ArticlePDF Available

The effect of winning the 2010 FIFA World Cup on the tourism market value: The Spanish case

  • Virginia Tech

Abstract and Figures

The objective of this article is to analyze the effect of winning the FIFA World Cup on the tourism market value, justified by the increase in brand knowledge experienced by the winning team's country. Filling this gap in research, the empirical analysis conducted on the victory of the Spanish National soccer team in the 2010 FIFA World Cup finds a significant increase in the Spanish tourism industry's market value, and shows that the results of individual World Cup matches also have an influence on tourism firm value: winning enhances and losing diminishes firm value, with both symmetric and asymmetric patterns. Important managerial implications are drawn and discussed.
Content may be subject to copyright.
Juan Luis Nicolau
Dpt. of Marketing
Faculty of Economics
University of Alicante
Ap. 99
03080 Alicante
Phone and Fax: +34 965903621
Nicolau, J. L. (2012). The effect of winning the 2010 FIFA World Cup on the tourism market
value: The Spanish case. Omega, 40(5), 503-510.
The objective of this article is to analyze the effect of winning the FIFA World Cup on the
tourism market value, justified by the increase in brand knowledge experienced by the
winning team’s country. Filling this gap in research, the empirical analysis conducted on the
victory of the Spanish National soccer team in the 2010 FIFA World Cup finds a significant
increase in the Spanish tourism industry’s market value, and shows that the results of
individual World Cup matches also have an influence on tourism firm value: winning
enhances and losing diminishes firm value, with both symmetric and asymmetric patterns.
Important managerial implications are drawn and discussed.
Keywords: brand equity; firm value; loss aversion; sports tourism.
In the days around the 2010 World Cup final, the conclusions by Kuper and
Szymanski (2009) about the winning country experiencing a 0.7% increase in its GDP spread
like wildfire, generating debate as to how real this statement is and how cautiously one has to
look at it (El País, 2010; El Mundo, 2010; The Wall Street Journal, 2010). Certainly, winning
the World Cup is not going to bring about any long-term improvement in productivity
capacity, for example; nevertheless, if we consider immaterial, intangible consequences
derived from this victory, the concepts of image and branding immediately show up, which
are critical core concepts for destination marketing (Baloglu and McCleary, 1999). Therefore,
the objective of this article is to analyze the potential existence of an effect of winning the
World Cup on the tourism market value, justified by the increase in brand knowledge for the
winning team’s country.
At the same time, this aim fills an existing gap in research. With the tourism market
witnessing a fiercely competitive arena and destination marketing organizations looking for
mechanisms to attract clients (Bonn et al., 2005; Sirgy and Su, 2000), it is no wonder that
events are a key element in destination strategy (Kim and Chalip, 2004). Not for nothing is
the management and marketing of events regarded as a critical area of research for tourism
(Tkaczynski and Rundle-Thiele, 2010), and a large number of studies have been carried out
specifically on mega-events (Delpy-Neirotti et al., 2001). These are large hyped events of
world importance that are held with the expectation of having a major positive impact on the
image of the host destination (Bramwell, 1997). In this regard, Ritchie (1984) and Ritchie and
Aitken (1985) indicate that mega-events increase awareness of the region as a destination,
help position it and improve its long-term future prosperity by increasing economic activity
and creating new jobs; and, as Dwyer et al. (2005) plainly suggest, they help “put a city on
the map”. Among them, sports events stand out. In fact, Higham and Hinch (2002) identify
sports tourism as one of the fastest growing sectors in the contemporary tourism industry,
where sport event tourism plays a significant role (Funk and Bruun, 2007).
This special interest tourism, in which people “participate in a sports activity,
recreationally or competitively, travel to observe sport at grassroots or elite level, and travel
to visit a sports attraction” (Delpy-Neirotti, 2003) has received a great deal of attention from
academics and decision-makers (Lee and Taylor, 2005; Tassiopoulos and Haydam, 2008).
This is because of its ability to help re-image destinations (Smith, 2005), but especially
because of its high income-generating capacity and its major economic impact on the
economy of the region (Daniels et al., 2004; Dwyer et al., 2006; Lee et al., 2010); in fact, it is
considered a multi-billion global business (Tassiopoulos and Haydam, 2008). This explains
why high-profile sport events are strategically included in the marketing plans of tourism
destinations (Gibson, 1998).
In this context, along with the Olympic Games, the other international sports event
that garners much of the attention is the FIFA World Cup. Categorized as a hallmark event
(Kim et al., 2006), this mega sports event generates a myriad of tourists, creates immense
publicity in the media and, as Lee and Taylor (2005) point out, showcases the host location;
all of which help raise knowledge of the destination (Lee et al., 2005).
Paralleling the large number of studies on mega-events, tourism literature has
analyzed —besides the usual impact analysis (e.g. Samsung Economic Research Institute
(2002))— several facets of World Cup events (Lee et al., 2010), such as tourist motivations to
attend (Kim and Chalip, 2004), residents’ perception of its impact (Kim and Petrick, 2005;
Kim et al., 2006), the environmental impacts (Collins et al., 2009) or the capacity of the event
to help change the image of the destination (Kim and Morrison, 2005).
Certainly, a hallmark event such as the World Cup is designed to enhance the
awareness, appeal, and profitability of a tourism destination in the short and/or long term
(Ritchie, 1984), as well as advertise products to a global audience and leverage business
opportunities in export and new investments (Barney et al., 2002). In this respect, all the
analyses have obviously revolved around the country hosting the event, attempting to find the
benefits of holding the World Cup for the destination.
However, there is a lack of research on the World Cup winner; that is, how beneficial
in tourism terms is it for the country that wins the World Cup? In a way, one can think of the
winning team as a publicized product derived from the event; but here, the team represents a
country, i.e. a destination. Therefore, the crucial question is: is winning the World Cup going
to have an effect on the tourism industry of the winning national team? This article
complements prior research by attempting to answer this question. With this purpose, Section
two reviews the relationship between winning the World Cup and the variation in the tourism
market value, Section three describes the research design, covering the method and data used
and the results obtained, and Section four shows the conclusions.
Several teams compete in the World Cup, but only one is crowned with a golden halo
(arrow 1 in Figure 1). According to Figure 1, and as justified below, we expect that this
golden halo will have a positive effect on the winning country’s tourism market value via
brand knowledge enhancement of the country as a destination (arrow 2). The sources of this
positive effect, based mainly on the components of brand knowledge, are discussed in detail
below; a discussion that will be guided by the relationships depicted in Figure 1 (note that the
purpose of this figure is to outline -not to test- the relationships).
Brand knowledge is comprised of two basic elements (Keller, 1993): brand awareness
(arrow 3) -which in turn implies brand recognition and brand recall-, and brand image (arrow
4) -which is determined by the different associations an individual links to the brand-. These
concepts are reviewed and applied to the World Cup context.
“Insert Figure 1 about here”
In accordance with the Associative Network Memory Theory, information is held in
the memory through an interrelated structure of “cognitive networks”, in which each
cognitive network has various “nodes” and “links” between nodes (Collins and Loftus, 1975).
For the case of any country, say Spain, the cognitive network of brand "Spain" consists of a
number of concept nodes and links, and according to this theory, these nodes contain a
variety of associations, such as attributes, experiences, and evaluations related to Spain. In
this theoretical context, winning the World Cup is a concept node that has become associated
with Spain (i.e., the brand), and the link between the World Cup winning team and its country
is very strong.
Certainly, the connection of the winning team to the destination brand is very high,
both quantitatively and qualitatively. In quantitative terms, i.e. how much information an
individual receives when encoding it, the FIFA World Cup is a global news-generating sports
event that creates huge media attention; there is no denying that the hype generated around
the World Cup is gargantuan (Court and Lupton, 1997; Gartner and Shen, 1992; Govers et
al., 2007). In qualitative terms, i.e. what an individual thinks of the information received, the
effect created by the champion of a FIFA World Cup is unparalleled. Note that soccer, apart
from being the world’s most popular sport, has millions of people enthralled constantly1; as is
1 The relevance of soccer as an all-year-round professional sport activity has not gone unnoticed for researchers,
who have examined the phenomenon from different perspectives, such as: the design of the UEFA Champions
League (Scarf et al., 2009), the adequate season schedule (Drexl and Knust, 2007; Ramussen, 2008), the
often stated “soccer is much more than just a game”, sometimes possessing the traits of a
global religion (Carlin, 2004), with clubs having players become stars as if they were
Hollywood actors and with millions of fans around the globe following the team as well as
the players. Having said this, it does not seem to be trivial for a destination brand to be linked
with a first-class soccer team, as emotions aroused for the latter could be transferred to the
former. These quantitative and qualitative strengths increase the probability of node
activation, making the information more accessible in people’s memory and facilitating its
retrieval; that is, enhancing what Keller (1993) calls “spreading activation”.
