Transcript Document

Sport Events: Cash Cow for Entrepreneurs
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events
ContentsSport
Entrepreneur/ship
The new entrepreneurial sport events
https://toughmudder.com.au/events/what-is-tough-mudder
Dr Gayle Mayes – University of the Sunshine Coast
Definitions
Sport events
…an individual or group activity pursued for exercise or pleasure,
often involving the testing of physical capabilities and taking the
form of a competitive game such as football, tennis, etc. (Collins
Dictionary)
Entrepreneurship
…a person who organizes and manages any enterprise, especially a
business, usually with considerable initiative and risk
The new wave entrepreneurial events
and national to global success stories
Tough Mudder – a global phenomenon
https://toughmudder.com.au/mudder-nation/videos
Neon Run - http://www.neonrun.com.au/
Color Run - http://thecolorrun.com.au/
Fun Runs - http://runcalendar.com.au/brisbane
Tough Mudder is a 16–20 kilometer obstacle course
designed to test all-around strength, stamina, teamwork,
and mental grit. Tough Mudder is Probably the Toughest
Event on the Planet. Probably.
https://toughmudder.com.au/events/what-is-toughmudder
It’s a $70 million dollar turnover business in just 2 years
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What is tough mudder?
Tough Mudder is more than a fitness challenge, it's a set of
values lived out on the course, and in everyday life.
The Mudder Pledge
I understand that Tough Mudder is not a race but a challenge.
I put teamwork and camaraderie before my course time.
I do not whine – kids whine.
I help my fellow mudders complete the course.
I overcome all fears.
"The teamwork and camaraderie out there was amazing."
-Lynn Gruber, Fortune
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Tough Mudder
How did it begin?
"Every professor at Harvard Business School told me this was a terrible
idea," he said. "They told me I should take that job at Bain."
The Tough Mudder Story and Entrepreneurial Business Model
http://www.inc.com/tim-donnelly/tough-mudder-conqueringobstacles-to-build-70-million-business.html
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http://www.neonrun.com.au/
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The Color Run http://thecolorrun.com.au/
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What is the color run?
http://thecolorrun.com.au/gallery/
Gallery
Colour explosions
Very contemporary, cool, colourful and clever marketing
But, like I said, our local business people had a great day, and the
neon corn starch-covered people that I came in contact with were
all nice. Still, something seems odd about it… Maybe I’m just
jealous that it didn’t occur to me to commoditize an Indian
religious ritual.
http://markmaynard.com/2012/07/the-color-run-why-wouldanyone-pay-50-to-have-people-throw-shit-in-their-faces-asthey-jog/
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Color Run Business Model $1m a day
So, here’s the math as I figure it… The last official count
that I heard was that 17,500 had registered for today’s run.
According to their site, registration, depending on how big
of a team you to have, runs from $45 to $55. For the
purposes of this exercise, we’ll be conservative, and assume
$45. 17,500 people, paying $45 a piece, would yield a
whopping $787,500.
Assuming my source was right, and our local charities
received $13,000, that means the received considerably less
than 2% of the total take. And, for that $13,000, they not
only got a lot of publicity, but they also got a great deal of
free labor… Not a bad business model, huh?
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Fun Runs – huge hit
http://runcalendar.com.au/brisbane
Runs
Fun runs
Marathons
Half marathons
Obstacle courses
Stair climbing events
So how will you know?
Entrepreneurship
…a person who organizes and manages any enterprise,
especially a business, usually with considerable initiative
and risk (courage and bravery)
Leaving you with the questions:
Will schools adopt/adapt Tough Mudder?
What type of event will be the next wave of
success?
