The purpose of this study is to consider the various aspects of hosting mega-events and how it underpins the economies of the locations in which major and mega-events and international sports events are held. Event Management has gained immense popularity, since it connotes urbanization regeneration, tourist trade, investments, increased employment opportunities and, above all, a stronger economy for the host country. Local governments and trade cartels have realized the tremendous euphoria generated by high-profile events, that could be transformed into high revenue generation and, simultaneously, could also address several socio-economic, political, financial and cultural problems in the venues where they are staged. The unique aspect about events management is fraternity and community participation, whether as sponsors, participants, stakeholders or audience, which creates a spirit of camaraderie. This is significant because the eventual success of the event is based upon the overall performance of the individuals, groups, organisations and the Government.
In this study, which is based on hypothetical research conducted through personal interviews and questionnaires supplied to event organisers and stakeholders, their responses based on their personal experiences and their viewpoints on certain vital issues impinging events management have been considered in full depth and coverage. It has often been contented that most sports events involve huge capital investments but, in the long run, reaps little by way of economic benefits for the host country, since once the event or mega games are over, the economy returns to the pre-event status, with only the staggering amount of accumulated debts for staging the event, remaining to be paid off, by the host country. Therefore it has been rightly said that only in situations when the benefits of staging far outweighs the concomitant costs, should events managements be staged since they effects may have wide and lasting ramifications for the economy of the hostcountry.
The fundamental reasons for this study is to localise and evaluate the fundamental reasons for the countries to bid for international events, even though they are fully aware of the heavy economic implications of such high investments on their economy, to investigate and review the costs involved in staging mega sports events and to appraise the importance of the experiences and results of other countries in hosting mega sports events.
Today, event management business becomes one of the major source of maximizing a country’s economic gains as well as rejuvenating the entire economy of a nation. Due to the technological advancements, brought about by event hosting, the planning, organizing and marketing of sports and other mega events has turned out to be a vital panacea, in the context of high risk business ventures. Traditional business concerns have endured a lot of operating constraints, due to lack of infrastructural facilities, lack of foreign investments, lesser amounts of money flowing into the local economy, infra structural deficiencies, etc., but nowadays, with the introduction of sports events, billions of Pounds are being injected into the economy, in the form of rendering event hosting facilities, like new stadiums, hotels, track and field arenas, aquatic sites, roads and infrastructural facilities to make the sports event, at least on paper, a roaring success.
The Beijing Olympics is scheduled to be held in Beijing in 2008.“ It is believed that capital investments on venues and non-sport infrastructure will be US $ 14.257 Billions” (Owen, 2005).
But the aspect to be really considered is whether any real benefits would be accrue due to the holding of the large event; experiences from earlier sports events do not encourage any hint of economic benefit to the common people of the host countries, since the predicted benefits before the event do not match with the actual benefits after the event is over. This is because budgets estimates may vary from actual figures, and the major constituents of income generation viz., Selling of television rights, sponsorships and ticket sales, apart from Government subsidies, grants and tax concessions may not be translated into action
The need for study of the outcome of mega events have become necessary since public funds are involved and necessary public justifications for the spending of such large sums of monies have to be made. Further, it is also necessary that the best possible leverage is also gained from the hosting of the events. Leverage denotes getting the best possible benefits from the leverage and is basically a process of maximizing the returns, or legacies, from event investments. By better leveraging, the long term benefits are secured. Ritchie (2000) says, “ Regardless of the actual form that a legacy make take, the idea underlying legacy creation is that it represent something of substance which would enhance the long-term well-being or lifestyle of destination residents in a very substantial manner- preferably in a way that reflects the value of the local population” Recorded documentation of mega event management outcomes are rather less, since events are themselves are infrequent, and therefore, not much of serious attempts have been made to study the economic consequences of huge events. Another difficulty is that, the economic outcomes are difficult to gauge, immediately before, or after the big event, since, sometimes the impact may only be felt after about 7-10 years after the event takes place. Therefore there may be many claims and counterclaims to the ways in which events actually affect local host economies. There may not just be economic factors but also concomitant issues like social, physical, ecological and travel, to state a few which may not be amenable to quantitative evaluation and analysis It is observed that the earliest impact on event management is of Richie 1984 on Calgary Olympics. Current literature on the subject suggests a new directional thrust being given to event management with an emphasis on leveraging the positive aspects of events (Chalip 2004, O’Brien 2006)
The growing array of literature available on the subject of impact of event management draws heavily on the qualitative aspects of event management and helps to identify the best methods by which, benefits from it could accrue to host countries, who stage such large scale events.
It is often debated that major sporting events may not be in a position to achieve substantial efficiencies, because of the diverse nature of business interests among the various stakeholders. The main players in any major event are, undoubtedly the government, since it is not prudent for large scale private investments to be placed for long period of time, without adequate or profitable returns. The idea of private funds being blocked in long gestational ventures may not sound alluring to potential investors. Therefore, public resources have to be tapped. Even in the case of the Beijing Games, 2008, BOCOG shall receive” subsidies from the national and municipal government (US$50 million from each) and a lottery expected to generate US$180 million.” (Owen, 2005).
It is widely believed that the benefits of the games, in the context of capital infrastructure would be useful only in terms of their usefulness after the Games are over. As per the existing data, none of the international sporting events have registered gains, especially in household incomes. However, in the context of the ensuing Beijing Games, it could be argued that the surplus labour, which is found in China could be utilized for construction work, thus rendering net social costs as nil, while considering the opportunity cost of human capital. However, this claim may be contested on the ground that this special feature of China, is applicable for any new project, to assess opportunity costs, and therefore, need not be taken in the context of events alone. As a result of the Olympic experience, it is felt that China would have much to benefit in Tourism and Travel departments, since the net investments in this Olympic venture would be colossal, and a significant portion would be contributions from the taxpayers and Government generated funds which needs to be ploughed back into the economy.
