Evaluation Of The Influence Of Olympic Legacy On Tourist Destination Development

Abstract

The article shows that Olympic legacy has a significant impact on economy, social processes and ecology of the territory of the Olympic Games, which makes it relevant to analyze the impact of the Olympic legacy on the development of this territory, and how it improves its image at the national and international levels. The Olympic product makes noticeable changes in the processes of development of the tourist product at the venue of the Olympic Games, its formation and filling with new content. It begins to act as the initial capital of changes that will occur in new cycles of reproduction of the regional tourist product, which will also affect sustainability of the socio-economic development of the territory in the future. In order to evaluate the contribution of the Olympic legacy, a system of various groups of indicators has been developed. In the presented scientific article it is proposed to use a systematic approach to assessing the contribution of the Olympic legacy in the development of the tourist space of the resort city of Sochi (hereinafter referred to as Sochi). The study showed that among the many observable factors influencing the tourist space, four closely interrelated blocks can be identified and implemented: economic, ecological, infrastructural and social. The structure of each of them includes private indicators, and a systematic approach to their use allows to calculate the integral indicator of the Olympic legacy contribution to the development of the territory of Sochi.

Keywords: Olympic GamesOlympic legacyscorecardterritorial tourist producttourist destination

Introduction

The Olympic Games held in many countries of the world showed the difficulty of efficient usage of the tangible and intangible Olympic legacy in the system of tourist destination of the host country. The processes of globalization which affect almost all spheres of life - the economic, political, social, information, etc., have not bypassed the tourist sphere. To understand, regulate and manage tourist destinations in modern conditions it is necessary to view tourism as a system of interrelated geographical, economic, social and production systems and other subsystems.

The tourist destination management system in the post-Olympic period of development of Sochi, which was the host of the 2014 Winter Olympics, is a multidimensional process that depends on a number of factors, such as the socio-economic conditions of the region; historical and cultural peculiarities; the level of development of public and private partnerships; the willingness of potential partners to participate in the post-Olympic development of the territory and to take up additional responsibilities related to the management of the destination.

In the article, which is based on an analysis of characteristics of the tourist destination of Sochi, a system of indicators aimed at quantitative assessment of the dynamics of the Olympic legacy influence on development of the city’s tourist destination was proposed.

Today only a few former capitals of various Olympiads can show skillful and beneficial, primarily, economic and, of course, social, athletic and cultural use of the post-Olympic legacy, and its influence on the development of the tourist area of the territory. Thus, The Financial Times international business newspaper noted a number of countries where prestigious sporting events were held and which subsequently experienced economic decline – for example, Greece and South Africa (Aleksandrova, 2016).

The United Nations Organization for Education, Science and Culture (UNESCO) regards the concept of the “world heritage” as “a heritage inherited from the past that we want to pass on to future generations, given its social value and the way it embodies originality and belongingness” (UNESCO, 2014, p. 27). Let us add that a heritage involves a long-time range that exceeds the lifetime of one generation.

The main function of the post-Olympic legacy is to transfer the received specific technical and social acquisition to the next generation of people. Actually, the post-Olympic legacy is a social (change in society) and psychological (new formations in the structure of human psyche) components, which change under the influence of the Olympic factor. As for the indisputable component - the economic one, it is a derivative of man and society, and manifests itself in the figurative thinking of a person or a person’s social consciousness and is regulated by the person.

In fact, in the legacy of the Olympiad there are potential possibilities for the socio-economic development of the host tourist territory to start accelerating significantly for a long period of time. To realize this potential, the Olympic wealth should be correctly assessed and used when forming a strategy for promoting a territorial tourist product, which will ensure a new level of image of the host city and increase tourist flows. Solving the raised issues may be of significant interest for the organizers of the preparation and holding of important mega-events at the national and international levels, which explains the relevance of the topic proposed in the article.

Studies of Russian and foreign scientists aimed at studying the preparation, hosting the Olympic Games and the post-Olympic use of the facilities of the Olympic infrastructure and other major mega-events served as theoretical basis of this work.

Problem Statement

Many foreign scientists, including Chalip (2002), Matten (1997), Mangan (2008), Preuss (2012), Toohey (2008) and others analyzed the development of the mega-events territories, including the territories of the Olympic Games, after they were over. The problems of Olympic legacy and its influence on the receiving side are touched upon in the works of Cashman (2006), Chappelet (2012), Gratton & Preuss (2013), Guttmann (2002), Leopkey & Parent (2012) etc.

Among Russian scientists, Varnaev (2013), Voskolovich (2011), Zlokazova (2010), Kuznetsova, Gratton, & Preuss (2012), Pilipenko (2011), Sharafutdinov (2013) and others chose to consider the problems of the post-Olympic tourist heritage using the integrated approach.

