading to more hiring, but it's essential to note that these positions may revert to pre-event levels after the conclusion of the event.
Economic Multiplier Effect
The job impacts of the preparation phase for international sports events often catalyze a broader economic multiplier effect. This phenomenon occurs when increased spending from newly employed workers stimulates additional job creation in the economy. As these workers earn higher wages, they contribute to further economic growth with potential outcomes such as:
- Increased local consumer spending fosters growth for local businesses and services, resulting in additional employment opportunities, although the persistence of this growth may be contingent on the duration of the event.
- Job expansion across a variety of sectors can initiate a positive feedback loop in economic growth and boost local investment, potentially impacted when the event comes to a close.
Conclusion
In summary, international sports events can significantly elevate local employment rates during the preparation phase through a mix of direct and indirect job creation. Despite these benefits, it is important to consider the potential for significant job losses following the events, which may undermine the short-term gains. Recognizing these employment dynamics can empower local governments and businesses in their strategies for both event preparation and post-event recovery.
Expert Quote
Dr. Holger Preuss, Professor of Sport Economics and Management at the University of Mainz
Major international sporting events can lead to a substantial temporary increase in local employment, particularly as cities prepare for the influx of visitors and the operational demands of hosting such events. However, it's important to recognize the often temporary nature of these job increases.
Preuss, H. (2005). The Economic Impact of Major Sporting Events. International Journal of Sports Marketing and Sponsorship.
Relevant Links
Chapter 3: The Economy, Employment, Training and Volunteering ...
https://www.gov.scot/publications/glasgow-2014-commonwealth-games-legacy-final-evaluation-report-april-2018/pages/4/Special Events Contingency Planning
https://training.fema.gov/emiweb/downloads/is15aspecialeventsplanning-jamanual.pdfProgress in Tourism Management Progress and prospects for event ...
https://www.sciencedirect.com/science/article/pii/S0261517715000679ECONOMIC IMPACT ASSESSMENT OF OLYMPIC GAMES | aists
https://aists.org/wp-content/uploads/2024/02/Economic-impact-Assessment-of-Olympic-Games-Methodology-White-paper.pdfGUIDE ON THE SECURITY OF MAJOR SPORTING EVENTS ...
https://www.un.org/counterterrorism/sites/www.un.org.counterterrorism/files/211006_guide_on_security_major_sporting_events_web.pdfYouTube Videos
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