Slovenia Hopes EuroBasket Will Bring also Business

22. 08. 2013

Slovenia Hopes EuroBasket Will Bring also Business


Slovenia has big hopes for the upcoming European Basketball Championships both on and off the court. While the tournament is set to be the biggest sporting event in the country's history, it is also expected to provide a much needed boost to business.


Precise estimates of the economic effects of EuroBasket 2013, which is to be held between 4 and 22 September, are hard to come by, but the country's officials as well as the organisers expect that it will be significant.

 

A study presented to the government by the Slovenian Basketball Association (KZS) when Slovenia bid to host the tournament in 2010 suggested that revenues for local business could top EUR 30m. The total indirect benefits are expected to be greater, as the event will be a major promotion for the country.

 

Organisers expect that around 30,000 visitors could stay Slovenia during EuroBasket, generating hotel stays and revenues for the local hospitality industry while also generating extra VAT revenue for the state.

 

This was the basis for the government's decision to spend EUR 6m to pay the registration fee for the tournament, which it expects to more than recoup in additional taxes.

 

More than direct revenues from taxes, the country's officials expect the tournament to amount to a major promotion abroad. Along with the visitors and around 1,000 foreign journalists who will be in Slovenia, the tournament will be broadcast in more than 150 countries to an expected audience of some 200 million people.

 

According to the country's tourism and investment promotion agency SPIRIT, a successful tournament is an opportunity for Slovenia to prove on a global level that it is capable of hosting large events. This can translate into new opportunities for hosting events in various fields.

 

 

Moreover, events like EuroBasket are also an opportunity for Slovenia to promote its national brand globally and subsequently be a means of attracting foreign investors, SPIRIT officials told the STA.

 

The tournament is expected to generate the most direct revenues for the tourism industry, which has spent months getting ready for the 4 September opening date.

Although September is traditionally a busy period for the country's tourism industry, Gregor Jamnik of the National Hotelier Association at the Chamber of Tourism and Hospitality expects that total bookings are still expected to rise by 10% due to EuroBasket.

 

Hotels in Ljubljana are fully booked for most of September and visitors making arrangement now are forced to look for surrounding towns, such as Domžale, for accommodation.

 

The same is true for the other three host cities - Celje, Koper and Jesenice - which themselves have limited lodging capacities but can be serviced from nearby tourist hotspots such as as Rogla and Zreče (Celje), Bled and Kranjska Gora (Jesenice), and Portorož (Koper).

 

Data from SPIRIT suggests that the most bookings have come from Scandinavian country (Finland, Sweden), Lithuania, Spain and countries of the former Yugoslavia. Fans from neighbouring Italy and Croatia are expected to be mostly one-day visitors who be returning home each day.

 

The additional demand for lodging has caused prices to rise, but Jamnik says the 20-30% increase in accommodation rates is in line with the usual premium that is associated with large events and conferences.

 

The tournament is expected to cost around EUR 9m, which the organisers expect to raise with ticket sales and sponsorships. Around a dozen local companies have signed sponsorship deals with EuroBasket 2013 ranging from EUR 50,000 to EUR 500,000, according to a recent report by public broadcaster RTV Slovenija.

EuroBasket will also feature international sponsors, whose representatives are expected to visit the country in this time. SPIRIT hopes this will be an opportunity to present business opportunities in Slovenia and help them build ties with Slovenian business officials.

 

As part of efforts to promote international business ties, the agency will co-organise with The Slovenia Times and Faculty of Economics on 17 September the annual FDI Summit investment conference that will focus on tapping into the presence of foreign business officials at the tournament.

 

Meanwhile, a number of local businesses are already reaping the benefits of the tournament as they have been involved in its organisation. More than 30 companies of various sizes have been hired by the organisers to perform services ranging from transport to IT and catering.

 

Source: Slovenia Times

Slovenia Hopes EuroBasket Will Bring also Business