Nevertheless, the issues of rational use of the Olympic legacy, of the assessment of its impact on the development of the tourist and recreational area in the post-Olympic period still remain relevant and require further studying. For the territory where the mega-event will be held, it is important to present the full range of tasks that need to be solved after the completion of the mega-event.

Research Questions

Post-Olympic product can serve as a factor and the basis for the effective functioning of the tourist sphere of the host country. For this, the potential created as the Olympic wealth should be correctly assessed and used when creating a strategy for promoting the territorial tourism product, which will allow to ensure a new level of image of the host city and increase the tourist flows. However, it should be noted that the existing approaches to the assessment of the Olympic legacy from the economic, social, environmental and other points of view are weakly interconnected in practice; there is no systematically developed algorithm for their joint operation, aimed at the synergistic effect, receiving which is mandatory. The synergistic effect here is the increase in the efficiency of tourist destination activity as a result of the integration of individual approaches into a single system. As a result, a system of relevant indicators that would allow the full monitoring of the Olympic legacy contribution to the development of a tourist destination has not been created.

In order to solve the problem in work, a methodological approach is proposed to quantify the influence of the Olympic legacy on the development of the tourist destination of Sochi; an algorithm has been developed for the integral assessment of the influence of the Olympic legacy on the destination development; a set of systemically related criteria for assessing the impact of the Olympic heritage on the development of a tourist destination has been determined.

Purpose of the Study

4.1. To develop a methodological toolkit for assessing the impact of the Olympic legacy on the development of a destination (using the example of Sochi).

4.2. To substantiate the system of indicators characterizing the economic, social and ecological development of the territory in the post-Olympic period.

4.3. To propose methodological approaches to quantifying the influence of the Olympic legacy on the development of a destination and implement it using the example of Sochi.

Research Methods

5.1. Methods of economic analysis, economic and statistical, mathematical, tabular and graphical data processing methods.

5.2. Formation of a system of relevant indicators reflecting various aspects of the territory development.

5.3. Construction of an integral indicator for assessing the total contribution of the post-Olympic product to the development of a tourist destination.

Findings

Infrastructural changes in the tourist destination associated with formation of the Olympic legacy

Formation of the Olympic legacy in the tourist area is accompanied by significant infrastructural changes that can have an essential impact on the subsequent development of the destination.

The following basic properties of infrastructural changes caused by formation of the Olympic legacy are distinguished:

  • multifunctionality, which is expressed in fulfilment of a dual function: servicing tourists while at the same time ensuring the functioning of the tourist and recreational sphere;

  • a variety of networks and service facilities located within the boundaries of a specific tourist area;

  • territorial structuredness, which is expressed in formation of the structure elements according to the “Center – Service Zone” scheme;

  • active role in spatial development of the territory (Kulishkin, 2017).

  • Analysis of methodological approaches to selection of indicators for quantifying the impact of the Olympic legacy on the development of a tourist destination

The analysis of the existing methods for quantifying the impact of large mega-events on the development of a tourist destination allowed us to determine two methodological approaches:

1) Development of a set of indicators showing the quantitative value of one or another influencing factor.

2) Development of an integral indicator reflecting the impact of a complex of factors on the development of a territory.

The generalized indicator is based on the results of the first approach, i.e. calculated on the basis of private indicators, which give the quantitative values of the studied factors.

Procedurally the algorithm for developing an integral indicator of the influence of the Olympic legacy on the development of a tourist destination is described by the following 5 stages:

1) Formation of blocks of indicators of the Olympic legacy contribution to the development of the territory.

2) Determination of private indicators on the basis of which the integral indicator will be calculated.

3) Determination of their normalized values by correlating the factual indicators to their maximum value for the considered period of time.

4) Calculation of the integral indicator of assessment of the Olympic legacy contribution to the development of the territory.

5) Interpretation of the obtained results.

Let us dwell upon the contents of the listed stages.

To assess the Olympic legacy contribution to the development of the territory, it is proposed to distinguish four blocks of indicators: the economic block, the social block, the ecological block, and the infrastructural block. Each block contains a set of private indicators reflecting the nature of the action, its quantitative measurement and the content side of each indicator.

In the structure of the economic block the following group of private indicators can be distinguished:

1)The factual value of the surplus or deficit of the budget of the tourist destination being analyzed. This indicator allows to determine the extent to which the municipality, the subject of the Federation, the Federation as a whole, cover their expenses with the income received from the event.

2)Profit or loss of enterprises located at the territory of the mega-event. The value of this indicator shows the performance of the enterprises at the territory in question.

