A WA parliamentary question probes the methodology used to evaluate the economic impact of tourism events, particularly in comparison to interstate and international events, and the ability to accurately assess the benefits of both large and community events.

AnsweredQoN 23Legislative Assembly
Asked
26 April 2005
Portfolio
Tourism

QuestionView source ↗

(1) Has Western Australia adopted the Tourism Satellite Account, as per the United Nation’s World Tourism Organisation, so as valid economic impacts comparisons can be made about tourism events staged in Western Australia?
(2) At what macro or micro levels does Western Australia participate in the Tourism Satellite Account?
(3) What exact methodology or systems are used to evaluate EventsCorp and other tourism events in Western Australia so as accurate, valid economic and social comparisons (as in the Tourism Satellite Account) can be made with –
(a) other events staged in Western Australia;
(b) events staged in other States; and
(c) similar events staged overseas?
(4) For example, how would the Department evaluate the current Miss Universe event being staged in Thailand, with a proposal to hold a future Miss Universe final in Perth? Would our transparent system enable the costs and dividends which go directly to the Trump/New York “owners” of Miss Universe, to be segregated from any “economic impact benefit” that overseas and interstate events managers wrongly and mischievously try to imply are benefits for the host city and State?
(5) Are the Department’s systems able to accurately assess and compare the huge local economic benefit that “amateur” and “community” events such as the Veterans’ Tennis World Championships at Robinson Park in my electorate have on the real economy in Western Australia?

