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1、Full Terms&Conditions of access and use can be found athttp:/ by:Orta Dogu Teknik UniversitesiDate:16 March 2016,At:10:54International Journal of Tourism SciencesISSN:1598-0634(Print)2377-0058(Online)Journal homepage:http:/ of Visitors Expenditure Pattern andthe Economic Impact of the 2004 Boryeong
2、MudFestivalSeok-chool Kim,Young-Pyo Kim&Hyun-Ho JoTo cite this article:Seok-chool Kim,Young-Pyo Kim&Hyun-Ho Jo(2006)Analysis ofVisitors Expenditure Pattern and the Economic Impact of the 2004 Boryeong Mud Festival,International Journal of Tourism Sciences,6:1,53-64,DOI:10.1080/15980634.2006.11434586
3、To link to this article:http:/dx.doi.org/10.1080/15980634.2006.11434586Published online:03 Jun 2015.Submit your article to this journal Article views:9View related articles InternationalJournalofTourismSciences,Volume6,Number1,pp.53-64,2006Tourism Sciences Society ofKorea.Allrights reserved.Analysis
4、ofVisitors ExpenditurePatternandtheEconomic Impactofthe 2004 BoryeongMudFestivalSeok-choolKimPaichai University,KoreaYoung-Pyo KimSusanDevelopment InstituteHyun-Ho JoDepartmentofTourismAbstract:This study aims to identify the visitor expenditure pattern and estimate theeconomic impactofthe 2004 Sory
5、eong Mud Festival.The average expenditureoffood&beverage,shopping,transportation,accommodation,entertainment and the other costswere calculated based on the collected data.Among the five major categories,theaccommodationexpenditurewasthehighestfollowedbyfood&beverage,entertainment,transportation,and
6、 retail shopping.The retail shopping expenditure wasfound distinguishably low compared with thatofother festivals or events sponsored bythe MinistryofCulture&Tourism.Induced multipliers derived from Input-OutputAnalysis were adjusted and utilized for the sales(output)measureofeconomic impact.The eco
7、nomic impact on sales brought by the 2004 Soryeong Mud Festival wasestimated at$33.3 million US dollar,which is almost 20 percent more than the previousyear.KeyWords:Mud Festival,Expenditure Pattern,Economic Impact Associate Professor,DepartmentofTourism&Event Management,Paichai University,e-mail:sc
8、kimpcu.ac.kr.Research fellow,Susan Development Institute,e-mail:ypkimbdi.re.kr.Associate Professor,DepartmentofTourism,Gyeongju University,e-mail:johhgju.ac.krDownloaded by Orta Dogu Teknik Universitesi at 10:54 16 March 2016 54Seck Chool Kim,Young Pyo Kim and Hyun Ho10INTRODUCTIONOneofthe fastest g
9、rowing formsofvisitors and community activity is thefestival(Getz,1997).This growthissignificant at many levels:international,national,regional,and local(Tourism Canada,1988).Community basedfestivals are no exception to this growth(Getz&Frisby,1990).The numberoffestivalsissoaringinKorea.According to
10、 a report by the MinistryofCultureand Tourism(MCT hereafter),over 480 local festivals were heldin1998.Among these festivals,166(34.5 percent)were initiated after the year 1995(Oh,1999).Recently,the total numberoffestivals has rapidly increased andreached661in2005.There are three major areas that hav
11、e accounted for 35 percentofKoreanfestivals:Kyonggi Province(93 festivals),Kyongnam Province(77 festivals)and Kangwon Province(61festivals).Since 1995,the MCT has been supporting cultural tourism and festivalsthrough a promotion policy.There are several reasons for this:(I)to developour culture as t
12、ourism product on the global level;(2)to spread the excellenceofKorean culture;(3)to stimulate local economies;(4)to generate tourismincome;(5)and to provide various leisure opportunities.Until the mid 1990s,local provincial governments had not recognizedfestivals as a primary means to develop local
13、 economies.In addition,they hadbeen suffering from unbalanced development planning,the destructionofnatural resources,and leakageoftourism earnings.But some tourism eventsand festivals achieved success in attracting tourists and stimulating localresidents,aswellaslocal provincial governments.The suc
14、cessoffestivals hasverified the fact that tourism events or festivals can help boost local economiesaswell as improve the imageoflocal communities.Thus,many localprovincial governments have started to create their own festivals.In1999,theMCT employedanevaluation system for the sponsoring local event
15、s orfestivals.This study aims to examine the economic impactoffestivals and to identifythe visitor expenditure pattern and estimate the economic impactofthe 2004Boryeong Mud Festival.This research also attemptstolook at some restrictionsinherentinmeasuring economic impactoflocal festivals.The major
16、statisticsused for this paper are based upon the evaluation reports undertaken by theevent research centerofPaichai University.Downloaded by Orta Dogu Teknik Universitesi at 10:54 16 March 2016 AnalysisofVisitorsExpenditure Pattern and the Economic Impact55PROBLEMSINHERENTMEASURINGECONOMICIMPACTSchm
17、ader&Jackson(1990)warned that the demand for the festivalindustry will eventually declineifhosts and organizers do not improve theirevent programs and effectively cope with all the complicationsinthiscompetitive environment.However,the significanceofeconomic impactbrought by local festivals has been
18、 advocated by a numberofresearchers,andthe related research has been undertaken actively(Oh,1999;Crompton et.al.,200I;Tyrrell&Johnston,200I).The positive economic impactisapparentlythe key point that local governors must consider.The economic impactassessmentisbased on the data such as the numberofv
19、isitors and theexpenditureofspectators,participants and sponsors(Murphy&Carmichael,1991).A common methodofestimating visitor expenditureisthroughsurveying a random sampleofvisitors.But,the resultsofthe assessment canbe various and biased depending on the typeofassessment method employed,even for the
