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It is extremely difficult to calculate the financial merits of any particular Olympic Games, due to expensive construction and many, varying costs(15). 3.4 billion and13 billion, respectively, on the Summer Games. With these huge costs, it is hard to perceive how profits can be made(15). 200 million, by introducing aggressive commercializing strategies and minimizing the construction costs (3). Cities such as Barcelona, Athens, Beijing and London would spend far more money than the U.S. Local residents seldom benefit from the profits. Most economists agree that economic impact of major sport events are often calculated from three areas (5). They are direct financial impacts, indirect financial impacts and intangible.
Although most of the host cities may not prosper from the profit gains, cities such as Lillehammer, Norway, and Nagano, Japan have enjoyed worldwide attention by hosting the winter Olympics. Mayors of hosting cities clearly understand that the spectacle will promote national pride and justify local development (15).youtube.com Burton and O’Reilly (5) warned against focusing solely on cost and profits as the criteria for evaluating the impact of the events. They want people to consider the intangible benefits of the Atlanta Games. Although the Atlanta Games only broke even financially, Atlanta has subsequently become a bigger, better, and more respected global city. The Kaohsiung City Government is standing on a crossroads facing an uncertain future.
Based on the aforementioned paragraphs, the city has clearly spent a huge amount of money to prepare for the World Games, and anticipates huge economic profits and intangible benefits. Will the city’s investment turn out to be a prosperous return? The researchers sincerely hope the results of this study will provide preliminary findings to this difficult question. The interviewees received the questions at the beginning of 2009. The researchers received all of the interviewees’ responses in early March of 2009. Answers were received via e-mail and phone calls. Based on the results of interviews and search on the secondary sources, the researchers obtained the following marketing and public relations related information. The information was analyzed and categorized based on their two aspects. To promote the World Games to Kaohsiung residents and countrymen of Taiwan, both local and national governments put great effort into creating many, varied activities.
Special design competitions were held to solicit ideas for the official logo and mascot. The Taiwanese government publicized the news of hosting the World Games to many of its treaty nations. On May 20, 2009 with the inauguration of the Main Stadium, a special concert was held in the Main Stadium of the World Games. The Pittsburgh Symphony Orchestra, the Vienna State Opera Choir, the National Experimental Chorus, the National Sun Yat-sen University Music Department Women’s Chorus and the Kaohsiung Medical University Singers worked together to perform Tchaikovsky’s ‘1812 Overture’ and Beethoven’s ‘Ode to Joy’. More than 40,000 people attended the concert (6). The Kaohsiung Metro Rapid Transit System also proved its capability to handle a high volume of passengers during the peak hours.
Table 2 lists the major sponsors of the 2009 World Games. A total of 40 sponsors and partners are further classified into three levels. About 80% of the total sponsors and partners were domestic business organizations. The amount of contribution from each level of sponsors and partners was not available for disclosure. Public Television Service of Taiwan televised selected events. However, no fee amount for the TV rights has been disclosed. Most media coverage and exposure came mainly relied from the Internet. Spectators purchased the tickets in one of the 4,800 7-11 stores in Taiwan by using the I-bon system, or at the event sites.
For the sale of licensing merchandise, the official mascot, "Water Spirit", was used as the main icon to create a series of subsidiary products. These products were produced by Cheerful Fashion Goods CO., LTD., a company devoted to cultivating young Taiwanese designers who design products based on traditional Taiwanese culture. The World Games licensing merchandise included polo shirts and t-shirts with color choices, recyclable chopsticks, flip-flops, key chains, passport holders, purses, shopping bags, coffee mugs, caps, and poker cards. Prior to the event, an optimistic estimation (over 5,000) was given regarding the number of potential participants. 30 million USDs to Kaohsiung City. Past literature has in-depth discussions of economic impact and financial gains for international sport events. Financial information related to the Kaohsiung World Games, other than the spending in promotional activities and construction costs, was difficult to retrieve.
170 million USDs. Based on the KOC CEO Ms. Hsu’s explanation, Kaohsiung City has taken a "not-for-profit" approach to recruiting volunteers and sponsors. This seems to be a common approach used by many of the East Asian countries to host major sport events. This implies that the local government is willing to absorb the operational cost, even if revenues fail to cover expenses. As long as the country receives recognition and media attention, it is seen as worthwhile to spend a huge amount of money for hosting the event. Thus, it is not difficult to understand why the Taipei city would promise to offer free admission to all spectators of the Deaflympic Games. In Kaohsiung’s case, the researchers would actually like to see a more commercialized approach to allocating funding.
This would mean less spending of tax dollars for the games (35), and more involvement of the private sectors in advertising, donations, and sponsorships. There is no advantage to putting the city in debt in hosting an event that shows no promise in bringing profits.youtube.com Prior to the opening ceremony of the World Games, the Taiwanese government had monitored politically-related issues closely. 1. Future sport organizing committees should develop a strategic plan to solicit more well-known international and domestic business franchises/industries to sponsor the event. In this case, the KOC had done a great job in recruiting a variety of sponsors according to their nature of business and functionality to satisfy the needs of the events. However, the KOC did not provide enough onsite opportunities for the sponsors to actively interact with the spectators.
A future strategic plan for targeting sponsors should cover how to execute "activation" activities effectively and utilize complimentary tickets for hospitality.youtube.com The committees need to provide clear incentives and business opportunities for the sponsors, so the sponsors can be convinced to invest their capitals and manpower. More complimentary tickets could be offered to the sponsors to enhance the level of hospitality. 3. For any developing countries wishing to achieve political stardom rapidly, bidding to host a mega-international sport event seems to be a good alternative. Evidently, China and South Africa both greatly increased their political visibility by hosting the 2008 Olympic Games and 2010 FIFA World Cup. The City of Kaohsiung should be actively involved in bidding on a moderate-scale for continental and international sport competitions, such as East-Asian Games, Asian Games, World University Games and special track-and-field invitationals.
