Evaluating Major Sporting Events: Economic Impact versus Cost Benefit—The Case of Bathurst 1000

By John Hicks, Tom Murphy, Lesley Arthur, Parikshit K. Basu, Deirdre Keogh and Guy West.

Published by The Sport Collection

Format Price
Article: Print $US10.00
Article: Electronic $US5.00

This paper compares the results of evaluating a major regional sporting event, the Bathurst 1000 V-8 Supercars Weekend, using economic impact analysis and cost benefit analysis. The comparison is the basis for a discussion of which methodology is most appropriate under differing circumstances. The paper specifically addresses the view that economic impact analysis is often used to support a modern form of mercantilism (Abelson 2011). The paper develops a hybrid of the two approaches, which it is argued is superior to using the pure form of either approach.

Keywords: Economic Impact, Cost Benefit Analysis, Motor Racing

The International Journal of Sport and Society, Volume 3, Issue 4, pp.209-218. Article: Print (Spiral Bound). Article: Electronic (PDF File; 293.821KB).

Prof. John Hicks

Professor of Economics, School of Business, Charles Sturt University, Bathurst, New South Wales, Australia

John Hicks is an economist who has held a number of university positions in Australia and New Zealand, and has worked as a senior economist in the private sector. He is currently a professor of economics at Charles Sturt University, Bathurst, Australia. His expertise encompasses labour economics and macroeconomics, and his current research interests include the application of macroeconomic policy at regional and national levels—particularly in relation to Australia and China.

Tom Murphy

CEO, Western Research Institute, Bathurst, NSW, Australia

Tom is currently the chief executive officer of the Western Research Institute and has held this position since 1999. Tom has previously held academic positions as a senior lecturer in economics and the director of the Regional Economics Research Unit at Charles Sturt University, as well as positions at the University of New England and Macquarie University. Tom has also held the positions of economic analyst with the Office of National Assessments and senior consultant with KPMG Peat Marwick Management Consultants. Tom's particular expertise is in regional economics and labour markets.

Lesley Arthur

Senior Research Officer, Western Research Institute, Bathurst, NSW, Australia

Lesley is an experienced researcher with particular expertise in the areas of inter-industry modelling, including input-output analysis, statistical analysis, market analysis, and forecasting. Prior to joining WRI, Lesley was a director with KPMG Peat Marwick Management Consultants in Australia and Malaysia.

Dr. Parikshit K. Basu

Senior Lecturer, School of Business, Charles Sturt University, Bathurst, NSW, Australia

Parikshit Basu is currently a senior lecturer in the School of Business at Charles Sturt University. He has worked as an economist in the private corporate sector in several countries. His current research interests are business relations between Australia and China, regional labour market analysis, and applied finance.

Deirdre Keogh

Lecturer, School of Business, Charles Sturt University, Bathurst, NSW, Australia

Deirdre lectures in applied finance. Prior to joining CSU, Deirdre worked in accounting and finance in Australia and the UK.

Dr Guy West

Adjunct Professor, Faculty of Business, Charles Sturt University, Bathurst, NSW, Australia

Professor Guy West is an adjunct professor of the Faulty of Business, Charles Sturt University and a research associate of the Western Research Institute.