Asian Games Research 2018

ISSN 2685-3051
2018 Jakarta – Palembang Asian Games Research Brief

Economic Impact Survey No. 1 – July 2019
ISSUE 1 – JULY 2019
LPEM FEB UI Phone +62-21-3143177, Fax. +62-21-31934310 1

Jl. Salemba Raya No. 4, Jakarta 10430, Indonesia Email: lpem@lpem-feui.org
Website: www.lpem.org
A. The Hosting of the 2018 Asian Games

The Asian Games is a multi-branch sports 11,238 athletes. Further, 5,460 country
event involving all nations in the Asian officials also took part, adding to the hun-
Continent and an official four-year agenda dreds of OCA officials and representatives
of the Olympic Council of Asia (OCA). In- of various international sports federations.
donesia had the golden opportunity to
To ensure that the grand event ran suc-
host the 2018 Asian Games, officially
cessfully, more than 13 thousand local
known as the 18th Asian Games Jakarta-
committees were involved, comprised of
Palembang 2018. The mega event took
the Indonesia Asian Games Organizing
place from August 18 to September 2 in
Committee (INASGOC) and its volun-
three provinces - DKI Jakarta and Su-
teers, apart from task forces from various
matera Selatan (Palembang) as the host
government institutions and community
and Jawa Barat as a supporting region.
organizations that helped smooth the
The 2018 Asian Games was the biggest event.
in the history, with 10,391 participating
The 2018 Asian Games successfully at-
athletes from 45 Asian countries including
tracted international attention beyond the
Indonesia, competing in 40 sports and
Asian Continent. The event was covered
465 events, surpassing the number of ath-
by more than 7 thousand international
letes in previous Asian Games of 2014
journalists from printed, online and broad-
(Incheon, South Korea), 2010 (Guang-
cast-based media from across the globe.
zhou, China) or 2006 (Doha, Qatar), and
The event also attracted nearly 79 thou-
even comparable to the 2016 Rio de
sand foreign tourists whose main intention
Janeiro Olympics (Brazil) which featured
are to attend the Asian Games’ matches.

B. Economic Impact Survey of the 2018 Asian Games

Given the massive scale of the event, the Hence, the survey aims to: (a) estimate
Ministry of National Development Plan- the short-term economic stimuli generated
ning/National Development Planning from the spending of athletes, country of-
Agency (Bappenas) carried out the Eco- ficials, committees, journalists and specta-
nomic Impact Study of Asian Games tors; (b) identify the long-term potential
2018. As part of that study, the Institute impacts on the tourism sector due to posi-
tive changes in perceptions towards Indo-
for Economic and Social Research, Facul-
nesia, the propensity to repeat visitation to
ty of Economics and Business, Universi-
Indonesia for travelling purposes, the will-
tas Indonesia (LPEM FEB UI) carried out ingness to recommend Indonesia as a
a survey to capture the increasing eco- tourism destination, and to recommend
nomic activity that arose from the Asian Indonesia as the host of future interna-
Games, during and beyond the event tional sports events; (c) capture the im-
completion. pact from the businesses part, especially
affected micro, small and medium enter-
prises (MSMEs).

The survey took place on August 19 - tional athletes, foreign country officials
September 4 in Jakarta, Palembang and (trainers, medical personnel and contin-
several other cities in Jawa Barat. The gent support staff), Indonesian officials,
survey managed to collect data from a international journalists, national journal-
total of 2,618 sample respondents, includ- ists, international spectators, national
ing 1,914 international respondents and spectators, OCA and International Sport
704 Indonesian respondents.
Federations (IF) officials, INASGOC offi-
They encompassed 12 respondent cate- cials and volunteers, MSMEs around the
gories including international athletes, na- venues and INASGOC official partners.

C. Short-term Economic Stimuli
Despite the 2018 Asian Games lasted for were difficult to separate from their per-
16 days, the respondents’ length of stay sonal spending.
varied. Among the international respond-
When considering age group, the spend-
ents, the group with the shortest stay was
ing amount correlates positively with age
the international athletes (average of
in all groups of international respondents.
11.23 days) while the longest was interna-
Age may be related to experience or
tional journalists (average of 17.81 days).
ranks, which in turn affects the amount of
Length of stay may be affected by match
allowances.
schedules, other international competition
schedules and budget. International jour- Based on country of origins, the spending
nalists generally had to arrive in Indonesia of international respondents from non-
before the opening ceremony and depart- ASEAN countries were, on average, high-
ed after the closing ceremony. er than that of their ASEAN counterparts,
except for country officials. Respondents
The spending of international respondents
from non-ASEAN countries may be more
also varied across respondent groups.
interested in souvenirs, foods or shopping
International athletes only spent
because they might find Indonesia differ
US$457.7 on average, less than foreign
to their countries.
country officials (US$952.09). Larger
amount of expenditure was made by Apart from the variation in total amount,
groups of respondents who did not com- the respondents' spending also differ in its
pete directly, such as international specta- composition. In general, the largest
tors (US$1,495.55), followed by interna- spending portion of international respond-
tional journalists (US$2,455.23) and OCA ents was for accommodation, followed by
& IF officials (US$2,661.44). souvenirs and food & beverages. Different
spending composition was observed in
As for national respondents, national ath-
international athletes, where the main
letes had the highest average spending
spending was for ‘other’ category, namely
(Rp8.88 million), while national specta-
a spending which amount had been allo-
tors, officials, journalists and committees
cated but the purposes had not yet been
only spent an average of Rp2.08 million,
determined. Most international athletes
Rp1,80 million, Rp1,486 million and
stayed at the athlete's village and opted to
Rp1.03 million, respectively.
wait until the last day in Indonesia before
The average spending also varied across deciding how to spend their money.
gender, age groups and country of ori-
For the national respondents’ category, a
gins. Among international respondents,
considerable spending was observed on
the average spending of women is higher
food and drinks, and souvenirs, while
than that of men for athletes, officials,
spending on hotels was less dominant
journalists and OCA & IF official groups,
because of higher possibility of being giv-
while for international spectators the op-
en accommodation by family or friends
posite is true. Male spectators may bear
near the match locations.
some families or groups expenses that


