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July 2019 ISSUE 1 – JULY 2019 ISSN 2685-3051 2018 Jakarta – Palembang Asian Games Research Brief Economic Impact Survey No. 1 – July 2019 ISSUE 1 – JULY 2019 LPEM FEB UI Phone +62-21-3143177, Fax. +62 - 21 - 31934310 1 Jl. Salemba Raya No. 4, Jakarta 10430, Indonesia Email: [email protected] Website: www.lpem.org 2018 Jakarta – Palembang Asian Games Research Brief Economic Impact Survey No. 1 – July 2019 A. The Hosting of the 2018 Asian Games The Asian Games is a multi-branch sports 11,238 athletes. Further, 5,460 country event involving all nations in the Asian officials also took part, adding to the hun- Continent and an official four-year agenda dreds of OCA officials and representatives of the Olympic Council of Asia (OCA). In- of various international sports federations. donesia had the golden opportunity to To ensure that the grand event ran suc- host the 2018 Asian Games, officially cessfully, more than 13 thousand local known as the 18th Asian Games Jakarta- committees were involved, comprised of Palembang 2018. The mega event took the Indonesia Asian Games Organizing place from August 18 to September 2 in Committee (INASGOC) and its volun- three provinces - DKI Jakarta and Su- teers, apart from task forces from various matera Selatan (Palembang) as the host government institutions and community and Jawa Barat as a supporting region. organizations that helped smooth the The 2018 Asian Games was the biggest event. in the history, with 10,391 participating The 2018 Asian Games successfully at- athletes from 45 Asian countries including tracted international attention beyond the Indonesia, competing in 40 sports and Asian Continent. The event was covered 465 events, surpassing the number of ath- by more than 7 thousand international letes in previous Asian Games of 2014 journalists from printed, online and broad- (Incheon, South Korea), 2010 (Guang- cast-based media from across the globe. zhou, China) or 2006 (Doha, Qatar), and The event also attracted nearly 79 thou- even comparable to the 2016 Rio de sand foreign tourists whose main intention Janeiro Olympics (Brazil) which featured are to attend the Asian Games’ matches. LPEM FEB UI Phone +62-21-3143177, Fax. +62 - 21 - 31934310 2 Jl. Salemba Raya No. 4, Jakarta 10430, Indonesia Email: [email protected] Website: www.lpem.org 2018 Jakarta – Palembang Asian Games Research Brief Economic Impact Survey No. 1 – July 2019 B. Economic Impact Survey of the 2018 Asian Games Given the massive scale of the event, the Hence, the survey aims to: (a) estimate Ministry of National Development Plan- the short-term economic stimuli generated ning/National Development Planning from the spending of athletes, country of- Agency (Bappenas) carried out the Eco- ficials, committees, journalists and specta- nomic Impact Study of Asian Games tors; (b) identify the long-term potential 2018. As part of that study, the Institute impacts on the tourism sector due to posi- tive changes in perceptions towards Indo- for Economic and Social Research, Facul- nesia, the propensity to repeat visitation to ty of Economics and Business, Universi- Indonesia for travelling purposes, the will- tas Indonesia (LPEM FEB UI) carried out ingness to recommend Indonesia as a a survey to capture the increasing eco- tourism destination, and to recommend nomic activity that arose from the Asian Indonesia as the host of future interna- Games, during and beyond the event tional sports events; (c) capture the im- completion. pact from the businesses part, especially affected micro, small and medium enter- prises (MSMEs). LPEM FEB UI Phone +62-21-3143177, Fax. +62 - 21 - 31934310 3 Jl. Salemba Raya No. 4, Jakarta 10430, Indonesia Email: [email protected] Website: www.lpem.org 2018 Jakarta – Palembang Asian Games Research Brief Economic Impact Survey No. 1 – July 2019 The survey took place on August 19 - tional athletes, foreign country officials September 4 in Jakarta, Palembang and (trainers, medical personnel and contin- several other cities in Jawa Barat. The gent support staff), Indonesian officials, survey managed to collect data from a international journalists, national journal- total of 2,618 sample respondents, includ- ists, international spectators, national ing 1,914 international respondents and spectators, OCA and International Sport 704 Indonesian respondents. Federations (IF) officials, INASGOC offi- They encompassed 12 respondent cate- cials and volunteers, MSMEs around the gories including international athletes, na- venues and INASGOC official partners. LPEM FEB UI Phone +62-21-3143177, Fax. +62 - 21 - 31934310 4 Jl. Salemba Raya No. 4, Jakarta 10430, Indonesia Email: [email protected] Website: www.lpem.org 2018 Jakarta – Palembang Asian Games Research Brief Economic Impact Survey No. 1 – July 2019 C. Short-term Economic Stimuli Despite the 2018 Asian Games lasted for were difficult to separate from their per- 16 days, the respondents’ length of stay sonal spending. varied. Among the international respond- When considering age group, the spend- ents, the group with the shortest stay was ing amount correlates positively with age the international athletes (average of in all groups of international respondents. 