using sports tourism for destination marketing: case study africa

UsingSportsTourismforDestinationMarketing:

CaseStudyAfrica

Relationships,ImpactsandOpportunities

IdyUyoe

[email protected]

SportsProConference

September30,2015

Agenda

• ConventionofTerms• SportsIndustryataGlance• TheModernSportsVenue• MajorEvents’Categories• LeveragingMegaEvents• DefiningSportsTourism• ImageImpact• Policy&Strategy• MovingForward• Challenges• ClosingThoughts

ConventionofTermsTerm Definition

Demographicvs.Psychographic Description versusBehavior

Sponsorshipvs.Advertising Embedded vs.Surface

Activation Processofenablingthesponsorship

College Defined asUniversityincontext,notPrepSchool

Football (Gridiron)vs.Soccer Will bespecificwhenreferringtoeach

Source: A.T. Kearney’s “Winning in the Business of Sports”

The sports events market was worth $80 billion in 2014.


The broader sports industry is worth $700 billion yearly.


Globalsportsrevenueswillgrowatcompoundaveragegrowthrateof14%annuallythrough2016

Football revenues increasedfrom $25.1 billion in 2009 to$35.3 billion in 2013.


Soccer is King

Beating the GDPSports revenue is growing fasterthan the GDP in many countries:

United Kingdom: x3.9France: x3.1Brazil: x1.8


United States: x1.6China: x1.1

SowhatDrivesSportsPassion?

• Fanprideandsupportforteam?• Anappreciationfortheplayers?• Teamcolors?• Familyheritagewithteam?• Aloveofaparticularsport?

OpeningceremoniesoftheBeijing2008OlympicGames

• GlobalTVaudienceof4.2billionpeopletunedin• Butnoactualsportseventstookplace• Sowhytherecordaudiencedespitenoathleticcompetition?

Sport and entertainment can no longer be decoupled, if theyever really could.

TheModernSportsVenue

• ModernsportsvenuessuchasLeviStadiuminSantaClara,Californiaareincreasinglybeingviewedastechnologybrands,onparwithApple,Google,Facebook,etc.• Mustbecompletelywiredandautomatedforsecondandthirdscreenexperiences

• Mustbeviewedasabrandand,consequently,revenuecenter• Avaluableassettobeleveragedbeyondmatchdayevents

• Ownersmusthaveaclearunderstandingofsponsorshipboundaries• Cannotappraiseactivationvaluewithoutfullunderstandingofinclusions

SportsVenuesNeedtodoMore

• Privatelyowned(notgovernment)bytheAMBGroup• WillhostFootball(gridiron)andSoccermatchesbeginningin2017• WillhostCollegeFootball(gridiron)NationalChampionshipin2018• MercedesBenzpaid$12millionperyear,for27years,fornamingrights• ThecompanyisrelocatingitsNorthAmericanheadquarterstoAtlanta

• SponsorshipalignedperfectlywithCityofAtlantaandStateofGeorgia• Bothpartiestoengageinperiodicreviewoftheagreementasnecessary

Example– MercedesBenzStadium,Atlanta,GA

MajorEventCategories

MajorEventCategories

EventType Description MediaInterest

MegaSummerOlympic GamesSoccerWorldCupWorld’sFair/Expo

International

Special

NFLSuperBowl(AmericangridironFootball)EuropeanSoccerChampionshipsEuropeanChampions League

Rugby&CricketWorldCupCommonwealthGamesFormulaOneRacing

International&National

SpecialistMedia

Hallmark Marathons– Boston,London,NewYorkFestivals– Edinburgh RegionalandLocal

LeveragingMegaEventsfor

DestinationBranding

OlympicGames:Tokyo,1964

• Japanusedthegamestoprojectitselfasanindustrialandfinancialpower

• EnterstheInternationalMonetaryFund

• Rehabilitatesitsglobalimage

WhenSeoulwasawardedtheOlympicgamesin1981,therewerenocolortelevisionsetsinSouthKorea.

Seoul,1988

Today,SouthKoreaisanindustrial

behemothandthe4th largesteconomyin

Asia

Barcelona,1992

• Widelyconsideredthe“model”fororganizingmajorsportingevents

• SuccessfullyalignedtheOlympicswithexistingpolicyobjectives

• Spent83%ofOlympicbudgetoncityinfrastructureandonly17%onsports

• Wasthecatalystfortheirurbanrenewalstrategy

• Improvedtelecommunications• Boosteditstourismindustry• Increasedaffordablehousing

• 4,500newflatswithincitylimits• PositionedBarcelonaasaconferencedestination• Constructedfournewringroads