The list of topics related to events management are:
- Physical infrastructure and environmental studies
- Economic impacts
- Social repercussions
- Cultural impacts
- Political fallouts
- Urban renewal and regeneration
- The timing of impacts
- Leveraging benefits
- Organisational aspects and event impacts
- The equity of benefits
There has always been a difference between the forecasted and the actual performance with regard to the benefits derived from sporting events. While optimists have predicted high attached economic value additions and upward trends in all major economic indicators, their detractors have spelled public debts, opportunity costs and sharp inflationary trends, especially for the local economy, with the advent of big games. The most ironical facts about big events are that tax holidays, subsidies and concessions which corporate demand from the government as a tacit bargain for sponsoring games, has compromised the local people, and the Government often has to resort to social cost cutting, thereby further endangering the plight of the local people. It is rather painful that the Government which is entrusted with the task of catering to the public interests, should value the interests of the corporates and big business houses at the cost of the common interests. It is commonly known that Mega sports events, like Olympics can only subserve the interests of the rich and the privileged and the others are marginalised and their interests not served.
Hosting the Montreal Olympics cost the Canadian Government Can $ 2 billion. There were hopes about economic development, but nothing materialized. As a matter of fact the Canadian economy went into hibernation and there was high unemployment and the prices of properties also declined substantially. Even the hotel industry had low occupancy rates. This is in sharp contrast as to what was experienced by Calgary Olympics which posted a profit of $130M which was converted into a legacy fund to help maintain the welfare of sports infrastructure in good health. The impact of international sporting events is not sufficient to prop up local economies and only a low count ever agreed that their business had increased directly as a result of the games. There are often overtures regarding the economic value addition of big games, but the realistic picture conveys a different story, since wealth creation is one of the main features of hosting Games.
However, when coming to increasing job opportunities of locals, it must be mentioned that it is not just the job creation that is important but it is also important to improve the quality of local employment. In the Japanese economy, for example, it is often the Government who comes to the rescue of unemployed sectors by creating ample employment opportunities for local construction and development works. But this Endeavour is very much different from attracting foreign investments and capital ventures. In the opinion of experts, it is very necessary that not only the economy has to grow, but also various segments of the economy have to accelerate and move forward. The growth has to be exponential in order to recover the funds utilized for the games and bring the economy back on its rails. It is necessary for countries bidding for the big games to attract permanent economic growth and to be utilize the economic acceleration for sustained development activities. Therefore, it becomes necessary to only those Governments who have the financial investment capability and infrastructural facilities, including track records of successfully holding previous big games, bid and conduct them. It is necessary that the Games should consolidate the economy and not endanger it, as has often been the cases of big games. It is necessary that the Big games should be made suited to the venue country, and not that the country suited to cater to the requirements of the big games.
Under the methodology, the following aspects would have to be considered :
- Introduction 2. Research philosophy 3. Research Approach 4. Secondary research and limitations 5. Primary strategy 6. Research shortcomings.
Introduction: The research work could either be qualitative or quantitative in nature. While quantitative research is basically dealing with numbers and is in numerical formats, for the purposes of statistical analysis, the qualitative method is characterized by interpretation of data by the researcher. It is understood that more details can be garnered from qualitative data, and it presents accurate details regarding attitudes, beliefs and outlooks. The research studies relating to event management should also follow qualitative analysis.
- Research philosophy: This deals with research as real aspects of life, i.e. substantive or the subjective aspects of research studies. The three different research tenets are positivism, interpretism and realism.
- The research approach could be viewed from either from the perspective, that is, inductive reasoning, which is based on logical reasoning, that is obtained from discoveries, facts, illustrations and examples. It could, alternatively, be based on deductive reasoning using the principles of reasoning from general principles of deductions. It invokes the use of deductive logic for eliminating non-possibilities and thus arriving at consensus. The methodology proposed for this studies is based on the above.
The Methodology is through sampling techniques of interviewing the core group who form the basis of this study, the stakeholders who are the main targets for the purpose of this study. It is proposed to conduct personal interviews with the stakeholders and present questionnaires to them (A Sample model of the Questionnaire is appended in Appendix I) The interview along with the questionnaire is proposed to be distributed to around 250 Event Sponsors, stakeholders and related people to know their views regarding the event management and their perceived notions about it. The audio tapes relating to their interview would be transcribed for the next part of the programme. The main idea would be to know about their knowledge of the exponentially developing business of event management and how it would affect them. The various aspects relating to event management, i.e. questions of fund raising, resource allocations, event management and administration etc would also have t The methods involved for the purpose of study on Event Management would be by means of Questionnaire and direct face-to-face interviews conducted with Event Managers of large Event corporations, Stakeholders who have invested in mega events and others actively involved in the promotion of selling events. Direct interviews with them would help enlighten the scope and risks involved in the business of Event Management.
The Mode of data collection is through Personal interviews and Questionnaires setting. There were two aspects to the mode of data collection:
- Group I: Structured interviews and Questionnaires submitted to Event promoters/ Organisers.
- Group 2: Similar interviews and Questionnaires submitted to Stakeholders.
For the Group 1 appointments were made for personal interviews to be conducted with 20 leading event promoters such as Wizcraft Entertainment, GS Entertainment, J& M Events, DNA Networks etc.
During the course of the interviews, written responses of the questionnaires would also be taken up.
This exercise would be spread over about 10 – 15 weeks.
The question of online questionnaire was not considered since event management is a highly personalized business and cannot be effectively done through emails or internet.
For the second group, similar arrangements were made and personal appointments taken from 25 stakeholders who have invested heavily in these upcoming events. They included businessmen, directors and promoters of major business houses and Advertisement Companies, including FMCG majors who had financial interests in the business of event management. Interviews granted by them would reveal the inside story about event management companies, their current functioning, lacunas and how improvement programmes could be instituted.
There are several aspects to the hoisting of mega events like the following issues :
Economic implications 2. Socio-cultural concerns 3. Political and environmental fallouts 4. Concerns regarding community etc. 5. impact of events in the global economy, local national and international environmental factors that affect event management.
Large Corporations, private and public enterprises and Government organizations are always attuned to events as a significant part of modern day living and has become an integral part of their marketing strategies and game plans to stay in the competitive race for brand leadership and also for promoting their glamorous image to the consuming public. Governments also encourage events because they are a good way of income generation besides serving socio-economic gains and contributing to national growth and prosperity.
In the increasingly complex, complicated and competitive business world of today, it is necessary for companies to devise ways and means by which their market shares are secure and they are on the right path of progress. The Event Managements operate in three different levels:
- As Event Organizers: These Event Management Companies are formed for specific objectives or for realization of specific tasks – once the objectives have been achieved, they are wound up.