Thus, winning the World Cup becomes a secondary association for Spain, and this
secondary association is both favorable (the association of the winning team with the country
as a destination leads people to look for benefits, especially experiential and symbolic
benefits, that can be obtained from visiting this destination) and unique (few things are more
unique and differential than winning a World Cup). Irrespective of individual tastes in sports,
it is a fact that the winner, as stated previously, is crowned with a golden halo.
Hence, on the one hand, winning the World Cup can notably help build a positive
image that identifies and differentiates the destination brand (Baloglu and Brinberg, 1997;
Cai, 2002; Mackay and Fesenmaier, 2000), which in turn, can influence consumer
evaluations of the brand and, consequently, brand choice (Woodside and Lysonski, 1989).
And, on the other hand, the awareness of the brand “Spain” after the 2010 World Cup is
enhanced. The brand will be evoked under many different situations or circumstances much
more easily and more frequently after this landmark victory, increasing “consumers’ ability
to confirm prior exposure to the brand when given the brand as a cue”, i.e. brand recognition
(Keller, 1993) and reinforcing “consumers’ ability to retrieve the brand when given the
product category”, i.e. brand recall (Keller, 1993). Thus, when considering a list of possible
vacation countries, the winning country will be recognized on that list, and more importantly,
it is more likely to be recalled when forming the list. Remember that, in line with Nedungadi
(1990), increasing brand awareness raises the likelihood of being part of the individual’s
consideration set and, consequently, of being selected as a destination.
At this point, the central question in this World Cup context is: Does the enhanced
brand knowledge of the destination have an impact on the tourism firms’ market value?
Defining firm market value as the wealth created by a firm measured by its market
application of game-theoretic principles to the strategic behavior of soccer teams (Dobson and Goddard, 2010),
or the analysis of efficiency in teams’ performance (Boscá et al., 2009).
capitalization (Joshi and Hanssens, 2010), we expect that the World Cup victory will have a
twofold positive effect on the winning country’s tourism market value via destination brand
knowledge enhancement through both tangible and intangible components. Firm value is
comprised of tangible and intangible values, the former including elements such as sales and
profits and the latter encompassing components such as brand equity (Simon and Sullivan,
Regarding the tangible components -sales and profits-, note that as justified before: i)
the enhanced destination brand awareness implies that the winning country will not only be
recognized on a list of potential destinations but will also be recalled when making that list;
and ii) the favorability, strength and uniqueness of the associations elicited will form a
positive image. The consequence of this is an increment in the likelihood of the destination
being part of the individual’s consideration set and, consequently, of being selected as a
vacation destination (arrow 5). This increase in potential tourists should bring about a rise in
sales (arrow 6) and profits (arrow 7) on the part of tourism companies, which would represent
an increase in the tangible part of the firm value (arrow 8).
Concerning the intangible component of firm value -brand equity-. Keller (1993)
defines customer-based brand equity as the “differential effect of brand knowledge on
consumer response to the marketing of the brand”. Derived from this definition, one can
observe that brand recognition and brand recall, together with the favorable, strong and
unique associations have a direct impact on the destination’s brand equity. Simply put,
destination brand knowledge directly affects brand equity (arrow 9). At this point, the critical
question is whether this positive effect of destination brand knowledge on destination brand
equity also has an impact on the tourism firms’ market value.
Joshi and Hanssens (2010) suggest that any action creating brand-related intangible
assets should positively affect firm value. These authors explain this impact through a
spillover effect, in which the brand equity created through marketing activities can spill over
into investment behavior; and through a signaling effect, in which this equity enhancement
can help reduce uncertainty (Tsao et al., 2006). It is important to note that in our article, it is
not individual firms that are investing specifically in the event: remember that it is not a case
of sponsorship or celebrity endorsers and that this is precisely what positions this study
relative to the existing body of knowledge and fills this gap. Rather, it is the umbrella brand
of individual tourism firms that is gaining brand knowledge. Nevertheless, insofar as the
umbrella brand strategy seeks to effectively and efficiently promote multiple products with a
single marketing program (Erdem, 1998) and, according to Wernerfelt’s (1988) signaling
theory, attempts to reduce uncertainty, it is evident that each individual brand under the
umbrella brand can benefit from this brand knowledge enhancement. Obviously, each firm
will make the most of this opportunity depending on its individual resources, but in general,
all of them can potentially benefit, with expected increases to their individual market value
(arrow 10).
Note that, as the analysis is based on the firm’s market value, we have to focus on
companies trading on the Spanish stock market. It means that we are analyzing strong names
for which the spillover is more likely to exist2; this assertion is made on account of Frieder
and Subrahmanyams (2005) conclusions that investors are more probable to favor high-
profile firms. These authors suggest that shareholders tend to invest in assets whose names
are widely recognized so that they can reduce uncertainty. Also, the fact that these companies
are leaders in their industries (airline and hotel, to be precise), it implies that, among all the
available competing alternatives, potential tourists should tend to favor these well-known
brands. That is, once they have chosen to travel to Spain, when it comes to the transportation
and accommodation decisions, these brands should be positioned high on people’s mind or, at
the very least, they should be included in their evoked set. Either way would enhance the
likelihood of being selected. On account of all of this, the central hypothesis is as follows:
H.1. Winning the FIFA World Cup has a positive effect on the country’s tourism
market value.
As a refinement of this hypothesis, we test for the existence of asymmetric shifts in
market value depending on each match’s results. Assuming that a relationship between sports
and business results exists on account of the previous arguments, a natural question arises:
which is bigger, the increment in market value as a result of winning a match or the reduction
in market value as a consequence of losing it? To answer this question, we follow Kahneman
and Tversky’s (1979) Prospect Theory; in particular, its well-known loss aversion property,
which has been notably analyzed, and theoretically and experimentally supported by research
(e.g. Bell and Latin, 2000; Klapper et al, 2005; Lahdelma and Saminen, 2009; Wang and
Webster, 2009). Loss aversion implies that people are more sensitive to losses than to gains.
In this regard, this theory predicts that the absolute level of the change in demand due to a
loss is greater than the corresponding impact of an equal gain. Paralleling this argument, the
2 Myers’ (2010) example of the spillover effect from a psychological standpoint fits in this context. He literally
says that “arousal from a soccer match can fuel anger”, which can lead to non-appropriate behaviors. Of course,
in this example, this author talks about negative feelings, but from a financial point of view, we can extrapolate
this “arousal” from soccer results to investors, bringing about either a positive or a negative reaction depending
on such results.
negative impact on firm value derived from losing a match by a certain number of goals
should be bigger than the positive impact from winning by the same number of goals. In
other words, the result of a match in the World Cup is expected to have asymmetrical effects
in such a way that lost matches have greater impact on tourist firm value than won matches,
even if the goal difference, be it negative or positive, is the same. Remember that, as the
popular saying goes, “soccer raises passions”, so the disappointment of a lost match is likely
to be greater than the joy of winning it; and these psychological outcomes might affect the
aforementioned brand associations. Accordingly, we state the following hypothesis:
H.2. The result of a World Cup soccer match has asymmetrical effects in such a way
that lost matches have greater impact on firm value than won matches, even if the goal
difference, be it negative or positive, is the same.
3.1. Method and data
To analyze the effect of the outcome of the World Cup on tourism market value we
follow a two-stage process: i) selection of the market model specification that best fits the
return series; and ii) estimation of the abnormal returns derived from World Cup results.
