Opinion | The economic impact of mega events: Ensuring long-term benefits

By Dr. Kevin Lau

After the conclusion of an eight-day Golden Week celebration during the Lunar New Year in mainland China, the Chief Executive provided a positive assessment, stating that Hong Kong successfully attracted nearly 1.44 million visitors during this period. Notably, the occupancy rates of hotels were satisfactory, and both the catering and retail industries directly benefited from the influx of tourists. The Chief Executive emphasized the government's commitment to continuing the promotion of event-based economy and announced upcoming international events, such as the Hong Kong Arts Festival, Art Basel, Hong Kong International Jewellery Show and Entertainment Expo, to sustain the momentum.

Undoubtedly, hosting significant events serves as a catalyst for the revitalization of the tourism and catering sectors, infusing them with a renewed sense of vigor and vitality. It is important to analyze the impact of such events from multiple perspectives, without undermining their potential economic benefits.

In my point of view, hosting successful major events requires a significant investment of resources. It's impossible to achieve good results without putting in the necessary resources, and failing to do so can be embarrassing and unappealing. However, investments need to consider the returns they generate. If a significant investment only provides temporary benefits, it raises doubts about its value and effectiveness. Many subsequent Olympic host cities have studied and hoped to replicate Barcelona's successful experience, learning from it and benefiting from it. However, Barcelona's situation had its uniqueness, and the subsequent results showed that other cities found it challenging to replicate the "secret" of that success.

During my past visit to the Canadian Rocky Mountains, I had the opportunity to utilize the Calgary International Airport.  Despite Calgary being a medium-sized city with a population of only 1.3 million, the airport itself was remarkably expansive. Notably, the baggage claim area boasted a multitude of conveyor belts akin to those observed at Hong Kong International Airport, yet there were few individuals utilizing them. Subsequently, it became apparent that Calgary Airport had become a prime example of "overbuilding". This circumstance arose from the substantial expansion undertaken to accommodate participants and spectators for the 1988 Winter Olympics hosted in Calgary. While other infrastructure projects, such as the Olympic Village, could be repurposed for residential use post-Olympics, the airport's status as a non-hub facility resulted in it becoming a "white elephant project."

In this day and age, sustainable development is a primary consideration for any major investment. A considerable number of cities that serve as hosts for major sporting events have already comprehended this principle. For example, following the conclusion of the Olympic Games, these cities promptly leverage the existing infrastructure to facilitate the hosting of the Paralympic Games, thereby optimizing the utilization of the previously allocated resources. In my view, whether it pertains to a sporting event or any other significant occasion, the foremost concern for the host city should be to ensure that short-term, large-scale events yield enduring and sustainable advantages that extend beyond the event itself and its temporal limitations.

From another perspective, it is about how to manage the event's "legacy."  Any host city can benefit from this legacy on many social levels, such as urban redevelopment, investment in infrastructure, opportunities for stimulating economic growth, cultural development, environmental improvement, and enhanced reputation. In simple terms, the legacy of an event is the long-term return on investment it brings to the city, and this return should be the most critical business consideration when planning any event.

The author is a specialist in radiology with a Master of Public Health from the University of Hong Kong, and an adviser of Our Hong Kong Foundation.

The views do not necessarily reflect those of DotDotNews.