11.23 days) while the longest was interna- Age may be related to experience or tional journalists (average of 17.81 days). ranks, which in turn affects the amount of Length of stay may be affected by match allowances. schedules, other international competition schedules and budget. International jour- Based on country of origins, the spending nalists generally had to arrive in Indonesia of international respondents from non- before the opening ceremony and depart- ASEAN countries were, on average, high- ed after the closing ceremony. er than that of their ASEAN counterparts, except for country officials. Respondents The spending of international respondents from non-ASEAN countries may be more also varied across respondent groups. interested in souvenirs, foods or shopping International athletes only spent because they might find Indonesia differ US$457.7 on average, less than foreign to their countries. country officials (US$952.09). Larger amount of expenditure was made by Apart from the variation in total amount, groups of respondents who did not com- the respondents' spending also differ in its pete directly, such as international specta- composition. In general, the largest tors (US$1,495.55), followed by interna- spending portion of international respond- tional journalists (US$2,455.23) and OCA ents was for accommodation, followed by & IF officials (US$2,661.44). souvenirs and food & beverages. Different spending composition was observed in As for national respondents, national ath- international athletes, where the main letes had the highest average spending spending was for ‘other’ category, namely (Rp8.88 million), while national specta- a spending which amount had been allo- tors, officials, journalists and committees cated but the purposes had not yet been only spent an average of Rp2.08 million, determined. Most international athletes Rp1,80 million, Rp1,486 million and stayed at the athlete's village and opted to Rp1.03 million, respectively. wait until the last day in Indonesia before The average spending also varied across deciding how to spend their money. gender, age groups and country of ori- For the national respondents’ category, a gins. Among international respondents, considerable spending was observed on the average spending of women is higher food and drinks, and souvenirs, while than that of men for athletes, officials, spending on hotels was less dominant journalists and OCA & IF official groups, because of higher possibility of being giv- while for international spectators the op- en accommodation by family or friends posite is true. Male spectators may bear near the match locations. some families or groups expenses that LPEM FEB UI Phone +62-21-3143177, Fax. +62 - 21 - 31934310 5 Jl. Salemba Raya No. 4, Jakarta 10430, Indonesia Email: [email protected] Website: www.lpem.org 2018 Jakarta – Palembang Asian Games Research Brief Economic Impact Survey No. 1 – July 2019 LPEM FEB UI Phone +62-21-3143177, Fax. +62 - 21 - 31934310 6 Jl. Salemba Raya No. 4, Jakarta 10430, Indonesia Email: [email protected] Website: www.lpem.org 2018 Jakarta – Palembang Asian Games Research Brief Economic Impact Survey No. 1 – July 2019 D. Long-term Potential Economic Impact on Tourism Sector Although the 2018 Asian Games has 95% of international respondents ex- ended, there remains a potential long- pressed their fondness for Indonesian cul- term positive impact on the Indonesian ture (people, hospitality and food), and economy. First, 80% of international re- more than 70% liked the scenery, ser- spondents stated that the Asian Games vices and transportation arrangements in has positively changed their perceptions the city where the matches took place. towards Indonesia. In addition, more than . LPEM FEB UI Phone +62-21-3143177, Fax. +62 - 21 - 31934310 7 Jl. Salemba Raya No. 4, Jakarta 10430, Indonesia Email: [email protected] Website: www.lpem.org 2018 Jakarta – Palembang Asian Games Research Brief Economic Impact Survey No. 1 – July 2019 Second, international respondents had considered for future travel. Most of them favorable views towards the organization planned to revisit along with colleagues or of the 2018 Asian Games. At least 70% of family for approximately two weeks. This athletes, country officials, OCA & IF offi- planned length of stay exceeds the Indo- cials, journalists and spectators rated nesia’s international tourists average of 'Good' or 'Very Good' in each criterion 8.42 days in 2016. Further, 2/3 of them measured in the survey including: 1) had already determined the future travel sports facilities and venues; 2) accommo- destinations in Indonesia. dation and food; 3) transportation ar- Fourth, most international respondents rangements; 4) telecommunications and expressed their willingness to give posi- internet networks; 5) access to infor- tive referrals to Indonesia. More than 95% mation; 6) security, and; 7) match sched- of them will refer Indonesia as a travel ules.
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