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Sport Events: Cash Cow for Entrepreneurs
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Readings
Beyond the Games: regeneration legacies and London 2012, Larissa E. Davies,
Sport Industry Research Centre, Sheffield Hallam University, Sheffield, UK
Olympic Environmental Concerns as a Legacy of the Winter Games, Jean-Loup
Chappelet, a Swiss Graduate School of Public Administration (IDHEAP),
Maximizing Olympic Impacts by Building Up Legacies, Chris Gratton a & Holger
Preuss, a Sheffield Hallam University, b Johannes Gutenberg-Universität Mainz,
Seeking (and not seeking) to leverage mega-sport events in non-host destinations:
The case of Shanghai and the Beijing Olympics, Lisa G. Beesley a & Laurence
Chalip, Department of Tourism, Leisure, Hotel, and Sport Management, Griffith
University, Brisbane, Australia, Sport Management Program, University of Texas at
Austin, Bellmont Hall 222, Austin, TX, 78712, USA
Sport, tourism and the Olympic Games: Lessons from and blind spots among the
research community, Graham Brown, a School of Management, University of South
Australia, Adelaide, Australia
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Impacts of the London Olympic Games
Marketing at the Olympics, the attraction and the rewards
The Value of Sports Marketing in Creating Successful Brands
Who will profit from the London Olympics (VIEW)
http://www.youtube.com/watch?v=JPUkiMo3Zac
The Olympic Games is unquestionably the greatest sporting event on
earth, with television audiences measured in billions of viewers. By
what process did the Olympics evolve into this multi-national
phenomenon? How can an understanding of the Olympic Games help
us to better understand international sport and society? And what will
be the true impact and legacy of the London Olympics in 2012?
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Model Economic Study
ESTIMATING THE ECONOMIC IMPACTS OF FESTIVALS AND
EVENTS: A RESEARCH GUIDE
By Ben Janeczko, Trevor Mules and Brent Ritchie
http://www.crctourism.com.au
2002 Copyright CRC for Sustainable Tourism Pty Ltd
Review of basic principles of economic impact and apply them to a series of four
special events held at Thredbo in Kosciuszko National Park. The events are all held in
summer-autumn and are part of a strategy by local tourism managers to develop a
non-winter tourism season in an area where snow skiing has been the traditional
attraction.
1. Australian Mountain Bike Association Cup
2. National Runners Week
3. Shakespeare Festival
4. Thredbo Jazz Festival
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EXISTING LITERATURE 2008
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Economic development and economic impacts of events (26 articles)
• Sponsorship and event marketing from the corporate perspective (14 articles)
• Marketing including segmentation (11 articles)
• Other management topics (9 articles)
• Visitor or participant motives (7 articles)
FOCUS is ON THE POSITIVE
ECONOMIC IMPACTS &
Tend to IGNORE NEGATIVES!
See the LOR at the end of the
article by Jones et al 2008
• Education, training, accreditation, research, professionalism (7 articles)
• Community impacts, resident attitudes and perceptions of event impacts (6 articles)
• Descriptive analysis of the festival sector (seasonal, spatial, calendars) (5 articles)
• Attendance estimates and forecasts (5 articles)
• Volunteers (4 articles)
• Politics, policy and planning (4 articles)
• Urban renewal (2 articles)
• Law (1 article)
• Benefits to consumers (1 article)
• Arts and culture (1 article).
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Event Impact Dimensions
Impacts can be positive, negative or neutral
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Social Impacts
A key positive aspect of sports and events is
involvement in a healthier lifestyle. Sports provide:
That ‘feel good’ factor
Heightened interest in sports, events and the outdoors
Physical and mental wellbeing from a
healthier, more connected population
Increased role model identification
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Social Impacts
Positive
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Increased interest in the types of
activities involved in the event
Increased sense of community
Revitalisation of traditions
Expansion and understanding of
cultural perspectives
Negative
• Community alienation
• Manipulation or neglect of
community
• Hooliganism, alcohol abuse
• Racism
• Negative community image
• Host/visitor hostility
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Economic Impacts
Negative
• Localised inflation
• Undesirable opportunity costs
• Host community resistance
• Financial mismanagement
• Financial loss
• Loss of Authenticity
• Commercialisation
Positive
Increased expenditure
Creation of employment
Increased investment
Increased commercial
opportunities
Increased tax revenue
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Political
Impacts
Positive
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International prestige
Improved profile
Increases in skills among
planners and policy development
Builds social cohesion
Confidence and leadership
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Peace and collaboration
Negative
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THE GREEN GAMES
THE “not so green” GAMES
Distortion of event to reflect
political values
Failure to cope
Increased admin costs
Use event to legitimise
unpopular political decisions
Misallocation of funds
Lack of accountability
Loss of community ownership
and control
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Environmental Impacts
Physical and Built environments
Negative
• Environmental damage
• Pollution – Noise Litter
Air Visual Waste
• Overcrowding
• Interruption of wildlife
habitats and behaviours
Positive
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Showcasing the environment
Increase appreciation for the
environment
Development of new facilities
Conservation of heritage
Improved visitor management
strategies
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Recommended Readings
Jones, Pilgrim, Thompson & Macgregor (2008) “Assessing the
Environmental Impacts of Special Events”, CRC for Sustainable Tourism Pty
Ltd, Brooke Pickering, Gold Coast QLD.
