UsingSportsTourismforDestinationMarketing:
CaseStudyAfrica
Relationships,ImpactsandOpportunities
IdyUyoe
SportsProConference
September30,2015
Agenda
• ConventionofTerms• SportsIndustryataGlance• TheModernSportsVenue• MajorEvents’Categories• LeveragingMegaEvents• DefiningSportsTourism• ImageImpact• Policy&Strategy• MovingForward• Challenges• ClosingThoughts
ConventionofTermsTerm Definition
Demographicvs.Psychographic Description versusBehavior
Sponsorshipvs.Advertising Embedded vs.Surface
Activation Processofenablingthesponsorship
College Defined asUniversityincontext,notPrepSchool
Football (Gridiron)vs.Soccer Will bespecificwhenreferringtoeach
Source: A.T. Kearney’s “Winning in the Business of Sports”
The sports events market was worth $80 billion in 2014.
Source: A.T. Kearney’s “Winning in the Business of Sports”
The broader sports industry is worth $700 billion yearly.
Source: A.T. Kearney’s “Winning in the Business of Sports”
Globalsportsrevenueswillgrowatcompoundaveragegrowthrateof14%annuallythrough2016
Football revenues increasedfrom $25.1 billion in 2009 to$35.3 billion in 2013.
Source: A.T. Kearney’s “Winning in the Business of Sports”
Soccer is King
Beating the GDPSports revenue is growing fasterthan the GDP in many countries:
United Kingdom: x3.9France: x3.1Brazil: x1.8
Source: A.T. Kearney’s “Winning in the Business of Sports”
United States: x1.6China: x1.1
SowhatDrivesSportsPassion?
• Fanprideandsupportforteam?• Anappreciationfortheplayers?• Teamcolors?• Familyheritagewithteam?• Aloveofaparticularsport?
OpeningceremoniesoftheBeijing2008OlympicGames
• GlobalTVaudienceof4.2billionpeopletunedin• Butnoactualsportseventstookplace• Sowhytherecordaudiencedespitenoathleticcompetition?
Sport and entertainment can no longer be decoupled, if theyever really could.
TheModernSportsVenue
• ModernsportsvenuessuchasLeviStadiuminSantaClara,Californiaareincreasinglybeingviewedastechnologybrands,onparwithApple,Google,Facebook,etc.• Mustbecompletelywiredandautomatedforsecondandthirdscreenexperiences
• Mustbeviewedasabrandand,consequently,revenuecenter• Avaluableassettobeleveragedbeyondmatchdayevents
• Ownersmusthaveaclearunderstandingofsponsorshipboundaries• Cannotappraiseactivationvaluewithoutfullunderstandingofinclusions
SportsVenuesNeedtodoMore
• Privatelyowned(notgovernment)bytheAMBGroup• WillhostFootball(gridiron)andSoccermatchesbeginningin2017• WillhostCollegeFootball(gridiron)NationalChampionshipin2018• MercedesBenzpaid$12millionperyear,for27years,fornamingrights• ThecompanyisrelocatingitsNorthAmericanheadquarterstoAtlanta
• SponsorshipalignedperfectlywithCityofAtlantaandStateofGeorgia• Bothpartiestoengageinperiodicreviewoftheagreementasnecessary
Example– MercedesBenzStadium,Atlanta,GA
MajorEventCategories
MajorEventCategories
EventType Description MediaInterest
MegaSummerOlympic GamesSoccerWorldCupWorld’sFair/Expo
International
Special
NFLSuperBowl(AmericangridironFootball)EuropeanSoccerChampionshipsEuropeanChampions League
Rugby&CricketWorldCupCommonwealthGamesFormulaOneRacing
International&National
SpecialistMedia
Hallmark Marathons– Boston,London,NewYorkFestivals– Edinburgh RegionalandLocal
LeveragingMegaEventsfor
DestinationBranding
OlympicGames:Tokyo,1964
• Japanusedthegamestoprojectitselfasanindustrialandfinancialpower
• EnterstheInternationalMonetaryFund
• Rehabilitatesitsglobalimage
WhenSeoulwasawardedtheOlympicgamesin1981,therewerenocolortelevisionsetsinSouthKorea.
