Estimating the economic impact of a mega-event on host and neighbouring regions

Abstract

Although mega-events impact the host region, as well as, neighbouring regions, geographical distribution of the economic impact of mega-events is mostly neglected in the literature. To address this gap, this study estimated the economic impact of the Expo 2012 Yeosu Korea (BIE International Expo) on the host and neighbouring regions using a regional input–output model. Results indicate that visitors to the Yeosu Expo spent US$388 million in the host region and $105 million in the neighbouring regions. These expenditures generated $658 million in output impact, $162 million in income impact, $361 million in value-added impact, and 19,029 added jobs. Findings suggest that approximately 80% of the impacts are generated in the host region and 20% experienced by the neighbouring regions. The distribution of economic impacts between the host and neighbouring regions should be considered when discussing mega-event impacts.