3)The average monthly salary level of the population of the tourist destination being analyzed. This indicator reflects change in the income level of the population of the territory from the event.

4)The volume of investment in the capital stock. Due to the fact that any major event is accompanied by significant investments, the territory at which it is held, as a rule, updates the main production assets located on it and is interested in improving the capital-labor ratio and capital productivity of enterprises at the given territory.

5)Index of price changes. This indicator allows to determine the extent to which the event impacts the inflation, which determines the purchasing power of the national currency.

In the structure of the social block the following group of private indicators can be distinguished:

1)Unemployment level. With the help of this indicator one can assess the impact the preparation and holding of a mega-event have on the number of employees, the number of labor resources that do not have a main place of work.

2)The ratio of the minimum cost of living and per capita cash income. In connection with hosting a mega-event, the level of monetary income of the population at the territory of the event, as a rule, increases. However, it is important to assess the degree of influence this event provides on the income, which is the purpose of using this indicator.

3)The number of recorded crimes. In our opinion, the use of this indicator allows one to see the criminal component of the event and to assess how it affects the preservation of order and tranquility at the territory.

It is proposed to include the following group of private indicators in the economic block:

1)Current (operational) expenses on the environmental protection, including payment for nature protection services. It is known that any major sporting or cultural event is accompanied by an increase in anthropogenic load on the territory of the event. Evaluation of the impact the preparation and holding of the event have on the environmental component of the territory allows one to see the degree of its negative impact on the environment, as well as the level of environmental expenses.

2)The number of objects with stationary sources of air pollution. This indicator, like the previous one, allows one to assess the impact the preparation and holding of the event has on the environmental component of the territory.

3)The amount of pollutants emitted into the atmosphere from stationary sources. Monitoring of the atmosphere quality is of exceptional importance for Sochi, which, due to the favorable water and natural conditions, specializes mainly in recreation of citizens. The fact is that the atmospheric environment is a complex system, on the one hand, one that is controlled by humans the least, and on the other, the one that affects humans most adversely.

It is proposed to include the following group of private indicators in the infrastructural unit:

1)The number of rooms prepared to serve the tourist flow. The amount of tourists who want to see this mega-event within the boundaries of the territory in question depends on the capacity of the hotels, condition of the rooms and the quality of service.

2)The coefficient of transport accessibility. It is the most important indicator of the infrastructural support of the event, as a quick transport connection with different types of transport will make it possible to supply all of the events held at the territory with audience.

3)The number of large capacity buildings. Public events require a large space to accommodate the audience. This indicator reflects the willingness of the event organizers to meet the demand of viewers for comfortable, roomy halls equipped with necessary equipment and appliances (Kulishkin & Verbin, 2017).

The integral indicator of the Olympic product impact on the development of a tourist destination

The integral indicator is calculated as the arithmetic average of the normalized private indicators for each block (1):

E ? j = ? i = 1 k ? i k , (1)

where: БПj is an indicator that assesses the contribution of the j-factor of the Olympic product to the development of a tourist destination.

Taking into account the heterogeneity of the assessment indicators of the selected blocks, in order to get an adequate assessment, these indicators should be brought to a normalized form. Normalization is carried out by correlating the factual values of the indicators with their best value for the block under consideration. To get the normalized values of the particular indicators, one needs: (1) if the indicator is positive - to find the maximum value (we take it as the benchmark) in the complex of private indicators and divide all the private indicators by it; (2) if the indicator is negative - to find the minimum value (we take it as the benchmark) in the complex of private indicators and divide all the private indicators by it.

The integral indicator of the Olympic product’s impact on the development of a tourist destination is defined as the average value of the indicators of each block (2):

H B O H = ? ? O H · B + C D + ? ? o p · B - + H ? 4 , (2)

where: ИВ ОН is an integral indicator of the Olympic product’s impact on the development of a tourist destination; Экон.Б is an indicator that assesses the contribution of the economic factor of the Olympic product to the development of a tourist destination; СБ is an indicator that assesses the contribution of the social factor of the Olympic product to the development of a tourist destination; Экол.Б is an indicator that assesses the contribution of the environmental factor of the Olympic product to the development of a tourist destination; ИБ is an indicator that assesses the contribution of the infrastructural factor of the Olympic product to the development of a tourist destination.

Assessment of the impact of the Olympic legacy on the development of a tourist destination of Sochi

Tables 01 , 02 , 03 , and 04 present an assessment of the dynamics of the economic, social, ecological, and infrastructural factors of the Olympic legacy influence on the development of the region in 2012–2018 (Central Statistical Database, 2018).

