When a UFC cage fighter posts on Instagram from a government-sponsored event in Perth, how much value does that deliver? Tourism WA has hired EY to answer that question.
When a UFC cage fighter posts on Instagram from a government-sponsored event in Perth, how much value does that deliver? Tourism WA has hired EY to answer that question.
The project will help the government talk up the value from sponsored major events, which are a key part of its tourism and economic strategy.
It already estimates the direct spin-off from major events, which cost the state $59 million last financial year.
For instance, it recently declared that Western Australia's economy was “supercharged” by $105 million last financial year from the Coldplay concerts, WWE wresting and the FIFA Women's World Cup 2023 matches.
This was based on the number of ticket sales interstate and overseas, along with estimates on the average length of stay and average spend by the visitors.
The government wants to take this a step further by estimating the return on investment from related television broadcasts and social media posts.
The project was revealed on the government tenders web site.
It stated that Tourism WA is “seeking to develop a model to evaluate the return on investment (ROI) of events including whole-of-government and social impacts”.
Accounting firm EY has been awarded a $243,000 contract to find the answers.
Tourism minister Rita Saffioti flagged the broader approach last month, when she was asked about the government’s intention – first announced in March – to deliver an ROI for its annual events program.
“We are still finalising that for 2023-24,” she told a media briefing.
“That will include direct economic spend and also highlight viewership around the world and other impacts in relation to social media.
“We will be releasing that soon.”
She asserted that social media posts provided a big boost to the state.
“When you have performers or athletes with millions of followers through Instagram and other social media, you pick up a lot of awareness and a lot of promotion.”
Premier Roger Cook also talked about the benefits.
He said the recent UFC 305 cage fighting event was to be broadcast live to 970 million homes around the world.
He added that 45 million people tuned in from around the world to watch last year’s FIFA football match between China and Denmark “putting the eyes of the world on Western Australia”.
EY’s job is to help Tourism WA come up with a credible number for exactly how much value is delivered from TV broadcasts and social media posts.
For the record, the government spent $59 million to attract 22 major events to WA last financial year.
Its budget for this year is $77 million.
For the Coldplay concerts, roughly 40,000 tickets were purchased from outside WA.
It was estimated that, on average, visitors stayed for a week in WA and spent $274 each day, generating $43.4 million in economic impact for the state.
The WWE wresting event attracted 18,200 visitors from outside WA and they spent a daily average of $347 for a total return of $36.2 million.
The FIFA Women's World Cup featured five matches in Perth.
They attracted 7,000 visitors from outside WA and produced an economic dividend of $25.3 million.
Separately, the government has claimed a $27 million benefit from the Ironman events in Busselton in the past two years.
It also claimed a $16 million pay-off from the UFC 284 event.
And for foodies, it claimed the Truffle Kerfuffle in Manjimup delivered a $3 million benefit.
Tourism WA said the wider social and community impacts of events are well considered during its assessment.
“Tourism WA is seeking to expand the ROI model to include a measurement for these benefits,” a spokesperson said.