- Special teams are build by existing Companies which render event management services
- In house Event Management departments cater to specific event management programmes
- Professional event Management Companies which take up Event management contracts from different companies and execute them.
By far, the fourth system is most prevalent, that is professional event management companies who take up large contracts, and with the help of delegating the functions to other specialized companies or individuals, perform the contract as the overall event managers to the event.
The main aim of the event management is to identify the best suited method to suit the individual requirements of the stake holders and the main purpose of the event management company to form into consortiums is to reinforce the underlying of the main objective of streaming all the areas of accountability for the smooth execution of the programme and to make it a roaring success so that the paths would be clear for future events to be booked by them. In an event management setting, there are both internal and external settings- the internal settings refer to the internal management of the event management company and how it would realize the fundamental objective of success and kudos. The external settings are in connection with their interaction with outside agencies, such as government regulators, sub-contractors and other connected parties in the event scheme. The external factors are:
- Environmental factors 2. Security and safety management 3. Organization of the event
- Catering and beverages 5. Environmental factors relating to removal of debris and wastes.
Difference between Primary and secondary sources of research.
The primary research means, the survey, analysis and other observation being undertaken by the business firm itself. But secondary research should be undertaken by a third party, and not by the said business concern. Comparatively speaking, the secondary source of research, saves both time and money. But while undertaking such kinds of marketing research projects, certain elements play a vital role, and needs to be kept in mind viz.- 1. The nature of data utilised for research. 2. Reliability and accuracy of the data.3.Cost and duration for undertaking the research programme.
The outcome of the market research is highly reflected on the co-operation being provided by the respondents, for the relevant questionnaires regarding the survey or research.
Moreover, in any business category, the prime goals, as evidenced in event marketing are to maximize profits and to attain reasonable rate of returns for shareholders, by providing quality goods at reasonable prices to its end users. For the advancement of global trade, exports and imports are primary. The expanded growth of trade is good for any country, but the rules, laws and other legislative enactments being framed by the country’s regulatory bodies prohibit free trade. Therefore, the country has to institute certain excise duties and levies, trade barriers, subsidies and other duties to generate incomes and discourage imports. The overall developments and the long term preservation of a country’s trade requires certain protective measures in almost all areas, such as-
- Provide protective measures to newly introduced products or industries.
- Create obstacles to illegal foreign trade competition.
- Provide protection to leading domestic industries with high earnings.
- Keep appropriate differentials between import and export.
For the attainment of remarkable growth in the business or trade, it requires wholehearted support from all divisions of the business; even a minute aspect needs tremendous efforts in
International Business Administration (IBA) is a fundamental base for undertaking the business globally. “International Business involves all functional business areas and explores how these functions are impacted by expanding beyond the national arena. Particular emphasis is placed on the challenges presented by different sociocultural, political, and economic environments.” (International Business Administration).
Business is expanded only through its expectable reach and market penetraton all over the world, whether in domestic or global markets. For this purpose it is necessary to make goods and services of ‘world class’ quality, dependability and market standing.
Event marketing is an important concept, the adaptability of which typically taken in to consideration about the event, which provide appropriate response or feedback in an effective manner. Event marketing is a technique, which should be effectively conducted for the smooth functioning.
Analysis of the project
“Exhibitors who carefully plan their appearance and reckon with additional marketing tools have a much more effective product placement. Selective advertising attracts the interest of those clients and visitors who are involved in the relevant business decisions.” (Event Marketing with EJK).
Event marketing is helpful in maintaining a detailed contact with the business, its customers and the society as a whole. Coco cola is one of the important clients, undertaking event marketing programmes during recent years. “With a worldwide TV audience of 2.1 billion viewers, Coca-Cola had to put its best foot forward in sponsoring the Winter Olympics in Salt Lake City.” (Coco cola Winter Olympic Sponsorship 2006).
While undertaking the event-marketing concept, a thorough knowledge about each and every concept is an essential phenomenon. Maintaining an exhibition management is also relevant in these days, and it is highly beneficial in this regard. Some of the important concepts taken in to account, while doing exhibition management are depicted below-
- Display of posters.
- Conduct seminar and other research works.
- Catering programmes.
- Entertainment methods.
- Live shows.
Maximizing the sales of a business is possible only through its customers; so it is a prime concept to maintain good relation with its end users of the products, say customers at large. Event marketing is a marketing strategy which is a fundamental concept from the point of view of business and the outcomes of such a programme will remain for a long period of time, even though the actual event comes to an end. The event-marketing programme includes almost all functions relating to the business like various project research and development, budget and budgetary control, promotional methods, analysis of ROI etc. “Traditional advertising channels are not as effective as they used to be. Now marketers are forced to find new avenues for their messages. One popular option is creating or sponsoring events that showcase your brand or products through sight, sound, and experience.” (Event Marketing Effectiveness 2007).
The major success behind the event marketing is its target audience. Moreover, at the time of undertaking event marketing, it is vital to consider the customer as a base, and if there is any problem faced by them, provide necessary solution to it. The projected event result should be easier and it should never be complex in nature. The event marketing aims to bring certain attractive elements, which will provide enthusiasm to its relevant customers. The major areas in which the event management should concentrates includes- promotion and trade shows. Event marketing for multinational audience helps to undertake the planning and organizing of various marketing events. Even though the duration so settled for this event should be either for some hour basis or for a number of days, whatever be the concept, it enables to create a strong relation between the workers and customers of the organization.
Event marketing programme is beneficial due to numerous reasons, such as:-
- Implementation of overall marketing strategy programme for achieving the set targets.
- Composition of target audience.
- Undertake various promotional measures for the success of the programme.
- Installation of websites for the effective functioning of the event programmes.
- Implement the strategy of CRM (Customer Relationship Management).
(Event and Conference Marketing and Promotion 2005).
The aim of the literature is to meet the research and analysis demand of the fast growing occupation based on events. This field has grown exponentially and on interest level in major commercial basis- innumerable dedicated faculties and large scale tourist industries. The field ‘encompasses meetings, conventions, festivals, expositions, sport and other general events” (Event management aims and scope).
In case, if an organization is planning to develop an event marketing programme, it has to undergo number of formalities, policies, plans and procedures. It is a step by step process, such as-
- Market identification and target audience- Target audience will cover the demographic and geographic factors like income, sex, age etc.
