Event marketing the main game

WESTERN Australians spend an estimated $300 million on sporting events each year, which has given rise to a dynamic and growing industry.

And vying for the lion's share of this market are 20 major events, which from now until March 2009 are expected to generate nearly $140 million of new expenditure in the state, according to the Department of Sport and Recreation.

Driving these events are sponsorship deals by large businesses, which in recent years have developed sporting competitions as vehicles to promote their brands, rather than the traditional strategy of purchasing naming rights for existing events.

This trend is evidenced in the major events list compiled by Business Class, which shows about two-thirds of upcoming events are named after major sponsors.

The Red Bull Air Race, for example, was developed by the energy drink maker as a vehicle to promote the Red Bull brand.

The 2006 air race, which is the only one of its kind in Australia and touches down in only 10 cities around the world, generated $13 million in direct visitor expenditure, not including flow-on economic benefits.

The state government, through Eventscorp, a division of Tourism WA, sponsors the race.

The Johnnie Walker Classic was developed with the label's owner, global premium drinks business Diageo plc, to meet the alcohol beverage maker's brand and marketing objectives.

In 2006, the four-day golf tournament at the Vines Resort, injected $5.7 million into WA's economy in direct visitor expenditure from more than 1,200 interstate and international visitors. The event generated more than 378 television broadcast hours into key international tourism markets.

Eventscorp is a major player in securing most sporting events in WA and contracted 32 events in the 2007-08 financial year, which are expected to deliver $134 million into the economy over the next few years.

Over the years, Eventscorp has supported the UBD Australian Surf Lifesaving Championships, the Anaconda Adventure Race, the Griffin Energy Australian Polocrosse Championships, the Velux 5 Oceans Yacht Race, and the Clipper Round the World Yacht Race.

Eventscorp executive director David van Ooran said while almost all events relied heavily on sponsorship, major companies increasingly were creating sports competitions as a direct marketing tool.

"Events are good news for Western Australia and many provide a significant economic boost to the local economy by attracting competitors, visitors, and media, as well as by using local suppliers for event infrastructure," Mr van Ooran told Business Class.

"The extensive media impact generated from major events also assists in positioning Perth and WA as a vibrant, progressive place to live and to do business."

Figures from the Department of Sport and Recreation show that, each year, WA households spend more than $409 million on selected organised sports and events and recreation products.

Nationally, that figure is more than $4.1 billion, representing 1.6 per cent of total expenditure by Australian households.

In WA, local governments provide about $170 million to sport; the business sector provides funding of about $60 million to sports and recreation, with three-quarters of this being sponsorship.

"Of the events hosted in the 2007-08 financial year, there were 1,168 broadcast hours of event and destination footage beamed into key tourism markets around the world," Mr van Ooran said.

Tourism Minister Liz Constable said events such as the Griffin Energy Australian Polocrosse Championships offered significant opportunities.

"Events such as these are also a great opportunity for us to showcase WA and highlight what a great place it is to visit," she said.

The state government, through Eventscorp and the Department of Sport and Recreation, has invested $83,000 in the running of the polocrosse championships.

The event attracts about 3,500 competitors, support crew and spectators each year, many from interstate, and generates almost $1.7 million.

Business Class understands the event is the brainchild of Griffin Energy's owners, the intensely private Stowe family, who are passionate about polocrosse and polo.

The success of this year's UBD Australian Surf Lifesaving Championships at Scarborough Beach demonstrated the continued growth of WA's iconic surf event.Surf Life Saving Australia president Ron Rankin said the event showcased the nation's elite athletes, drawing more than 6,000 surf lifesavers and officials from around the world and generating about $23.84 million in direct additional expenditure in WA by event visitors.

"It is very pleasing to note the total co-operation received from the Western Australian government, through Eventscorp, and the City of Stirling and we look forward to working with them to ensure that Aussies '09 is even better when we return here on March 17 2009," he said.

The Ironman WA Triathlon descends on Busselton in December and is now part of the worldwide family of ironman distance races, which attract more than 30,000 athletes to attempt to qualify for the Ironman Triathlon World Championships in Hawaii.

Mr van Ooran said the event, organised by the International Management Group, was expected to bring in $6.08 million to the state this year.

"It is not a competitive marketplace to run this event in WA as there is no other triathlon event like it in WA that allows competitors to attempt to qualify for the Ironman World Championships in Hawaii," he said.

There are currently only two events in Australia for athletes to qualify for the world championships - Ironman Australia Triathlon in Port Macquarie in April and Ironman WA Triathlon in Busselton in December.

The Anaconda Adventure Race at Dunsborough, sponsored by camping and outdoor equipment chain Anaconda, in 2007 generated $740,000 for the WA economy and brought about 5,170 bed nights to the local Geographe region from visitors.

The picturesque Lilac Hill ground in Caversham, home of the Lilac Hill festival match for almost two decades, will host a Festival of Cricket on November 28 featuring two Twenty20 matches.

WACA chief executive Graeme Wood said tapping into the worldwide excitement of Twenty20 cricket would be a boost to the annual event.

"The thousands of fans that flock to Lilac Hill as well as the corporate guests that attend each year will really enjoy the new format, which promises to deliver two fantastic games of Twenty20 cricket," he said.

On the water, Fremantle is the only Australian host port of the 10-month Clipper Round the World Yacht Race, which generates more than $1.5 million in direct expenditure in the port city.

Teams and visitors to WA represent countries as far as the UK, Scotland, South Africa and Nova Scotia, which are competing against the 2006 winner, westernaustralia2011.com.

Back on dry land, the BMW Perth Cup, held each year on New Year's Day at Ascot, attracts a cosmopolitan crowd of about 30,000 people with the event now taking pride of place at the top of Perth's social calendar.