Table 1 -
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Table 2 -
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Table 3 -
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Table 4 -
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The summarized results of assessments of the economic, environmental, social and infrastructural blocks for determining the influence the Olympic legacy had on the development of the territory are presented in Table 05 and Figure 01 .

Table 5 -
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Figure 1: Generalized results of the assessment of the indicators of the Olympic legacy influence on the development of the territory of Sochi
Generalized results of the assessment of the indicators of the Olympic legacy influence on
       the development of the territory of Sochi
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6.4.1. Assessment of the economic factor of the Olympic legacy influence on the development of tourist destination of Sochi

The analysis showed that during the preparation and construction of facilities for the 2014 Olympics in Sochi, there was a significant economic decline (from 0.87 to 0.62). The year of the Games the economic factor value decreased to the minimum value of 0.62, which was caused by significant expenses for organizing and hosting the Olympic Games. However, after the Games were over, there was a tendency of growth of the economic factor caused by the interest in the territory of the Olympic Games (from 0.62 to 0.72).

6.4.2. Assessment of the social factor of the Olympic legacy influence on the development of tourist destination of Sochi

The social factor of the Olympic legacy, in comparison to the economic one, has a more restrained manifestation in general. During the post-Olympic period, the value of this indicator gradually decreased (from 0.79 to 0.64), which is due, firstly, to the decrease in employment due to the completion of Olympic facilities construction and, secondly, to the return to the residual principle in the management of the city’s social policy.

6.4.3. Assessment of the ecological factor of the Olympic legacy influence on the development of tourist destination of Sochi

The environmental factor is different due to the multidirectional changes: during the period of the Olympiad preparation it rises from 0.61 to 0.88 and in the post-Olympic period of the city’s development it decreases from 0.88 to 0.73. The significant improvement of the ecological factor during the period of the Olympic facilities construction is due to the requirements of the Federal Law of November 23rd, 1995, N174-FZ “On Ecological Expertise” and the decision of the head of Sochi of June 19, 2008. “On holding of public hearings on the discussion of materials of assessment of the environmental impact made by the construction of Olympic facilities in Sochi”. Without strict compliance with environmental criteria, no organization could proceed to the construction of an Olympic facility.

The expected preservation of compliance with the ecological factor in the post-Olympic period did not happen, due to the weakening of administrative responsibility for organizations and individuals violating environmental requirements. The tendency of insufficient consideration of the ecological factor remains in force, even in the face of stringent environmental requirements, which they must be during the period of any important mega-event in a resort area (for example, the 2018 World Cup).

6.4.4. Assessment of the infrastructural factor of the Olympic legacy influence on the development of tourist destination of Sochi

The infrastructural factor shows significant growth both during the period of preparation for the Olympic Games (from 0.64 to 0.82) and after (from 0.82 to 0.99). This is perhaps the greatest achievement of the Olympics, which is also being actively used after the Games are over. An important factor of growth of the Olympic legacy infrastructural component is the development of infrastructural components of Olympic construction, which were not mastered during the Olympics, and which were activated and implemented in the post-Olympic period.

Conclusion

The post-Olympic development of the host territory is influenced by key factors of an economic, social, infrastructural and ecological nature, which proves the need to evaluate the effect of these factors in order to determine the contribution of the post-Olympic product to increasing of revenue flow in budgets of different levels and to improving the reputation of a territorial entity.

The developed system of quantifying of the Olympic legacy influence on the development of a tourist destination makes it possible to practically calculate the consequences of implementation of event tourism products of any scale and level. This approach is in demand because it allows one to assess the consequences of the complex impact of various types of events, including those of international level, (world championships, international forums, etc.) on the development of the territories where they are held.

The government of Krasnodar Region rightfully stresses the need for a managerial approach to the post-Olympic legacy - it has a huge social and economic potential.

The scientific novelty of the research lies in: (1) the formation of a system of quantitative gauges, allowing to evaluate the Olympic legacy impact on the socio-economic development of the tourist destination; (2) the use of an integrated approach to assessing the Olympic legacy contribution to the development of a tourist destination of Sochi, including blocks of economic, social, ecological and infrastructural indicators.

The practical significance of the study lies in the feasibility of regional governments to competently monitor the use the legacy of the Olympic Games and of other mega-events affecting the development of territories, and to timely identify weak points in their use.

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02 April 2019

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Cite this article as:

Shapovalov, V., & Verbin*, Y. (2019). Evaluation Of The Influence Of Olympic Legacy On Tourist Destination Development. In & V. A. Trifonov (Ed.), Contemporary Issues of Economic Development of Russia: Challenges and Opportunities, vol 59. European Proceedings of Social and Behavioural Sciences (pp. 528-539). Future Academy. https://doi.org/10.15405/epsbs.2019.04.57