Research Methodology, Data Collection, Literature Review of Event
Management & Social, Economic & Environmental Impacts of Events
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Australia Day Skyworks
The Big Day Out
Margaret River Pro
RSPCA Million Paws Walk
Albany Car Classic Rally
Half Ironman
Avon Descent
Perth City to Surf
Brusselton Iron Man Triathlon
ENCORE
EVENT EVALUATION KIT
SUSTAINABLE TOURISM
CRC 2005
DEMOGRAPHICS
ECONOMIC BENEFITS
MARKET RESEARCH
EVENT EVALUATION
Copy in library FYI
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Environmental Impacts Of Events
Willingness of event organisers & hosts to assess & minimise environmental
impacts
Ability & desire to achieve outcomes
Focussed on transport use, power & water consumption, waste & disposal
Traffic counts, number of toilets, noise levels, air transport, etc
YOU MUST READ, TAKE NOTE OF, USE MODELS AND PROCEDURES
FROM this article FOR your proposal
Indicators
• Where, What, How, Duration, Frequency,
• Instruments for recording the data
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Ecological Footprint FIFA WC 04
Cardiff’s Millenium Stadium in Wales
Energy & resources used on the day EF (the area of land required
to support the use of the resources involved) 3051 hectares or
equivalent of 305 Rugby fields
> 50% generated by 73,000 people travelling to WC
Provision & consumption of food = 1381 hectares
Tend to disregard damage or costs
Focus on traffic congestion & parking
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Impacts of Mega Events
Larger events = broader range & greater
magnitude of Environmental Impacts
Lillehammer 1994 – “green games”
Sydney 2000 – named the green games
• energy conservation
• water conservation
• waste avoidance and minimisation
• pollution management
• the protection of significant
natural and cultural environments
Sydney's 'green Games' strategies
have been praised in audits by overseas ecologists.
But Sydney eco-design specialist Dr Tony Fry argues
that the Games concept itself is unsustainable.
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SYDNEY 2000 OLYMPICS GREEN GAMES
ENVIRONMENTAL MANAGEMENT guidelines
• high spectator and workforce use of public transport on
the newly constructed train lines;
• the diversion of considerable amounts of waste from
landfill;
• energy efficiency and water conservation improvements;
• the adoption of measures to protect valuable ecological
habitats at Olympic sites.
All tenders for services to the Games were required to
demonstrate how they would address the environmental
guidelines, eg: emphasis on recycling of materials.
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SYDNEY 2000 OLYMPICS GREEN GAMES
public transport access;
use of solar power;
Environmentally selective building material use;
recycling of construction waste;
environmentally sensitive tendering policies;
energy and water conservation;
SYDNEY 2000
GREEN GAMES
POSITIVES
AND
NEGATIVES
wetland protection and restoration.
inadequate community consultation;
government-approved removal of threatened vegetation;
use of unsustainably sourced turpentine;
Insufficient and short-term public transport access to western Sydney venues;
failure to provide the promised LPG (Liquid Petroleum Gas) vehicles
failure of the 3800 Olympic bus fleet to include any more than 24 CNG (Compressed
Natural Gas) buses;
environmentally irresponsible Olympic merchandise;
use of PVC plastics;
failure to clean up dioxin-polluted Homebush Bay sediments;
unsafe dioxin storage under plastic sheets;
unclear post-Olympic management responsibility for the Millennium Parklands and
toxic landfill areas
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Delhi “Green Games”
Organising Committee Commonwealth Games
2010 Delhi committed towards ensuring zero
carbon footprint
NEW DELHI 17 February 2010: The landmark
ecological code for the XIX Commonwealth
Games 2010 Delhi, which aims to ensure
reasonable consumption of electricity and water in
all the stadiums, was unveiled today.
Releasing the ecological code along with Delhi
Chief Minister Smt. Sheila Dikshit, Mr. Suresh
Kalmadi, Chairman Commonwealth Games 2010
Delhi Organising Committee, said, “this measure
would go a long way to limit the carbon footprint in
Delhi and would strive to make the XIX
Commonwealth Games pollution free.”