Seoul,1988
Today,SouthKoreaisanindustrial
behemothandthe4th largesteconomyin
Asia
Barcelona,1992
• Widelyconsideredthe“model”fororganizingmajorsportingevents
• SuccessfullyalignedtheOlympicswithexistingpolicyobjectives
• Spent83%ofOlympicbudgetoncityinfrastructureandonly17%onsports
• Wasthecatalystfortheirurbanrenewalstrategy
• Improvedtelecommunications• Boosteditstourismindustry• Increasedaffordablehousing
• 4,500newflatswithincitylimits• PositionedBarcelonaasaconferencedestination• Constructedfournewringroads
• BarcelonanowEurope’s5th mostdesirabletouristdestination
• World’s10th BestInvestmentDestination
• Achieved50yearsofinfrastructuredevelopmentinjust8years
• Loweredunemploymentrate
• Centerofmobiletelecommunicationsindustry
• Totalcitywidetransformation
Results
• Solidifycredentialsasmegaeventshosts
• Increasetourismreceipts• Bolsterimageasinvestmentdestination
• Improvethetelecommunications,transportation,andhousingsectors
• Urbanrenewal• Improvesocialcohesionamongitscitizens
• Offermediaanopportunitytoremakethecountry’simage
• ConsideredoneofthebestWorldCupTournamentseverstaged
• Changedglobalperceptionsofthecountry
• SouthAfrica(Durban)recentlyawarded2022CommonwealthGamesandlikelytobeawardedRugby2019WorldCup
UnderstandingSportsTourism
AnyTourismwhosemainpurposeistovieworparticipateinasportseventorattraction.
SportsTourismDefined
TheGreeksinventedsportstourismwiththeancientOlympicGamesinOlympia,atthetemple
ofHeraandZeus
Element Description
Active(Participation)• Skiing,cycling,golf• Adventure Tourism• Activeparticipation,exampleMastersGames,etc.
Event sportstourism
• Megaevents– Olympics, WorldCup,ChampionsLeague• HallmarkEvents– Boston/LondonMarathon• NicheEvents– Customizedsportsproperty• VolunteeringatMajorEvents
Nostalgic
• Sports Museums- ProFootballHallofFame,OlympicMuseum,NaismithBasketballHallofFame
• IconicVenues– Wimbledon,WemblyStadium,YankeeStadium,WrigleyField,TheBird’sNestinBeijing
TypesofSportsTourism
DimensionsofSportsTourismType Description
DemandSide
Consists oftouristmarketsandtheircharacteristics• Motives• Perceptions• Socialdemographics
SupplySide
Thingswhichform atouristdestinationarea• Sports Arenas,Stadiums,TrainingFacilities,etc.• Transportation• TouristAttractions• Services,Information
ImpactSideConsequences ofsportstourism– positiveornegative– onadestinationareaandtouriststhemselves
• Growthstrategyforlocaldestination• Urbanregeneration(physical)• Economic
Hotels,restaurants,taxidrivers,cafes• Sociocultural&leisure
• Parks,hotspots,museums• Transportation• RetailReceipts• SportsFacilities• Telecommunications• Housing
SportsTourism:KeyAreasofImpact
SportsTourismDemandGroupsType Description
EliteAthletes
Efficiencyisthemainaim ofthisgroup.Considerations include:• Accesstocompetition, suitabletrainingconditions• Specific accommodationanddiningdemands(dietary)• Accesstophysicians,injuryrehabilitationfacilities
MassSports
Preserving healthandmaintainingfitnessistheiraim:• Performancetargetsareindividuallyfixed• Theaccessibilityofholidayregions• Qualityofsportsfacilities
OccasionalSports(wo)men
Givespreferencestolessdemandingsportssuchastennis,cycling,skiing,• Compensationandprestigeplaygreater rolesthansportingambition• Sportingactivities arenotprioritizedoversightseeingandculturalactivities
PassiveSportTourist
Focusofthisgrouplieswithmegaeventsanddistinguishedsportssites.• Includescoachesandattendantstohighperformanceathletes• Mediareporters• Requireshighvolumeinfrastructurestoaccommodateneedsoflargenumbersofevent
sportattendees
• Sportsareaninvestmentinthetourismindustry• Createsexposureforhostcommunity• Povertyalleviation• ImageEnhancement• Humancapacitybuilding– SME’s• Attracthighyieldvisitorswithintenttorevisit• Developsnewinfrastructure• Createsnewproduct,anewtourismdestination• Createsemploymentopportunities
BenefitsofSportsTourism
FactorsAffectingSportsTourism
•DestinationImageandBranding•PolicyDevelopment•StrategyandSelection
• Whataretheperceptionsofmylocation?
• Whatismylocationknownfor?• Whatdestinationassetsdowehavethatothersvalue?
• Whatdowewanttobeknownfor?
• Whatlegacydowewantoureventstoleave?
• Whatismysustainabilitystrategy?