- Identify about the mass media through which the event marketing programmes are making familiar.
- Forecasting of marketing budget.
- Undertake an appropriate marketing research programme.
- Develop effective mail marketing lists.
- Implementation of several technologies.
The branded events may create high potential growth in relation with the objectives. Professional event service programmes are highly concentrating on the areas like telephone event promotion and other follow up services. Event marketing helps to maximize the profit in an effective manner, as compared to its prior activities.
“By working with professional event marketing, it is beneficial in respect of the following concepts-
- Get results with proven, effective sales formulas,
- Build a stronger and more profitable seminar business,
- Gain insights necessary to overcome the greatest challenges to seminar promotions,
- Rely on the same expertise that has launched the seminar giants and more”.
(International Event Marketing 2003).
“Hedrich Creative Group developed a multi faceted marketing campaign to promote attendance at a leading trade show in the point of purchase and retail marketing industry. From concepts to all design and copy, the project included creative development for a six months long advertisement campaign and over 2,00,000 pieces of Direct mail.”(Event Marketing Campaign). Therefore, for any business concern, the event-marketing programme is very relevant and beneficial in nature. So the application and implementation of this technique is becoming crucial in recent days, as far as the business is concerned. But then also the application of this programme is very rare in nature. The fact is that this technique is regarded as an essential concept in international business administration at present as well as for the ensuing future.
Event Organizer- “Corporate Event Organizer; providing a thorough range of optimum quality Exhibition Management Services and corporate event management services.” (S.M.Creations 2007).
Certain programmes under event organizer should include product launches, meetings and other business related functions. In addition to this other related functions like-“Theme parties” and “Traditional Folk Evenings”, and “Star Nights.”(Annual Meetings and Corporate Events). Moreover, event organizer software is also providing appropriate and relevant information about the business that will help the management of an organization in respect of getting necessary. Information’s and other documents. Event Organizer will help the business and its relevant parties in the following matters: –
- Planning and organizing best events your guest have ever seen
- Scheduling your life for days, weeks, months and years ahead
- Prioritizing, setting deadlines and tracking completion of tasks
- Managing appointments, meetings, events, dates, projects, etc.”
(Event Organizer: VIP Organizer is the Best event Organizer 2007).
Therefore, it is very clear from the fact that both event management, event marketing and event organizer are very significant for the efficient and effective running of the business concerns. The International Business Administration, which is mainly concentrating on the difficulties, which the business will have to face in respect of its goods and services while marketing it globally. For this, every business should have “comprehensive knowledge and practical training in exporting, importing, international marketing, international finance and entrepreneurship.” (International Business Administration 2007).
“Whether they are ceremonies, parties or live entertainment — public events serve an important function in helping individuals, groups and families to interact and celebrate.” (community builders.nsw What are the role and Responsibilities of Event Managers? 2005).
“Whether shipping from Chicago or Shanghai, companies must be able to collaborate more effectively with their key trading partners—carriers, suppliers, or customers—to drive maximum efficiencies while delivering world-class service. Consequently, organizations must consider these business processes more strategically and look for more refined and adaptable closed-loop solutions.” (Transportation Planning and Management).
Besides, the physical infrastructure the environmental impacts, the economic impacts tourism departments influences, image enforcements, social, cultural and political impacts, urban renewals legacy the positive benefits
Legacy refers to the positive benefits accruing to the holders of the events.
Leverage on the other hand refers to getting the best possible benefits from the event it is defined as the process by which the benefits of investments are maximized.
Event management services provide basic capabilities for the management of events, including asynchronous events, event “fan-in”, notification “fan-out” and reliable event delivery’ (Object oriented provision of services 1998).
Initially, it is necessary to choose a particular category of product. Necessary research about the product is also vital. If around 60% of the people participate for the event, then such an event is target oriented in nature. The places in which the event-marketing programme is going to be undertaken is also typical in nature. Moreover, prior to event marketing, it is also very essential to taken into account, the cost of the programme, whether it is cost oriented or not? The fact or content of the event should be very systematic and it should be able to fulfill the target so determined. In addition to this, the area or the location so typically selected for the event is also very important. For this, either the area of entry or the place so closer to the food providing areas. Event marketing is a relevant concept in business administration area. Similarly, nowadays it has become a prime factor in this regard.
In recent times, Innovative marketing strategy for the event industry is quite popular. “Innovative Marketing Communications for Events Management emphasizes to event managers the importance of effectively integrating a range of tools and techniques to communicate the event and provides them with a better understanding of how a variety of private and public sector organizations can use events within their communication strategies.” (Masterman 2007).
Innovative marketing strategy should be implemented only through undertaking customer-oriented marketing programmes. The undertaking of such programmes should be time and cost objective in nature. Innovative strategic marketing programme should be adaptable to both profit oriented and non-profit oriented business concerns. In this concept, it is essential to maintain a well-defined structure for the effective implementation of plans and procedures in connection with the innovative strategic review. Events shall be identified in several ways in relation to the business nature and should be exhibition of products and other team building concepts. The proper evaluation and undertaking of event management concepts should bring in several outcomes, such as:-
- “Analyze the conference and convention business and the role it plays in tourism
- Evaluate the provision and supply of conference destinations, venues, facilities and services
- Assess the effectiveness of conference event management techniques
- Critically examine the impact and use of conferences and conventions in contemporary society.” (Bowdin 2001).
While undertaking innovative marketing strategy, it is very essential to analyze the market and the situation prevailing within the market, that is the marketing opportunities. Similarly, the improvement of marketing strategies, to take part in the active decision making concept etc. is also crucial in this regard. During the time of undertaking this marketing strategic programme, it is necessary to view majority of the operation in a critical aspect, then only the inspiration for rectifying the defective concept will undertaken. At the time of undertaking marketing strategy in an innovative manner, certain elements are essential, such as-Ethical perceptive. Identify the creativity in the event markets.
Evaluate the skill and efficiency. Analyze the business strategies. Taken in to consideration the advanced technological innovation. Impact of TQM (Total Quality Management).
“Event marketing refers to the targeted and systematic analysis, planning, organisation and execution of events, with the achievement of a company’s communication objectives in the foreground. Events are used as platforms to present a product, a service or a company within an experiential and dialogue-oriented dimension.” (Roth and Lorenz).