Selection of the market model specification
We use the market model of Sharpe (1963, 1964) as it allows us to calculate the
variation in share prices on any given day. By using this model, we can estimate the normal
returns that are expected when there is no other relevant information available, by means of
the following expression:
itmtiiit RR
in which Rit represents the returns on the firm’s share i on day t, and Rmt is the rate of returns
on the market portfolio on day t. The parameters
i and
i represent the constant and the
systematic risk on share i, respectively, and
it is the error term.
The existence of kurtosis and heteroskedasticity in the error term, which are detected
in various empirical applications, would lead to defective estimates (Morgan and Morgan,
1987; Connolly and McMillan, 1989). For this reason, we estimate autoregressive conditional
heteroskedasticity models to find the one that best fits the return series. The main purpose of
the autoregressive conditional heteroskedasticity models considered is to model the
conditional variance of returns. Such models distinguish between unconditional variance,
which is constant and stationary, and conditional variance, which is modified by the available
information. The specific models appraised here are the symmetric models, ARCH by Engle
(1982) and GARCH by Bollerslev (1986), and the asymmetric models, EGARCH by Nelson
(1990) and TGARCH by Glosten et al. (1993) and Zakoïan (1994).
A symmetric model assumes that the effect of new information on the variance is
independent of its sign. Thus, letting p be the number of lags, returns defined by means of an
ARCH(p) model are obtained by the expression (1) where
ititit h
it-2,...N(0, hit)
it i.i.d. with E(
it)=0 and E(
In this context, hit is the conditional variance and is represented as
jitijiit ch
where ci and
ij are parameters to be estimated.
The generalization of this model gives rise to GARCH(p,q) models, where q is the
number of lags of the autoregressive part. In this case, the conditional variance is expressed
jitijiit hch
However, returns can sometimes show a different degree of sensitivity in the face of
good or bad events. Considering such possible asymmetry, other generalizations have been
proposed. The first of these is the EGARCH(p,q) model, in which the conditional variance is
 
 
ijiit h
1 1
2/12/1 )ln(exp
and finally, the TGARCH(p,q) model, whose conditional variance is represented by the
ijitijiit hDch
where 1
D if 0
and 0
D otherwise.
To estimate these models the maximum likelihood method is used. The selection of
the best model is made by employing Akaike’s Information Criteria, defined as AIC=-
2log(LML)/M +2k/M, in which LML represents the likelihood function, M is the number of
observations and k the number of parameters in the model. This measure, apart from
considering the likelihood function, takes the parsimony of the model into account by
adjusting for the number of parameters, which are considered as a penalty. According to the
way AIC is defined, the model with the lowest value will be preferred.
Estimation of the abnormal returns
To estimate the abnormal returns derived from the World Cup results, we rely on
Karafiath’s (1988) alternative event methodology. We have to resort to this, rather than the
traditional two-step event-study methodology3, because of the closeness of our events: the
Spanish National team played seven matches in just eighteen days. It would not be
appropriate to use an estimation period for each event, as it would imply dealing with
estimation periods that are full of events. In other words, if an estimation period is used to get
normal returns, it has to be clear of abnormal returns; otherwise, the estimation of
i and
would be spurious, and the estimation of the abnormal returns of a given event would be
affected by the abnormal returns of preceding consecutive events. However, Karafiath (1988)
indicates, and Norton and Pettengill (1998) corroborate, that the results usually obtained in
the traditional two steps can be obtained in a single multiple regression. In fact, Karafiath’s
proposal consists of appending a vector of dummy variables to the right-hand side of the
market model.
To analyze the effect of the results in the World Cup final a dummy variable DitF is
defined that takes a value of 1 during the eighteen trading days after the final4. The model is
as follows:
ititFimtiiit DRR
i is a parameter that will be positive if the victory has a positive effect.
As we are also interested in the abnormal returns derived from each match result, we
build a second model and introduce in expression (1) the dummy variable Dit, which indicates
the first two trading days5 after the match on day t and two result variables: WINt and LOSSt.
Calling GFt goals for (goals the team has scored) and GAt goals against (goals the team has
conceded), these two variables WINt and LOSSt are defined as follows:
WINt=(GFt-GAt)DW, where DW=1 if GFt-GAt>0 and DW=0 otherwise.
LOSSt=(GFt-GAt)DL, where DL=1 if GFt-GAt<0 and DL=0 otherwise.
3 In the two-step process, one first estimates the market model in a pre-event estimation period to predict normal
returns, and then, in a second step, one finds abnormal returns in an event window by observing the difference
between actual and expected returns.
4 We use this period to balance the statistical test since the number of days between the first match in the World
Cup and the Final match is eighteen; so, we compare the eighteen days prior to the final with the eighteen days
after it.
5 Two days is the maximum number of days we can analyze between matches without overlapping.
The final market model is:
itittiittimtiiit DLOSSDWINRR
Loss aversion will be detected if
i>1, i.e. if the parameter associated with the goal
difference in a defeat is greater than the parameter related to the goal difference in a victory.
The empirical application is applied to two sub-sectors within the tourism industry:
airlines and hotels. More concretely, we study the leading companies in each sub-sector in
Spain: Iberia and Sol Meliá, respectively. The raw data is the daily returns on the firms
during the sports event. Returns are adjusted by dividends, capital increases and splits, so that
they are expressed by Rit=Ln(PtSFt+rt+dt)-LnPt-1, where Pt is the price, SFt the split factor, rt
the subscription right and dt the dividend paid, all of which refer to day t. As a proxy of the
market portfolio Rmt, the IBEX-35 index is used, which is a representative index of the
Spanish Stock Market. The data is obtained from the Spanish Stock Exchange Society. For
the analysis of the effect of the World Cup final on the industry’s market value, we build an
aggregate return measure formed by the average of the two companies’ daily returns; and for
the analysis of the differentiate effect of won and lost World Cup matches on firm value, we
analyze each company’s market value independently to detect potential distinct effects. The
Spanish team’s results for the matches during the study period are obtained from the website
3.2. Results
The first step in the analysis is the selection of the market model specification that
best fits the return series. Table 1 shows each model’s fit. According to the Akaike
Information Criteria, for the analysis of the effect of winning the World Cup final, the
specification which appears to be optimum is the EGARCH(1,1), and for the effect of the
match results, the EGARCH(1,1) for Iberia and the EGARCH(1,3) for Sol Meliá (see figures
in bold in Table 1).
“Insert Table 1 about here”
Once the model that best fits the return series has been determined, we proceed, in the
second stage, to estimate the abnormal returns. Table 2 presents the parameter estimates for
the effect of winning the World Cup final. We observe that the systematic risk -or beta of the
stock- is 0.93, which is quite close to one, implying that it moves at a rate similar to the
market rate. Given that this is an indicator of the stock’s price volatility in relation to the rest
of the market, this close-to-one beta means similar price volatility to the market and,
therefore, similar risk. Regarding the parameter of interest, we find a significantly positive
parameter for the dummy variable DitF , which represents abnormal returns for the eighteen
days after Spain winning the World Cup final; thus, Hypothesis 1 that winning the FIFA
World Cup has a positive effect on the country’s tourism market value cannot be rejected, as
a World Cup victory seems to have a positive effect on the winning country’s tourism market
value via destination brand knowledge enhancement through tangible and intangible
components, in line with Joshi and Hanssens (2010).
“Insert Table 2 about here”
Table 3 shows the effects of winning or losing a match in the World Cup on each firm
value. We observe that Iberia’s systematic risk (beta) is around 0.66, thus it moves at a rate of
about half the market rate, i.e., this less-than-one beta implies less price volatility than the
market and, therefore, less risk (specifically, about half that of the market). For the case of
Sol Meliá, the systematic risk is 1.32, meaning that it moves at a higher rate than the market
rate, involving more price volatility than the market and, therefore, more risk.