DestinationImageandBrand
SixBasicDestinationRequirements
1. PersonalSafety
2. FriendlinessofLocals
3. RelaxingAtmosphere
4. Scenery/NationalAttractions
5. TouristInfrastructureSupport
6. LocalTransportation
• Theunbrandedstatehasdifficultyattractingeconomicorpoliticalattention
• Destinationbrandingisadecisivefactorinvisitors’destinationchoice
• Spectatorsandvisitorsarenotleftwithphysicalproducts,rathertheyareleftwithperceptionsandmemories
• Theseexperienceswillformtheirintentiontorevisit,andwhattheytellothers
DestinationImageManagement
ImageImpactonDestinationDevelopment
Africa’sBrandChallenge
• Africannationsseenasamonolithicblocwithsimilarcharacteristics
• Africagenerallyperceivedasanunderperformingcontinentravagedbycrime,famine,disease,civilwarsandcorruption
• Africannationsviewedashavinglimitedinfrastructure,poorgovernanceandweaklegalframework
• TheseperceptionshavenegativelyimpactedtheAfricanStateinthepastwhenseekingtohostamajorsportsevent
In1997,CapeTownwasafinalisttohostthe2004OlympicGames.TheywerecompetingagainstAthens,GreeceandMadrid,Spain.
Ultimately,Athenswasselected,but…
WasthepoorglobalimageofAfricaafactorin
denyingCapeTownthe2004OlympicGames,
despitetheeconomyofSouthAfricabeing
largerandhealthierthantheGreekeconomy?
“Almost no one in the IOC thought, expected, or wanted Cape Town to win, but it was important to show the world that Africa was not being ignored” – IOC Vice President Richard Pound
• sportstourismcanhelpdevelop,enhance,revitalizeandreverseadestination’simage,
• Co-brandingofferstransferofimagebetweeneventanddestination
• Eventmediacoverageincreasesbrandawarenessofhostcitybrand
• Destinationimageandbrandimagemustbealigned
• Valueofhostinganeventdepends,inpart,onthebrand’scapacitytostrengthenaspectsofthedestination’simage/brand
• Intentiontorevisit– Positivedestination’sbrandmeansrepeatvisits
• Socialmediaandinducedexperiencesarethemostauthenticmeansofdestinationbranding
UseSportToShiftPerceptionsandImage
SportsTourismPolicyDevelopment
• Outlinedestinationgoals– sportshouldfitintoabroadertourismagenda
• Infrastructure,sportsculture,skillsdevelopment
• Identifystakeholders–MinistryofSports,Culture&Tourism,residents,athletes,coaches,officials,specialinterestgroups
• Governmentshouldbeanenabler,butnotlead
• Offerincentives– importwaivers,taxbreaks,landconcessions,etc.
• Developsustainabilityagenda• Understandmarketsegmentation
SportsTourismRequiresClearObjectives
WhySportsTouristSegmentationMatters• Understandingthemotivations,perceptions,needsofthevisitor,inordertoimprovevisitorexperience
• Importantindevelopingpolicyinitiatives• Marketresearchisthekeyto“listening”tovisitor’sneeds• Touristexpendituresdrivenbydiscretionarybudgets• Touristspendingisconsideredthemostimportantvariableintheeconomicanalysisofthetouristindustry
• Thismustaccordwiththetouristexperience• Allowspolicytotargethighnetworthindividualslikelytospendmoreandlikelyreturn
• Morelikelytobewhitemale,30+• Affluent/Professional• Universityeducated,likelywithadvanceddegree
• Willingtotravellongdistancestoparticipateinfavoritesports
• Likelytoengageinactivesportintoretirement
• Tendtoengageinrepeatactivity(nota“oneoff”vacation)
ProfileofAdventureSportTouristExample1
• Increasinglymiddleclass,Caucasianfemale
• Likelytotravelingroupsof2ormore
• Universityeducated;Professional• Leisurepreferencesincludesspatreatments,samplinglocalcuisine
• Likelytopatronizenightclubandcafés
• Lookingforuniqueshoppingexperiences
• Typicallengthofstayatlocationis3nights
• Willonlyreturnifexperienceisexceptional
ProfileofEventSportTouristExample2
EconomicIndicatorsa) Howmanydaysdidtheystay?b) Howmanyhotelroomsdideachevent
generate?c) Whatweretheexpenditurepatterns?d) Whatwastheoveralldirectspendingimpacton
thecommunity?
SocialIndicatorsa) Whatotheractivitiesdidtheeventparticipants
andspectatorstakepartin?b) Whatwastheirprimarymotivationfor
attendingtheevent?c) Overall,whatwerethesatisfactionlevelsofthe
participantsandspectatorsforeachevent?d) Inwhatwaysdidthelocalcommunitybenefit
fromtheevent?
ImpactAssessment(Sustainability)
StrategyandImplementationSuggestions
AlignwithInternationalSportsFederations(IF’s)
• Globalsportsgoverningbodies• FIFA,FIBA,FINA,IOC• Offertohostmeetings,conferences,sessions,WorldChampionships• Getyourdestinationoreventaccredited• Exposurewillbuilddestinationstrategy
• Americanfootball(NFL),Basketball(NBA),RugbyLeagues
• IsNigeriaaprioritymarketforexpansion?