The prime theme for the strategic innovative management is that the organizations are in a position to provide a clear cut of ideas and thoughts to the managers of the concern about how they should implement the recent technological innovation within the enterprise, even if it is public or private sector by nature. These ideas are beneficial for the firms to take an effective decision about market positioning and competency, how to improve the revenue and cost of production etc. At the same time the main aim of managing the strategic resources and operations are to make an in depth study of the operation management concepts and also to align it for event management programmes.
“Events could be anything from concerts, product launches, conferences, promotions, press conferences, jubilee celebrations and farewells to television based events, fashion shows, wedding or parties… it could be just anything’. (Zee interactive learning systems ltd 2007).
Corporate Performance Management (CPM) is an important technique for evaluating various processes, methodologies, and steps for dealing and measuring the managerial activities for measuring the organizational performance. Recently, these techniques have a wide applicability, because it is following an integrated practical attitude towards its organisation and other related aspects. Similarly, Knowledge Management (KM), is also one of the important technique is using for maximising the rational capital of the enterprise by motivating modernization and there by attaining the set results.
“Event Marketing Group provides event planning, Marketing, public relations and a full range of services for corporate, sporting and non-profit events.” (Lowenstein Event Marketing Group 2007).
In the case of event marketing, it is necessary to create certain customer acquisition programmes that aim to achieve a predefined rate of Return On Investment (ROI) and arriving at a sales margin of higher rate with lowest cost of acquisition.
“Exhibitors who carefully plan their appearance and reckon with additional marketing tools have a much more effective product placement. Selective advertising attracts the interest of those clients and visitors who are involved in the relevant business decisions”. (Transportation Planning and Management. 2006).
The power of major events to generate substantial employment in the construction phase as well as during the staging of the event, and subsequent to it, is evident from it.
There has been a gradual but marked paradigm shift from production/industry based service to consumer services during the last 2-3 decades in the United Kingdoms. Before the 1980’s, the main concerns have been the social ,cultural and moral upliftment of the countries, but since then, the paradigm shift have ensured that the shift for higher economic gains has taken centre stage.
“… in the early 80’s when major events in many parts of the world began to be regarded as desirable commodities for their perceived ability to deliver economic benefits through the promotion of tourism, increased visitor expenditure and job creation.” (Bowdin andAllen 2006 ).
Events attract a lot of international tourism and thus foreign exchange earnings are ensured along with non-economic benefits for the local environment in which the events take place in terms of better commercial exposures, employment opportunities, economic developments, etc. ,some of the gains may be economic while the others may be just non-economic in nature but nevertheless, significant from the overall context of growth and development of the economy and the country. The Government, nowadays, is often an active promoter and partner of stage shows. “Governments often receive requests to provide funding to support special events and conventions because of their alleged positive impacts, economic and otherwise, on a destination. In these circumstances, a framework of assessment is required to determine the extent of support, if any, that is to be given to alternative events.” (Dwyer et al 2000).
However from a strictly economic point of view, the economic and financial viability has to be assessed before the clearance for the event is given :
- Financial and Cost Sheets have to be prepared to forecast the expected expenditures, both Capital and revenue nature. The Capital expenditures incurred would be in terms of the building of necessary infrastructure like Roads, stadiums, building structures etc to facilitate the hosting of the event and the revenues would be related to other expenditures to be borne by the host counties.
- The projected budgeted revenue generations from the proposed event should also be considered in terms of ticket sales, sponsorships, Advertisements, TV coverage and broadcast rights and other forms of royalty earnings accrued needs to be considered.
As is often the case, the effects of massive earnings and expenditures over a period of time, for high profile events has a multiplier effect, since not only direct earnings and expenditures are involved but also, the spillover effects are there. The money spent by a tourist towards boarding and lodging is a revenue earning for the hotelier, but the Government also earns a certain portion in terms of indirect taxes, levies etc. This, in turn, stimulates other forms of activities which are indirect to the main event, but, is nevertheless, capable of generating income of its own for the Nation.
Justification of the proposed method
“The rapid growth of events in the past decade led to the formation of an identifiable event industry, with its own practitioners, suppliers and professional associations” (Bowdin and Allen 2006 ). Future of Events Management study.
In a field like events, the personal involvement and mass communication is very important and could be even considered to be the hallmark of an event building exercise. Therefore, a face-to-face interview would be able to achieve results that telephonic /email interviews may not be able to make possible, since these methods are of limited applicability in this field. Through the tone of interviews, the body languages, gestures and mannerisms of the respondents, and a host of other factors, it would be able to judge the present status of mega event hoisting, and the future trends, this area of service marketing
Possesses. It is to be notified that the respondents are seasoned professionals who have achieved great success and laurels in the filed by launching several high-profile events, and who have several successful international events hoisting to their credit. Moreover, they are also proficient in the intricacies of event hoisting like strategic planning and management, time management and organisational skills which underline these events. “Experience has shown that the management of a successful event requires a detailed planning and consultation process” (The importance of Planning 2005).
“It was noted that event marketers and destination marketers have not yet learned how to synergize their efforts, and that there is a consequent need for further research into the best means to use events to build a destination’s brand.” (Event management 2003).
In an Event Management based survey, it is necessary to ask open-ended questions, due to the characteristics of the company, in that the scope of activities are unlimited. The success or failure of any event would not only depend upon the event itself, but could also entails certain extraneous and outside factors, like environmental , role of regulators and administrators, social and cultural and industry and country specific factors, which differ from country to country. Nevertheless, assuming that all factors have been activated as positive, it is possible to conduct a good survey to assess the present and potential scope of event management companies as change agents. Although the commercial success of any event project is its ultimate determinant, there are many event organised which emphasises on the social, cultural and political determinants of the event rather than on its economic gains. Therefore it could be said that although economic gains are the fundamentals for any event raising programme, it is not the sole reason, and many events could be raised keeping other factors predominant and perpetrating. “The recent explosion of events along with the parallel increase in the involvement of Governments and businesses has led to an increasing emphasis on an economic analysis of event benefits.” (Bowdin and Allen 2006).
The legacy is an important aspect in the holding of international events. It determines the resultant benefits that may arise out of staging the event.