• BarcelonanowEurope’s5th mostdesirabletouristdestination

• World’s10th BestInvestmentDestination

• Achieved50yearsofinfrastructuredevelopmentinjust8years

• Loweredunemploymentrate

• Centerofmobiletelecommunicationsindustry

• Totalcitywidetransformation

Results

• Solidifycredentialsasmegaeventshosts

• Increasetourismreceipts• Bolsterimageasinvestmentdestination

• Improvethetelecommunications,transportation,andhousingsectors

• Urbanrenewal• Improvesocialcohesionamongitscitizens

• Offermediaanopportunitytoremakethecountry’simage

• ConsideredoneofthebestWorldCupTournamentseverstaged

• Changedglobalperceptionsofthecountry

• SouthAfrica(Durban)recentlyawarded2022CommonwealthGamesandlikelytobeawardedRugby2019WorldCup

UnderstandingSportsTourism

AnyTourismwhosemainpurposeistovieworparticipateinasportseventorattraction.

SportsTourismDefined

TheGreeksinventedsportstourismwiththeancientOlympicGamesinOlympia,atthetemple

ofHeraandZeus

Element Description

Active(Participation)• Skiing,cycling,golf• Adventure Tourism• Activeparticipation,exampleMastersGames,etc.

Event sportstourism

• Megaevents– Olympics, WorldCup,ChampionsLeague• HallmarkEvents– Boston/LondonMarathon• NicheEvents– Customizedsportsproperty• VolunteeringatMajorEvents

Nostalgic

• Sports Museums- ProFootballHallofFame,OlympicMuseum,NaismithBasketballHallofFame

• IconicVenues– Wimbledon,WemblyStadium,YankeeStadium,WrigleyField,TheBird’sNestinBeijing

TypesofSportsTourism

DimensionsofSportsTourismType Description

DemandSide

Consists oftouristmarketsandtheircharacteristics• Motives• Perceptions• Socialdemographics

SupplySide

Thingswhichform atouristdestinationarea• Sports Arenas,Stadiums,TrainingFacilities,etc.• Transportation• TouristAttractions• Services,Information

ImpactSideConsequences ofsportstourism– positiveornegative– onadestinationareaandtouriststhemselves

• Growthstrategyforlocaldestination• Urbanregeneration(physical)• Economic

Hotels,restaurants,taxidrivers,cafes• Sociocultural&leisure

• Parks,hotspots,museums• Transportation• RetailReceipts• SportsFacilities• Telecommunications• Housing

SportsTourism:KeyAreasofImpact

SportsTourismDemandGroupsType Description

EliteAthletes

Efficiencyisthemainaim ofthisgroup.Considerations include:• Accesstocompetition, suitabletrainingconditions• Specific accommodationanddiningdemands(dietary)• Accesstophysicians,injuryrehabilitationfacilities

MassSports

Preserving healthandmaintainingfitnessistheiraim:• Performancetargetsareindividuallyfixed• Theaccessibilityofholidayregions• Qualityofsportsfacilities

OccasionalSports(wo)men

Givespreferencestolessdemandingsportssuchastennis,cycling,skiing,• Compensationandprestigeplaygreater rolesthansportingambition• Sportingactivities arenotprioritizedoversightseeingandculturalactivities

PassiveSportTourist

Focusofthisgrouplieswithmegaeventsanddistinguishedsportssites.• Includescoachesandattendantstohighperformanceathletes• Mediareporters• Requireshighvolumeinfrastructurestoaccommodateneedsoflargenumbersofevent

sportattendees

• Sportsareaninvestmentinthetourismindustry• Createsexposureforhostcommunity• Povertyalleviation• ImageEnhancement• Humancapacitybuilding– SME’s• Attracthighyieldvisitorswithintenttorevisit• Developsnewinfrastructure• Createsnewproduct,anewtourismdestination• Createsemploymentopportunities

BenefitsofSportsTourism

FactorsAffectingSportsTourism

•DestinationImageandBranding•PolicyDevelopment•StrategyandSelection

• Whataretheperceptionsofmylocation?

• Whatismylocationknownfor?• Whatdestinationassetsdowehavethatothersvalue?

• Whatdowewanttobeknownfor?

• Whatlegacydowewantoureventstoleave?

• Whatismysustainabilitystrategy?