As for the parameters of interest, we find -for both Iberia and Sol Meliá- the expected
positive and significant parameters for both variables “won match x goal difference” and
“lost match x goal difference”, meaning that if the National team wins (loses) a World Cup
match, the company returns increase (decrease); thus, winning enhances firm value and
losing diminishes it. These results mean that the effect on tourism firm value is not only
contingent upon the result of the Final, but also upon the results of the matches leading up to
As for Hypothesis 2, we look at the difference between both parameters. For Iberia,
this difference is not statistically significant (Wald test’s Chi-square= 1.552; p<0.282), and
for Sol Meliá, it is statistically significant (Wald test’s Chi-square= 9.587; p<0.001), the two
Sol Meliá parameters reach a ratio of 4.843 (
=4.843>1). With the Sol Meliá ratio being
greater than one, loss aversion is observed; therefore, we can only accept Hypothesis 2 for
this company. It means that the result of a match has asymmetrical effects on firm value;
specifically, lost matches have greater impact on it than won matches even if the goal
difference, be it negative or positive, is the same. In other words, the negative impact on the
firm value derived from losing a match by one goal is about five times the positive impact
from winning by one goal. This difference in results -Sol Meliá showing asymmetrical effects
and Iberia having symmetrical effects- can be a consequence of the fact that Sol Meliá is
perceived as riskier than Iberia on account of their betas (
Sol Meliá=1.328>
Iberia=0.664), so
bad news items (losing a match) will be perceived as worse for the former than for the latter.
“Insert Table 3 about here”
The economic impact of winning or losing is illustrated as follows: for an average
sample market value of €2,236,247,381 for Iberia and €1,019,284,135 for Sol Meliá (the
result of multiplying the number of shares by their share price), positive abnormal returns of
0.27% and 0.32% respectively, derived from a win match suppose an increase in market
value of €6,037,867 for Iberia and €3,261,709 for Sol Meliá, in only two days; for a lost
match, negative abnormal returns of 0.17% and 1.55% represent a decrease in market value
of €3,801,620 for Iberia and €15,798,904 for Sol Meliá.
One final test is necessary to confirm these results. Edmans et al. (2007) suggest that
shareholders’ sports sentiment can affect stock returns in such a way that the level of
excitement of shareholders could influence them. Therefore, we need to test that these
sentiments are not driving the reactions in the tourism market value we have detected. If
shareholders’ sentiment and excitement about the World Cup were affecting the reactions in
share price, the movement in prices would be common for the entire Spanish Stock Market.
We perform three Anova tests to find: i) whether there is a positive reaction in the whole
Spanish market eighteen days after the final match; ii) whether the Spanish market reacts
positively over the two days following a won match; and iii) whether the Spanish market
reacts negatively over the two days following a lost match.
We use the IBEX-35 index as a measure of the whole Spanish Stock Market. We find
that none of the above three tests are statistically significant. Specifically, we obtain the
following statistics for the respective Anova tests: F=0.001 (p<0.976), F=0.896 (p<0.356)
and F=0.086 (p<0.773). Consequently, no general reaction -either positive or negative- of the
Spanish Stock Market is found and, thus, sentiment and excitement derived from the World
Cup do not seem to be driving the evolution of prices.
In conclusion, although there are no general reactions in the Spanish Stock Market,
either during the World Cup or after it, we do find specific reactions in the tourism industry,
both “during” and “after”, on account of the awareness and associations that the champions
of this tournament, “Spain’s La Roja”, can bring about towards the brand of its country as a
tourism destination.
FIFA World Cups are hyped events of world importance that are expected to
positively impact on the knowledge of the host destination brand and, in this regard, the
literature has focused on analyzing different issues around the country hosting the event, in
an attempt to observe whether the event has been good or not -and by how much- for the
destination. Based on this event, this article looks at the World Cup winner and the
consequences on its country’s tourism industry. On account of the repercussions of winning
this tournament, the link between the World Cup winning team and its country is strong, and
the awareness of the brand “Spain” after the 2010 World Cup is enhanced. It implies that the
brand will be evoked more easily and more frequently, increasing its recognition and recall.
Moreover, in a high involvement decision framework like tourism, the characteristics of
brand associations, i.e. favorability (especially in terms of expected experiential and symbolic
benefits), strength (both quantitative and qualitative) and uniqueness (few things are more
unique and differential than winning a World Cup), play a particularly relevant role in
enhancing brand knowledge. Additionally, the country’s name enjoys secondary associations
and gets the advantages of sponsorship activities and celebrity endorsers without the large
expenses that these strategies usually imply. Consequently, there should be an increment in
the likelihood of the destination being part of the individual’s consideration set and,
consequently, of being selected as a vacation destination, producing a rise in sales and profits,
which would represent an increase in the tangible part of the tourism firms’ market value.
Likewise, there is also an increase in the intangible component of these tourism firms’ value,
via the enhancement of their umbrella brand equity.
The empirical analysis designed to test this relationship is based on the victory of the
Spanish National soccer team in the 2010 FIFA World Cup and is applied to the two most
prominent Spanish tourism firms (Iberia and Sol Meliá), which are paradigmatic examples
within airlines and hotel chains, respectively. We find a significant increase in the tourism
industry’s market value as a consequence of Spain winning the cup, because of the
aforementioned positive effect of brand knowledge on firm value. Also interesting is the fact
that not only does winning the cup have an effect on the tourism market value but that
individual World Cup matches have an influence on firm value as well. Note, however, that
while for both companies, winning enhances their firm values and losing diminishes them,
for Sol Meliá these increases and decreases are asymmetric, providing evidence of loss
aversion; i.e., lost matches have greater impact on its market value than won matches even if
the goal difference, be it negative or positive, is the same. This raises the issue of
heterogeneity in the response and thus, each firm’s characteristics need to be considered. For
this case, with Sol Meliá being perceived as riskier and more volatile (on account of its beta),
bad news items (losing a match) will also be perceived as worse.
The findings have relevant managerial implications for both destination managers and
tourism firms operating in these destinations:
i) Firm value has traditionally been used to evaluate and judge managerial decisions,
but this article shows that it can also be used to measure external factors that are not even
management-related but that can have an effect on firm wealth.
ii) Even though the event assessed is not management-related, it affects intangible
assets; note that a large proportion of the value of today’s firms is formed by intangible
assets, so a way to capture any effects on them is the use of a forward-looking measure such
as the firm’s market value (rather than a backward-looking measure like traditional
accounting-based returns on investment).
iii) The results obtained show the importance of building umbrella brand equity for
the tourism industry, as the enhancement of the umbrella brand knowledge is transferred to
the individual brands. Evidently, this is the purpose of building such a brand type, but this
article shows additional evidence of the existence of this type of transfer, so managers can
still trust the umbrella brand strategy.
iv) In line with umbrella branding, it is important to note that today it is usual to find
regions interested in attaching a brand element of sport to their destination marketing profile
(Kim and Chalip, 2004), usually through sponsorship activities. These actions are generally
initiated by public entities in charge of tourism promotion but, according to the findings, they
must be supported by private tourism organizations. This is especially relevant for tourism
firms since, as has been shown, the specific reactions in the tourism industry are greater than
those of the general market. Moreover, it is important to remember the singularity of this
differentiation; i.e. this attribute “having a champion team associated to a destination” is not
easy to copy (in fact, there is only one at any given time) and, therefore, the destination as
well as the tourism firms operating in it, hold a unique competitive advantage. In a recent
interview, Joan Gaspart, former president of the renowned soccer club F.C. Barcelona and
chairman of a Spanish hotel group HUSA explicitly suggests that tourism firms operating in a
region whose main soccer team plays in the first tier (e.g. the “Premier League” in England,
the “Primera División” in Spain, the “Bundesliga” in Germany or the “Serie A” in Italy)
should regard the “decision to support the team as a very intelligent investment” (Diario
Información, 2010). Certainly, at the very least, and paraphrasing Dwyer et al. (2005), it
would help put the region on the map.
v) Spanish tourism firms have to take advantage of the brand recognition and brand
recall as well as the associations that brand Spain currently enjoys. No matter how easy and
potentially retrievable from memory the information is, tourism firms should use reminders
that keep linking the soccer victory to the country as a destination to retain it in the
individual’s consideration set.
vi) Finally, the brand equity reached should be kept as long as possible. Note that,
while in the short-term, the expected inclusion of the destination Spain in the consideration
set and its effects on sales can be accentuated by the recentness of the victory, in the long-
term, it is the brand equity the element that will facilitate the inclusion of the brand in the
consideration set (arrow 11) and will lead to increased sales (arrow 12). On this account,
sustainability is a critical aspect to maintain destination brand equity in this context: not only
do the destinations have to promote their sustainable use but they also have to be aware that
their brand equity is formed by individuals’ perceptions about the destination sustainability.