“The legacy is the actual impacts for the host destination of holding the event and is usually conceptualized as the positive benefits rather than the negative impacts that might arise.” (Hospitality, Leisure, Sport and Tourism Network 2007).
Physical and environmental factors: As a direct result of events, there is a greater likelihood of places becoming more urbanized, with better communication, transport and educational facilities, the GDP may rise, communities may have better standards of living and broaden their living styles. The bounty of the earth may be better exploited. The flip side of urbanization includes pollution (both air and sound), untold destruction to the environment and heritage, traffic congestions and greater degree of stress, and strain in day-to-day living
- The political implications are that the host country may enter the world map, there could be hectic economic activities, employment opportunities may enhance, and larger investment schemes and capital injection could be advanced.However, this could also result in financial frauds and misrepresentations, lack of accountability, higher inflationary pressures on the economy and scarcity of necessities of life which is needed to sustain local economy.
- The impact on tourism could be in terms of aggressive promotions of destinations, increased tourist traffic, foreign exchange earnings, boost to local industries, especially handicrafts, travel facilitators, hoteliers ,money changers etc., On the negative side could be the impact of aggressive competition and the communal resistance to tourism, loss of reputation caused by unscrupulous traders and other dangers of tourism , including environmental damages and concerns regarding waste management. “However, events may have an important role to contribute to positively highlighting economic factors, above of all at the end of event. For example, a festival or a sport event held in an area not developed may contribute to improve the infrastructure, the awareness and the quality of life.” (Bianca 2006).
After all the completed questionnaires and transcribed interviews were collected from all centers, they would be compiled. Next appropriate computer software analysis on the valid data would be made and the results would be saved and stored in spreadsheets softwares for future applications and usage.
Findings and interpretations and conclusions
Data collected from Event Organisers/ Promoters. Based upon the personal interviews and data collection from majority of the respondents, it was found that nearly 78% of them were of the view that the overall aims of events were to generate wealth and better living conditions for mankind.
Nearly 75% of the respondents felt that it was necessary to appoint an overall event controller or coordinator who would be primarily responsible for the smooth functioning and interaction between various units engaged in the events and would liaison with concerned authorities for a successful hoisting of the event. The sponsoring agencies could be Government authorities, utility corporations, public or private establishments who view events as brand building or marketing exercises. “Governments are often asked to provide financial support for special events and conventions to be held within particular destinations.” (Event Management 2000).
These were the views expressed by nearly 68% of the respondents. The main risks, according to 89% of them, stem from the inclement weather and crowd control and ensuring that the entire event passes off peacefully, without crowd unrest. They felt that a mega event would definitely required federal or state support for its success and over 90% felt that record keeping relating to receipts of funds, disbursement and asset management were necessary for public accountability and event audit purposes. Nearly 72% of the respondents felt that major professional accounting bodies could be entrusted with the task of preparation of accounts of the event. Venues could be accessed by surface transport and the gates would be opened 90 minutes before the start of the event to facilitate crowd seating arrangements. The operational effectiveness of the entire event would be in the hands of the caretaker, who would be assigned internal responsibilities of managing the show, including stage management as per covenant.
Safety and security is a major cause of concern for mega events and therefore, it is necessary to provide additional layers of security both within and outside the venue, according to 98% of the respondents. The transport from and to the hotel for the participants would be under strict security blanket and for the public, additional police and para-military forces would be deployed along the route leading to the venue. Police escort vehicles with latest fighting equipped vehicles and communication interceptors would be provided to VIP’s. Besides, officers and men of the paramilitary forces would be deployed as additional security. Besides, special officers from the Anti- terrorist divisions of the police would mingle incognito, with the crowds to tackle emergencies as and when it may arise. This was expressed by 84% of the respondents. Commandos from the Special Tasks Division with sophisticated equipments would also maintain vigil from surrounding buildings as additional security cover.
“It is essential that security personnel have efficient communication equipment and processes to maintain direct liaison with police, emergency services and the event manager. At large events, a central command post can coordinate security, police and emergency services.” (Health and safety issues 2007).
87% of the respondents also wished to have ambulances fitted with ventilators, mobile hospitals and fire-fighting units deployed in the vicinity for tackling any eventuality to life or property. The safeguards of adequate risk management, according to 76% respondents, lay in taking protective insurance coverage for human life and property and also having a stand by special risk management team available throughout the duration of the event. Nearly 57% of the respondents agreed that the entire approach roads should be cordoned off during the event and other traffic could take alternative routes in order to ease the traffic congestion and ensure adequate traffic management systems were in place in order to avoid the high risk of accidents, such an event could trigger.
The framework included social costs such as traffic congestion, time lost due to traffic detours, property damages, vehicle thefts, noise and accidents. (Sherwood et al).
Nearly 90% of the respondents felt that fooding and beverages, including the supply of drinking water should be the responsibility of licensed and registered caterers under the aegis of the catering association and necessary job allocation has to be made to such staff.
According to 76% of the respondents, the legal liabilities that may arise could be in terms of human generated calamities, like fire, arson, accidents and looting of property, large scale violence promoted by crowd unrest, or destructive behavior from sections of the attending masses since they feel they cannot be pinpointed in a crowd. According to 80% of the respondents, advertisement and publicity form the core of this study, since one of the primary reason for this event is reinforcing brand image and marketability of products and services. Considering the high cost of sustaining this event, it is but natural that Advertising and Publicity would be at a price, compatible to the nature of service provided, and may be coordinated with the accredited advertising agencies contracted, for the purpose of this event. “Build the host community into event advertising” should be the slogan for event campaigns. (CRC Tourism: Olympics impacts study).
Data collected from Stakeholders
Coming to the second part of the interviews held with stakeholders involved in the event, it was felt that nearly 83% felt that it was in harmony with the immediate environment, removed vested interests and was not designed to create unhealthy competitions and could create a sense of social harmony and wellbeing. According to 67% of them, the question of substance abuse and other undesirable aspects was not a part of event culture, and whoever practiced it, did it at their own risk and peril. However, a vast majority felt that, given the scale of operation of the event, law and order need to be suitably tightened, since mass euphoria could give rise to other complications, although it is part and parcel of any major event. According to a 55% majority of them, the positive aspects of events far outplayed the negative aspects, and therefore, the best option would be to minimize its negative aspects and highlight the positive ones. The majority, 75% of them felt that events are a major source of foreign exchange incomes and could handsomely contribute to national wealth. Nearly 90% of the respondents felt that events should educate while it entertains, and also create global platforms for enhancing mass awareness on current subjects like overdependence on tobacco and alcohol, public health, drugs and substance abuses, benefits of safe sex, etc. In order to better improve the quality of events, it is necessary to transform events as instruments of social change agents and mental upliftment. Future event mangers need to consider, both the micro and macro levels of event management, and also enforce appropriate behaviour and dress codes for stage participants.