D. Long-term Potential Economic Impact on Tourism Sector

Although the 2018 Asian Games has 95% of international respondents ex-
ended, there remains a potential long- pressed their fondness for Indonesian cul-
term positive impact on the Indonesian ture (people, hospitality and food), and
economy. First, 80% of international re- more than 70% liked the scenery, ser-
spondents stated that the Asian Games vices and transportation arrangements in
has positively changed their perceptions the city where the matches took place.
towards Indonesia. In addition, more than
.

Second, international respondents had considered for future travel. Most of them
favorable views towards the organization planned to revisit along with colleagues or
of the 2018 Asian Games. At least 70% of family for approximately two weeks. This
athletes, country officials, OCA & IF offi- planned length of stay exceeds the Indo-
cials, journalists and spectators rated nesia’s international tourists average of
'Good' or 'Very Good' in each criterion 8.42 days in 2016. Further, 2/3 of them
measured in the survey including: 1) had already determined the future travel
sports facilities and venues; 2) accommo- destinations in Indonesia.
dation and food; 3) transportation ar- Fourth, most international respondents
rangements; 4) telecommunications and expressed their willingness to give posi-
internet networks; 5) access to infor- tive referrals to Indonesia. More than 95%
mation; 6) security, and; 7) match sched- of them will refer Indonesia as a travel
ules. Interestingly, there were no signifi- destination for their colleagues and fami-
cant differences in rating given by those lies. Further, 89% of country officials and
experienced and first-timers of interna- 97% of OCA & IF officials will support In-
tional sporting events donesia as host of other international
sporting events in the future. Around 82%
Third, international respondents had a of country officials will even consider In-
high propensity to repeat visitation to In- donesia to be a training location for their
donesia. About 69-80% of respondents respective country's sports team.
made sure to return and around 18-25%
E. Impact on Business
In addition to capturing the impact of the Hence, the average MSME required 1-2
2018 Asian Games from international and additional workers during the event. The
national participants and visitors’ side, the MSMEs at Jakarta earned daily sales of
survey also portrayed the impact on the about Rp1.9 million on average during the
business’ side. Two types of business event, while in Palembang it reached
groups were targeted: MSMEs that ran Rp.2.4 million, or equivalent to an in-
the stall nearby the venues and the sup- crease of 76% and 15%, respectively,
pliers of INASGOC (lodging services, when compared to their daily sales out-
venue management and the official part- side the Asian Games event. The differ-
ners that produced official merchandises). ence in the sales increase between
MSMEs in Jakarta and Palembang was
Most MSMEs at the venues in Jakarta
influenced by the type of merchandise
and Jawa Barat sold food and beverages,
sold, the number of days trading, the
while in Palembang mostly sold cloth and
number of sports competed at the nearby
apparels. Other products commonly sold
venues and the number of spectators.
by MSMEs included handicrafts, souve-
nirs and leather products. Most MSMEs In general, MSMEs in Palembang used
did not go through a complicated process the additional profits from Asian Games
to obtain the rights to open the stalls trading to increase inventories while
around the venues. MSMEs in Jakarta used it to replace or
purchase new equipment, or for the own-
Most MSMEs did not close their main
er’s personal needs.
store while trading at the Asian Games.


