Contribution to local tourism - Economic Impact on a Community - CULTURAL EVENTS AS A TOURISM STRATEGY part 2
During an event, a community can use publishers and media as a non-pay advertisement. An event can relatively reduce their budget for marketing by using free advertising expense. This destination-oriented promotion can promote an interest in a community and increase tourists’ visits.
On the other hand, there is a negative impact of an event on a community, such as a community resistance to tourism, loss of authenticity, damage to reputation, inflated prices, etc.
However, studies of economic impact have been researched often, but these are very difficult to estimate with one formula. Economic impact does not mean just financial costs and revenues. Profit/loss assessment and return on investment (ROI) are approaches to deal with the financial numbers. Many methods are overlooked, such as social, cultural, and environmental measures.
It is also necessary to consider recognition of intangible costs and benefits as well as tangible costs and benefits. Intangible benefits are long-term promotional benefits, induced developments and construction expenditures, additional trade and business development and increased property values. Intangible economic costs are resident exodus, interruption of normal businesses, and underutilized infrastructure.
Cost-benefit Analysis is the closest form to a method which estimates the true value of an event because this method includes not only profits, income, and job creation but also social, cultural, and environmental effects.
Other articles in CULTURAL EVENTS AS A TOURISM STRATEGY series:
Overview - https://steemit.com/culture/@tejma/cultural-events-as-a-tourism-strategy-overview
Part 1 :: Contribution to local tourism - Economic Impact on a Community - https://steemit.com/culture/@tejma/contribution-to-local-tourism-economic-impact-on-a-community-cultural-events-as-a-tourism-strategy-part-1
Part 2 :: Effects on cultural and social surroundings - https://steemit.com/culture/@tejma/contribution-to-local-tourism-economic-impact-on-a-community-cultural-events-as-a-tourism-strategy-part-2
Part 3 :: Effects on cultural and social surroundings - https://steemit.com/culture/@tejma/effects-on-cultural-and-social-surroundings-cultural-events-as-a-tourism-strategy-part-3
Part 4 :: Costs and economic benefits - https://steemit.com/culture/@tejma/costs-and-economic-benefits-cultural-events-as-a-tourism-strategy-part-4
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