• Leaguesworthbillionsofdollarsandattractpremiersponsorshipvalue
• StrongperformancesbyNigeriansmeansscoutingforlocaltalent• Arefacilitiesinplacetohostwhen
theycome?• Targetglobalsportspropertiesfor
camps,exhibitions,etc.• Engagesponsorswhosebrandsalignwithtargetaudiencesofthesesportsproperties
UnderstandGlobalSportsProperties
• UniversitySportsintheUSisa$1billionbusiness
• Offertohostexhibitiongamesinfootballandbasketball
• NaturalalignmentbetweenAmericanUniversitieslookingtoprovidescholarshipstotalentedathletes
• Promotesculturalexchangeopportunities
• Developpartnershipstrategyforsponsorslookingtoactivatearoundparents,youthsandstudents
ConsiderCollegiateAthletics
• Hostexhibitionsforcollegiateorprosportsleagues
• ProvidetrainingfacilitiesforeliteathletestotraininNigeriaduringthewintertimeintheirowncountries
• Aligndestinationwithmegaevent– Forexample,NigeriacouldprovidetrainingfacilitiesforCanadianteamtotrainandacclimatizepriortothe2022CommonwealthGamesinSouthAfrica
• Apositiveexperiencebyforeignteamsprovidesthemostauthentic(wordofmouth)marketingforelevatingdestinationbrand
• Developadventuretourism• Nigeriahasexcellentterrainforthis-Mountains,Ocean,ExoticWildlife
DevelopNicheEvents
MovingForward
• Communitiesshouldfocusonsmallscalesportingevents
• Yieldsmoreeconomicvaluefrommodestsportsfacilities
• Minimalinvestmentrequiredinsportsinfrastructure
• Areleastdisruptive• Typicallymoreimpactfultocommunity
SmallScaleEventsAreBetterInvestment
• Focusonsportstourismandeventsasameansforachievingoutcomeswhichotherwisewouldnothavebeenpossiblewithouttheevent
• Ifbuildingastadiumorfacility,engagebrandpartnersearly• Namingrights,connectivity
• Usemediatoyouradvantage– bothtraditionalmediaandsocialmedia
• Mustdevelopworldclasssportstourismandeventpractice• Therestoftheworldisyourcompetition
• Needtoactivelylobbyforglobalevents– ATP,WTA,etc.• Mustincludethehostcommunityfromtheplanningstages
• Exclusioncouldposeasignificantthreattotheevent• Mustbetransparentwheneducatingcommunityleadersaboutbenefitsandrisks
• Recognizethatvisitorsandspectatorsarenotleftwithphysicalproduct,onlyimpressions
FactorstoConsider
• Trafficcongestion• Sociallydisplacedpeople• Highercostoflivingpostevent• Increasedrent• Jobscreatedareusuallytemporary
• Crimefromoutsiderswhoarenotstakeholdersinthecommunity
• Underusedorabandonedfacilities– Nopost-eventusagestrategy
• Vandalism• Crowding
PlanforNegativeConsequences
• Neithersportsnortourismisprioritized– Notalignedwithdevelopmentalobjectives• Perceptionofimportance– Howmuchvaluedoesthecountryplaceonsportstourism?
• Lackofcontinuitywithpolicywhengovernmenttransitions• Veryweakglobalimage– TheNigerianbrandperceivednegativelyaroundtheworld
• Nigeriaiscompetingwithstrongerglobaldestinationbrands• Manycountrieshaveeconomiesbuiltontourism
• Limitedlocaladvocacyforsportstourism• Governmentdoesnotviewsportasavehiclefordevelopment• Lackofpolicyinitiativestocreateenablingenvironmentforsportstourism
• Security/Crime– Rightorwrong,globalperceptionsarethatNigeriaisnotsafe• Thecountryhaslimitedexperiencewithorganizingglobalevents• Inabilitytoreliablycapturepsychographictouristdata– behaviors,likes, interest,etc.• Lackoffacilitiesforspecialneedsordifferently-abledpersons
ChallengesforSportsTourism:NigeriaCaseStudy
ClosingThoughts• Strategic planning is a critical aspect of sports tourism development• Have a clear sports tourism policy, with realistic goals• Conduct objective assessment of your destination’s unique assets• Tourist expectations becoming more diverse
• Subjective and emotional, laden with symbolic meaning• Use sports tourism to achieve broader developmental objectives• Be aware of the risk – Poor experience will damage your destination's image• Developing economies must differentiate - Be bold, be creative
• Muhammad Ali vs. George Foreman, “Rumble in the Jungle” in 1974 put Zaire on the map• The “Thrilla in Manila”, considered Ali’s signature victory• The history of Muhammad Ali cannot be written without mentioning Zaire or Manila
• Use media to tell your story• Engage knowledgeable partners to facilitate the process – Cannot afford to fail