F. Conclusions and Recommendations
Most of international and national re- sales during the event, of which the profits
spondents considered the 2018 Asian were used to increase inventories in the
Games as a well-organized event, as short-term or to invest in equipment.
measured in various aspects including
Hence, it can be concluded that Indonesia
sport venues, accommodation and food,
is ready and should bid to host other
transportation arrangements, telecommu-
international scale sports event in the
nications and internet access, information
future, including multiple-event and single-
availability, security and match schedules.
event. Nevertheless, to maximize the
The 2018 Asian Games had economic economic stimuli of hosting a national or
impact on Indonesian economy in the international sports event, there are
short term, stimulated by the spending of several lessons learned from 2018 Asian
athletes, country officials, journalists, Games.
spectators and committees, both domestic
First, it is necessary to arrange match
and foreign alike during the event.
schedules that are more accommodating
In the long-term, the 2018 Asian Games for participants to carry out activities
has the potential positive economic im- outside the matches. Second, there
pact on Indonesia’s tourism sector. The should be more information on nearby
event enhances Indonesia’s positive im- shopping centers and short tour package
age globally. Further, most of international deals near the match venues provided to
respondents expressed their desire to re- participants and visitors.
turn to Indonesia for travelling purposes,
Third, should Indonesia host future sports
bringing families or colleagues with them
events, better efforts are needed to
on a long-stay plan. Most of them were
provide more reliable telecommunications
also willing to give positive referrals to
and internet access, better traffic
Indonesia as a tourist destination for their
management and transportation facilities,
respective colleagues and families.
availability and quality of information
In the long-term, the 2018 Asian Games related to the competition and the
also has the potential to generate positive attractions or the region where the match
impact on sport-tourism activities in take place.
Indonesia. It increases the opportunity for
Fourth, there is a need for better
Indonesia to become a host of future
arrangement in the involvement of the
international sports events, both on single
MSMEs. Broader public notification is
or multiple-event scales. There also
needed to give equal opportunities for
remains the possibility of making
every MSMEs located in the hosting cities
Indonesia a training location for sports
to participate. MSMEs need to occupy
team from various countries and sports.
more strategic location for their stalls.
The economic stimuli generated by the MSMEs need better deals regarding the
Asian Games was also captured in the charged fees or more profitable profit-
survey to MSMEs and INASGOC’s official sharing schemes. MSMEs also need
partners. MSMEs who ran the stalls near easier access to venues for their
the match venues enjoyed additional employees and supplies during the event.

Fifth, there needs to be a better infor- Asian Festival held at Gelora Bung Karno
mation system regarding ticketing and area which ran parallel to the Asian
match scheduling. Besides the sports Games. The enthusiasm and spending of
matches, the organizing committee can the locals can magnify the economic
also hold other events that escalate pub- stimuli of a sports event.
lic’s excitement of the event, such as the

Sixth, it is necessary to improve the Finally, similar studies need to be

production planning and distribution of the conducted on various sports events in the
event’s official merchandise. The demand future, with which the economic impact of
for the 2018 Asian Games’ official sports event can be analysed and
merchandises was very high as the maximized. In the future, larger-scale
merchandise served as a memorabilia of studies will be able to better capture
such one-time events, while the produc- spending variations of respondents across
tion and distribution was less prepared to sports, country of origin, various types of
fully maximize the opportunity. OCA vendors, as well as referee and
match officials.
Editorial team:
Mohamad D. Revindo Devina Anindita
Uka Wikarya Devianto
Chairina H. Siregar Nurindah W. Hastuti
Ainul Huda Wahyu Pramono
Hamdan Bintara Srie Mustika Rahayu
Moslem Afrizal Andi Ronaldo Marbun
Acknowledgement:
This study is a part of the project on the Economic Impact Analysis of Asian Games 2018
undertaken by the Ministry of National Development Planning/Bappenas, the Republic of
Indonesia, in 2018. We thank Bappenas team, especially Amalia Adininggar Widyasanti,
Mochammad Firman Hidayat, Bertha Fania Maula, Yusuf Faisal Martak, Nur Siti Annazah
and Dinda Rahmania. We thank the survey team for their contribution in data processing
and data collection. We also thank Australia’s Department of Foreign Affairs and Trade that
made the survey possible.


Asian Games Research 2018

Caricato da

Informazioni sul documento

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

Asian Games Research 2018

Caricato da

Copyright:

Formati disponibili

ISSN 2685-3051

2018 Jakarta – Palembang Asian Games Research Brief

LPEM FEB UI Phone +62-21-3143177, Fax. +62-21-31934310 1

A. The Hosting of the 2018 Asian Games

LPEM FEB UI Phone +62-21-3143177, Fax. +62-21-31934310 2

B. Economic Impact Survey of the 2018 Asian Games

LPEM FEB UI Phone +62-21-3143177, Fax. +62-21-31934310 3

LPEM FEB UI Phone +62-21-3143177, Fax. +62-21-31934310 4

C. Short-term Economic Stimuli

LPEM FEB UI Phone +62-21-3143177, Fax. +62-21-31934310 5

LPEM FEB UI Phone +62-21-3143177, Fax. +62-21-31934310 6

D. Long-term Potential Economic Impact on Tourism Sector

LPEM FEB UI Phone +62-21-3143177, Fax. +62-21-31934310 7

LPEM FEB UI Phone +62-21-3143177, Fax. +62-21-31934310 8

LPEM FEB UI Phone +62-21-3143177, Fax. +62-21-31934310 9

F. Conclusions and Recommendations

LPEM FEB UI Phone +62-21-3143177, Fax. +62-21-31934310 10

LPEM FEB UI Phone +62-21-3143177, Fax. +62-21-31934310 11

Sixth, it is necessary to improve the Finally, similar studies need to be

LPEM FEB UI Phone +62-21-3143177, Fax. +62-21-31934310 12

Potrebbero piacerti anche