4th Edition Leisure, Sport and Tourism, Politics,

Transcript:4th Edition Leisure, Sport and Tourism, Politics,:
4th Edition Leisure, Sport and Tourism, Politics, Policy and Planning A. J. Veal COMPLEMENTARY TEACHING MATERIALS CABI TOURISM TEXTS CHAPTER 14 Economic Evaluation Leisure, Sport and Tourism, Politics, Policy and Planning, 4th Edition Leisure, Sport and Tourism, Politics, Policy and Planning, 4th edition, Veal, 2017, CABI Tourism Texts Outline Leisure, Sport and Tourism, Politics, Policy and Planning, 4th edition, Veal, 2017, CABI Tourism Texts Introduction Cost-benefit analysis Economic impact analysis Cost-benefit analysis Measurables and unmeasurables The cost-benefit approach Identifying and measuring costs Identifying and measuring benefits Measuring private benefits – travel cost and other methods Comparing costs and benefits The value of time Value transfer Leisure, Sport and Tourism, Politics, Policy and Planning, 4th edition, Veal, 2017, CABI Tourism Texts Measurables and unmeasurables CBA involves identifying all costs and benefits, and measuring and comparing what can be measured, but not everything may be measurable. Decision makers must ultimately decide whether: A–C (measurable net costs) or C–A (measurable net benefits) outweigh the non-measurables B and D. Leisure, Sport and Tourism, Politics, Policy and Planning, 4th edition, Veal, 2017, CABI Tourism Texts The cost-benefit approach to project evaluation (Table 14.2) Leisure, Sport and Tourism, Politics, Policy and Planning, 4th edition, Veal, 2017, CABI Tourism Texts Identifying and measuring costs Capital costs – costs of building the facility: upfront and annual Running costs – annual costs of: staffing, materials, heating, lighting, transport, etc. Externalities as costs Opportunity costs – the value of the resource in an alternative use – e.g. parkland as housing/offices Leisure, Sport and Tourism, Politics, Policy and Planning, 4th edition, Veal, 2017, CABI Tourism Texts Externalities (or ‘third party’ or ‘neighbourhood’ effects) (from Chapter 5) Market under-provides or over-provides, due to specific benefits enjoyed or costs imposed, but not paid for, by specific third parties Negative: costs imposed on third parties, e.g.: – air pollution, noise pollution, congestion Positive: benefits to third parties, which they do not pay for, e.g.: environmental/amenity benefits of a golf course to surrounding properties; public tourism attractions Leisure, Sport and Tourism, Politics, Policy and Planning, 4th edition, Veal, 2017, CABI Tourism Texts Adelaide Grand Prix study (Table 12.3) *including multiplier effects SA = South Australia (Source: Burns et al., 1986) Leisure, Sport and Tourism, Politics, Policy and Planning, 4th edition, Veal, 2017, CABI Tourism Texts Adelaide Grand Prix study: Psychic income calculation 20% of population experienced extra travel costs due to congestion/diversions during the Grand