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On the other hand, those businesses that are situated elsewhere do not attract additional customers. Some even face a decline in turnover because their usual customers switch to places in the city center during the festival personal communication, January, Retail shopping; Retail sector appeared to be the most complicated to analyze in the case of Klaipeda Sea Festival To obtain a representative sample, we would need to classify the retailers according the goods they offer.
Moreover, even if we were able to identify the business spheres of the retailers, it would still be unclear how to treat them. Thus the final estimation would depend purely on our subjective judgment. Moreover, the large retailers are very unlikely to share their financial information even for the research purposes. Even though it is too complicated to estimate the change in revenues in this sector, it is possible to ratiocinate at least the general trends of money flows during the festival.
If we would be able to look at the revenue composition in the large shopping malls Akropolis, Banginis, BIG during the days of the event, we would probably see a shift in terms of the origin of the customers. The people who come to the Klaipeda Sea Festival from the small towns or villages usually use the opportunity to shop for clothes, outfits, or other items in the large shopping centers.
For Klaipeda residents it is easier to shift their shopping patterns for non-essential goods to a later period in time so they are less likely to go shopping during the festival. Smaller grocery stores are likely to demonstrate a slightly different pattern.
Festival visitors who come to the city for the celebration are likely to eat out if they stay in the hotel or to have their meals with friends or relatives who live in Klaipeda if they stay with them. Therefore, it is likely that the food stores do not feel any significant effect of the Klaipeda Sea Festival. However, the stores offering a more limited number of goods mostly alcohol beverages, cigarettes, snacks, and ice-cream usually experience a substantial rise in turnover.
As such stores are usually located in the city center, they Economic Impact 27 become the usual choice for festival visitors wishing to buy snacks or refreshments but not willing to pay high prices in bar and cafes. Also, as many of the activities during the festival are outdoors, the possibility to carry the food or beverage with you is another advantage of small beverage and snack retailers.
To sum up, from all the retail sector the small stores that sell refreshments and snacks are most likely to feel a significant change in revenues during the festival. However, the impact is not estimated in this study. It is interesting not only to see the monetary impact, but also to look at what actions different transportation providers take up during the festival and how they are interconnected. The primary list of the sector contains 52 companies.
The majority of them are car rental companies which we consider unrelated to the Klaipeda Sea Festival. The adjusted list has only 12 companies left, which we classify into five categories. As we cannot use the same sampling techniques as for the lodging or food and beverages sectors, a wide range of alternative methods are employed to obtain necessary information.
As the representative of the company explained, the company had started implementing the electronic system that would allow tracking the number of passengers using public buses only several months ago. They do not have the data for July , and they also do not know how many paper tickets were sold and used during the weekend of the festival.
However, they shared information about additional bus routes mostly night buses as well as costs related to those routes and reinforced security. According to the company, additional revenues they earned basically match the additional expenses, thus we use the figures of expenses in our analysis and the estimated increase due to the festival is We acquired the precise quantities of the passengers and vehicles during the respective weekends, which enabled to calculate the change in revenues, which turned out to be The industry expert also claimed that the effects of the festival are double-sided.
On the other hand, during the celebration the company must rearrange its timetables and routes. The 1st ferry terminal in the city center is temporarily moved to another place, because ships and yachts visiting or participating in the festival need extra space to wharf. The activities in the 2nd ferry terminal which has more capacity for motor vehicles are slightly limited because of the events that are taking place in the Curonian lagoon ex.
So, according to the interviewee, there would be some potential to increase the revenues even more if the ferry infrastructure would not be disturbed by the above mentioned factors. There are 10 registered taxi firms and some taxi drivers who operate their private cars independently.
We have conducted conversations about the sector with directors of several taxi firms whom we managed to reach and estimated the total figures using the information they provided. They claim that on weekends all the companies are working at almost full capacity, so the Klaipeda Sea Festival does not have a big impact in terms of the number of customers. Another type of transport in Klaipeda is minibuses. There are 10 enterprises registered in Klaipeda, and, because of the specific regulations for each specific route, each of those companies specializes in one or at most two routes.
