The Influence of Sports Mega-Events on Local Business Growth: A Study of PON 2024 Aquatic Venue
DOI:
https://doi.org/10.53905/Gimer.v1i02.15Keywords:
sports mega-events, local business growth, economic impact, PON 2024, aquatic venue, regional development, IndonesiaAbstract
Introduction: Sports mega-events have emerged as significant catalysts for regional economic development, yet their impact on local business ecosystems remains inadequately understood, particularly in developing economies. The Pekan Olahraga Nasional (PON) 2024, hosted in Papua, Indonesia, presents a unique opportunity to examine these dynamics within an emerging market context.
Purpose of the study: This research investigates the influence of PON 2024's aquatic venue on local business growth, examining both immediate and sustained economic impacts on small and medium enterprises (SMEs) in the host region.
Materials and methods: A mixed-methods approach was employed, involving 387 local businesses across hospitality, retail, transportation, and service sectors. Data collection occurred through structured surveys, financial performance analysis, and semi-structured interviews conducted pre-event (6 months prior), during the event, and post-event (6 months after). Quantitative analyses were conducted using SPSS v27, employing descriptive statistics, paired t-tests, and multiple regression analysis.
Results: Local businesses experienced a mean revenue increase of 34.7% (SD = 12.3) during the event period compared to baseline measurements. The hospitality sector demonstrated the highest growth (47.2%), followed by retail (31.8%) and transportation services (28.4%). Post-event analysis revealed sustained growth of 18.3% above baseline levels six months after conclusion. Employment increased by 23.1% during the event, with 67.4% of new positions retained post-event.
Conclusions: PON 2024's aquatic venue generated substantial positive impacts on local business growth, with effects extending beyond the immediate event period. The findings suggest that well-planned sports mega-events can serve as effective tools for regional economic development, particularly when integrated with comprehensive local business development strategies.
References
Baade, R. A., & Matheson, V. A. (2016). Going for the Gold: The Economics of the Olympics. The Journal of Economic Perspectives, 30(2), 201–218. https://doi.org/10.1257/jep.30.2.201
Barrios, D., Russell, S. H., & Andrews, M. (2016). Bringing Home the Gold? A Review of the Economic Impact of Hosting Mega-Events. Digital Access to Scholarship at Harvard (DASH) (Harvard University). https://nrs.harvard.edu/URN-3:HUL.INSTREPOS:37366351
Coates, D., & Humphreys, B. R. (2008). Do Economists Reach a Conclusion on Subsidies for Sports Franchises, Stadiums, and Mega-Events? Econ Journal Watch, 5(3), 294–315. https://college.holycross.edu/RePEc/spe/CoatesHumphreys_LitReview.pdf
Cornelissen, S., Bob, U., & Swart, K. (2011). Towards redefining the concept of legacy in relation to sport mega-events: Insights from the 2010 FIFA World Cup. Development Southern Africa, 28(3), 307–318. https://doi.org/10.1080/0376835x.2011.595990
Crompton, J. L. (2002). Public subsidies to prfessional team sport facilities in the USA (pp. 27–46). https://doi.org/10.4324/9780203471401-8
Dwyer, L., Forsyth, P., & Spurr, R. (2005). Estimating the Impacts of Special Events on an Economy. Journal of Travel Research, 43(4), 351–359. https://doi.org/10.1177/0047287505274648
Dwyer, L., Forsyth, P., & Spurr, R. (2006). Assessing the Economic Impacts of Events: A Computable General Equilibrium Approach. Journal of Travel Research, 45(1), 59–66. https://doi.org/10.1177/0047287506288907
Gibson, H., Kaplanidou, K., & Kang, S. J. (2011). Small-scale event sport tourism: A case study in sustainable tourism. Sport Management Review, 15(2), 160–170. https://doi.org/10.1016/j.smr.2011.08.013
Gratton, C., Shibli, S., & Coleman, R. (2005). Sport and Economic Regeneration in Cities. Urban Studies, 42, 985–999. https://doi.org/10.1080/00420980500107045