As people become more and more conscious about the natural environment, they will tend to
favor destinations that take this aspect into account. The environment issue is relevant in all
types of industries; in tourism, however, it is especially important as the environment is a
facet of the tourism product itself and, therefore, it helps build the destination brand equity.
Hence, firms and entities managing these products are expected to act responsibly as
externalities are particularly manifested.
An important limitation of the study is that the effect may not be universal on all
Spanish tourism organizations. As stated previously, we focus on quoted companies, so, the
observed effects can be associated with the organizations’ prominence linked to this well-
known firms.
A further research possibility is the analysis of the winners in other sports. Certainly,
soccer has unique characteristics, being an engrossing sport with all its Hollywood-like
superstar players, but can these results be obtained in other sports? If so, it would broaden
managers’ room for maneuver as it would not be restricted to just one sport. Another future
line of research is to assess which strategy has more impact: providing financial support to an
umbrella brand that has a sports team linked to its name (as in this case) or traditional
sponsorship, in which the company provides support directly to the team. Also, it would be
interesting to analyze if such a victory also brings about changes in the volatility of the firm’s
market value, which in essence would lead us to find out whether there is a reduction in the
firm risk. Finally, it would be appropriate to investigate whether these findings hold in other
soccer championships such as the UEFA Champions League for the top clubs in the
European national leagues or the FIFA Club World Cup for the champion clubs from the six
soccer confederations, with clear implications for the tourism firms located in the city the
winning club belongs to. This would be especially interesting for the Spanish case: note that
the awareness of Spain as a soccer power might already be present in relation to the continual
successes of Barça and Real Madrid. However, the strength of the national team win in the
World Cup might be to see "Spain" as a more universal brand as opposed to the two regions
represented in the two giant Spanish clubs. Consequently, it would be compelling to check
whether the impact of soccer championship victories on tourism firm’s market value is
contingent upon national vs. regional character of the team.
Arcelus, F.J., Kumar, S. and Srinivasan, G. (2012). Risk tolerance and a retailer’s pricing and
ordering policies within a newsvendor framework, Omega, forthcoming.
Baloglu, S. and McCleary, K.W. (1999). A model of destination image formation. Annals of
Tourism Research, 26, 4, 868-897.
Baloglu, S. and Brinberg, D. (1997). Affective Images of Tourism Destinations. Journal of
Travel Research, 35, 4, 11-15.
Barney, R.; Wenn, S. and Martyn, s. (2002). Selling the five rings: The International Olympic
Committee and the rise of Olympic commercialism. Salt lake City: the University of
Utah Press.
Bell, D.R. and Lattin, J.M. (2000), “Looking for loss aversion in scanner panel data: the
confounding effect of price response heterogeneity”, Marketing Science, 19, 2, pp.
Bollerslev, T. (1986) Generalized autoregressive conditional heteroskedasticity, Journal of
Econometrics, 31, 307-327.
Bonn, M.A.; Joseph, S.M. and Dai, M. (2005). International versus Domestic Visitors: An
Examination of Destination Image Perceptions. Journal of Travel Research, 43, 3,
Boscá, J.E., Liern, V., Martínez, A. and Sala, R. (2009) Increasing offensive or defensive
efficiency? An analysis of Italian and Spanish football, Omega, 37, 1, 63-78.
Bramwell, B. (1997). Strategic planning before and after a mega-event. Tourism
Management, 18, 3, 167-176.
Cai, L.A. (2002). Cooperative branding for rural destinations. Annals of Tourism Research,
29, 3, 720-742.
Carlin, J. (2004) White angels: Beckham, Real Madrid, and the new football. New York:
Collins, A.M. and E.F. Loftus (1975) “A spreading-activation theory of semantic
processing”, Psychology Review, 82 (6), 407-428.
Collins, A., Jones, C. and Munday, M. (2009). Assessing the environmental impacts of mega
sporting events: Two options?. Tourism Management, 30, 6, 828-837.
Connolly, R.A. and McMillan, H. (1989) Time conditional variances and event studies: the
case of capital structure changes, Working paper, University of California.
Court, B. and Lupton, R.A. (1997). Customer Portfolio Development: Modeling Destination
Adopters, Inactives, and Rejecters. Journal of Travel Research, 36, 1, 35-43.
Daniels, M.J.; Norman, W.C. and Henry, M.S. (2004). Estimating income effects of a sport
tourism event. Annals of Tourism Research, 31, 1, 180-199.
Delpy-Neirotti, L. (2003). An Introduction to Sport and Adventure Tourism. In S. Hudson
(ed) Sport and Adventure Tourism, New York: The Haworth Hospitality Press.
Delpy-Neirotti, L.; Bosetti, H.A. and Teed, K.C. (2001). Motivation to Attend the 1996
Summer Olympic Games. Journal of Travel Research, 39, 3, 327-331.
Diario Información (2010). Interview to Joan Gaspart, October 17.
Dobson, S. and Goddard, J. (2010), Optimizing strategic behaviour in a dynamic setting in
professional team sports, European Journal of Operational Research, 205, 3, 661-
Drexl, A. and Knust, S. (2007) Sports league scheduling: Graph- and resource-based models,
Omega, 35, 5, 465-471.
Dwyer, L.; Forsyth, P. and Spurr, R. (2005). Estimating the Impacts of Special Events on an
Economy. Journal of Travel Research, 43, 4, 351-359.
Dwyer, L.; Forsyth, P. and Spurr, R. (2006). Assessing the Economic Impacts of Events: A
Computable General Equilibrium Approach. Journal of Travel Research, 45, 1, 59-66.
Edmans, A., García, D. and Norli, Ø. (2007). Sports sentiment and stock returns. The Journal
of Finance, 62, 4, 1967-1998.
Edmans, A.; García, D. and Norli, El Mundo (2010). ¿Saldrá España de la crisis tras ganar el
mundial?. July 12.
El País (2010). Ganar crea Mercado. July 13.
Engle, R.F. (1982) Autoregressive conditional heteroskedasticity with estimates of variance
of UK inflation, Econometrica,50, 987-1007.
Erdem, T. (1998). An empirical analysis of umbrella branding, Journal of Marketing
Resarch, XXXV, 339-351.
Funk, D.C. and Bruun, T.J. (2007). The role of socio-psychological and culture-education
motives in marketing international sport tourism: A cross-cultural perspective.
Tourism Management, 28, 3, 806-819.
Frieder, L. and Subrahmanyam, A. (2005). Brand perceptions and market for common stock,
Journal of Financial and Quantitative Analysis, 40, 1, 57-86.
Gartner, W.C. and Shen, J. (1992). The Impact of Tiananmen Square on China's Tourism
Image. Journal of Travel Research, 30, 4, 47-52.
Gibson, H. (1998). Sport tourism: A critical analysis of research. Sport Management Review,
1, 1, 45-76.
Glosten, L.R., Jagannathan, R. and Runkle, D. (1993) On the relation between the expected
value and the volatility of the normal excess return on stocks, Journal of Finance, 48,
Govers, R.; Go, F.M. and Kumar, K. (2007). Promoting Tourism Destination Image. Journal
of Travel Research, 46, 1, 15-23.
Higham, J. and Hinch, T. (2002). Tourism, sport and seasons: the challenges and potential of
overcoming seasonality in the sport and tourism sectors. Tourism Management, 23, 2,
Joshi, A. and Hassens, M. (2010) “The direct and indirect effects of advertising spending on
firm value”, Journal of Marketing, 74, 20-33.
Kahneman, D. and Tversky, A. (1979), “Prospect theory: and analysis of decision under
risk”, Econometrica, 47, 2, pp. 263-291.
Karafiath, I. (1988) “Using Dummy Variables in the Event Methodology”, The Financial
Review, 23(3), 351-357.
Keller, K.L. (1993) Conceptualizaing, measureing, and managing customer-based brand
equity, Journal of Marketing, 57, 1-22.
Kim, H.J., Gursoy, D. and Lee, S.B. (2006). The impact of the 2002 World Cup on South
Korea: comparisons of pre- and post-games. Tourism Management, 27, 1, 86-96.
