A Triple Bottom Line Evaluation of the Impacts of UEFA EURO 2012: The development of indicators Kseniya Boyko and Mariya Melnyk Graduate School Master of Science in International Business and Trade Master Degree Project No. 2012:4 Supervisor: Harald Dolles Abstract A Triple Bottom Line Evaluation of the Impacts of UEFA EURO 2012: The Development of Indicators Kseniya Boyko and Mariya Melnyk Supervisor: Harald Dolles The vast majority of previous studies of mega-sporting events have had a clear focus on the evaluation of economic or social impacts, although, a need for a more holistic approach has long been acknowledged in academic research. Recently a framework known as the “Triple Bottom Line” (TBL) covering economic, socio-cultural and environmental dimensions has been incorporated into the field of mega-sporting events’ impacts studies. This thesis aims to contribute to the development of the TBL framework for evaluation of the impacts of mega-sporting events. In this study, the TBL framework is applied to the evaluation of the impacts of the Final Tournament of the UEFA European Football Championship 2012 on Ukraine, which is co-hosted by Poland and Ukraine. This ex-ante study results in an assessment and comparison of the impacts of the event on host and non- host cities of Ukraine. Key words: Triple Bottom Line, Mega-sporting event, UEFA EURO 2012, Ukraine, Poland. ii Acknowledgement First and foremost we would like to thank our supervisor, Professor Harald Dolles, for his guidance, support and interest in our topic. Thank you for directing us through the whole process and always being ready to consult us when it was needed. We also want to express our gratitude to our colleagues for the time and effort they have invested in reading our drafts and preparing their feedbacks. Your suggestions were definitely a valuable input for this study. We are grateful to our families and friends. We appreciate your patience and support especially during the past months when our thesis became the main topic for the conversation. Finally, we want to wish the best of luck to the Ukrainian Nation Football team during this Championship and let it be a fair play! iii Table of contents LIST OF TABLES ..................................................................................................................... 3 LIST OF FIGURES ................................................................................................................... 4 ABBREVIATION INDEX ........................................................................................................ 5 1. INTRODUCTION................................................................................................................. 6 1.1 Background ................................................................................................................ 6 1.2 Research question ...................................................................................................... 7 1.3 Thesis delimitation ..................................................................................................... 7 1.4 Thesis disposition ....................................................................................................... 7 2. CASE DESCRIPTION: THE FINAL ROUND OF THE UEFA EUROPEAN CHAMPIONSHIP 2012........................................................................................................ 8 2.1 UEFA European Football Championship ............................................................... 8 2.2 UEFA EURO 2012 ..................................................................................................... 9 2.2.1 Bidders and selection process .................................................................................. 9 2.2.2 UEFA requirements for host countries .................................................................. 10 2.2.3 Degree of correspondence of Poland and Ukraine to the UEFA requirements before the beginning of the preparation ................................................................. 11 2.2.4 Sites selection in Poland and Ukraine for UEFA EURO 2012 .............................. 12 3. LITERATURE REVIEW .................................................................................................. 13 3.1 Defining mega-events and mega-sporting events .................................................. 13 3.2 Economic and social impacts: theory and practice .............................................. 14 3.2.1 Input-Output Analysis ............................................................................................ 14 3.2.2 Computable-General-Equilibrium Analysis .......................................................... 15 3.2.3 Cost-Benefit Analysis ............................................................................................ 16 3.2.4 Social exchange theory .......................................................................................... 16 3.3 Triple Bottom Line approach: origins, development and application ............... 17 3.3.1 Theoretical development of TBL approach ........................................................... 17 3.3.2 Practical application of TBL approach .................................................................. 18 3.3.3 Development and adaptation of the TBL approach for the current study .............. 19 3.3.3.1 TBL Impacts and Indicators .................................................................................. 20 3.3.3.2 Impacts’ aggregation or Scoring System ............................................................... 24 3.3.3.3 Presentation of study results .................................................................................. 24 4. METHODOLOGY AND RESEARCH DESIGN ............................................................ 25 4.1 Research approach and design ............................................................................... 25 4.2 Data selection and collection ................................................................................... 26 1 4.3 Limitations ............................................................................................................... 27 5. EMPIRICAL FINDINGS ................................................................................................... 28 5.1 Economic impacts .................................................................................................... 28 5.1.1 Destination promotion and development of tourism industry ............................... 28 ANALYSIS ............................................................................................................................... 28 5.1.2 Damage to the reputation of the destination .......................................................... 30 5.1.3 Business development and investment opportunities ............................................ 31 5.1.4 Legacy of infrastructure and facilities ................................................................... 33 5.1.5 Employment opportunities and skills development ............................................... 35 5.1.6 Economic benefits .................................................................................................. 37 5.2 Socio-cultural impacts ............................................................................................. 38 5.2.1 Community pride ................................................................................................... 38 5.2.2 Quality of life of local residents ............................................................................. 39 5.2.3 Volunteering .......................................................................................................... 40 5.2.4 Residents’ attitude towards the event itself ........................................................... 41 5.3 Environmental impacts: development and application of sustainability strategy ................................................................................................................ 42 5.4 Summary of the results ........................................................................................... 45 6. CONCLUSION AND SUGGESTIONS FOR FURTHER STUDIES ............................ 47 REFERENCES ........................................................................................................................ 50 APPENDIX ............................................................................................................................... 65 Annex I ................................................................................................................................. 65 Annex II ............................................................................................................................... 66 Annex III ............................................................................................................................. 67 Annex IV .............................................................................................................................. 68 Annex V ............................................................................................................................... 69 Annex VI .............................................................................................................................. 70 Annex VII ............................................................................................................................ 71 Annex VIII ..........................................................................................................................