DestinationImageandBrand

SixBasicDestinationRequirements

1. PersonalSafety

2. FriendlinessofLocals

3. RelaxingAtmosphere

4. Scenery/NationalAttractions

5. TouristInfrastructureSupport

6. LocalTransportation

• Theunbrandedstatehasdifficultyattractingeconomicorpoliticalattention

• Destinationbrandingisadecisivefactorinvisitors’destinationchoice

• Spectatorsandvisitorsarenotleftwithphysicalproducts,rathertheyareleftwithperceptionsandmemories

• Theseexperienceswillformtheirintentiontorevisit,andwhattheytellothers

DestinationImageManagement

ImageImpactonDestinationDevelopment

Africa’sBrandChallenge

• Africannationsseenasamonolithicblocwithsimilarcharacteristics

• Africagenerallyperceivedasanunderperformingcontinentravagedbycrime,famine,disease,civilwarsandcorruption

• Africannationsviewedashavinglimitedinfrastructure,poorgovernanceandweaklegalframework

• TheseperceptionshavenegativelyimpactedtheAfricanStateinthepastwhenseekingtohostamajorsportsevent

In1997,CapeTownwasafinalisttohostthe2004OlympicGames.TheywerecompetingagainstAthens,GreeceandMadrid,Spain.

Ultimately,Athenswasselected,but…

WasthepoorglobalimageofAfricaafactorin

denyingCapeTownthe2004OlympicGames,

despitetheeconomyofSouthAfricabeing

largerandhealthierthantheGreekeconomy?

“Almost no one in the IOC thought, expected, or wanted Cape Town to win, but it was important to show the world that Africa was not being ignored” – IOC Vice President Richard Pound

• sportstourismcanhelpdevelop,enhance,revitalizeandreverseadestination’simage,

• Co-brandingofferstransferofimagebetweeneventanddestination

• Eventmediacoverageincreasesbrandawarenessofhostcitybrand

• Destinationimageandbrandimagemustbealigned

• Valueofhostinganeventdepends,inpart,onthebrand’scapacitytostrengthenaspectsofthedestination’simage/brand

• Intentiontorevisit– Positivedestination’sbrandmeansrepeatvisits

• Socialmediaandinducedexperiencesarethemostauthenticmeansofdestinationbranding

UseSportToShiftPerceptionsandImage

SportsTourismPolicyDevelopment

• Outlinedestinationgoals– sportshouldfitintoabroadertourismagenda

• Infrastructure,sportsculture,skillsdevelopment

• Identifystakeholders–MinistryofSports,Culture&Tourism,residents,athletes,coaches,officials,specialinterestgroups

• Governmentshouldbeanenabler,butnotlead

• Offerincentives– importwaivers,taxbreaks,landconcessions,etc.

• Developsustainabilityagenda• Understandmarketsegmentation

SportsTourismRequiresClearObjectives

WhySportsTouristSegmentationMatters• Understandingthemotivations,perceptions,needsofthevisitor,inordertoimprovevisitorexperience

• Importantindevelopingpolicyinitiatives• Marketresearchisthekeyto“listening”tovisitor’sneeds• Touristexpendituresdrivenbydiscretionarybudgets• Touristspendingisconsideredthemostimportantvariableintheeconomicanalysisofthetouristindustry

• Thismustaccordwiththetouristexperience• Allowspolicytotargethighnetworthindividualslikelytospendmoreandlikelyreturn

• Morelikelytobewhitemale,30+• Affluent/Professional• Universityeducated,likelywithadvanceddegree

• Willingtotravellongdistancestoparticipateinfavoritesports

• Likelytoengageinactivesportintoretirement

• Tendtoengageinrepeatactivity(nota“oneoff”vacation)

ProfileofAdventureSportTouristExample1

• Increasinglymiddleclass,Caucasianfemale

• Likelytotravelingroupsof2ormore

• Universityeducated;Professional• Leisurepreferencesincludesspatreatments,samplinglocalcuisine

• Likelytopatronizenightclubandcafés

• Lookingforuniqueshoppingexperiences

• Typicallengthofstayatlocationis3nights

• Willonlyreturnifexperienceisexceptional

ProfileofEventSportTouristExample2

EconomicIndicatorsa) Howmanydaysdidtheystay?b) Howmanyhotelroomsdideachevent

generate?c) Whatweretheexpenditurepatterns?d) Whatwastheoveralldirectspendingimpacton

thecommunity?

SocialIndicatorsa) Whatotheractivitiesdidtheeventparticipants

andspectatorstakepartin?b) Whatwastheirprimarymotivationfor

attendingtheevent?c) Overall,whatwerethesatisfactionlevelsofthe

participantsandspectatorsforeachevent?d) Inwhatwaysdidthelocalcommunitybenefit

fromtheevent?

ImpactAssessment(Sustainability)

StrategyandImplementationSuggestions

AlignwithInternationalSportsFederations(IF’s)

• Globalsportsgoverningbodies• FIFA,FIBA,FINA,IOC• Offertohostmeetings,conferences,sessions,WorldChampionships• Getyourdestinationoreventaccredited• Exposurewillbuilddestinationstrategy

• Americanfootball(NFL),Basketball(NBA),RugbyLeagues

• IsNigeriaaprioritymarketforexpansion?