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Key initiatives include:
Launch of city forest plantations in Delhi
Plans being finalised for plantations across India linked to the Queens Baton Relay 2010 domestic leg
Thyagaraj Stadium – emerging as the model green sporting venue not just in the country but also one of its
kind in the world
Commonwealth Garden to be established by New Delhi Municipal Council (NDMC) at Africa Avenue
Multiple sensitisation and communications campaigns such as Cleaner Delhi campaign, Energy
conservation Campaign, Water Day Celebrations, Sustainable Transport Promotion Campaign
Partnering with United Nations Environmental Programme (UNEP)
Green Games Environment Sub Committee
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Olympics in London in 2012
POTENTIAL IMPACTS
land/water/air;
biodiversity/ecology;
energy use;
waste;
culture/heritage/built form;
amenity;
transport;
housing; and
support for environmental services
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IMPACTS OF
AQUATIC EVENTS
America’s Cup
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Litter & pollution
Noise & exhaust emissions from 2000 -3000 spectator craft & vessels
Glass litter & broken beverage glass
Strikes on wildlife (Penguins, Bottlenose & Common dolphins), Brydes Whales
Increase in fishing & entanglement & ingestion by seabirds & marine mammals
Increased sewage discharge from recreational vessels
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Traffic &
Transportation
Congestion
Parking
Pressure on road infrastructure
Seen by host communities as the single
most important negative environmental
impact of events
Influences decision where to site events
Integrated approach: bus, rail, car, taxi,
ferry, air, walkers, park & ride,
management issue
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UK given final warning over London air quality
The UK has been issued a written warning by Europe
to clean London's air or face fines of up to £300m
Britain has been given a second and
final written warning by Europe to clean
up London's air or be taken to the
European court of justice and face fines
of up to £300m.
The warning, sent today by the
Environment commissioner Janez
Potočni refers to minute airborne
particles known as PM10s which are
emitted by traffic and factories and can
lead to heart attacks, strokes, asthma
and lung diseases. According to the
Mayor of London's Air Quality Strategy,
particle pollution is responsible for over
4,300 premature deaths a year in
London at an annual cost of up to £2bn.
http://www.guardian.co.uk/environment/2010/jun/03/ukwarning-london-air-quality (Viewed 27 August 2010)
London's air pollution levels rank as the worst
in the UK and also among the worst in Europe.
John Vidal and Hélène Mulholland
guardian.co.uk, Thursday 3 June 2010 14.52 BST
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Energy use
38.5 million kilowatt hours of energy consumed in delivering the Sydney
2000 Olympic Games
• passive solar building designs wherever possible
• use of insulation and natural ventilation
• the widest possible use of renewable sources of energy
• high efficiency lighting systems with maximised use of natural light
• use of energy efficient appliances
• sophisticated building management and control systems to assist
management engineering services at each venue to minimise energy
requirements
• mechanical ventilation zoned to allow ventilation flow to be switched off
when spaces are unoccupied
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Energy Use
Few options: power grid or generators
Solar cells and wind generators “no go”
Bio fuel in diesel generators
LPG gas
Energy efficient devices for lighting, cookers,
washing machines, heaters, photo copiers, etc
can reduce energy consumption by 50%
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Food Consumption
Accounts for ~ 50% of overall impact
Energy consumption in preparation
Excessive loading on landfills for waste disposal
Use of disposable plastic plates/utensils
Should use local markets
Use organic seasonal produce
Donate unused foods to local food banks/shelters
Compost food scraps where possible
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Waste Management
Events produce large quantities of municipal waste (paper, cardboard,
glass, aluminium)
Need to reduce packaging & non-recyclable materials, eg bottles, cans
Reuse materials and Recycle waste
Litter clean up during and after event
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Water
Use–
Water consumption
use the local supply
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Dual flush toilets
Roof fed water tanks
Recycle water from toilets (fields/gardens)
Human consumption reduced
Water saving shower heads
Low water use appliances
Treating water locally is prohibitive $$$
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Water Use
Water pollution
• Grey water – washing machines, dishwashers, sinks, showers
• Black water – toilet effluent
Temporary influx = Portaloos
• Chemical toilet waste
• Hosts’ landfills or local sewage treatment
Runoff from sites to waterways
• Contamination
• Eutrophication from excessive nutrients
Offshore Pollution from pleasure boats
• Motors, toilets, exhaust hydrocarbon emissions
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Air Pollution
2006 FIFA World Cup expected 100,000 tons of
greenhouse emissions
Offset by investing in renewable energy and
energy efficient technology
NASCAR competitors used leaded fuel
2008 – change over to unleaded fuel
Studies found elevated blood lead levels among
mechanics & crew - Neurotoxicant – lowers IQ in
humans
Requirements for 4 stroke motors on boats used
in competitive events for management and
competition
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Ecological Impacts
Completely ignored in events literature
Vehicle & 4WD damage in sensitive areas
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Trail widening
Tread incision
Tree roots damaged & exposed by tyres
Dune degradation & soil break down
Track erosion
Trampling of vegetation & landform erosion
Weeds spread by vehicles & people
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Noise Pollution
Large crowds gather in residential areas
Traffic congestion, crowds & noise
Significant with motor sport events
Australian Formula One Grand Prix
(F1GP), Gold Coast Indy, Bathurst, Phillip Island.