Kim, N.S. and Chalip, L. (2004). Why travel to the FIFA World Cup? Effects of motives,
background, interest, and constraints. Tourism Management, 25, 6, 695-707.
Kim, S.S. and Morrison, A.M. (2005). Change of images of South Korea among foreign
tourists after the 2002 FIFA World Cup. Tourism Management, 26, 2, 233-247.
Kim, S.S. and Petrick, J.F. (2005). Residents’ perceptions on impacts of the FIFA 2002
World Cup: the case of Seoul as a host city. Tourism Management, 26, 1, 25-38.
Klapper, D., Ebling, C. and Temme, J. (2005), “Another look at loss aversion in brand choice
data: can we characterize the loss averse consumer?”, International Journal of
Research in Marketing, 22, pp. 239-254.
Kuper, S. and Szymanski, S. (2009) Soccerconomics. New Yorl: Nation Books.
Lahdelma, R. and Salminen, P. (2009), Prospect theory and stochastic multicriteria
acceptability analysis (SMAA), Omega, 37, 5, 961-971.
Lee, C.K.; Lee, Y.K. and Lee, B.K. (2005). Korea’s destination image formed by the 2002
World Cup. Annals of Tourism Research, 32, 4, 839-858.
Lee, C.K; Moon, S. and Mjelde, J.W. (2010). Disentangling the effects on the Korean
economy of the 9/11 terrorist attacks from the short-run effects of hosting the 2002
World Cup, using the CGE model. Tourism Economics, 16, 3, 611-628.
Lee, C-K. and Taylor, T. (2005). Critical reflections on the economic impact assessment of a
mega-event: the case of 2002 FIFA World Cup. Tourism Management, 26, 4, 595-
MacKay, K.J. and Fesenmaier, D.R. (2000). An Exploration of Cross-Cultural Destination
Image Assessment. Journal of Travel Research, 38, 4, 417-423.
Morgan, A. and Morgan, I. (1987) Measurement of abnormal returns from small firms,
Journal of Business and Economic Statistics, 5,121-129.
Myers, D.G. (2010) Exploring Psychology, Worth Publishers: New York.
Nedungadi, P. (1990) Recall and consumer consideration sets: influencing choice without
altering brand evaluations, Journal of Consumer Research, 17, 263-276.
Nelson, D.B. (1990) Conditional heteroskedasticity in asset returns: a new approach,
Econometrica, 41, 867-887.
Norton, E. and Pettengill, G.N. (1998) “Event risk covenant rating announcement and stock
returns”, Journal of Financial and Strategic Decisions, 11, 2 , 1-10.
Rasmussen, R.V. (2008), Scheduling a triple round robin tournament for the best Danish
soccer league, European Journal of Operational Research, 185, 2, 795-810.
Ritchie J.R.B. and Aitken, C.E. (1985). Olympulse II - Evolving Resident Attitudes Toward
the 1988 Olympic Winter Games. Journal of Travel Research, 23, 3, 28-33.
Ritchie, J.R.B. (1984), Assessing the Impact of Hallmark Events: Conceptual and Research
Issues. Journal of Travel Research, 23, 1, 2-11.
Samsung Economic Research Institute (2002). Economic and social change after 2002 World
Cup. Seoul: Samsung Economic Research Institute.
Scarf, P., Yusof, M.M. and Bilbao, M. (2009), A numerical study of designs for sporting
contests, European Journal of Operational Research, 198, 1, 190-198.
Sharpe, W. (1963) "A Simplified Model for Portfolio Analysis", Management Science,
9, 2,277-293
Sharpe, W. (1964) "Capital Asset Prices - A Theory of Market Equilibrium Under Conditions
of Risk," The Journal of Finance, 19, 3, 425-442.
Simon, C.J. and Sullivan, M.W. (1993). “The measurement and determinants of brand equity:
a financial approach”, Marketing Science, 12, 1, 28-52.
Sirgy M.J. and Su, C. (2000). Destination Image, Self-Congruity, and Travel Behavior:
Toward an Integrative Model. Journal of Travel Research, 38, 4, 340-352.
Smith, A. (2005). Reimaging the city: The Value of Sport Initiatives. Annals of Tourism
Research, 32, 1, 217-236.
Tassiopoulos, D. and Haydam, N. (2008). Golf tourists in South Africa: A demand-side study
of a niche market in sports tourism. Tourism Management, 29, 5, 870-882.
The Wall Street Journal (2010). The soccer-stimulus fallacy. July 14.
Tkaczynski, A. and Rundle-Thiele, S.R. (2010). Event segmentation: A review and research
agenda. Tourism Management, forthcoming.
Tsao, H-Y., Pitt, L.F. and Berthon, P. (2006), An experimental study of brand signal quality
of products in an asymmetric information environment, Omega, 34, 4, 397-405.
Wang, C.X. and Webster, S. (2009), The loss-averse newsvendor problem, Omega, 37, 1, 93-
Wernerfelt, B. (1988). Umbrella branding as a signal of new product quality: an example of
signalling by posting a bond, Rand Journal of Economics, 19, 3, 458-466.
Woodside, A.G. and Lysonski, S. (1989). A General Model Of Traveler Destination Choice.
Journal of Travel Research, 27, 4, 8-14.
Zakoïan, J.M. (1994) Threshold heterokedastic models, Journal of Economics Dynamics and
Control, 18, 931-995.
Zhao, L., Tian, P. and Li, X. (2012). Dynamic pricing in the presence of consumer inertia,
Omega, forthcoming.
Table 1. Selection of the model specification
Iberia & Sol Meliá model
(after World Cup Final)
(during World Cup)
Sol Meliá
(during World Cup)
ARCH (1)
ARCH (1,1)
ARCH (2,1)
ARCH (2,2)
ARCH (1,2)
ARCH (3,2)
ARCH (3,3)
ARCH (2,3)
ARCH (1,3)
ARCH (4,4)
EGARCH (1,1)
-5.112 -5.375
EGARCH (2,1)
EGARCH (2,2)
EGARCH (1,2)
EGARCH (3,2)
EGARCH (3,3)
EGARCH (2,3)
EGARCH (3,1)
EGARCH (1,3)
EGARCH (4,4)
TGARCH (1,1)
TGARCH (2,1)
TGARCH (2,2)
TGARCH (1,2)
TGARCH (3,2)
TGARCH (3,3)
TGARCH (2,3)
TGARCH (3,1)
TGARCH (1,3)
Table 2. Effect of Winning the World Cup Final on “Iberia & Sol Meliá” market value
Rm DitF c
1 R-
Parameters 0.933
Table 3. Effect of World Cup match results on firm value
Variables Equation 1
Equation 2
Sol Meliá
Market portfolio
109.685 1.339
Goal difference x Won match
4.386 0.0036
Goal difference x Lost match
6.000 0.0157
-29.561 0.0049
c -7.057
-5.823 -6.222
1 -2.371
-2.948 -2.361
1 -1.496
-6.582 1.561c
1 -0.057
-0.518 0.549
2 -0.385b
3 -0.073
Figure 1. Relationships between the World Cup winner and the tourism market value
World Cup
Winning team
with a golden
Brand knowledge
of the winning
Brand awareness:
- Recognition
- Recall
Brand image:
- Associations (experiential
and symbolic benefits)
- Secondary Associations
Consideration set
Destination 1
Destination 2
Winning country
Destination m-1
Destination m
Umbrella brand
equity of the
winning country
Tourism firms’
market value
... This paper most closely relates to the literature examining the effects of national sport results on economic activities. In particular, it is motivated by the findings reported by Nicolau (2012), who provides evidence that the Spanish national (men) football team's victory in the 2010 FIFA World Cup had a significant and positive impact on abnormal stock returns of the two most prominent Spanish tourism firms for 18 days after Spain's success. Nicolau (2012) argues that the positive effect on Spain's tourism market value has greatly enhanced destination brand knowledge. ...
... In particular, it is motivated by the findings reported by Nicolau (2012), who provides evidence that the Spanish national (men) football team's victory in the 2010 FIFA World Cup had a significant and positive impact on abnormal stock returns of the two most prominent Spanish tourism firms for 18 days after Spain's success. Nicolau (2012) argues that the positive effect on Spain's tourism market value has greatly enhanced destination brand knowledge. More specifically, he shows that being World Cup champion has enhanced the awareness of "Spain" as a brand. ...