Nevertheless, some important information was obtained from a person who had been working on a project with all the minibus companies half a year ago. This company operates 11 intercity and 4 international bus routes, so it is necessary to estimate the change in revenues for the buses that run the non-local routes. Based on our data, during the Festival weekend the company faced a To sum up, the transportation sector generated an additional 1,, LTL , EUR during the festival, representing a Entertainment; Entertainment sector presents an interesting case for the study due to the specificity of the companies that belong to the industry.
The primary list consists of 62 entries, and roughly half of them have to be discarded because of their location or the unrelated ventures like betting firms. This leaves us with 28 businesses, which we divide into several categories. The biggest category — 17 different organizations — consists of museums, theatres, and art galleries.
We contacted the majority of them and received a quite precise picture of the situation. Museums and galleries in Klaipeda are closed on weekends. Theatres, culture centers and organizations that are independent from the municipality appear to be boycotting the whole festival as such. Some of the representatives even claim that they usually try to leave the city during the celebration. Thus, with public organizations performing for free and private organizations not participating at all, the revenue can be regarded to be zero.
The only organization that generates additional value due to the Klaipeda Sea Festival taking place is the Lithuanian Sea Museum located on the Curronian Spit. Another category consists of casinos. There are four different companies registered operating in Klaipeda city. Unfortunately, due to the specific nature of their business, it is impossible to get the information about their revenues.
Nightclubs are the only category of the entertainment sector for which we managed to receive precise revenue figures except for the Sea Museum. During the Klaipeda Sea Festival seven main nightclubs were operating. The other four reported a sharp rise in revenues during the festival. However, it still had an additional stream of clients.
Even though the turnovers of the clubs during the festival were three times higher than during the following summer weekend, the total figures are still relatively small: totaling , LTL , EUR for the weekend. This can be explained by the summertime being the worst season for nightclubs in general. The revenues of the entertainment industry are presented in Table 5, Appendix E. There were participants in the fair of However, only 7.
Almost two thirds of the traders came from Vilnius and Kaunas regions, while the remaining part represented various smaller towns of Lithuania. The participation scheme of the fair is also important for the economic impact assessment. In order to receive permission to trade during the Klaipeda Sea Festival, it is necessary to submit an application in the beginning of summer and to book a retail area through the ticket selling agencies.
The area of the fair is divided into three sections according to location, with more central locations having higher rent rates. In comparison to the planned sample size and proportions, the real sample structure is a bit different: the youngest group is overrepresented, while elderly is underrepresented. The precise sample structure is provided in Appendix F, Table 6. The sample is adjusted by excluding cases that represent a mismatch within the answers. Such cases include stating non-attendance of the festival, while at the same time: a saying on which days it was visited; b providing figures on expenditure during the celebration.
Not being able to fully control the spread of survey, some non-Klaipeda city residents have filled in the survey. These cases have also been removed before calculating the attendance rate. Therefore, the attendance rate of the Klaipeda Sea Festival by Klaipeda city population, which equals The rate differs among the age groups: it represents a decreasing trend with respect to the increasing age see Appendix F, Table 6.
In order to reduce the effects of the recall bias some more answers are excluded before further analysis. This sampling bias is adjusted for using the post-stratification technique, which allows performing analysis based on weighted groups. Detailed calculation of the weights, which in this case are based on gender and age group, is provided in Appendix F, Table 7.
In order to estimate the total spending of the locals during the weekend when Klaipeda Sea Festival took place, the mean spending on the goods and services provided by 4 sectors of interest is calculated. The reasoning behind this is that Klaipeda Sea Festival is an old event each year reaching huge press coverage both before and after the festival, so it is rather impossible for Lithuanian citizens not to be aware of the fact that the celebration is taking place.
The festival takes place during a summer weekend, which lessens the probability that special vacation plans are needed: people are likely not to have a particular plan for a summer weekend till it becomes clear what weather could be expected. Therefore, there is some additional money generated in the city that would otherwise be spent outside it. The results reveal some interesting spending patterns: the biggest spenders are people in age group with the mean expenditure reaching Nevertheless, the precision of the latter number could be misleading due to too small sample size for this particular group.
Economic Impact 34 The average spending for all the groups reaches However, in contrast to their research, this study includes transportation as one of the expenditure categories. Also, the growth in spending could be related to increasing price level, so the difference hardly indicates changes in consumption patterns.