“There is increasing government and community awareness of the legal responsibilities of event managers, specifically in relation to duty of care, negligence and workplace health and safety issues.” (Community builders.nsw What are the roles & responsibilities of Event Managers.?)
The events are a social pastime designed to offer mental recreation and calmness, and not induce crowd passion.
All the participants were unanimous in their opinion that although previous experience in hoisting major events is an utility asset, it need not be an impediment for performance. What is more important and relevant, is the fact that the capability, capacity and character of the organiser is brought to the forefront in contributing, through performance of assigned tasks, to the overall success of the event.
It could therefore, be summarized that the overall findings and interpretations, based on the interviews and data collected from the promoters and event organizers, that it was a successfully contested event, as it has been able to serve the social, economic, political and cultural aspects of its performance and all the individuals, organisations and bodies corporate, who were, directly or indirectly, involved in the implementation of the event project has been rightfully, optimistic about its successful outcome.
The hosting of international track and field events is often linked with ambitions of urban, enhanced tourist trade, travel and local development programmes. But at what costs? It is felt that the hype of growth surrounding the staging of big events is more fantasy than real. If the instance of Games are taken, what usually happens is that the rate of hotel charges go up, but their occupancy rates remain the same. Moreover, the planned increase in hotel capacity may not be sustainable after the games are over. It is very necessary to know how much of the earnings arise due to influx of foreign funds, since increase in flow of local funds does not improve the economy. Moreover, the following factors also have to be considered before the economic evaluation is done:
- The number of locals who would be leaving the country of the games before the event and their spending capacity.
- The number of locals who remain in the city during the games and their spending capacity
- The number of locals who do not attend the games and make no contribution to it
- The tourists who would have come anyway for the Games and the amounts they spend
- The tourists who come , but leave before the games are underway
- The tourists who do not come because of the games, since they know it would increase cost of boarding and lodging and related expenses
- The tourists who make visits to all countries of the games and their expenses.
Only after assessing the economic values of these and other variables could a plausible economic assessment be made.
The economic factors needs to consider the gains resulted directly out of the holding of the mega event, and not due to increased local capacities, caused indirectly by the holding of the games. Another factor is that games are often held in different destinations, sometimes different countries, and therefore, economic gains of one country would be at the expense of another. The differentiation of games, in single venues and multivenues, may not be correctly determinable.
The successful bid by UK for the Olympic and Paralympics Games of 2012 augurs well for the future of sporting events in the country. It is believed that a lot of international sporting events would now choose UK destinations as preferred choices. Preliminary work has already begun for the construction of a 80,000 seating capacity stadium in London to host both field and track events during the Olympics slated for 2012.
David Higgins, Chief Executive of the ODA said: “This is an important step forward in the delivery of the flagship venue for the Olympic Park for Games and for legacy. The Olympic Stadium is a highly complex engineering challenge with its mix of temporary and permanent seating. The project is on schedule to start construction next summer. He continues by saying
“I have every confidence that the designs we unveil later this year will be a worthy stage for the 2012 Games. Team Stadium is a world class consortium and we will now be working even more closely together as they co-locate with us at Canary Wharf.” (Olympic Stadium progress as Memorandum of Understanding is signed 2007).
Considering that there is a significant shift from traditional based events to modern high tech events worth billions of pounds, the event management has come a long way in recent times.
“The international events environment has witnessed both phenomenal growth and significant change in recent years. These dynamic changes have called for new, focused and innovative programmes for those involved in developing, marketing and managing within the local, national and international events arena.” (MSc International Events Management Glasgow Caledonian University 2006).
The hosting of international track and field events is often linked with ambitions of urban and tourist development programmes. But it is felt that the hype of growth surrounding the staging of big events is more fantasy than real. If the instance of Games are taken, what usually happens is that the rate of hotel charges go up, but their occupancy rates remain the same. Moreover, the planned increase in hotel capacity may not be sustainable after the games are over. It is very necessary to know how much of the earnings arise due to influx of foreign funds, since increase in flow of local funds does not improve the economy. The economic factors needs to consider the gains resulted directly out of the holding of the mega event, and not due to increased local capacities, caused indirectly by the holding of the games. Another factor is that games are often held in different destinations, sometimes different countries, and therefore, economic gains of one country would be at the expense of another. The differentiation of games, in single venues and multivenues, may not be correctly determinable.
For events to be truly economically successful it is necessary to follow the guidelines as set down:
- Strategic planning and objective understanding
- Development of the said objective through event strategy
- Building of a event execution programme structure
- Development of a Plan-of-Action in accordance to the structure
- Implementation of the Plan-of-Action.
- Evaluation of the execution of plans for glitches/errors in execution
- Final event management plan execution.
Strategic planning and objective understanding
It is very important to understand the basic objective behind the event being held-whether for charity, for new product launch, or for special purposes like creating awareness for eradication of dreadful diseases, etc. “The process begins by interviewing the major decision makers in the organization, conducting the strategic retreat session, and a follow-on detailed analysis of the how the strategy can be effectively implemented.” (Associated business solutions Inc).
Development of the said objective through event strategy
Through the use of the strategic planning and forecasting, the objective is realized and put into constructive use. For this purpose, it is necessary to seek the consensus of the top management line functionaries and relevant departments such as Advertising, Marketing etc. Sessions have to undergone with the various teams in order to assess the best method available and how it could be implemented.
Building of a event execution programme structure
After the policy decisions are made, it becomes necessary to devise an event execution plan considering all the variables, the logistics and the effective coordination of the various personnel or organizations relevant to the event. After joint consultations with all the personnel and suitably briefing them about the various aspects should the next step be taken?