... More specifically, he shows that being World Cup champion has enhanced the awareness of "Spain" as a brand. Furthermore, Nicolau (2012) states that the brand's image can be evoked more easily and more repeatedly, improving its recognition and recall. ...
Can success in sport events be a positive determinant of the number of tourists arriving in a country where successful teams are based? In order to test this hypothesis, this paper focuses on football events linking national teams' outstanding performance in the FIFA World Cup tournaments to tourist inflows at the national level. By applying panel cointegrating regressions, the paper finds that countries whose national teams obtain surprising results (e.g. Costa Rica in 2014) in the World Cup final tournaments benefit from a significant increase in tourist arrivals after two years. In countries whose national teams qualify as football champions, the benefits appear in the first and second years following the event and the result is stronger. This suggests that outstanding performance in sport events can favor tourism and economic development in successful teams' home countries. Policies aiming to promote national sporting teams can thus have significant effects on other sectors of the economy.
... Within sport event tourism, considerable attention is being paid to Olympic Games (Mahtani et al., 2013;Weed et al., 2015;Kasimati, 2003), and major events of FIFA (Nicolau, 2012;Peeters et al., 2014), or UEFA (Pavlov, 2016;Lamla et al., 2014). ...
... In 2010, the team of Spain won the tournament. Nicolau (2012) tried to declare the impact of winning WC on the winner's tourism activity. After the tournament, the increase in arrivals was identifi ed. ...
Full-text available
Th is paper focuses on the impact of hosting of IIHF World Championship on the local hotel market using the case of Prague (IIHF World Championship 2015) and Bratislava (IIHF World Championship 2011). Many previous studies were focused on the impact of hosting mega sports and cultural events on destination perception and visit rate during and after the event, perception of hosting these events by residents or the eff ect on the local economy. Using unique daily empirical data collected from 95 Prague hotels and 25 Bratislava hotels, key fi ndings of this study show lack of long-run positive impact but a high short-run (immediate) eff ect. In the case of Prague, the main increase of market performance can be identifi ed during the fi nal stage of the tournament, mainly in selling room rates; for Bratislava, the signifi cant eff ect was determined during the whole tournament, and the entire market never reached the same level of performance. Th e study shows the need to examine these eff ects further, emphasizing more variables like seasonality and market segmentation, revenue management, and destination management.
... Note that after the final game (July 11), there are upticks for the two tourism firms, in line with Nicolau's (2012) Managerial implications are straightforward. As the aggregated indexes are accessible and easy to build, a firm can readily analyze its volume of received versus expected searches for a specific period, and identify how much higher (or lower) search volume than expected the firm is receiving. ...
... If this parameter is significant, then brand search increments should be observed after winning the World Cup. The expectation is that the positive brand associations with the team victory can enhance the image and awareness of the country as a tourism destination, thereby raising brand equity(Nicolau, 2012).To warrant top-capitalized firms capable of capturing the general trends of the global economy in the country, we use the 35 firms included in the IBEX-35 (stock market index in Spain) to build the search volume index of the market portfolio. The weighted average of the search volume indexes for those firms is calculated by using their capitalization volumes as weights. ...
... A number of studies have investigated the influence of all inclusive sport events on destination brands (Burgan & Mules, 1992;Lee & Taylor, 2005;Nicolau, 2012;Swart & Bob, 2012;Knott, Fyall & Jones, 2017;Ziakas, 2018;. The ongoing discourse on sport event leveraging reveals that there are opportunities to use sport events to reinforce brand messages Chalip, 2014Chalip, , 2017. ...
Conference Paper
The aim of this paper is to explore the development a sustainable events risk management framework for the South African (SA) events industry. This conceptual paper has its foundation in current applicable secondary data sources, identified through a systematic review of academic literature. The systematic literature review investigates event risk management and related themes. The documentation of core events literature by custodian events scholars are used to benchmark identified themes emanating from the systematic literature review to inform the development of a sustainable events risk management framework (SERMF). Results highlighted the insufficient integration of sustainable development in the reviewed literature. By applying the principles of sustainable development in an events risk framework, events managers and organisers are capacitated to comply with the South African events law requirements and ensure that risks are mitigated in a manner that can be practically applied. The development of a SERMF may be significant by adding value to the private, governmental and academic sectors in terms of practical application and theoretical contribution.
... On the other hand, the success of the national team at important international events affects (mostly positively) the economy, tourism, or the brand of individual destinations. These events include the World Cup or the Olympic Games, which raise awareness of the region as a tourist destination, helping stabilize and improve its long-term future prosperity by increasing economic activity and creating new jobs [12]. ...
Full-text available
The operations of sports organizations must be managed to create value in the long run. This explicit management will support their efficiency, competitiveness, and sustainability. The key concept measured in this study was the popularity of sports. This concept is a pivotal element in influencing the acquisition of financial contributions for sports organizations (from the state and sponsors) as well as in attracting new members. We conducted an online questionnaire in 2021 focusing on the concept of the perceived popularity of sports in Slovakia. The number of observations was 338, out of the total population of Slovak citizens over the age of 15. We also applied other methods, including content analysis, induction, deduction, comparison, and synthesis analyses. The analysis of the data led to the following findings: in this context, the two most popular sports were hockey and European football; the greatest propensity for fan self-identification was observed for European football, hockey, and basketball; men who indicated a preference for cycling were significantly larger fans of the sport than women; European football and motorsports were almost exclusively preferred by men; skiing, volleyball, and tennis were preferred by women; and basketball was preferred by the youngest respondents. This study aimed to propose recommendations for approaching sustainability, assuming that increasing popularity represents an opportunity to increase a sport organizations’ membership base.
... However, this was contrary to the justification for hosting the tournament that it would advance the domestic populations' socio-cultural attachment to the game of football (Cornelissen, 2010b). Nicolau (2012) and Nicolau and Sharma (2018) stated that victory of the Spain's national soccer team in the South Africa 2010 FIFAWorld Cup gave rise to a higher tourism market value for Spain. It can thus be insinuated that the same effect would be realised for the host nation South Africa. ...
Full-text available
Africa's first FIFA World Cup sparked a series of scholarly work mostly conducted prior to this event. This phenomena is still relevant today with many unanswered questions. This research therefore investigates and examines literature on how the 2010 FIFA World Cup is perceived almost a decade later. A qualitative approach was adopted based on secondary data sources and grey literature. Contextual information was gathered from popular data bases that include Science direct, Ebsco host, Emerald and Google scholar. A total of 20 studies on both tourism in South Africa and the 2010 FIFA World Cup published between 2004 and 2019 were examined and systematically presented and discussed. Recurring trends based on review of literature were identified. The destination image theory and the destination concept were used to comprehend international visitors' attitudes and their interpretation of South Africa as a travel destination. One of key findings was that the crime in South Africa, before, during after the World Cup ranks highest in terms of tourism deterrence. However, the event was generally perceived positive as a fairly positive success with room for socioeconomic improvement. Implications were provided and possible areas of further were suggested with additional questions presented.
... Concurrent to this progression in business, research interest in the analysis of sports tourism has also grown with a broad range of topics that include not only the traditional economic impact (Wood and Meng, 2020) and resident perceptions (Ritchie et al., 2019) but also the impact on the environment (Jiménez-García et al., 2020), potential increase in the number of tourists after the events (Meurer and Lins, 2018), and brand knowledge-related issues such as the effect of sports on the image of the destination hosting the event (Kim and Morrison, 2005) or the economic impact of winning athletes on the market value of their own country's tourism industry (Nicolau, 2012;Nicolau and Santa-María, 2017). ...
... In the early ages of this area of study, researchers such as Burns et al. (1986) studied the Adelaide Grand Prix's economic impact, and Richie (1984) studied the impacts of the Olympics. Over the following years, many other researchers started also working on more diverse set of sport events' economic impact, such as the MLB All star game (Baade and Matheson, 2001), the Daytona 500 Automobile race (Baade and Matheson, 2000), Formula 1 (Rosentraub, 2000), the Super Bowl (Porter, 1999) or the FIFA World Cup (Nicolau, 2010). Mega events have been found to have different impacts on many aspects of a country, such as economic, tourism, psychological, physical, political, social and cultural factors (Parent,2008 ;Ritchie,1984). ...