20、 same festival.Furthermore,ifthe primary dataisnot reliable theresults can be suspect.For example,inthe caseofthe average expenditure perhead at the Icheon Ceramic Festival heldin1998,itturned out that eachresearcher or organization produced different figures;US$34.3inOhsresearch(1999),$34.7inJeongs
21、 research(l998),$6.4inthe 1cheon CouncilReport.Likewise,the errors would be proportionately higherifthese figuresare used for the economic impact assessment.1norder to collect primary datafortheeconomicassessment,recallanddiarytechniquesarepopular.According to Faulkner&Raybould(1995),both techniques
22、 have potentials tocause biasintermsofthe reliability.Recall bias falls into two types:omission(under reporting)and telescoping(over reporting).On the other hand,lowresponse or non-response bias can existinthe caseofmailed-back diarytechnique.Inpractice,higher expenditure for entertainment and shopp
23、ing thanactualisreported when diary techniqueisused.However,inthe caseoffood&beverage the results are reversed,particularly by male respondents.Faulkner&Raybould concluded that these inconsistencies are due to the social bravadoeffect.Since recall technique involves interviews in the presenceofpeers
24、,theymay want to exaggerate the amountofmoney spent.The term social bravadoismeant to indicate a friendly companion-like boasting or swaggering pretense(Macquarie Dictionary,1982,p.247).1naddition,recall technique has anassumption that the visitors can recall accurately and suffering no memorydecay.
25、InBreen,Bull&Walos research,diary technique yielded higher figuresthanrecal!techniqueconsistentlyintermsoftheaccommodationandentertainment expenditure.They suggested that underlying behavioral factorsamongst respondents suchaspeer pressure,memory recall,distraction orurgency to get away should be ex
26、aminedinfurther research.Downloaded by Orta Dogu Teknik Universitesi at 10:54 16 March 2016 56Seck ChoolKim,Young PyaKimandHyunHa10To measure economic impact,there are four major considerations.Firstly,the most controversial aspect relating to economic impact assessmentiswhether to include local res
27、ident expenditure.Most scholars agree that thespendingoflocal residents,time-switchers,and casuals should be excluded.Crompton etal(2001)and Getz(1997)state that those who reside in the areaonly represent a recyclingofmoney.Only spending by visitors who resideoutside the town and whose primary motiv
28、ation for visitingisto attend theevent,or who stay longerinthe town and spend more becauseofit,should beincluded.Some non-local spectators at the event may have been planning a visitto tourist destination for some time but changed the timingoftheir visit tocoincide with the event.The spendingofthese
29、 time-switchers cannot beattributed to the event since it would have occurredinthe town without theevent,albeit at a different timeofthe year.Casuals are visitors who werealready in a tourist destination but were attracted by other features and whoelected to go to an event insteadofdoing something e
30、lse.Secondly,economicimpactassessmentsoftenincludeamultipliercalculation to demonstrate that incremental tourist expenditure has direct,indirect,and induced benefits for a local economy.Three typesofeconomicimpact measures(sales,personal income,and employment)are commonlyreported from multiplier out
31、come.Especially we need to be especially carefulcalculating employment.Ifnewjobsare created,they might be filled byout-of-town commuters.Moreover,even though a festival can bring benefits(e.g.visitor expenditure)to a local area,it can help to support the existingjobsinthe local area but itishard to
32、create more employment opportunities(Getz,1997).Thirdly,many economic studies are often done to legitimize a position.Getz(1991)comments on exaggerating effectsofevents to gain politicaladvantage.The media,public,city council,and other relevant stakeholdersinvolvedinan event usually do not know abou
33、t the potential errors associatedwith economic studies.Many arejustlooking for positive figures.Inthe media,sales impacts are often used because the figureismuch more impressive thanthe other impacts.Crompton etal(2001)state a case where oneoftheresearchers estimated the economic impactofa festival
34、to be$5.1 million,onlyto readinthe front page headlines that it generated over$85 million after thesponsoring organization commissioned another study due to the unwanted lowfigures.Lastly,there are other things like direct,indirect,and opportunity costs tomention a few that need to be taken into acc
35、ount when conducting an economicimpact assessment.Direct costs include garage removal,police duty,trafficcontrol,medical assistance,security,and other costs.Indirect costs moreDownloaded by Orta Dogu Teknik Universitesi at 10:54 16 March 2016 AnalysisofVisitorsExpenditure Pattern and the Economic Im
36、pact57difficulttorecord.Thatincludespersonalorpropertydamage,socialdisturbances,congestion and disruption to lifestyleoflocal people.Thereisalso opportunity cost associated with government funding like the buildingofnew facilities for the event which could have alternatively been spent on health,edu
37、cation,or public housing.Study RegionFestivals are emerging as oneofthe fastest growing formsoftourismattraction(Mayfield&Crompton,1995).As oneofthe major Korean localfestivals,the Boryeong Mud Festival was launchedin1998 and the festivaliscentered around mud.Boryeongislocatedinthe mid-western parto
38、fSouthKorea and the main venueofthe festivalisDaecheon Beach resort area.Thismud festivalishosted by the cityofBoryeong and sponsored by the publicsectors(MinistryofCultureandTourism,KoreanNationalTourismOrganization,Choongnam Province)and private sectors(Welcome to KoreaLtd.,Korea Midland Power Co.