Moreover, it is also necessary to note that distribution of spending on products and services of different categories have significant differences. Spending on craftsmen production increases with respect to age: years old people spend The structure of expenditure disaggregating by age group is depicted in Figure 3, Appendix F.
Having indicated the total number of local visitors and mean spending on different product categories, individual spending of each group is estimated for the food and beverages, transport, entertainment and souvenirs sectors, which are 4.
Simple Output Multipliers and Total Effects To calculate output multipliers for the sectors of interest, data provided in the Eurostat database n. Due to the fact that the process of compiling the core I-O tables is time consuming and carried out every five years, the latest I-O available for Lithuania is for According to Statistics Lithuania personal communication, January 24, , the table for year will be published in Hotel and Lodging 69, - 69, , 47, restaurant Food and 1.
Retail trade shopping 1. Land transportation Transportation 1,, 1,, , 1. Water transportation Recreational, cultural and Entertainment , 1,, -1,, 1. Public administration and defense; Municipality , - , 1. The calculated output multiplier for sector Hotels and restaurant services is equal to 1. A rather high multiplier can be explained by the fact that the sector spends a lot of income on locally provided services and fast moving goods, supplied by retailers.
The multiplier is used to estimate the total impacts of lodging as well as food and beverages sectors. Transportation creates an interesting case to analyze. Klaipeda being the seaport and located on the one shore of Curonian lagoon, one of the public transportation means is a ferry enabling passengers and vehicles cross the canal of the port. Therefore, the company providing these transportation services is also included in the sample. The NACE classification distinguishes between land and water transportation services.
Nevertheless, as there is one company providing water transportation services, we are forced to merge the data and calculate a multiplier including both groups in order to ensure complete confidentiality. The estimated transport multiplier is 1. Similarly to hotel and restaurant services, entertainment sector has a rather high output multiplier of 1. The figure might be negative due to several reasons. Firstly, the data for the casinos is missing. Thirdly, a wide range of entertainment offered in Klaipeda Sea Festival is hardly measurable.
Some classic examples of such activities: people are taking photos with a funny parrot or a monkey, or giving the money to the street musicians they like. Such kind of entertainment is very often unofficial i. Another issue created by the scarcity of more detailed intra-industry money flows relates to the impact of money injected into economy by craftsmen. This means that the retail shops Economic Impact 37 definitely buying a significant part of imported goods are treated similarly to craftsmen, whose production, by definition, should be made out of natural Lithuanian inputs.
This can be easily explained because, as mentioned above, out of more than craftsmen only 7. Therefore the majority of the money that people spent on the items in the fair: 2,, LTL , EUR , were in fact acquired by those who live in other parts of Lithuania or even abroad. Nevertheless, the multiplier is 1.
To sum up, we see two opposite effects of the Klaipeda Sea Festival The entertainment sector is highly likely to be underestimated as large portion of data cannot be obtained using this research design. This is an interesting and unusual result because such cases, when the majority of enterprises operating in the venue of the regional event, are rare in practice.
Conclusions Both scholars and businesspeople have acknowledged the economic impact studies long time ago. This paper on the Klaipeda Sea Festival is, to our knowledge, the first research in Lithuania that attempts to measure the economic effect of an event applying the methodology of the impact studies. So far the somewhat approximate estimates of the cultural or sports events could be found in the press; however, such information is in most cases doubtful in terms of both the reliability of the source and precision of calculations.
Economic Impact 38 Some events have also been analyzed by the market research agencies; however, they usually focus on the average spending per visitor and personal opinion about the event rather than on the aggregate economic value added. Moreover, such studies are performed on commercial purposes and are not available publicly. To answer the following research questions: What economic impact does the Klaipeda Sea Festival have on the city's economy?
What are direct and indirect economic effects of the event, a specific research design has been created. Unlike the majority of the impact studies, we combine both supply and demand methods by estimating both the revenues of the local enterprises and the expenses of the Klaipeda residents. Such methodology allows not only estimating the total direct and indirect economic effects, but also revealing the specific situations that the companies face because of the event.
Moreover, such method makes it possible to analyze the event that had happened some time ago. Furthermore, due to the sensitivity of the data and different structure of the sectors, a distinct sampling technique and calculation method is created for each sector. The increase in revenues of accommodation services is small because summer is the busy season for them in general.
