HOW TO BOOST ROBIN HOOD REGIONAL ECONOMY

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1 HOW TO BOOST ROBIN HOOD REGIONAL ECONOMY Ari Karppinen, M.Sc. (Regional Economy) Mervi Luonila, M.Mus. (Arts Management) Arja Lemmetyinen, D.Sc. (Econ. & Bus.adm./marketing) Turku School of Economics at the University of Turku, Pori Unit, Finland REGIONAL STUDIES ASSOCIATION Tourism Research Network Workshop Metropolitan Tourism Experience Development: Diversion and Connectivity 28th 30th January, 2015 Corvinus University of Budapest

2 2 (c) Ari Karppinen & Mervi Luonila

3 FOCUS OF THE PAPER To find a way enabling the evaluating the economic effect of tourism business networks on the regional economy, Focusing on events

4 INTRODUCTION The complexity of symbiotic relationships between the private, public and third sector volunteers in organizing events is a paradoxical economic phenomenon. Event organizers put all their talents and efforts in order to satisfy their customers and financers, but monetary properties and social benefits are harvested mainly in regional economics for better employment, greater tax revenues, and attractiveness of humans and firms. There is no official statistics for events => (quantitative) impacts have to be estimated

5 CONTEXT OF THE RESEARCH Sometimes event effects are undervalued since these are accessed as business as normal, some hobby activities, or even business without any socio-economic meaning. Since events are not in particular industry but produced as project in multifaceted network structure spreading their leverage around the economy, it is difficult to model and assess the economic impact of events.

6 DESCRIPTION OF THE MODEL: PLATFORM OF EVENTS 6 Aika Vapaa-aika Työaika Matkailua ja paikallista Kotona tapahtuva virkistäytyminen ja tapahtumien kulutus Virkistäytyminen ja tapahtumat kodin ulkopuolella Matkustaminen tapahtumapaikalle ja matkailu Ta pa h tu m a m a r k k in a t (pa ik k a ja a ik a ) Ta pa h tu m a -a lu sta tapahtumakysyntää palvelevat yritykset viranomaiset Tapahtuman järjestämistä palvelevat palvelualat Tapahtuman järjestäjät muut sidosryhmät Tapahtumatuotanto- klusteri Tapahtumien järjestämistä palvelevat valmistavat alat vapaaehtoiset Kuvio 1. Tutkimuksessa tarkasteltavat tapahtumamarkkinat. (c) Ari Karppinen & Mervi Luonila

7 DESCRIPTION OF THE MODEL: PLATFORM OF EVENTS Time Free time Working time Recreation and consumptions of events at home Recreation and consumptions of events outside home Travelling to the venue and tourism

8 DESCRIPTION OF THE MODEL: PLATFORM OF EVENTS Events organizers other stakeholders public authorities Service sector for events production Production sectores for events production volunteers and the third sector

9 DATA Statistics from Statistics Finland (Business Register) Municipal Industrial Data (by Statistics Finland) Regional input-output tables RegionOnline- statistics by Statistics Finland) Data on Regional Account Interviews: events organizators and local authorities

10 10 MODEL BUILDING METHODS 1. CLUSTER ANALYSIS: to find the service and production firms related to events organization (incl. volunteers) and firms serving tourism and local demand for all events separately for organized and self-organized (data based) 2. ESTIMATING EVENT PRODUCTION WEIGHTS: to find the proportion of turnover/employment which depends on organization of events (industry based estimation applying regional input-output analysis)

11 METHODS 3. TYPOLIGISATION OF CLUSTER IMPACTS a. Supply cluster a. Direct event provider or production cluster b. Service industry cluster supporting events c. Manufacturing industry cluster supporting events b. Demand based enterprise clusters a. Event clusters based on tourism demand b. Event clusters based on local demand 4. TYPOLIGISATION OF FUNCTIONAL EVENT CLUSTERS a. All events-cluster b. Planned events cluster c. Music festival cluster

12 12 DESCRIPTION OF CLUSTERS A. KAI KKI EN TAPAHTUMI EN KLUSTERI B. Suunniteltujen tapahtumien klusteri Primäärivaikutus: 1. Tapahtumajärjestäjät klusteri Sekundäärivaikutus 2. Tapahtumatuotantoa palvelevat palvelualojen klusteri 3. Tapahtumatuotantoa palvelevien valmistavan toiminnan klusteri Tertiäärivaikutus 4. Tapahtumien matkailukysynnän yritysklusteri 5. Paikallisen tapahtumakysynnän yritysklusteri C. Tapahtumaklusteriin kuuluva Musiikkifestivaaliklusteri Kuvio 1. Tutkimuksessa käytetyt vaikutus- ja tapahtumaklusterien kuvaukset. (c) Ari Karppinen & Mervi

13 DESCRIPTION OF CLUSTERS Primary effects: 1. Event organizer cluster (incl. volunteers and authorities) Secondary effects 2. Serving sector serving event production 3. Production sector serving event production Tertiary effects 4. Cluster (firm based): Tourism demand for events 5. Cluster (firm based): Local demand for events C. Music Festivals Clusters (include to event cluster)

14 CREME MODEL accesses the regional economic effects of events based on official statistics. particularly, the direct and indirect employment and income effects of events at a regional level are estimated utilizing firm-based statistics. the Crème -model is based on cluster analysis concerning, firstly, the direct effects of organization that arrange events and organizations (i.e. firms and voluntary organizations).

15 15 MODEL CALCULATIONS (c) Ari Karppinen & Mervi

16 FINDINGS The Creme model calculates both tourism and residents demand based effects on events for local firms. Hence, the model provides detailed data of the unbounded nature both of the events networked production system per se and actors, whose benefits might be seen as a result of event organizing in the host regions.

17 FINDINGS The introduced Crème model not only enable event organizers to identify the economic events resulted of event organizing but rather give tools to events strategic decision making and endeavours for deepen collaboration with the variety of actors in their host regions.

18 18 CONCLUSIONS All events in the SATAKUNTA region employment impact full-time equivalent (Full-time equivalent describes the labour input of a person converted to a full-time employee.) Regional revenue million The amount of tourism based demand is considerable: % of all effects large events have a significant role in regional economy (c) Ari Karppinen & Mervi

19 CONCLUSIONS deepened understanding of the role of events in regional development is needed. the voluntary and altruistic input, the Robin Hood -effect, needs to be made a transparent asset in the regional (tourism) economy.

20 For more information