Economic and destination image impacts of mega-events in emerging tourist destinations

Mega-events can have different types of effects, both tangible and intangible, for host cities or countries. For the case of the 2012 Eurovision Song Contest (ESC) in Baku, Azerbaijan, this study combines an economic impact study and two country image assessments carried out before and after this mega-event in an emerging tourist destination. Economic impacts are calculated based on on-site, face-to-face visitor surveys during the ESC and an input-output model. Image effects are measured with a representative two-wave online panel in Austria, which was selected as a potential tourist source market for Azerbaijan. The study finds that visitor expenditures produce €3.3 million of direct and indirect income in terms of local wages and salaries. Additionally, Azerbaijan's image improved significantly through the mega-event, especially with young, cosmopolitan people. Surprisingly, the country's image significantly improved even among people who did not watch the ESC on TV, due to extensive media coverage.