Event portfolios: asset value, risk and returns
International Journal of Event and Festival Management
ISSN: 1758-2954
Article publication date: 9 October 2017
Abstract
Purpose
The research question addressed is whether an event portfolio analysis rooted in financial portfolio theory can yield meaningful insights to complement two approaches to event portfolios. The first approach is extrinsic and rooted in economic impact analysis where events need to demonstrate a financial return on investment. In the second approach events are valued ally, with every event having inherent value and the entire portfolio being valued for its synergistic effects and contribution to social and cultural goals. The paper aims to discuss these issues.
Design/methodology/approach
Data from visitors to four events in the Sunshine Coast region of Australia are analyzed to illustrate key points, including the notion of “efficient frontier.”
Findings
Conceptual development includes an examination of extrinsic and intrinsic perspectives on portfolios, ways to define and measure value, returns, risk, and portfolio management strategies. In the conclusions a number of research questions are raised, and it is argued that the two approaches to value event portfolios can be combined.
Research limitations/implications
Only four events were studied, in one Australian local authority. The sample of residents who responded to a questionnaire was biased in terms of age, education and gender.
Social implications
Authorities funding events and developing event portfolios for multiple reasons can benefit from more rigorous analysis of the value created.
Originality/value
This analysis and conceptual development advances the discourse on portfolio theory applied to event management and event tourism.
Keywords
Acknowledgements
The authors acknowledge the external support of the following organizations in undertaking this study: Caloundra Music Festival, Mooloolaba Triathlon, Noosa Long-weekend Festival, Sunshine Coast Real Food Festival, Sunshine Coast Council, Tourism and Events Queensland, Sunshine Coast Destination Ltd, and Tourism Noosa. Internal grants were provided by the University of Queensland and the University of the Sunshine Coast. The authors also note that subsequent to this research being undertaken the single local government area of Sunshine Coast has been divided into the two local government council areas of Sunshine Coast Council and Noosa Council.
Citation
Andersson, T.D., Getz, D., Gration, D. and Raciti, M.M. (2017), "Event portfolios: asset value, risk and returns", International Journal of Event and Festival Management, Vol. 8 No. 3, pp. 226-243. https://doi.org/10.1108/IJEFM-01-2017-0008
Publisher
:Emerald Publishing Limited
Copyright © 2017, Emerald Publishing Limited