Full-text available
This article fills a void in the literature by investigating the impacts of royal weddings—arguably the grandest and the most iconic of public ceremonies involving royals—on destination-level brands. The direct and short-term effects of royal families and indeed the direct effect of seminal events involving the royals on destination-level accommodations and tourism service providers are more somewhat obvious. However, the more intriguing question and the one which we are more concerned with is: do royal weddings leave a more enduring legacy on the local tourism industry? The engagement announcement and the wedding date produce significant positive increases in the valuation of the home country’s tourism firms. Important managerial implications are derived in line with the long-term impact of unique events on tourism firms’ performance and the transference of brand knowledge from the destination to the companies is effective.
Full-text available
Management decision assessment is fundamental for the future development of the market value of tourism and hospitality businesses. This article conducts a review of the literature on the event study methodology applied to tourism and hospitality—wherein we identify trends and categorize the main topics analyzed; and seeks to stimulate the use of this methodology to examine the drivers of firm value by outlining its key advantages and providing a step-by-step practical guidance. The article also launches the Annals of Tourism Research Curated Collection on drivers of firm value through event studies in tourism and hospitality. The Collection contains all past articles published in Annals of Tourism Research on the topic, and continues to grow as new articles are added.
Full-text available
Nos últimos anos evidenciou-se uma significativa exploração do possível legado de imagem advindo de megaeventos esportivos por parte dos países e cidades que sediaram estes eventos, tendo como principal justificativa a ampla divulgação gerada, no caso dos Jogos Olímpicos, uma audiência estimada pelo Comitê Olímpico Internacional, em 5 bilhões de pessoas. Toda esta exposição serve também como estratégia de diferenciação para o destination branding, ferramenta fundamental no que tange o marketing de destinos turísticos. O Brasil sediou no período da última década, alguns dos principais eventos do mundo, tendo em 2009 a cidade do Rio de Janeiro sido escolhida como anfitriã da XXXI Olimpíada da Era Moderna. O objetivo do estudo foi analisar o legado de imagem que pode ser alcançado a partir dos Jogos Olímpicos, sendo refletido diretamente na atividade turística. Este trabalho é exploratório e se alicerça como um estudo de caso de cunho qualitativo, amparado por pesquisa bibliográfica e documental. O estudo concluiu que apesar dos impactos positivos na imagem da cidade e do país durante a realização do evento, o legado imagético pode estar comprometido por fatores externos, que ofuscam significativamente este processo, como a falta de segurança que assola o país e os altos índices de violência, afetando diretamente a expansão turística.
Full-text available
Background: An insertion-deletion polymorphism of angiotensin converting enzyme (ACE) gene has been shown to be associated with enzyme activity levels of ACE. Reported results that have been mutually contradictory about asthmatic hypersensitiveness and occurrence according to ACE gene insertion (I)/deletion (D) polymorphism. Also, the involvement of the ACE genes as the genetic basis of bronchial asthma is currently controversy. We investigated whether there was any association between polymorphisms of the ACE genes and airway hyper-responsiveness in chronic obstructive pulmonary disease (COPD). Methods: A total of 100 patients with COPD were enrolled in this study. The ACE genotypes were determined in all subjects by polymerase chain reaction. Pulmonary function test including bronchodilator response (BDR), methacholine bronchial provocation test (MBPT) were done in those patients. Airway hyper-responsiveness include any findings of positive BDR or MBPT. Results: In COPD patients, the ACE genotype distribution did not differ significantly among groups of patients with severities of COPD, and with or without airway hyper-responsiveness. Conclusions: These results suggest that polymorphisms of the ACE gene may not be associated with airway hyper-responsiveness, development and severity of COPD.
Full-text available
Potential tourists use various destination attributes to aid in destination image formation. Destination environmental attributes related to the actual product or site have been shown to influence destination image. These environmental attributes can be grouped into two subcategories—destination atmospherics and destination service. This study identified significant differences in the ratings of these two categories when comparing three groups of visitors to Florida: Florida (in-state) residents, U.S. domestic (non-Florida), and international. Understanding destination images that past visitors hold about a particular destination may provide useful insights into understanding existing images about that destination and can aid in the development of positioning strategies to alter or maintain these images. This study offers a first step in examining the varying perceptions visitors can hold about a destination based on their country of origin.
In this article, the author studies the processes by which consumers’ quality perceptions of a brand in a product category are affected by their experience with the same brand in a different category. The model proposed and estimated explicitly incorporates some of the basic consumer behavior premises of signaling theory of umbrella branding (Montgomery and Wernerfelt 1992; Wernerfelt 1988). The author provides a framework to analyze the impact of marketing mix strategies in one product category on quality perceptions, consumer perceived risk, and consumer choice behavior in a different category. The model is estimated on panel data for two oral hygiene products, toothpaste and toothbrushes, in which a subset of brands share the same brand name across the two product categories. The results show strong support for the consumer premises of the signaling theory of umbrella branding.
The author presents a conceptual model of brand equity from the perspective of the individual consumer. Customer-based brand equity is defined as the differential effect of brand knowledge on consumer response to the marketing of the brand. A brand is said to have positive (negative) customer-based brand equity when consumers react more (less) favorably to an element of the marketing mix for the brand than they do to the same marketing mix element when it is attributed to a fictitiously named or unnamed version of the product or service. Brand knowledge is conceptualized according to an associative network memory model in terms of two components, brand awareness and brand image (i.e., a set of brand associations). Customer-based brand equity occurs when the consumer is familiar with the brand and holds some favorable, strong, and unique brand associations in memory. Issues in building, measuring, and managing customer-based brand equity are discussed, as well as areas for future research.
"Selling the Five Rings outlines the rise of the Olympic movement from an envisioned instrument of peace and brotherhood to a transnational commercial giant of imposing power and influence. Using primary source documents such as minutes of the IOC General Sessions, minutes and reports of various IOC subcommittees and commissions concerned with finance, reports of key marketing agencies, and the letters and memoranda written to and by the major figures in Olympic history, the authors track the history of a fascinating global institution."--BOOK JACKET.
The author presents a conceptual model of brand equity from the perspective of the individual consumer. Customer-based brand equity is defined as the differential effect of brand knowledge on consumer response to the marketing of the brand. A brand is said to have positive (negative) customer-based brand equity when consumers react more (less) favorably to an element of the marketing mix for the brand than they do to the same marketing mix element when it is attributed to a fictitiously named or unnamed version of the product or service. Brand knowledge is conceptualized according to an associative network memory model in terms of two components, brand awareness and brand image (i. e., a set of brand associations). Customer-based brand equity occurs when the consumer is familiar with the brand and holds some favorable, strong, and unique brand associations in memory. Issues in building, measuring, and managing customer-based brand equity are discussed, as well as areas for future research.
Special events are typically regarded as major generators of economic activity and jobs. Despite its continued use in event assessment, Input-Output (I-O) analysis has been rejected in other areas of economic impact evaluation in favor of more rigorous evaluation techniques that recognize resource constraints in the economy and interindustry effects of demand shocks. This article discusses traditional and alternative perspectives on event assessment and the assumptions on which each approach are based. Illustrative results are then provided from a study that contrasted the economic impacts from a selected event analyzed by use of a traditional I-O approach, with estimates provided through the use of a more comprehensive computable general equilibrium (CGE) model. Issues involved in the wider use of CGE models for event assessment are discussed together with the need for further development in event evaluation techniques.
The destination image and positioning studies in tourism have been limited to those dealing with the image's perceptual or cognitive component. This study examined the applicability of Russel and his colleagues' proposed affective space structure to large-scale environments (i. e., tourism destination countries) as well as its potential as a positioning structure to study affective images of tourism destinations. The multidimensional scaling analysis of 11 Mediterranean countries along with proposed affective space structure indicated that Russel and his colleagues' proposed affective space can also be applied to places that are not perceived directly. It also showed potential for studying the affective image positioning of tourism destinations. The article concludes with some theoretical and practical implications and future research areas regarding tourism destination images.