In 2004’s edition of ‘Vision for Leeds’, local residents and businesses voiced that a development goal for the future should be constructing an arena as it would enable Leeds to attract entertainment events to the area and boost the economy of the city. Hence, the city pursued this target (Leeds Initiative 2004). The Leeds Arena is a £80m entertainment venue, which is publically funded (Hayman 2010). SMG Europe, an internationally leading operator of entertainment venues, was selected to become a partner for the arena operations (LCC 2012). In 2013, the 13,500 capacity arena will start its operation as an entertainment venue in Yorkshire (SMG Europe 2012). This report focuses on the possible impacts of the new facility and its events for the city of Leeds. This secondary research provides evidence from academic literature that help to evaluate the methods for measuring various impacts and recommend on which should be employed for the Leeds Arena.
Table of Contents
1. INTRODUCTION
2. IMPACTS
2.1 ECONOMIC FACTORS
2.1.1 OVERALL ECONOMIC IMPACT
2.1.2 EMPLOYMENT
2.1.3 ATTRACTING BUSINESS AND TOURISM TO THE CITY
2.2 POLITICAL FACTORS
2.3 SOCIAL FACTORS
2.3.1 QUALITY-OF-LIFE AND URBAN REGENERATION
2.3.2 LAND PRICES
3. RECOMMENDATION
4. CONCLUSION
5. BIBLIOGRAPHY
Research Objectives and Core Themes
The primary objective of this report is to analyze the projected economic, political, and social impacts of the Leeds Arena on the city of Leeds. It aims to evaluate the realism of the predictions made by the Leeds City Council regarding employment, urban regeneration, and business attraction while providing methodological recommendations for assessing the facility's net benefits.
- Critical evaluation of economic impact predictions for publically funded venues.
- Analysis of job creation claims versus academic evidence in the events industry.
- Examination of the political and budgetary risks associated with stadium investments.
- Assessment of social impacts, specifically quality-of-life and urban regeneration.
- Methodological focus on the application of cost-benefit analysis in event management.
Excerpt from the Book
2.1.1 Overall Economic Impact
While private sector consultants typically conclude that sport facilities have a substantial economic impact, academic reports almost unanimously agree that such venues do not induce a positive economic return to the host community (Grieve and Sherry in press). However, not all investments made into venues prove to be financially viable. London’s Millennium Dome was a national embarrassment as the government put £785m into the project without reaching a financial break even point (Gray 2003; Nutt 2011). A LCC study highlights that an arena project is economically sensible for the city as it will deliver an enhancement of up to £25m annually for the local economy (Leeds Society of Architects 2010). The projected economic impact is based on the assumption that Leeds Arena will attract 900,000 yearly. However, LCC has failed in making realistic predictions previously. When the Royal Armouries Museum opened in 1996, the city forecasted 1.3m yearly visitors; in reality the museum merely attracts 200,000 people (Hardy 2007). Making unrealistic predictions can lead to failure and disappointment. For example, a lot of the difficulties linked to the Millennium Dome may be the consequence of overambitious anticipations rather than a result of fundamental underlying problems (Ravenscroft, Chua and Reeves 2001). However, there are also cases where certain entities state to have created positive economic impacts. For instance, the Prudential Center in Newark claims to have generated more than $11m overall economic impact (Daks 2009). As promotional studies tend to present unrealistic propositions on the subject of economic effects of arenas and stadia, applying unsuitable multipliers to forecast future financial impact, the predictions of the LCC have to be viewed with caution (Siegfried and Zimbalist 2006).
Summary of Chapters
1. INTRODUCTION: This chapter outlines the development goals for the Leeds Arena and defines the scope of the research regarding its potential impacts on the city.
2. IMPACTS: This section provides a critical review of the projected economic, political, and social consequences associated with the construction and operation of the new arena.
2.1 ECONOMIC FACTORS: This chapter scrutinizes the financial claims made by the local council, contrasting them with academic research on employment and economic growth.
2.1.1 OVERALL ECONOMIC IMPACT: This section evaluates the validity of economic forecasts and the risks of overambitious expectations based on past project outcomes.
2.1.2 EMPLOYMENT: This chapter discusses the labor market implications, including the debate over low-wage jobs and construction employment shifts.
2.1.3 ATTRACTING BUSINESS AND TOURISM TO THE CITY: This chapter analyzes whether the venue can successfully act as a catalyst for urban development and tourism spending.
2.2 POLITICAL FACTORS: This section examines the use of public funds and the opportunity costs associated with financing large-scale entertainment venues.
2.3 SOCIAL FACTORS: This chapter explores non-economic impacts, such as community identity and social interaction.
2.3.1 QUALITY-OF-LIFE AND URBAN REGENERATION: This section investigates the link between the arena and local urban renewal efforts, noting both positive and negative externalities.
2.3.2 LAND PRICES: This chapter examines how the presence of the arena affects property values and neighborhood attractiveness.
3. RECOMMENDATION: This chapter suggests utilizing cost-benefit analyses and social impact assessments to better quantify the true value of the facility.
4. CONCLUSION: The final chapter summarizes the uncertainty surrounding the arena's net impact, emphasizing that long-term assessment is required post-operation.
5. BIBLIOGRAPHY: This section lists all academic and official sources cited within the report.
Keywords
Leeds Arena, Economic Impact, Public Funding, Events Management, Urban Regeneration, Cost-Benefit Analysis, Social Impacts, Employment Creation, Opportunity Cost, Stadium Development, Tourism, Quality-of-Life, Leisure Services, Fiscal Policy, Infrastructure.
Frequently Asked Questions
What is the primary focus of this report?
This report analyzes the projected economic, political, and social impacts of the Leeds Arena on the city of Leeds, providing a critical evaluation of the official predictions made by the local council.
What are the central themes discussed in the work?
The central themes include the realism of economic growth projections, the use of public funds for large-scale venues, the potential for urban regeneration, and the social outcomes for the local community.
What is the research's main objective or research question?
The objective is to determine if the Leeds Arena represents a sound investment for the city and to recommend more accurate methodological frameworks, such as cost-benefit analysis, for measuring its success.
Which scientific methods are employed in this paper?
The author utilizes secondary research by analyzing existing academic literature, case studies of similar stadium projects, and official municipal impact statements.
What aspects are covered in the main body of the work?
The main body systematically breaks down impacts into economic factors (including employment and tourism), political issues (public funding and opportunity costs), and social factors (urban regeneration and land values).
Which keywords best characterize this publication?
Key terms include Leeds Arena, Economic Impact, Public Funding, Cost-Benefit Analysis, Urban Regeneration, and Social Impacts.
How does the author view the economic predictions made by the Leeds City Council?
The author views these predictions with caution, citing academic literature that frequently finds that such venues fail to deliver the positive economic returns that are typically promised in promotional studies.
What is the author's stance on the use of public funds for the arena?
The author highlights the significant opportunity costs involved, arguing that these funds could potentially be used for other regional priorities like healthcare, education, or infrastructure, thus requiring a thorough cost-benefit analysis.
What does the report suggest regarding the social impact of the arena?
The report suggests that while social impacts are difficult to quantify, they may ultimately outweigh the monetary costs, provided that the arena successfully integrates into the surrounding community.
- Quote paper
- Remi Bauer (Author), 2012, The Impacts of the Leeds Arena, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/268658