Development of a Plan-of-Action in accordance to the structure
The plan of action has to be decided by the top marketing team lead by the Marketing Director. They would have to decide upon the resource availability in material and financial terms, the detailed budget relating to the event and other details of its implementation. It is very vital that all implementations are duly communicated and clarified at this stage, itself, in order to avoid future misunderstandings and its fatal consequences. An important aspect of the event would be the selection of the venue of the proposed event. “The selection and design of the venue will have a significant impact on all components of event planning and on the overall safety and success of the event.” (Community builders.nsw- Planning for the event: 2005).
Implementation of the Plan-of-Action
It needs to be remembered that the implementation of the plan of action is as important as the event itself and therefore it needs to be carefully done after consultations with all the relevant parties. They should all be aware of their respective roles in the total context of the event, and need to rehearse their interactions, if possible, in order to ensure its eventual success. If possible a mock demonstration of the event could be done well in advance, so that the various relevant parties are conversant with the duties and responsibilities for the smooth and successful running of the show which is to be coordinated with the event manager, “The event manager plays a critical role in the planning, coordination and subsequent success of any event” (Community builders.nsw: what are the roles and responsibilities of event managers?)
Evaluation of the execution of plans for glitches/errors in execution
After the plan of action with regard to the event is enforced, it needs to be periodically reviewed to ensure that it is being carried out on desired lines and all deviations are promptly corrected. This is necessary since prompt actions would translate in a more efficient and effective execution and could impinge upon the final results of the event.
Final event management plan execution
Finally, after all the aspects have been taken care of, the master event plans are operationalised during the course of the event. It needs to mention in this contest that the cohesive and coordinated efforts of the visionaries, planners and executors are reflected in the outcome of the event. In conclusion it may be said that event management is a fairly new concept and is still in its development stages in the country. Therefore, there are many areas in this trade that needs to be geared up and many aspects need to be reinforced and professionalized. The crucial areas in this trade are regarding the strategic planning, enforcement of laws and regulatory measures which bind and streamline the activities of such companies. It is necessary that, given the immense potential and scope of event conduct, this industry needs to be further regulated and legislations brought about to ensure that all activities are strictly within legislative controls. Time and financial constraints also need to be met, since costing overruns could cause immense losses to the image and prestige of such events and could undermine their popularity and mass appeal. It is believed that with future developments, particularly with greater application of modern science and technological advancement in this sphere, the event management would serve its purpose for long time to come.
The economic studies concerning hosting large scale sporting events are important because most of the funds used for hosting these games are from the taxpaying public and therefore, if any losses accrue on the event , eventually, it would become the burden of the public to bear it, in the form of increased taxes and levies. The funds accruing from the sports events fill the vaults of the governing bodies, or the sponsoring committee. Thus, in most cases, the benefits due not pass to the local inhabitants in the venues. Therefore, countries should resist public euphoria, and the vested interests of politicians, before placing bids for major sports events until the economic and financial viability has been confirmed from authoritative sources. The Government should also consider, either their own past experiences, or the present plight of other countries who have been host to major international sports events in recent history.
Questionnaire for Event Promoters/Organizers
- What are the overall economic aims of the event promoted?
- Is the event self –sponsoring or is there a ticketing/sponsoring agency?
- What amount of Funding would be required and how would it be arranged?
- Are there any Local, State or Federal funding and by which agency?
- What kind of federal records need to be maintained and by whom?
- What are the issues related to accountability?
- How are these to be addressed to and by whom?
- How could the venue be accessed?
- Who has been designated as the caretaker of the venue?
- What are his specific duties and responsibilities?
- How are the transport facilities to be arranged?
- What Risk Management System has been invoked for managing the event crisis-free?
- What are the arrangements for good traffic management system?
- What are the arrangements for provision of food and beverages during the event?
- What are the facilities for providing safe drinking water at the venue of the event?
- Are there any Licensed Association for providing food and beverages?
- Have specific job allocation been made to the staff/sub-staff engaged in this event?
- What are the perceived legal liabilities arising out of organizing an event of this size?
- What information is required about insurance of public events?
- What are the risks involved with use of volunteers?
- What are the insurance needs for hire of equipments?
- Would Advertisement and Publicity be beneficial for the coverage of this event?
- Would the advertisement and publicity be free or at cost?
- What is the sort of message that needs to be sent across during this Event?
- What, in your mind, is the overall impression about the success of this event?
- Have the event promoters staged any such events before, and, if yes, how successfully?
- What are the overall economic impact of this games to the state economy?
- What are the impacts to the national exchequer?
- Questionnaire to the Stakeholders
- Do you feel that this event management programme promotes economic growth in the region?
- Do you also feel that, in some ways, it could also promote unhealthy competition?
- Do you think it would lead to enhanced group participation for a successful event?
- According to you, could event management programme promote vested interests?
- In your honest appraisal, does event management promote employment and how?
- Do you agree that event management could lead to unethical practice in the UK?
- Do event shows sponsor desired behavioral patterns and respect for local environment?
- Do you think mega events are winners for all concerned, except the audience?
- How do you think ethical behavior during mega events could be ensured?
- What do you have to say about the standards of safety and security during event shows?
- Do you feel the camaraderie during events could give way to serious law and order problems?
- Do you feel that additional layers of security to the public are required during events?
- Do you feel that the mass hysteria generated by mega events need to be toned down?
- In your opinion, do international events bring economic benefits to the host countries?
- In your opinion, are they also having negative benefits or ill effects?
- What are the contributions of events to air and sound pollution in the area?
- Outdoor Events could cause serious ecological concerns- do you feel it is a right statement?
- Are events presented in harmony to the environment to be encouraged?
- Do you feel that events promote tourist destination traffic?
- Does it bring substantial foreign exchange earnings to the host countries?
- In today’s world, events management is commercial displays only.
- What are the standards of aesthetic values in non-sports events in the country?
- How, in your opinion, should event management programmes be carried out?
- Are holding of events economically beneficial to the governments of host countries?
- Besides tax earnings, are there any other economic benefits of large-scale event promotion?
- Do you feel that mega events need to be economically viable and profit all concerned?
- If so, would you support events rendered for strictly charitable purposes?
- What are your recommendations for future improvements of standards of events?
- Do you feel they are practicable, feasible and beneficial to all concerned?
- Do you feel previous experience is a determining factor in hoisting events?
- What do you feel is the future of event management in the near future in UK?
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