Eurovision Song Contest Malmö 2013
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1 Eurovision Song Contest Malmö 2013 An analysis of direct and dynamic effects Completed by Berglund&Wiberg consulting on behalf of the City of Malmö and Region Skåne June 2013
2 Introduction Commissioned by the City of Malmö and Region Skåne, an analysis was conducted in 2013 of the direct and dynamic effects that the Eurovision Song Contest (ESC) had on Malmö. The basis of the analysis is a series of surveys and interviews with representatives of the event organisers. The clients; the City of Malmö and Region Skåne, wanted to know what effects the Eurovision Song Contest yielded in the south-west of Skåne, and primarily in the municipalities referred to in the report as the Malmö Region*. The analysis of the Eurovision Song Contest is based on the following: Interviews with representatives of the event organisers Evaluation of Malmö as a tourist destination The visitors' perception of Malmö during the ESC week Tourism survey In addition to the above, the City of Malmö and Region Skåne have conducted a media analysis of the ESC. The results of which will be reported separately. The effects stated in this report may be categorised as either direct or dynamic effects. The direct effects are relatively easy to prove as a direct consequence of the event. The dynamic effects arise as a result of the change processes that are initiated at the destination, for which the event is only one of many influencing factors. The dynamic effects are not quantifiable, as they are not solely effects of the specific event. The report consists of two parts: 1) Report of direct effects 2) Discussion regarding dynamic effects *Malmö, Vellinge, Lund, Trelleborg, Lomma, Burlöv, Svedala, Kävlinge, Staffanstorp 2
3 The world's largest music event The Eurovision Song Contest is the largest music event in the world, and in 2013 it attracted 173 million viewers around the globe. An audience of 83,890 (excl. media) watched the event live at the Malmö Arena, ant tens of thousands visited the festival areas in central Malmö each day. The 58th annual Eurovision Song Contest took place at the Malmö Arena in the period May The winner of 2013 was our neighbour Denmark. A total of 83,890 people were present at rehearsals, semi-finals and the 18 May final. Included in the number of spectators, in addition to the general public, were the total 1,200 people who made up the country delegations. The 1,700 journalists who covered the event have not been included in the number of spectators. Many of the ESC guests bought tickets for several events and, on average, each person attended 1.7 shows. 3
4 Direct and dynamic effects The model below shows that the event contributes to a number of different effects, and how many effects are not seen immediately, but later on. Several of these effects will only be seen at a critical mass of events/activities, and then under influence of what happens in the surrounding world. The model should thus not be interpreted as the result of a single activity, the event is instead a piece of the puzzle that is the total selection of the destination. Time Dynamic effects Future visitor effect (returning + new visitors) New events New enterprises New residents Low out-migration (retention effect) Dynamic effects Financial direct effects Financial direct effects Tourism revenue Implementation result Non-financial direct effects Experience of Malmö and the ESC Greater range for residents Event skills (increased) Increased local pride Increased knowledge and image creation (Malmö/Skåne/Sweden) Cooperation models (improved/new) Non-financial direct effects ESC
5 Direct effects
6 31,700 tourists coming to Malmö and Skåne The Eurovision Song Contest was a huge success, attracting a total of 48,100 individual visitors to one or more of the ESC shows. Out of these, approximately 31,700 were tourists and a very large number, 18,400, were foreign tourists, which goes to show the great international appeal of the ESC. The 48,000 people were mainly regular visitors to the event, but there were also visitors to a special children's show, the delegations from the participating countries and journalists. The group 'tourists' is defined as foreign nationals and Swedish citizens living outside of the municipalities Malmö, Vellinge, Lund, Trelleborg, Lomma, Burlöv, Svedala, Kävlinge and Staffanstorp. 6
7 Many visitors from abroad The Eurovision Song Contest attracted many ESC visitors from abroad to Malmö and Skåne. Most of the foreign visitors were from Europe, the majority from Denmark, Finland, the UK and Germany. The ESC attracted visitors from all over the world to Malmö. As much as 43 per cent of the ESC visitors were from other countries. The foreign nationals were distributed according to the diagram below. Great Britain Germany Denmark Finland Norway Other countries 5% 8% 16% 14% 18% 39% The group 'other countries' consists of people from more than 60 countries, many of which are in other parts of the world than Europe. For example, an estimated 700 people from Australia have visited Malmö thanks to the ESC. 7
8 A great number of first-time visitors For a destination, it is important to attract first-time visitors who, if they are pleased, may become returning visitors. The ESC turned out to be an event that attracted a great number of first-time visitors to Malmö and Skåne, and in particular foreign visitors. The ESC attracted many new visitors, who had never visited Malmö before. In total, the event attracted approximately first-time visitors. 11% of the Swedish tourists 16% of the Danish tourists 65% of the foreign tourists, excluding the Danes 8
9 Many overnight stays in the Malmö Region The Eurovision Song Contest generated many overnight stays in Malmö/Skåne and Denmark, most of them were commercial overnight stays. The overnight stays in Malmö are spread over a long period of time: from April, when the first arena construction crew arrived, to the end of May when the event was over. A high proportion of the tourists, around 80 per cent, stayed the night during the ESC. And because the average stay was as long as 4.5 days, it meant many overnight stays in Malmö/Skåne and Denmark. There were an estimated 27,200* commercial overnight stays in Denmark The most interesting aspect for the tourism sector is the commercial overnight stays, and for the Malmö Region, these amounted to approximately 65,000, a little over 60,000 of which took place in Malmö, and 4,500 in other parts of the Malmö Region. A little over half of the latter overnight stays were in Lund. *Assuming that the length of the stay and the proportion of commercial overnight stays is the same as in the Malmö Region. 9