39、Ltd.&Boryeong Reactor.).Map I.The locationofBoryeong(r-.-7K.ngNInThe festival takes placeofDaecheon Beach and the surrounding city duringonewholeweekinmid-Julyeveryyear.Thefestivalsbudgetwasapproximately W440,000,000in2004,and financial support was obtainedfrom public organizations.The host needs to
40、 consider the cost for developingprograms associated with mud,such as hiring equipment,using labor resourcesand marketing the festival with various techniques,etc.Downloaded by Orta Dogu Teknik Universitesi at 10:54 16 March 2016 58SeckChoolKim,YoungPyoKimandHyunHoJoMETHOD AND DATAThe survey object
41、was to obtain visitor expenditure for accommodation,entertainment,food and beverage,shopping/souvenirs and local transport.Inorder to collect the data,two typesofsurvey techniques were employed.One isindividual recall interview and the otherisindividual recall interview within agroup.Both methods re
42、quired respondents to record daily expenditure for eachofthe categories,which were then totaled.The questionnaire consistedofthreesections.The first section related to the festival evaluation.The second sectionincludedtourismexpenditureperhead.Itcontainedexpenditureonaccommodation,entertainment,food
43、 and beverage,shopping/souvenirs andlocal transport.The third section included general information such as thetravelmotivation,lengthofstay,accommodation,gender,tourist origin,companion,visiting experience(first visit/repeat visit).The respondents wereasked to rate their experience toward the Boryeo
44、ng Mud Festival on aseven-point Likert scale with a rating ranging from 1=strongly disagree to7=strongly agree.Inthe second section,expenditure for accommodationincluded parking fee,fuel cost,and cost for public transport.Karaoke,billiardgame,and drinking were included under the entertainment catego
45、ry.In order to derive the total amountofexpenditure,the numberofvisitorsneeds to be estimated.However,thisisthe most difficult part and itislikely tocause serious errors.Fortunately,the Boryeong council barricaded the roadinfrontofthe Daechen beach resort to charge a parking fee to drivers.Itwasposs
46、ible to estimate a rough numberofvisitors to the festival.This figure needsto be multiplied by the rateofnon-residents and then the rateoffamily alsomust be considered because kids cannot be equally treated as one adult.According to the tourismdivisionofBoryeong council,approximately,1,460,000touris
47、tsvisitedandithasbroughteconomicimpactofW33,300,000,000 to the local economy.Itisassumed that transportation andrestaurant expenditure has some leakage outofBoryeong city and theproportionoftheleakageisintuitivelydetermined.30%ofrestaurantexpenditure and 70%oftransportation expenditureisassumed to h
48、ave leakedoutofthe city.The multipliersofBoryeong can be obtained from the nationallevel and 70%ofthe national level might be appropriate.The accommodationand restaurant sector has affected the local economic impact significantly andpositively,which takes up about 62.6%outofthe total economic impact
49、.Fortheempiricalanalysis,around300surveyquestionnairesweredistributed and 281 were returned and used for the analysis.Downloaded by Orta Dogu Teknik Universitesi at 10:54 16 March 2016 AnalysisofVisitorsExpenditure Pattern and the Economic Impact59RESEARCH FINDINGSTable 1 provides a demographic prof
50、ileofthe survey participants.Ofthetotal respondents,48.8%were male and 51.2%female.As could be expectedwith a beach-based mud festival,the tourists rate(98.2%)is much higher thanthe residents(1.8%).Compared to the 6th mud festival,the rateoftourists wasup 3.4%while the rateofresidents was down to 1.