Modelling the economic impacts of a large event

The case of the Gold Coast 2018 Commonwealth Games

Authors

  • Tien Pham Griffith University
  • Susanne Becken Griffith University
  • Michael Powell Griffith University

DOI:

https://doi.org/10.1017/qre.2019.13

Keywords:

Gold Coast 2018 Commonwealth Games, common modelling techniques, economic impact analysis, ‘crowding out effect’

Abstract

This article consolidates the pros and cons of the two common modelling techniques for economic impact analysis: the input–output multiplier and the computable general equilibrium (CGE) technique. The latter is recommended for large event assessment and was used to examine the economic impacts of the Gold Coast 2018 Commonwealth Games. The Games is estimated to have generated approximately A$2.5 billion of gross state product (GSP) to Queensland after netting out the costs incurred. The effect is spread over a period of nine years from pre-Games period of preparation for the Games, through the Games period itself, and then rather significantly in the post-Games period. While benefits accrue to Queensland, the rest of Australia is estimated to lose due to the so-called ‘crowding out effect’.

Author Biographies

  • Tien Pham, Griffith University

    Tien Duc Pham is a Principal Research Fellow of GIFT and the Lead Researcher of the GIFT project. He has worked for Australian Government departments as well as academia, including the Queensland Treasury, the Australian Bureau of Agricultural and Resource Economics, the Productivity Commission, the University of Queensland (UQ) and Tourism Research Australia (TRA). At TRA, Tien managed his team to produce tourism forecasts, tourism satellite accounts for all states and territories, tourism economic modelling and a wide range of annual economic reports.

  • Susanne Becken, Griffith University

    Susanne Becken is the Director of the Griffith Institute for Tourism at Griffith University, Queensland, Australia. She has published widely on sustainable tourism, destination management and visitor behaviour. Susanne managed the Visitor Flows Model at the Ministry of Tourism in New Zealand from 2006 to 2008. She is a member of the Air New Zealand Sustainability Advisory Panel, PATA’s Sustainability and Social Responsibility Committee and the Whitsunday Climate Change Innovation Hub.

  • Michael Powell, Griffith University

    Michael Powell is Professor Emeritus at Griffith University and Academic Director of Griffith University Industry Partnerships. Prior to this appointment, Michael was Academic Director of Griffith University’s GC 2018 Partnership. Formerly Pro Vice Chancellor (Business) and Dean of Griffith Business School, Michael has served as President, Vice President and Treasurer of the Australian Business Deans Council, as a member of international accreditation committees of AACSB International and as Chair of the Globally Responsible Leadership Council. He is a graduate of the University of Chicago and the University of Auckland, where he also served as Deputy Dean of the University of Auckland Business School.

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Published

2019-06-01

Issue

Vol. 26 No. 1 (2019)

Section

Gold Coast 2018 Commonwealth Games Special Section

How to Cite

Pham, T., Becken, S., & Powell, M. (2019). Modelling the economic impacts of a large event: The case of the Gold Coast 2018 Commonwealth Games. Queensland Review, 26(1), 110-127. https://doi.org/10.1017/qre.2019.13