AnswerView source ↗

Answered
26 May 2005
Responded by
Minister for Tourism
Response time
30 days
(b) events staged in other States; and (c) similar events staged overseas?
(c) similar events staged overseas?
(2) The WA State TSA approach is a very complex and time consuming exercise used at a macro level to estimate the overall economic impact of tourism as a whole on employment and the economy, as well as the impact of tourism on specific industry sectors. However, it is not used to estimate the value of individual tourism events staged in Western Australia. (3) According to the Sustainable Tourism Cooperative Research Centre (STCRC) based in Queensland, there has been a great diversity of inconsistent approaches used in the past by different states and different economists to estimate the economic contribution of tourism events in Australia, many of which have grossly overstated the impact of events. As a consequence STCRC has recommended that the most consistent and accurate method of estimating the economic contribution of events over time and against other similar events is to use "direct in-scope expenditure". Direct in scope expenditure is the dollar amount spent by interstate and international attendees who came specifically for an event, while they are in the State. It does not include: expenditure made outside the State. expenditure made by attendees who were in WA for reasons other than the event. expenditure made by local event attendees who are from WA. The use of direct in scope expenditure to estimate events in WA has been supported by the Department of Treasury and Finance and is used by Tourism Western Australia to estimate the economic contribution of events staged by EventsCorp (a division of Tourism Western Australia) in Western Australia. Based on this approach, Tourism Western Australia uses the following approach to estimate the economic value of events: (a) Other events staged in Western Australia - Tourism Western Australia collects visitor number estimates and direct in scope expenditure data from interstate and international visitors to estimate the economic impact of major events of interest staged by EventsCorp in Western Australia. Direct spend and visitor number estimates of previous EventsCorp events are also used as a basis for estimating the potential value of other smaller events, as well as any future events in Western Australia. (b) Events staged in other States - Tourism Western Australia when benchmarking against events which are held in other states requests extensive data from the event licence holder. Further investigation is done to establish supporting documentation when it is considering one of these events for Western Australia. (c) Similar events staged overseas - Tourism Western Australia uses the same rigorous approach to its evaluation of international events which it is considering hosting as it does for its national events. (4) EventsCorp would apply the same feasibility process it applies to all proposals it receives. Economic impact estimates are calculated by EventsCorp and subsequently measured during major events by an independent research organisation. Generally, this does enable Eventscorp to determine what costs and dividends go to parties outside the State. (5) Yes if funded, EventsCorp would be able to apply the same feasibility process as stated in 4. Alternatively, the STCRC has developed a do-it yourself Event Evaluation Kit called "Encore" that event organisers can use to accurately estimate the economic value of specific events to their area.
(3) According to the Sustainable Tourism Cooperative Research Centre (STCRC) based in Queensland, there has been a great diversity of inconsistent approaches used in the past by different states and different economists to estimate the economic contribution of tourism events in Australia, many of which have grossly overstated the impact of events. As a consequence STCRC has recommended that the most consistent and accurate method of estimating the economic contribution of events over time and against other similar events is to use "direct in-scope expenditure". Direct in scope expenditure is the dollar amount spent by interstate and international attendees who came specifically for an event, while they are in the State. It does not include: expenditure made outside the State. expenditure made by attendees who were in WA for reasons other than the event. expenditure made by local event attendees who are from WA. The use of direct in scope expenditure to estimate events in WA has been supported by the Department of Treasury and Finance and is used by Tourism Western Australia to estimate the economic contribution of events staged by EventsCorp (a division of Tourism Western Australia) in Western Australia. Based on this approach, Tourism Western Australia uses the following approach to estimate the economic value of events: (a) Other events staged in Western Australia - Tourism Western Australia collects visitor number estimates and direct in scope expenditure data from interstate and international visitors to estimate the economic impact of major events of interest staged by EventsCorp in Western Australia. Direct spend and visitor number estimates of previous EventsCorp events are also used as a basis for estimating the potential value of other smaller events, as well as any future events in Western Australia. (b) Events staged in other States - Tourism Western Australia when benchmarking against events which are held in other states requests extensive data from the event licence holder. Further investigation is done to establish supporting documentation when it is considering one of these events for Western Australia. (c) Similar events staged overseas - Tourism Western Australia uses the same rigorous approach to its evaluation of international events which it is considering hosting as it does for its national events. (4) EventsCorp would apply the same feasibility process it applies to all proposals it receives. Economic impact estimates are calculated by EventsCorp and subsequently measured during major events by an independent research organisation. Generally, this does enable Eventscorp to determine what costs and dividends go to parties outside the State. (5) Yes if funded, EventsCorp would be able to apply the same feasibility process as stated in 4. Alternatively, the STCRC has developed a do-it yourself Event Evaluation Kit called "Encore" that event organisers can use to accurately estimate the economic value of specific events to their area.
As a consequence STCRC has recommended that the most consistent and accurate method of estimating the economic contribution of events over time and against other similar events is to use "direct in-scope expenditure". Direct in scope expenditure is the dollar amount spent by interstate and international attendees who came specifically for an event, while they are in the State. It does not include: expenditure made outside the State. expenditure made by attendees who were in WA for reasons other than the event. expenditure made by local event attendees who are from WA. The use of direct in scope expenditure to estimate events in WA has been supported by the Department of Treasury and Finance and is used by Tourism Western Australia to estimate the economic contribution of events staged by EventsCorp (a division of Tourism Western Australia) in Western Australia. Based on this approach, Tourism Western Australia uses the following approach to estimate the economic value of events: (a) Other events staged in Western Australia - Tourism Western Australia collects visitor number estimates and direct in scope expenditure data from interstate and international visitors to estimate the economic impact of major events of interest staged by EventsCorp in Western Australia. Direct spend and visitor number estimates of previous EventsCorp events are also used as a basis for estimating the potential value of other smaller events, as well as any future events in Western Australia. (b) Events staged in other States - Tourism Western Australia when benchmarking against events which are held in other states requests extensive data from the event licence holder. Further investigation is done to establish supporting documentation when it is considering one of these events for Western Australia. (c) Similar events staged overseas - Tourism Western Australia uses the same rigorous approach to its evaluation of international events which it is considering hosting as it does for its national events. (4) EventsCorp would apply the same feasibility process it applies to all proposals it receives. Economic impact estimates are calculated by EventsCorp and subsequently measured during major events by an independent research organisation. Generally, this does enable Eventscorp to determine what costs and dividends go to parties outside the State. (5) Yes if funded, EventsCorp would be able to apply the same feasibility process as stated in 4. Alternatively, the STCRC has developed a do-it yourself Event Evaluation Kit called "Encore" that event organisers can use to accurately estimate the economic value of specific events to their area.