The visitors expenses on food and beverages during the Festival result in more than 1m LTL injected into the local economy in the longer term. The organizers should try to involve more local enterprises into the industries where currently the non-resident providers of goods and services are dominating, namely the entertainment and souvenirs sectors. All in all, the outcome of this study is rather surprising as the estimated economic effect of the Klaipeda Sea Festival is much smaller than was anticipated by authors Economic Impact 39 and guessed by media, and is even likely to be negative.
There might be a number of explanations for such low figures. Furthermore, mass events are likely to attract more tourists with tight budgets, but at the same time keep away more wealthy visitors. In addition, there are some grounds to believe that the proportion of the non-resident festival visitors is way smaller than it is generally believed.
The organizers and the journalists estimate the number of total attendees being from , to , every year, and in some sources this number was said to have increased up to , 15min, However, so far nobody has tried to measure the number of visitors more accurately. If the proportion of the non-Klaipeda residents would in fact be relatively small, it would explain why the Klaipeda Sea Festival does not generate any substantial economic effects.
It is not unusual for a large event to have no significant impact on the local economy. There have been numerous studies conducted to assess the economic impact of these mega-events, and they rarely turn out to be profitable. This happens because shortly after the event the retailers have to face the substitution effect, hotels and tourist attractions have to deal with the sharp decline in the tourist quantities, while specially built facilities often become redundant Conger, Nonetheless, even if the economic impact for the local economy is not substantial, organizing a large event is an honor for the city and an occasion to celebrate for its residents.
Even though the research has presented quite many obstacles regarding the quantitative analysis, it also brought the opportunity to employ a wide range of different techniques and qualitative reasoning. This helped not only to estimate the revenues of the different sectors, but also to be able to reveal lots of interesting facts about the Klaipeda Sea Festival and problems the industries are experiencing in relation to the event. Moreover, we believe that one of the most promising and topical research in the nearest future would be the impact study of the forthcoming EuroBasket Moreover, the future research could also focus on checking the reliability of alternative method by trying to match impacts calculated using alternative method used in this study and traditional methods.
Such studies could enhance the usage of impact studies, because the method employed in our research definitely requires significantly less funds and human resources to perform; therefore, governmental institutions could perform such studies more often and adjust the related policies.
Economic Impact 41 References 15min. Super bowl or Hyper Bole? Identifying annual variations in the spending behavior and economic impacts of day trippers to Sacramento, California, USA. Journal of Vacation Marketing, 12 1 , Chhabra, D. The significance of festivals to rural economies: Estimating the economic impacts on Scottish Highland Games in North Carolina. Journal of Travel Research, 41 4 , Conger, C.
Are the Olympics profitable? The stability of regional input-output multipliers. Environment and planning A , 9 2 , Creative Research Systems. Sample size calculator. Economic impact studies: Instruments for political shenanigans? Journal of Travel Research, 45 1 , Crompton, J. A guide for undertaking economic impact studies: The Springfest example. Journal of Travel Research, 40 1 , Economic Impact 42 Delfi.
Estimating the impacts of special events on an economy. Journal of Travel Research, 43 4 , Dwyer, L. Assessing the economic impacts of events: A Computable General Equilibrium approach. Eurostat database n. Access workbooks by country: Lithuania.
Local festivals and tourism promotion: The role of public assistance and visitor expenditure. Frechtling, D. An assessment of visitor expenditure methods and models. Getz, D. Festival stakeholders: Exploring relationships and dependency through a four-country comparison. Gibson, C. Cultural festivals and economic development in nonmetropolitan Australia.
Journal of Planning Education and Research, 29 3 , Gray, P. In The research imagination: An introduction to qualitative and quantitative methods pp. Economic Impact 43 Herrero, L. The economic impact of cultural events: The case-study of Salamanca , European Capital of Culture. European Urban and Regional Studies, 13 1 , Horvath, E. Estimating the multiplier effects of tourism expenditures on a local economy through a regional Input-Output model. Journal of Travel Research, 37 4 , Klaipeda Diena.
