The impa ct of la rge events on tourism stra tegy

Roberto Da neo Ma na ging Director of the Mila no Bidding Committee for Expo 2015

The impa ct of la rge events on tourism stra tegy

Introduction

XX Winter Olympic Ga mes Torino 2006

World Expo Mila no 2015

World Expo Duba i 2020

As loc a l ec onom ies ha ve a d a p ted to c ha ng ing g lob a l d yna m ic s, the hosting of interna tiona l events ha s b ec om e m ore c om m onp la c e, a nd c a n p la y a sig nific a nt role in loc a l d evelop m ent, a c ting a s c a ta lysts for job c rea tion, b usiness g row th, infra struc ture im p rovem ent a nd c om m unity d evelop m ent. How ever, c a p turing loc a l b enefits from suc h events d oes not ha p p en a utom a tic a lly or b y a c c id ent. The m ost suc c essful host c ountries a nd c ities ha ve a long term d evelop m ent p la n tha t the event help s them to im p lem ent, a nd a d ed ic a ted m a na g em ent effort a im ed a t sec uring the b enefits a nd the leg a c y for som e tim e b efore the event is sta g ed , a nd for severa l yea rs a fterw a rd s. Put simply, when interna tiona l events a re hosted well, they become a ca ta lyst for loca l development a nd globa l rea ch The Org a nisa tion for Ec onom ic Co-op era tion a nd Develop m ent (OECD)

La rg e interna tiona l events m a y w ork a s trig g ers for loc a l d evelop m ent a nd b ring ta ng ib le a d va nta g es to the host c ity a nd c ountry. Am ong st their ta ng ib le b enefits, m eg a -events a re c a ta lysts for ec onom ic tra nsform a tions, help up g ra d e urb a n infra struc ture, streng then the interna tiona l im a g e of the c ity a nd a s a c onseq uenc e streng then a lso tourism .

The stra tegic choice to bid for a la rge event

The impa ct of la rge events on tourism stra tegy

Introduction

XX Winter Olympic Ga mes Torino 2006

World Expo Mila no 2015

World Expo Duba i 2020

The stra tegic choice to bid for a la rge event

There a re p ositive exp erienc es:

The Olym p ic b id of Torino 2006 is the result of a p rec ise ob jec tive of the City Stra teg ic Pla n a p p roved b y a ll loc a l a uthorities : 1. Rep ositio ning Torino on the w orld m a p a nd visib ility of the other sid e of the ind ustria l c ity Offsetting the ind ustria l d ec line p roc ess sta rted d uring the 80s b y d evelop ing new b usiness op p ortunities linked to to urism a nd c ultura l herita g e Torino, like Ba rc elona , re-oriented its d evelop m ent (not only for b usiness b ut a lso for leisure) b y foc using on the surround ing m ounta in system a nd on its c ultura l herita g e Torino c ity of the Alp s

2.

3.

Positive ta kea wa ys of Torino 2006 Ga mes

Messa ges Youth a nd g enera l p ub lic ed uc a ted throug h sp ort Grea t leg a c y HOW? WHY? 900,000 tic ket sa les 23,000 stud ents w ere p resent a t Olym p ic events Olym p ic Truc e m essa g es strong ly c om m unic a ted Environm enta l/ susta ina b ility leg a c y (HECTOR) Urb a n Reg enera tion (Olym p ic Villa g e a nd Sp orting Venues) Deep c oop era tion w ith the Host Cities Pa rtic ip a tion of b est a thletes Exc ellent org a niza tion of sp orting c om p etition Top c la ss field of p la y + tra ining venues Glob a l a ud ienc e of 3.1 b illion (More c ountries b roa d c a sting w inter Ga m es tha n ever b efore) Qua lity of host b roa d c a st a llied to stunning Look of the Ga m es

Sp ort a t the forefront

Exc ellent c overa g e of the Ga m es

Torino 2006 Ga mes economic a nd employment impa ct a few numbers

Investments for venue constructions Investments for roa d a nd ra ilwa ys constructions Investments for urba n recla ma tion a nd restyling in the city of Torino Ma na gement a nd ma inta ina nce costs for the newly built infra structures

Infra structures

Event ma na gement

Event orga nisa tion a nd ma na gement costs

Tourism a ttra ction

Tourist Projection & Avera ge Increment Spend per visitor Commercia l pa rtners investments Communica tion a nd promotion investments of loca l a nd na tiona l a uthorities

Communica tion a nd promotion

Torino 2006 Ga mes economic a nd employment impa ct a few numbers on domestic economy
Va lue a dded increa se : 17,6 b illion Job crea tion : 57.000 Sta nd a rd La b our Unit p er yea r Employment growth: + 0,2 % GDP growth : +0,2 % p er yea r

Positive ta kea wa ys of Torino 2006 Ga mes were a nd a re reflected in numbers

2011 presences: 12'845'074

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
12

The impa ct of la rge events on tourism stra tegy

Introduction

XX Winter Olympic Ga mes Torino 2006

World Expo Mila no 2015

World Expo Duba i 2020

EXPO Mila no 2015

HANNOVER 2000

AICHI 2005

Huma nkind, Na ture, Technology

Na tures Wisdom

The Expo is a non-commercial Universal Exposition (not a trade fair) organized by the nation which wins the candidature, with other countries participating through the diplomatic channels of the hosting nation. Each Expo has a universal theme and is held in an area which has been masterminded as a place of exchange and encounter to promote a unique experience for participants and visitors who discover and experiment with the theme. More than displaying major technological novelties the Expos role is oriented towards interpreting the collective challenges to which mankind is asked to respond.

