As sailing becomes more professional, different business models and partnerships are being explored by promoters to deliver value to a wide variety of stakeholders. Around the world, governments are taking a bigger interest in sailing as a platform to deliver not just tourism, but other economic benefits including jobs.
[cleeng_content id=”873905734″ description=”99 cents or 10,000 hours. The path to being an expert can be easy or hard. ” price=”0.99″]While working with government can provide extra resources and opportunities, it also brings increased scrutiny from those who might be seeking to generate political gains. Events that are reliant on public spending for sponsorship can’t point to increased sales of energy drink through the supermarket tills as proof of return on investment. Instead, promoters who work with governments and tourism authorities often have hundreds of metrics they need to report against.
The annual Monsoon Cup match racing regatta held in Terengganu, Malaysia has reported a 30 per cent increase on its returns on investment for event, media and brand value this year compared with MYR539 million achieved last year. The event, which has become the model for other events on the World Match Racing Tour, is also a model for regions that are interested in using sailing as a tourism and development driver.
Peter Gilmour has revealed figures that show the cost of staging the Monsoon Cup was about MYRYR30 million, of which 60 per cent was borne by the government, with the rest supported by private funding. In return, the event is a significant contributor to the nation’s economy.
‘Basically, all the costs go into running and hosting the event and we get tremendous knock-on benefits like additional advertising. Thirty per cent is an average target that had been set for on a year-on-year basis. It has gone up year-on-year by over MYR100 million.
Event organisers report that The Monsoon Cup 2009 attracted 101,794 spectators, created 1,722 jobs and generated a print media value that was worth MYR24 million.
There’s a lot of economic spillover locally. Airport passenger arrivals increased from 300,000 a year to four million while a sports stadium and two brand new hotels were built in the state. All these happened during the Monsoon Cup season.
Malaysia has a eight-year contract to host the Monsoon Cup, organised by T-Best Events Sdn Bhd, the official event organiser for the competition. Longevity and certainty are important for investment and raising sponsorship from the private sector.
What we are doing now is targeting areas like attracting even more spectators and generate a higher turnover locally. So, when that starts getting measured into the local market, that is where we hope to lift the impact.
While the gross television numbers are over-inflated, the measure does allow comparisons to be made year on year. So while a figure in the billions is misleading in terms of the number of people who actually watched, the growth figure that can be calculated by comparing the same metric from year to year is useful. The Monsoon Cup reports:
Last year, 23,359 minutes was broadcast via 24 broadcasters, reaching a potential 2.1 billion households across 184 countries.
In 2008, 12,900 minutes was televised via 18 broadcasters, reaching a potential 1.3 billion households in 137 countries.
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