The local multiplier in action?

Like many, I will be sitting down to watch coverage of The Masters this week. Clearly one of the world's great sporting events but does it offer more than just a great spectacle? When Wales played host to the Ryder Cup last year, few could have imagined the economic impact on the region that the event would bring. In fact, a major and comprehensive Economic Impact Study of The 2010 Ryder Cup found that the resulting economic impact on Wales was £82.4 million. Thousands of visitors (the total attendance for the week of the match was 244,000) helped focus the sporting spotlight on Wales as the event attracted global television and media coverage. The study took into account the money spent on local travel, on-site spend, off-site spend, any extension to a visitor’s stay (excluding the unexpected extra Monday) and any associated additional spend. The total spend, including local multipliers, was £82.4 million spent across Wales during the week of the event.

In Augusta and the American state of Georgia the Masters plays a vital economic role, as does the sport of golf. Hosting the Masters means that Augusta is the market for other sporting events. It's estimated that the game generates more than $5bn annually and keeps almost 60,000 people in work in this state alone. It would appear that as the event approaches, the whole local economy receives an annual boost, the effect of which cannot be underestimated. Hotels, restaurants and local golf clubs brace themselves for an influx of eager spectators and not surprisingly, prices rocket. For example, Forest Hills Golf Club is the nearest public course to the Augusta National, a geographical fact that helps fill its greens and fairways with golfers at this time of year.


Just wait until the 2012 Olympics hits London!