Evaluation of Economic Impacts of FIFA 2010 (Research Paper Sample)

Evaluation of Economic Impacts of FIFA 2010
Name
Institution
Evaluation of Economic Impacts of FIFA 2010
The economic impacts of FIFA 2010 world cup can be categorized as primary or secondary. The primary impact is the direct economic impact of the sporting event that is normally measured through surveying participants or a close focus on the business sales. The secondary impact includes the indirect economic benefits accrued from FIFA 2010 world cup in South Africa. These economic impacts can only ascertained through evaluation and analysis. Evaluation should take place in order to realize what worked as planned and should be maintained and what did not work well ands should be improved. The two principle methods that can be used in the evaluation of the economic impacts of FIFA 2010 in South Africa include consumer/participant survey and business sector surveys. The paper below identifies and discusses potential methods of measuring economics impacts, their application in ascertaining the economic impact of FIFA 2010 world cup and the potential benefits of measuring the impacts.
Business Sector Surveys
This involves the gathering of expenditure data that is crucial in the determination of the economic impacts of the FIFA 2010 event. This approach targets the business community in the extraction of the business data in relation to the economic contribution of the FIFA 2010 world cup (Kikuchi and Hirao, 2008; Swart, Bob, Knott and Salie, 2011). However, the method is faced by various challenges that require to be addressed before application. They include the requirement to formulate a sales benchmark, the unwillingness of the donors and authorities to release data, and the financial costs involved in the undertaking of such an initiative. It is imperative for the researcher to undertake a thorough back research when using the method to ensure that the results are not over-emphasized. However, establishment of the sales benchmark does not overcome the seasonal variation in business. This can distort the true economic impact of FIFA 2010. This means that to provide a valid and reliable data, the survey should be carried out continuously, with data being collected before, during and after the event (Preuss, 2011). Researchers should encourage businesses to release crucial information on the economic impact of the sporting event. They have an obligation of assuring business people of confidentiality to the information they extract from them. Building trust with their respondents ensures that the researchers avoid the complexity and the financial input required in the implementation of a tedious economic Impact assessment through a business survey. Another challenge that can arise is the use of secondary data that in most cases has been collected for other purposes rather than business related purposes.
Consumer/Participation Survey
This involves the measurement of consumer expenditure through the application of participant surveys. The method is more beneficial because it is easier to ask a consumer about their expenditures rather than inquiring the details of business sales from a trader (Van Hinte, Gunton and Day, 2007). The survey helps the researcher to inquire more detailed information from the consumer that assists in the compilation of the market profile. The data gathered through the application of this method is more reliable and accurate because the researcher is capable of framing the survey specifically to the data required. This helps the researcher to explore new perspectives of the data collection and extract more in-depth information. The main challenge associated with the participant-based surveys relates to the disinterest of the respondents to fill out the research forms. Most of the information provided by the respondents has also been blamed as inaccurate in relation to embellishment and uncertainty. The timing of the questionnaires can also have substantial impact on the response gained from the participants. Many of the responses provided by the participants in this case may be biased if the research is seeking information related the performance of various teams.
Follow-Up Phone Call
The method is more personal and detailed in terms of the queries and the integrity and the event details. The respondents, which could be businesses people or consumers, are required to provide the required information on the economic gains and/or losses they accrue from the FIFA 2010. Phone calls require disclosure of personal details such as n the phone number as well as the availability (Van Hinte, Gunton and Day, 2007). Although this evaluation method can be applied in the evaluation of this kind of an event, it is normally suitable for smaller events. The major challenge with this method is that many people do not like the election solicitation and may always terminate calls without providing the required in formation on the event being analyzed. Many respondents are also not ready to disclose information related to their contacts to the researchers whom they normally view as strangers. The method is also unreliable because it requires considerable amount of time and resources.
Focus Groups
Focus group method involve the direct interaction with the participants with an intention of identify their opinions on the economic impact of an event, which in this case is FIFA 2010 (Wood, 2006). The method requires a group setting with space suitable for a many participants. Other requirements include food and beverages for the participants, a person tasked with the role of recording the session, a group leader, researcher tasked with a sole purpose of recording the group movements and some incentives for the participants. Although the method is reliable for collecting firsthand information on the economic impact of the event from the people, it is faced with various challenges that undermine its advantages. It is difficult to convince the general public to attend the forums, time consuming and require numerous resources such as volunteers to run it, tape recorders, tape recorders and hand-outs for the participants.
E-Mail Survey
This involves communication with the respondents through email. Participants are required to possess the capability and access to the internet services. However, the method may be unreliable because the researcher is required to possess everyone’s email address, not all people responds, the email responses may accumulate leading to congestion.
Other Evaluation Approaches
Break-Even Analysis
This is a short term assessment of the financial stability or insolvency of a business organization. This involves measuring the direct costs and determination of the profit and losses. This provides crucial information emanating from constituents of the backbone of the economy i.e. business people (Allmers and Maennig, 2009).
Return on Investment
The goals of this approach include showing the benefits of grants or scholarship and calculating the return on investment for the private investors or owners. Computation of the return on investment accounting practices is one of the measures applied in determination of the relationship between grants/scholarship and levels of economic benefits from the FIFA 2010 event (Wood, 2006). The method is reliable because the information is outsourced from the economic drivers i.e. investors and business owners.
Benefits
Ascertaining the economic impacts enables the host country to realize the effect of the event to the economy of the nation. The results from the measuring methods can be used by other nations to predict on the expected impact of such events to their economies. Focus groups are efficient for obtaining event organizers’ feedback on the econom...