Sporting events bring economic rewards for local communities Research published today by UK Sport has shown that cities playing host to major sporting events can look forward to reaping the rewards in terms of expenditure by spectators and participants.

The report, commissioned by UK Sport, called Measuring Success 2: The Economic Impact of Major Sports Events has analysed data from 16 World and European level events held in the UK between 1997 and 2003.

The study found that playing host to sporting events has a considerable impact on local communities, with nine of the 16 generating additional expenditure in excess of £1.45m.

The Flora London Marathon generates the greatest expenditure, having an economic impact of £25.46m in just one day.

The figures also showed that for every £1 of National Lottery funds invested in staging an event, a return of more than £7 is recorded, which culture secretary Tessa Jowell has said shows what a great impact the Lottery has had on sporting events across the UK.

The results of the study have been used by UK Sport to develop a forecasting model which can now predict the economic impact of an event before it happens.

John Scott, director of major events for UK Sport, said: “There are a large number of reasons why a country should seek to stage major sporting events, not least the benefits of home advantage and the legacy of facilities and development schemes.

“Economic impact is understandably also one of the key factors taken into account by local authorities when assessing whether or not to bid for an event and this research strongly demonstrates the significant financial benefits that result.

“The new forecasting model we have developed will be crucial in allowing us to make accurate assessments on which to base our decisions.”

Lord Coe, chair of London 2012, the team bidding to bring the Olympic Games to the UK, has welcomed the report, claiming it shows how the country as a whole would benefit from hosting the Games.

“Should a London bid be successful, then the UK would be required to host a series of world-level events in the years leading up to 2012,” he said.

“Aside of the sporting benefits that these events would generate, host regions could also expect to witness significant economic impacts.”

Measuring Success 2 builds on the original Measuring Success document – published by UK Sport in 1999 – which recognised the potential of major sporting events to bring significant economic rewards to the host towns. Details: www.uksport.gov.uk