• Leaguesworthbillionsofdollarsandattractpremiersponsorshipvalue

• StrongperformancesbyNigeriansmeansscoutingforlocaltalent• Arefacilitiesinplacetohostwhen

theycome?• Targetglobalsportspropertiesfor

camps,exhibitions,etc.• Engagesponsorswhosebrandsalignwithtargetaudiencesofthesesportsproperties

UnderstandGlobalSportsProperties

• UniversitySportsintheUSisa$1billionbusiness

• Offertohostexhibitiongamesinfootballandbasketball

• NaturalalignmentbetweenAmericanUniversitieslookingtoprovidescholarshipstotalentedathletes

• Promotesculturalexchangeopportunities

• Developpartnershipstrategyforsponsorslookingtoactivatearoundparents,youthsandstudents

ConsiderCollegiateAthletics

• Hostexhibitionsforcollegiateorprosportsleagues

• ProvidetrainingfacilitiesforeliteathletestotraininNigeriaduringthewintertimeintheirowncountries

• Aligndestinationwithmegaevent– Forexample,NigeriacouldprovidetrainingfacilitiesforCanadianteamtotrainandacclimatizepriortothe2022CommonwealthGamesinSouthAfrica

• Apositiveexperiencebyforeignteamsprovidesthemostauthentic(wordofmouth)marketingforelevatingdestinationbrand

• Developadventuretourism• Nigeriahasexcellentterrainforthis-Mountains,Ocean,ExoticWildlife

DevelopNicheEvents

MovingForward

• Communitiesshouldfocusonsmallscalesportingevents

• Yieldsmoreeconomicvaluefrommodestsportsfacilities

• Minimalinvestmentrequiredinsportsinfrastructure

• Areleastdisruptive• Typicallymoreimpactfultocommunity

SmallScaleEventsAreBetterInvestment

• Focusonsportstourismandeventsasameansforachievingoutcomeswhichotherwisewouldnothavebeenpossiblewithouttheevent

• Ifbuildingastadiumorfacility,engagebrandpartnersearly• Namingrights,connectivity

• Usemediatoyouradvantage– bothtraditionalmediaandsocialmedia

• Mustdevelopworldclasssportstourismandeventpractice• Therestoftheworldisyourcompetition

• Needtoactivelylobbyforglobalevents– ATP,WTA,etc.• Mustincludethehostcommunityfromtheplanningstages

• Exclusioncouldposeasignificantthreattotheevent• Mustbetransparentwheneducatingcommunityleadersaboutbenefitsandrisks

• Recognizethatvisitorsandspectatorsarenotleftwithphysicalproduct,onlyimpressions

FactorstoConsider

• Trafficcongestion• Sociallydisplacedpeople• Highercostoflivingpostevent• Increasedrent• Jobscreatedareusuallytemporary

• Crimefromoutsiderswhoarenotstakeholdersinthecommunity

• Underusedorabandonedfacilities– Nopost-eventusagestrategy

• Vandalism• Crowding

PlanforNegativeConsequences

• Neithersportsnortourismisprioritized– Notalignedwithdevelopmentalobjectives• Perceptionofimportance– Howmuchvaluedoesthecountryplaceonsportstourism?

• Lackofcontinuitywithpolicywhengovernmenttransitions• Veryweakglobalimage– TheNigerianbrandperceivednegativelyaroundtheworld

• Nigeriaiscompetingwithstrongerglobaldestinationbrands• Manycountrieshaveeconomiesbuiltontourism

• Limitedlocaladvocacyforsportstourism• Governmentdoesnotviewsportasavehiclefordevelopment• Lackofpolicyinitiativestocreateenablingenvironmentforsportstourism

• Security/Crime– Rightorwrong,globalperceptionsarethatNigeriaisnotsafe• Thecountryhaslimitedexperiencewithorganizingglobalevents• Inabilitytoreliablycapturepsychographictouristdata– behaviors,likes, interest,etc.• Lackoffacilitiesforspecialneedsordifferently-abledpersons

ChallengesforSportsTourism:NigeriaCaseStudy

ClosingThoughts• Strategic planning is a critical aspect of sports tourism development• Have a clear sports tourism policy, with realistic goals• Conduct objective assessment of your destination’s unique assets• Tourist expectations becoming more diverse

• Subjective and emotional, laden with symbolic meaning• Use sports tourism to achieve broader developmental objectives• Be aware of the risk – Poor experience will damage your destination's image• Developing economies must differentiate - Be bold, be creative

• Muhammad Ali vs. George Foreman, “Rumble in the Jungle” in 1974 put Zaire on the map• The “Thrilla in Manila”, considered Ali’s signature victory• The history of Muhammad Ali cannot be written without mentioning Zaire or Manila

• Use media to tell your story• Engage knowledgeable partners to facilitate the process – Cannot afford to fail

ThankYou!!!

Idy [email protected]