The international tourism effect of hosting the Olympic Games and the FIFA World Cup

Abstract

This study analyzes whether hosting mega-sporting events is a useful marketing platform for countries to promote international tourism on a longer term basis. Our model adopts the gravity equation of international trade to bilateral international tourist arrivals. We find a country-level tourism effect only for the Summer Olympic Games. Hosting increases international tourist arrivals significantly in the 8 years before, during, and in the 20 years after the event. In contrast, hosting the FIFA World Cup is overall ineffective in tourism promotion despite higher tourist arrivals in the event year. We attribute these differences in international tourism legacy to the level of strategic planning in promoting tourism, the impact of media on the broadcasting audience, and the participating countries.