Direct in scope expenditure is the dollar amount spent by interstate and international attendees who came specifically for an event, while they are in the State. It does not include: expenditure made outside the State. expenditure made by attendees who were in WA for reasons other than the event. expenditure made by local event attendees who are from WA. The use of direct in scope expenditure to estimate events in WA has been supported by the Department of Treasury and Finance and is used by Tourism Western Australia to estimate the economic contribution of events staged by EventsCorp (a division of Tourism Western Australia) in Western Australia. Based on this approach, Tourism Western Australia uses the following approach to estimate the economic value of events: (a) Other events staged in Western Australia - Tourism Western Australia collects visitor number estimates and direct in scope expenditure data from interstate and international visitors to estimate the economic impact of major events of interest staged by EventsCorp in Western Australia. Direct spend and visitor number estimates of previous EventsCorp events are also used as a basis for estimating the potential value of other smaller events, as well as any future events in Western Australia. (b) Events staged in other States - Tourism Western Australia when benchmarking against events which are held in other states requests extensive data from the event licence holder. Further investigation is done to establish supporting documentation when it is considering one of these events for Western Australia. (c) Similar events staged overseas - Tourism Western Australia uses the same rigorous approach to its evaluation of international events which it is considering hosting as it does for its national events. (4) EventsCorp would apply the same feasibility process it applies to all proposals it receives. Economic impact estimates are calculated by EventsCorp and subsequently measured during major events by an independent research organisation. Generally, this does enable Eventscorp to determine what costs and dividends go to parties outside the State. (5) Yes if funded, EventsCorp would be able to apply the same feasibility process as stated in 4. Alternatively, the STCRC has developed a do-it yourself Event Evaluation Kit called "Encore" that event organisers can use to accurately estimate the economic value of specific events to their area.
Based on this approach, Tourism Western Australia uses the following approach to estimate the economic value of events: (a) Other events staged in Western Australia - Tourism Western Australia collects visitor number estimates and direct in scope expenditure data from interstate and international visitors to estimate the economic impact of major events of interest staged by EventsCorp in Western Australia. Direct spend and visitor number estimates of previous EventsCorp events are also used as a basis for estimating the potential value of other smaller events, as well as any future events in Western Australia. (b) Events staged in other States - Tourism Western Australia when benchmarking against events which are held in other states requests extensive data from the event licence holder. Further investigation is done to establish supporting documentation when it is considering one of these events for Western Australia. (c) Similar events staged overseas - Tourism Western Australia uses the same rigorous approach to its evaluation of international events which it is considering hosting as it does for its national events. (4) EventsCorp would apply the same feasibility process it applies to all proposals it receives. Economic impact estimates are calculated by EventsCorp and subsequently measured during major events by an independent research organisation. Generally, this does enable Eventscorp to determine what costs and dividends go to parties outside the State. (5) Yes if funded, EventsCorp would be able to apply the same feasibility process as stated in 4. Alternatively, the STCRC has developed a do-it yourself Event Evaluation Kit called "Encore" that event organisers can use to accurately estimate the economic value of specific events to their area.
(a) Other events staged in Western Australia - Tourism Western Australia collects visitor number estimates and direct in scope expenditure data from interstate and international visitors to estimate the economic impact of major events of interest staged by EventsCorp in Western Australia. Direct spend and visitor number estimates of previous EventsCorp events are also used as a basis for estimating the potential value of other smaller events, as well as any future events in Western Australia. (b) Events staged in other States - Tourism Western Australia when benchmarking against events which are held in other states requests extensive data from the event licence holder. Further investigation is done to establish supporting documentation when it is considering one of these events for Western Australia. (c) Similar events staged overseas - Tourism Western Australia uses the same rigorous approach to its evaluation of international events which it is considering hosting as it does for its national events. (4) EventsCorp would apply the same feasibility process it applies to all proposals it receives. Economic impact estimates are calculated by EventsCorp and subsequently measured during major events by an independent research organisation. Generally, this does enable Eventscorp to determine what costs and dividends go to parties outside the State. (5) Yes if funded, EventsCorp would be able to apply the same feasibility process as stated in 4. Alternatively, the STCRC has developed a do-it yourself Event Evaluation Kit called "Encore" that event organisers can use to accurately estimate the economic value of specific events to their area.
(b) Events staged in other States - Tourism Western Australia when benchmarking against events which are held in other states requests extensive data from the event licence holder. Further investigation is done to establish supporting documentation when it is considering one of these events for Western Australia. (c) Similar events staged overseas - Tourism Western Australia uses the same rigorous approach to its evaluation of international events which it is considering hosting as it does for its national events. (4) EventsCorp would apply the same feasibility process it applies to all proposals it receives. Economic impact estimates are calculated by EventsCorp and subsequently measured during major events by an independent research organisation. Generally, this does enable Eventscorp to determine what costs and dividends go to parties outside the State. (5) Yes if funded, EventsCorp would be able to apply the same feasibility process as stated in 4. Alternatively, the STCRC has developed a do-it yourself Event Evaluation Kit called "Encore" that event organisers can use to accurately estimate the economic value of specific events to their area.
(c) Similar events staged overseas - Tourism Western Australia uses the same rigorous approach to its evaluation of international events which it is considering hosting as it does for its national events. (4) EventsCorp would apply the same feasibility process it applies to all proposals it receives. Economic impact estimates are calculated by EventsCorp and subsequently measured during major events by an independent research organisation. Generally, this does enable Eventscorp to determine what costs and dividends go to parties outside the State. (5) Yes if funded, EventsCorp would be able to apply the same feasibility process as stated in 4. Alternatively, the STCRC has developed a do-it yourself Event Evaluation Kit called "Encore" that event organisers can use to accurately estimate the economic value of specific events to their area.
(4) EventsCorp would apply the same feasibility process it applies to all proposals it receives. Economic impact estimates are calculated by EventsCorp and subsequently measured during major events by an independent research organisation. Generally, this does enable Eventscorp to determine what costs and dividends go to parties outside the State. (5) Yes if funded, EventsCorp would be able to apply the same feasibility process as stated in 4. Alternatively, the STCRC has developed a do-it yourself Event Evaluation Kit called "Encore" that event organisers can use to accurately estimate the economic value of specific events to their area.
(5) Yes if funded, EventsCorp would be able to apply the same feasibility process as stated in 4. Alternatively, the STCRC has developed a do-it yourself Event Evaluation Kit called "Encore" that event organisers can use to accurately estimate the economic value of specific events to their area.

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