This document examines the potential spillover economic effects of mega events like the Olympics on nearby communities. It specifically looks at the impact of the 2002 Winter Olympics in Salt Lake City, Utah on Colorado ski resorts. The analysis uses taxable sales data from 16 Colorado counties with ski resorts and 6 Utah counties around Salt Lake City to compare economic activity before, during, and after the Olympics. The results show that counties in Colorado experienced a 10% increase in economic activity during the Olympic year, while nearby Utah counties only saw a 0.01% increase, indicating the Olympics provided an economic boost to similar ski resort communities in nearby Colorado.
This document examines the potential spillover economic effects of mega events like the Olympics on nearby communities. It specifically looks at the impact of the 2002 Winter Olympics in Salt Lake City, Utah on Colorado ski resorts. The analysis uses taxable sales data from 16 Colorado counties with ski resorts and 6 Utah counties around Salt Lake City to compare economic activity before, during, and after the Olympics. The results show that counties in Colorado experienced a 10% increase in economic activity during the Olympic year, while nearby Utah counties only saw a 0.01% increase, indicating the Olympics provided an economic boost to similar ski resort communities in nearby Colorado.
This document examines the potential spillover economic effects of mega events like the Olympics on nearby communities. It specifically looks at the impact of the 2002 Winter Olympics in Salt Lake City, Utah on Colorado ski resorts. The analysis uses taxable sales data from 16 Colorado counties with ski resorts and 6 Utah counties around Salt Lake City to compare economic activity before, during, and after the Olympics. The results show that counties in Colorado experienced a 10% increase in economic activity during the Olympic year, while nearby Utah counties only saw a 0.01% increase, indicating the Olympics provided an economic boost to similar ski resort communities in nearby Colorado.
Olympics are art of a group referred to as mega events
o Mega events have relatively small impact on the host city the reason is because the event displaces the locals and it also displaces tourists who would otherwise come o This paper looks at the effect on Colorado ski resorts of the 2002 winter Olympics held in Salt Lake City o Thesis: Olympics have significant spillover effects on surrounding communities if these communities provide services that are close substitutes for those in the host city o Tourists look for reasonable alternatives o Nearby cities can free ride on the event by serving as outlets for frustrated tourists o Of 16 Colorado countries with ski resorts in 2002 had 10 had an increase in economics activity during the Olympic year o During Q1 2002, gross taxable sales data for 6 Utah counties with ski resorts increased 0.01% while GDP growth was 3.1% o Utility benefit or satisfaction a consumer receives from the consumption of a good or service o Consider 3 goods
If Z is Colorado ski vacations than
Z > Z* Yit = XitB + Dis Yit is a measure of economic activity in an area (i) at time t Xit is all variables that differ across countries or across time o They capture the fact that economic activity may grow over time, vary by season or differ because of population, location, ETC Dis is a series of variables denoting the period in which the spillover might have occurred If the effect has a spillover on community (i) than gama(is) is positive and statistically significant
Holding Sales (DEC)
QTR (variable that compensates the fact that many businesses report quarterly) UEt Emplyment rate RESi (# of resorts) POPit (population) LIFTi (# of lifts) Dis O YRt (year in which Olympics occur) OSEAt (ski season surrounding the Olympics)
Gamma1OYRt + Gamma2OSEAt + gamma3OMOt + Sumof gammajINTERj What should we expect? B1 +ve - Reflecting overall strenth B2 +ve reguljar spike in holiday shopping B3 +ve regular spike in quarterly sales B4 ve (unemplyemnt rate rose between 2000-03) B5 B6 B7 all +ve If 2002 olympics have spillover effect on Colorado than gamma 1-3 and Sj are +ve