BUSINESS DEVELOPMENT: Developing Sport Tourism
by Anne Terwiel and David Twynam

The Canadian Sport Tourism Alliance (CSTA) defines sport tourism as “any activity in which people are attracted to a particular location as a sport event participant or event spectator, or to attend sport attractions or sport business meetings.” The CSTA estimates that sport tourism is a $2.4 billion per year industry, and a significant generator of economic activity in large and small communities across the country.

Sport Tourism is becoming the fastest growing segment of the tourism industry. Grant Thornton, in a recent national study, found that a major opportunity for community economic development is in sport tourism, and that 60% of respondents are making sport tourism a priority. The economic impact of sport tourism is not only from gate and sponsorship revenue, but also from capital and operational expenditures. These expenditures impact the host communities accommodation, food and beverage, attractions, and retail sectors as well as construction and other development and service industries. In BC alone, the sport event industry is estimated to generate more than $400 million.

Much is written about the huge impact that large sporting events, such as the 2010 Olympic Games, have on larger communities. Sport events can have a huge impact on small communities as well. From February 22 to March 8, 2003 the Bathurst-Campbellton region in New Brunswick, (population of just under 30,000), hosted the Canada Winter Games. Spending on the games totalled $38.7 million, generating economic activity worth $70.4 million, of which $57.6 million went to the host city of Bathurst (population 12,000). The Bathurst community was the beneficiary of 850 new jobs offering wages of $15.5 million, and $1.5 million in municipal taxes were generated. Participants, spectators, and media all required accommodation during the event, with an average stay of 7 days. This sport event provided significant occupancy rates in mid-winter in New Brunswick, certainly a windfall for local hoteliers.

Large, multi-sport events are not the only events that contribute to the bottom line of communities. On the weekend of December 11 and 12, 2005, the City of Vernon and the Sovereign Lake Nordic Club hosted a FIS Nordic World Cup event. 384 athletes and 1,500 spectators combined to spend 3,849 visitor-nights in Vernon. The $3.1 million spent on the event generated $6.5 million in economic activity for the province, $4.8 million of which was generated for the city of Vernon. The city also benefited from the accumulation of $93,000 in municipal taxes.

Apart from the obvious economic benefits of all kinds of sport events, communities benefit from legacies left by events including sport infrastructure, an experienced volunteer base, and seed money for future events. These legacies combine to make a community more attractive to future sport event organizers, creating further economic benefits down the road.

Sport tourists make up a significant part of the year-round occupancy of many hotels. Sport tourists may have a smoothing effect on occupancy rates, providing business during shoulder seasons, and offering year-round opportunities to host large groups.

There is a sports market for all hoteliers, from high-end hotels to budget properties, depending upon the prestige and significance of the team or the event. For the hotelier, the art is marketing to the team or event that is a good fit with the character of the property. Teams or functions that are very social by nature are a better fit for some properties than others. Marketing and pricing decisions have an impact on the ability to be selective in terms of which teams are attracted as potential guests. Timing is also an important issue for hoteliers; sports tourism participants and conference attendees may or may not be a good fit as concurrent guests at a property, depending upon the configuration of the hotel.

Tim Rodgers, GM of the Best Western, Kamloops and President of the BC Hotel Association, asserts that coordinated partnerships with local sports organizations and local tourism organizations are the key to success in sport tourism. If a local organization is bidding on an event, hoteliers can help by providing organizers with key dates when there is room availability, and further, by providing written guarantees of minimum room commitments for the event. Demonstrated support for events by the accommodations industry is an important component of the bid process.

Hoteliers can benefit greatly from being involved with sport organizations at the local, regional, provincial, or national level. These organizations provide an excellent networking opportunity, and include key contacts involved in event bidding and hosting decisions. The coordination of local properties in a sport event marketing effort also facilitates success in hosting larger events. As with so many things in the tourism industry, education, coordination, networking, and teamwork are the keys to success.

Anne Terwiel, PDP, MBA is a lecturer at the School of Tourism, Thompson Rivers University and David Twynam Ph.D is Dean at the School www.trutourism.ca. Anne can be reached at aterwiel@tru.ca.