Most negative attitude amongst residents living in the
immediate vicinity of the sporting venues and race tracks
Noise levels set by local government
Curfews set for night music events
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Positive Environmental Impacts
Barcelona 1992 Olympic Games
• public spaces enhanced and improved
• coastal area of Barcelona rejuvenated with a marina, recreation facilities and
sandy beaches
• beneficial to tourists and local residents
2002 World Cup - Korean government made a number of positive
community investments including
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reclaiming a landfill site around the main stadium;
embarking on a city beautification program that involved repairing shop signs;
increasing the controls for food and sanitation at street stands, and,
an improvement of night lighting and waste management
Seoul municipal government also raised awareness of environmental issues
through its website homepage and through various information channels.
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Environmental Impact
Management of Sports & Events
monitoring and controlling of on-site and offsite impacts
differentiate between event-specific impacts
from others that might normally take place
event manager should take responsibility to
ensure all the external costs associated with
running an event are internalised and so fully
costed
need for more complete cost-benefit analysis
processes where the ‘intangible’ costs (e.g.
inconvenience, overcrowding, crime, noise
pollution, waste generation and damage of
various kinds) are included
need for environmental impact assessments
both before and after events
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Pressure-State-Response Model
adopted for establishment of sustainable development indicators by the UN
Commission on Sustainable Development and the UN Department for Policy
Coordination and Sustainable Development (Li 2004).
Environmental pressure
Caused by event
PRESSURE
Event activities & their
Impacts on environment
Carrying
capacity
Event environment & resources
STATE
The environmental state
Of event destination
Information feedback
Response on
decision making
Response on
decision making
RESPONSE
Local govt’s response
To the changes
Caused by event
Regulations, controls,
Standards set by local govt
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Pressure-State-Response Model
PRESSURE
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reflect the event activities and their impacts on the environment
Indicate whether the event activities exceed the limits of carrying capacity at the site
effectiveness of the efforts that the managers take to protect the site’s environment
human pressure i.e. the number of visitors the event attracts, the increase in garbage
collection, the increase in water consumption, the increase in power consumption
STATE
• environmental state of an event destination
• key factor determining the extension and degree of event development at the site
• increases in atmospheric or water pollution, pollution of sea water, increased traffic and
pressure of parking, amenity, impacts on beach environments or parks and natural areas, and
possible noise levels
RESPONSE
• reflect the regulations, controls and standards that the municipal authority use to prevent
degradation of the local environment
• Urban planning adjustments, protection measures for natural areas, adjustments to the
municipal budget, increasing garbage collection and processing (e.g. recycling), street
cleaning, treatment of waste water, and environmental monitoring and controls
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Sport/Events Ecological Footprints
Wong (2005) applied ecological footprint methodology to calculate the
environmental impacts of an annual music festival, Splendour in the Grass, held at
Byron Bay on the New South Wales north coast.
Ecological footprints can be reduced through better management of
sports, festivals & events
Require the participation of, and cooperation between, organising committees,
host organisations (often local government), and other stakeholders
20% of all environmental impacts have technological solutions
The remaining 80% call for social and organisational solutions – that is:
doing things differently
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Managing and/or Reducing Negative
Environmental Impacts
1. Planning
• Quality management and marketing can reduce negative
environmental impacts.
2. Determine
• Purpose and location of the event
• What activities may cause environmental damage –
construction and deconstruction of temporary facilities;
transport; volume of waste.
• Assess the Preparation; Construction; Operational
phase; Dismantling; Debriefing; for the whole event
3. Timing
• Seasonality
http://www.epa.qld.gov.au/environmental_management/impact_assessme
nt/
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Balancing Sport & Event Impacts
Economic
TOURISM
Environmental
Socio-cultural
Political
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Impacts of Events and
More Sustainable Practices
An increasingly important
Aspect of event management
A marketing advantage for astute
Event promoters
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