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Spillover Effects of Events

May 02, 2016

Events create many side effects, both positive and negative, that we never recognise. While event organisers and participants concentrate on their event only, there are also so many externalities, which effect daily life of people who have nothing to do with it. Actually, it's not only individuals who are affected by event organisations but also society itself gets some benefits from events. It's possible to say, events, either small or big, always create a spillover effect in the area where they were organised, never planned before and most of the time larger than imagined.

What is a Spillover Effect?

The expression has many different area of usage like economics, politics or medicine. Spillover effects are considered as the effects of some events in one context that occur because of something else in a seemingly unrelated context. Briefly, a spillover effect is an effect you haven't planned or estimated before but occurred as a consequence of your planned activities. For example, when somebody build a factory somewhere, it may create a negative spillover effect by polluting environment or a positive spillover effect by contributing economic life of the area like providing goods and jobs for the people.

Likewise, events also create spillover effects, we never planned before but couldn't avoid anyway. They are usually ignored or never recognised by event organiser or participants however, they exist and affect lives of others who has nothing to do with events at all.

What Are Some Spillover Effects of Events?

Employment Effect:

Each event create new jobs for local people, even they are not permanent. Depending upon the length of planning period, local people enjoy new job opportunities in a wide range of services, such as transport, catering, construction etc. Employment effect also creates its own spillover effect and invigorates local economy.

Booming Economy Effect:

Events brings about an economic activity to its surrounding area as well. In order to organise an event, organisers and participants spend a great deal of money for so many different things. As a result, many sectors get their share from events and increase their revenues. Eventually, local economy benefits from event industry a lot. Here are some of those local sectors who benefit from event organisations: Accommodation, transportation, catering, translation, communication, construction, animation, publishing & printing, branding, hosting, media, security, car rental etc.

Security Effect:

Some events are executed only for a certain group of people who requires protection or tight security measures effecting daily life of locals. For the security reasons some roads around event area might be decided to be blocked for civilian traffic for a while by local authorities, which might turn rush hour traffic worse than ever. Besides, some events, especially the political ones like Davos Economic Forum or some Environmentalist Events get big protest by some groups and when to police interferes into the protesters, the normal life suddenly turns into a big turmoil.

Socio-Cultural Effect:

Sociologists say that, we usually afraid of others, whom we don't know and it's called as Xenophobia, which we can briefly define as "fear from strangers". So, we either refrain from building relation with others we are not familiar with or we easily consider their behaviours as hostile. But on the other hand, events bring together different people from different cultures and gives every participant a chance to meet different cultural identities and behaviours in a peaceful environment. Besides, force them to work together or cooperate. Eventually, when you return home from an event you feel quite positive about others and they become your valuable friends. Your conservative thoughts on some ethnic or religious groups may change or be more tolerant after attending several events. So, we can briefly say that, thousands of events brings different people from different cultures together each year and provides significant contribution to world peace, while creating a multi-cultural harmony and a mutual understanding between different communities.

Infrastructural Effects:

For some events, it requires a huge infrastructural construction, like power supply systems, road construction to event area, building an accommodation area like an Olympic Village or communication assets etc. Eventually, whatever done remains in event area as an improvement for local life.

Commercial Effects:

Not only the event hosting area but also many items used in an event also makes its public appearance, which means free commercials and a chance of being popular. That's why many companies either buys sponsorships or freely provide their service during some events. But on the other hand, events create a natural zoom effect on the area where they were held and attract all media attention. Suddenly the daily life, the local food, local customs or sightseeing areas becomes a part of event news and attracts the attention of outer world. As a result, the locals enjoy a free commercial effect of the event, which makes their town popular.


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About the Author

Erkan OGULGANMIS

Posted by Erkan OGULGANMIS

Erkan OGULGANMIS Graduated from Army War College, completed MA degree in Ankara University on Global & Regional Studies, studies law in Istanbul University. Works in MEETINGHAND Online Solutions Co. as Business Development & Sales Manager.