Who will give respect to the sea and Mika]. Comparative economic impact analyses: Differences across cities, events, and demographics. Economic Development Quarterly, 18 4 , Morganti, I. The economic value of cultural projects: An evaluation beyond measurements. New Mexico Tourism Department. Tourism department research. Contingent valuation and cultural resources: A meta-analytic review of literature. Journal of Cultural Economics, 27, Pinigu karta.
Systematic sampling. Visibilities and invisibilities in urban development: Small business communities and the London Olympics Urban Studies, 47 10 , Research Knowledge Methods Base. Nonprobability sampling. Guidelines for measuring tourism economic impact of ungated or open access event and festivals. Regional impact models. Statistics Lithuania. Irios, 1. Groningen, the Netherlands: University of Groningen.
Tyrell, T. The economic impacts of tourism: A special issue. VanBlarcom, B. Economic assessment of event centre activity impact in Latvia. Case study: Dzintari Concert Hall. Economic Impact 46 Appendix A Money flows in area from non-resident visitors or sales to outsiders. Spending income injected into local economy. Multiplier effect stimulates further spending income and employment.
Local economic activity is increased. Figure 1. Figure 2. Easily comparable with other studies as it is less affected by the context. Drawbacks Participants' need to be Strong recall Do not take into Extremely inquired, which means that bias: exit- account limited complex it is hard to perform if survey resources.
Multipliers need highly exposed to survey significant amount of information. Authors Herrero et al. Noonan ; ; Chhabra ; Dwyer et al. The goal of the thesis is to quantify the economic impact of the Klaipeda Sea Festival to the Klaipeda city. In this way, the spending of city guests will be calculated by deducting spending of local visitors of the Festival from the revenues generated by businesses. Later on a regional multiplier will be applied to estimate indirect effects. The horsemeat scandal is growing in Europe.
Every day, new cases are reported in which food has been withdrawn from the market because it has been found to contain horsemeat. The scandal has already spread to nearly all EU Member States. Consumers should have the right to know what products really contain and how much of each ingredient they contain. In principle, it is manufacturers and retailers who bear responsibility for this. But what methods are really available for such monitoring?
Who is genuinely responsible? Does the Commission intend to check the effectiveness of monitoring? Should regulation be stepped up and the precision of information on ingredients be increased? Are urgent measures needed to overhaul legislation so that it covers supervision of the long supply chain of the present day more effectively?
Under existing rules, 42 the labelling of foods must not mislead the consumer as to their nature, origin and content. All food ingredients must be labelled. The labelling of foods containing meat must also indicate the animal species concerned. Moreover, if an ingredient is mentioned in the name of the food, its quantity expressed as percentage has to be provided in the list of ingredients.
This requirement has been established in order to avoid the consumer being misled as to the identity and composition of the food. The responsibility for enforcing food chain legislation lies with Member States 44 , which are required to establish a system of official controls to verify compliance by operators with requirements deriving therefrom.
The Commission monitors delivery by the Member States of their control duties, including through on-the-spot audits. In the case referred to by the Honourable Member, the official controls systems established by the Member States have allowed them to identify violations of applicable rules. Notwithstanding the above, the forthcoming proposal on official controls will aim at further strengthening the existing system.
The Commission is of the view that a broadening of the VAT base, i. The recent changes to VAT in Portugal, aimed at improving VAT efficiency by extending the area of application of the standard rate, can be considered a step in the right direction. This also has to be seen against the background of the need for Portugal to achieve sustainable fiscal consolidation and to rebalance the Portuguese economy.
The bulk of the content placed online by social communication companies is reused by companies for profit, without the authorisation of the respective copyright holders and without any compensation. In its search engine, Google displays some third-party website content and it uses news that it did not produce on its Google News service, yet pays nothing. Google earns money from this content as it attracts advertising for pages that contain this indexing and aggregation.
The Commission follows closely the developments pertaining to the question raised by the Honourable Member, notably in France where an agreement was recently concluded between Google and the French press, and in other Member States in which this matter is discussed at national level. The Commission is not in a position to provide a detailed account and assessment of the situation in specific Member States.
However, the Commission is receptive to concerns about copyright protection of press works online and committed to the preservation of high quality journalism. At the same time, the Commission is dedicated to making Europe the place of choice for digital entrepreneurs.

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