The report, which analyzes the gains for Taiwan from the games and next month’s Summer Deaflympics in Taipei, found that profit was derived mainly from increased tourism, spending and ticket sales. “More than 260,000 visitors arrived in the city during the games, resulting in a 68-percent increase in the number of visitors to major tourist attractions.”
Shopping malls and retailers in Kaohsiung experienced an average 15-percent rise in sales during the 12-day event, along with a notable increase in demand for hotel accommodation, the study said.
Kaohsiung City Government officials said the games attracted more than 4,000 athletes from 101 participating nations and were televised worldwide. International sponsors included multinationals such as Carrefour, Coca-Cola, Heineken, Starbucks, Tissot and Volkswagen.
Author of the study Tony Phoo, an economist with Standard Chartered, said Aug. 21 that based on media reports and anecdotal evidence, the games brought sizeable economic benefits to Kaohsiung. “The city government’s ability to attract sizeable sponsorships from major international companies was a key factor allowing it to generate a profit.”
Phoo said Kaohsiung’s construction of a new sports stadium and infrastructure such as the mass-rapid-transit system in preparation for the event generated additional employment that would not otherwise have been possible. “The city’s less developed infrastructure allowed it to benefit more from hosting a large-scale sporting event.”
"Overall, the effects of hosting large-scale sports events on Taiwan’s economy are likely to be muted," Phoo said. "This is because expected profits will be small in comparison to the overall size of the economy, which stood at US$415 billion in 2008."
“While such events may provide a small boost, they will do little to pull the economy out of its worst recession on record. The economic benefits of staging such events are more evident at the local and regional levels, particularly in terms of boosting tourism.”
One area that Taiwan does stand to benefit substantially from staging large-scale sports events is international exposure. Long seen as primarily a supplier of electronics components, the island gains the most from showcasing its socioeconomic development.
“Hosting the World Games and Deaflympics will help the nation build up good will among the international community, thereby furthering the government’s long-term goal of raising Taiwan’s overall international profile,” Phoo said.
Write to John Scott Marchant at js_marchant@mail.gio.gov.tw