ZARAGOZA 2008

SHANGHAI 2010

Wa ter & Susta ina ble Development

Better city, better life

The Theme a nd its cha llenge

Exp o 2015 w a nts to fa c e a significa nt cha llenge of our a ge Is it p ossib le to g ra nt g ood , hea lthy, susta ina b le food for everyb od y?

An op p ortunity for c onstruc tive d ia lo g ue, interna tiona l c oop era tion, new stra teg ies to im p rove the q ua lity of life tha t w ill see Countries a nd w orld c itizens a s lea d ing a c tors of a g lob a l m ovem ent
15

Expo impa cts on tourism - benchma rk

Interna tiona l a rriva ls in the hosting Country in the yea r of Exp o
Exp os genera te significa nt

benefit on na tiona l tourism industry

On a vera g e 5% more

tourists a rrive in the hosting country d uring the Exp o yea r

On a Regiona l b a sis, Exp o

c a n g enera te up to 60-70% incrementa l a rriva ls

Incremental tourism on a Regional ba sis

Va ncouver (86) Brisba ne (88)

Source: Previous documents on Expo; analysis on World Travel & Tourism Council data

+68% +15%

16

Expo Mila no 2015 impa cts on tourism

During the 6 months of the Event 20 millions

visitors from a ll over the world a re exp ec ted

Exp o Mila no 2015, b ec a use of its interna tiona l

releva nce , rep resents a uniq ue c ha lleng e a nd op p ortunity for the tourism industry
Ac c ord ing to a stud y p ub lished b y Boc c oni

University, 9,4 bln of incrementa l va lue a dded c ould b e ob ta ined w ith a good mana gement of the tourist inflows d uring Expo Mila no 2015(*) + 1,2 billion a s a perma nent lega cy effect

The p ub b lic a tion, c a rried out b y the Centro d i Ric erc a CERTeT - Universit Boc c oni, b a sed a lso on em p iric a l evid enc es of sim ila r events (e.g . 2006 Winter Olym p ic s Ga m es of Turin)
17

(*)

The impa ct of la rge events on tourism stra tegy

Introduction

XX Winter Olympic Ga mes Torino 2006

World Expo Mila no 2015

World Expo Duba i 2020

Expo Duba i 2020: ca ndida te city

Staging an Expo to remember 2021 w ill b e the 50th a nniversa ry of the UAE The UAE is log istic a lly w ell p la c ed to host a World Exp o: tw o Third s of the w o rld s p op ula tion now lives w ithin a n eig ht-hour flig ht of Dub a i Just und er nine m illio n visito rs m a d e the trip here la st yea r Unriva lled c onnec tivity, b a sed on 59 m illion p a sseng ers in Dub a i Airp ort, strong log istic s a nd w orld -c la ss infra struc ture a re a t the hea rt of the b id . The theme: Connecting minds, crea ting the future
Intellig ent Sourc es of Energ y a nd Wa ter Mob ility: New System s of Log istic s a nd Tra nsp orta tion Op p ortunity: New Pa ths to Ec onom ic

Susta ina b ility:

Sources of Visitors Incrementa l Expenditures

Visitors Projection & Avera ge Increment Spend per visitor

Sources of Visitors Incrementa l Expenditures

Expenditures genera ted specifica lly due to Duba i Expo 2020
V ISITORS INCREMENTAL SPEND IN EUR BILLIONS 2013 2014 2015 2016 2017 2018 2019 2020 2021 Visitors Hotel & Resta ura nts Tra nsp orta tion 6.1 2.9 1.7 5.9 2.8 1.7 TOTA
L

% 68%

12.0 5.7 3.4

47% 29% Reta il a nd HOTEL & tion RESTAURANTS TRANSPORTATION Rec rea
Governm ent

20% RETAIL

1.2 0.2

4% 2.4 T 1.2 GOV

0.2 0.5

1. Accommodation 2. Food & Beverages 3. Telecom

1. Air Fare (Dubai based carrier) 2. Local Transportation

1. Retail such as shopping, souvenirs etc. 2. Expo tickets & other recreation

1. Visa 2. Airport landing fee

The impa ct of la rge event on tourism stra tegy

Roberto Da neo Ma na ging Director of the Mila no Bidding Committee for Expo 2015