10 185 million for Malmö and Skåne The turnover for the tourism sector as a result of the event is estimated to be SEK 160 million in Malmö and Skåne. The implementation result is valued at SEK 25 million. These two values correspond to a theoretical employment effect of a total 130 annual work units (full-year equivalent employment). ESC visitors, participating country delegations and journalists generated a consumption, i.e., tourism revenue, of SEK 160 million (incl. VAT but excluding the cost of ESC tickets) for the Malmö Region*. The implementation result consists of the part of the ticket income that stays in Malmö, and this is an income that would not exist without the event. For this event, the largest items are the compensation paid to Malmö Arena and the consumption generated by the arena construction crew/technicians in Malmö during the preparation and implementation of the Eurovision Song Contest. The implementation result is valued at SEK 25 million excluding VAT. The resulting employment effect corresponds to 130 annual work units. This is a theoretical value, since it is now known where the employed people reside. They may live in the Malmö Region, but they may just as well live somewhere else. *Malmö, Vellinge, Lund, Trelleborg, Lomma, Burlöv, Svedala, Kävlinge, Staffanstorp Tourism revenue SEK 160 million (incl. VAT) Implementation result SEK 25 million (excl. VAT) 10
11 The ESC improves Malmö's image The visitors to the ESC had a very good impression of Malmö. The diagram below shows the proportion of visitors who felt that each value word fitted their perception of Malmö during the ESC week. Welcoming Openness Energetic mood Lively Diversity Positive surprise Creative Playful Dynamic Fresh ideas/innovative High pulse Tough/hard Boring 7% 6% 63% 63% 59% 59% 87% 81% 77% 75% 73% 71% 71% Source: online survey taken by 2879 ESC visitors 11
12 The tourists are pleased with Malmö Malmö has received great reviews from the tourists. One of Malmö's greatest strengths is its accessibility, which is highly ranked. The same is true for the reception, which most felt was positive, and the atmosphere in Malmö. It was difficult to find a place to stay during the ESC, which is the cause of the lower ratings for Malmö accommodation. Very poor Fairly poor Neither good nor bad Fairly good Very good Accessibility How you were treated Mood/atmosphere Shopping Restaurants Culture Activities Accommodation 0% 20% 40% 60% 80% 100% Source: online survey taken by 2879 ESC visitors 12
13 Dynamic effects 13
14 Dynamic effects of the ESC The dynamic effects of an event is the effect that it has on change processes and the future development of the destination. And this does not only refer to the development of tourism, but also to things like business development and population composition and numbers. The dynamic effects can hardly ever be quantified for a single factor, such as an event, since these effects are created by a number of interacting factors. In this case, an assessment of the dynamic effects of the event has been done based on how the event could feasibly affect the ability of the destination to attract return visits and new visitors; and on its chances of attracting other events. Return visits and new visitors The ESC visitors' interest in visiting Malmö again is high, and so is their willingness/intention to recommend visiting the city to friends and family which is shown on the following pages. The positive media coverage, and the large number of television viewers will most likely have an even greater positive effect on the number of future visitors to Malmö and Skåne. New events: The successful organisation of the ESC, and the establishment of new cooperation formats have created skills and goodwill that can be expected to lead to more organisers of large events not only daring to, but really wanting to hold their events in Malmö. 14
15 The ESC visitors want to come back A majority thinks that they will come back to visit Malmö as tourists. A relatively high number of foreign visitors think that they will come back to Malmö. For several of the foreign tourists (excl. the Danes), this was their first visit, which indicates that Malmö has made a positive impression and that the visit left them wanting more. Will definitely come back Will probably come back 21% 30% 24% 38% 54% 65% Swedish tourists Not sure 10% 7% 24% Danes Will probably not come back Will definitely not come back 6% 2% 2% 3% 15% Foreign tourists excl. Danes Source: online survey taken by 2879 ESC visitors 15
16 A great willingness to recommend Malmö The ESC visitors were pleased with their stay, and most of them will recommend visiting Malmö to their family and friends. When it comes to choosing a travel destination, family and friends have a strong influence. It is a reasonable assumption that the ESC tourists will influence whether their family and friends travel to Malmö in the future. Will definitely recommend Will probably recommend 35% 32% 27% 44% 42% 56% Swedish tourists Not sure 8% 19% 14% Danes Will probably not recommend Will definitely not recommend 4% 3% 7% 1% 5% 2% Foreign tourists excl. Danes Source: online survey taken by 2879 ESC visitors 16
17 Summary of facts Completed online surveys: 2,879 Reply frequency: 24% Number of individual ESC visitors: 48,100 Total number of tourists: 31,700 Number of foreign tourists: 18,400 Average number of ESC shows seen: approx. 1.7 Number of spectators (excl. media): 83,890 Gender distribution, total: 48% women 52% men Gender distribution, foreign tourists: 29% women 71% men Average age of the ESC visitor: 52 Average length of stay for tourists staying overnight: 4.5 days Average tourist spending during their stay (excl. ESC tickets): SEK 5,047 Theoretical employment effect: 130 annual work units. Implementation result: SEK 25 million Tourism revenue: SEK 160 million 17
18 18
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