The Economic Impact of Sports, Sporting Events, and Sports Tourism in the U.K. The DREAM™ Model

Abstract

This research note outlines the construction of a detailed regional economic accounting model and describes its application to assess the economic impact of sporting activities, sports events and sport tourism in the regions and localities of the United Kingdom. Recent developments in assessing the economic impact of U.K. sports have clarified how to measure the additional direct economic impact of an activity or event in terms of the expenditure associated with it. The model reported here builds on this previous best practice, adding and re-presenting information important to key stakeholders. In addition it elucidates the indirect impact flowing from the supply chain in a way carefully calibrated to the particular pattern of spending and where the event or activity takes place. As a result it meets the needs of participants and promoters in providing a credible, complete impact assessment of the event being studied. The model traces the geography of the event or activity itself and the supply chain from the local area through neighbouring areas to the regional, national and global level. It accounts for the supply chain in each region and locality not only in terms of sales and purchases, but also in terms of gross value added, incomes and jobs. Its treatment of employment identifies full time and part time work, split by gender, skill level and age. In addition to these direct and indirect effects the model also appraises induced effects, which arise when the incomes earned in the supply chain are spent, and that spending ripples through the local and wider economies. By taking account of the different structures of local economies the model is able to address some of the social and economic concerns of sports and charitable organisations and national, regional and local public bodies.