Guntoro, T. S., Putra, M. F. P., Nurhidayah, D., Sutoro, S., Sinaga, E., Sianga, F. S. G., & Nanda, F. A. (2023). The design of contextual domain tourism sports through traditional sports in jayapura indonesia. Retos, 52, 164–170. https://doi.org/10.47197/retos.v52.101626
Hayduk, T., & Rewilak, J. (2021). What Are the Benefits of Hosting a Sporting Mega Event? Evidence From Industrial Firms in China. Journal of Sport Management, 36(2), 118–129. https://doi.org/10.1123/jsm.2020-0270
Kavetsos, G., & Szymanski, S. (2009). National well-being and international sports events. Journal of Economic Psychology, 31(2), 158–171. https://doi.org/10.1016/j.joep.2009.11.005
Kiemtoré, Z. L., Akouwerabou, D. B., Kafimbou, H., Nassè, T. B., Akouwerabou, L., Carbonnel, N., & Nanéma, M. (2022). Public Procurement As A Demand-Side Innovation Policy In Burkina Faso: The Necessity To Search For Failure Sources. International Journal of Management & Entrepreneurship Research, 4(12), 541–555. https://doi.org/10.51594/ijmer.v4i12.421
Kim, C., Kim, J., & Jang, S. (2021). Sport Clusters and Community Resilience in the United States. Journal of Sport Management, 35(6), 566–580. https://doi.org/10.1123/jsm.2020-0310
Kirby, S. I., Duignan, M. B., & McGillivray, D. (2018). Mega-Sport Events, Micro and Small Business Leveraging: Introducing the “MSE–MSB Leverage Model.” Event Management, 22(6), 917–931. https://doi.org/10.3727/152599518x15346132863184
Knott, B., & Tınaz, C. (2022). The Legacy of Sport Events for Emerging Nations. Frontiers in Sports and Active Living, 4, 926334–926334. https://doi.org/10.3389/fspor.2022.926334
Lee, S., & Krohn, B. D. (2013). A Study of Psychological Support from Local Residents for Hosting Mega-Sporting Events: A Case of the 2012 Indianapolis Super Bowl XLVI. Event Management, 17(4), 361–376. https://doi.org/10.3727/152599513x13769392444585
Li, S., & Blake, A. (2009). Estimating the economic impact of the Beijing Olympics. Tourism Economics, 15(4), 803–818. https://doi.org/10.5367/000000009789955161
Maitimu, N. E., Kakerissa, A. L., Tutuhatunewa, A., Fretes, R. de, & Manuhutu, R. (2025). Optimizing weaving industry clusters: strategic logistics and growth solutions for competitive regional development. Acta Logistica, 12(3), 541–550. https://doi.org/10.22306/al.v12i3.686
Matheson, V. A. (2006). Mega-Events: The effect of the world’s biggest sporting events on local, regional, and national economies. In RePEc: Research Papers in Economics. Federal Reserve Bank of St. Louis. http://nogames.files.wordpress.com/2009/06/mega_events-matheson.pdf
Matheson, V. A., & Baade, R. A. (2004). Mega‐Sporting Events In Developing Nations: Playing The Way To Prosperity? South African Journal of Economics, 72(5), 1085–1096. https://doi.org/10.1111/j.1813-6982.2004.tb00147.x
Ohee, G. M., Simbiak, I. T., Sudiro, S., & Ramandei, L. (2025). Study of the Utilization of Venues for the XXth National Sports Week After the Implementation in Nolokla Village, East Sentani District, Jayapura Regency. Journal of Technology and Engineering, 3(1), 94–107. https://doi.org/10.59613/journaloftechnologyandengineering.v3i1.196
Pedauga, L. E., Pardo-Fanjul, A., Castán, J. C. R., & Izquierdo, J. M. (2020). Assessing the economic contribution of sports tourism events: A regional social accounting matrix analysis approach. Tourism Economics, 28(3), 599–620. https://doi.org/10.1177/1354816620975656
Peeters, T., Matheson, V. A., & Szymanski, S. (2014). Tourism and the 2010 World Cup: Lessons for Developing Countries. Journal of African Economies, 23(2), 290–320. https://doi.org/10.1093/jae/ejt031
Preuß, H. (2007). The Conceptualisation and Measurement of Mega Sport Event Legacies. Journal of Sport & Tourism, 12, 207–228. https://doi.org/10.1080/14775080701736957
Raso, G., & Cherubini, D. (2023). sport tourism and regional economic development. Scientific Journal of Sport and Performance, 3(1), 108–121. https://doi.org/10.55860/jkwx7277
Revindo, M. D., Widyasanti, A. A., Nusantoro, N., & Siregar, C. H. (2023). Sports Event Satisfaction and Word-of-Mouth Intention. E-Journal of Tourism, 251–251. https://doi.org/10.24922/eot.v10i2.102208
Revindo, M. D., Widyasanti, A. A., Nusantoro, N., Siregar, C. H., & Mumtaz, N. D. (2025). Domestic visitors’ expenditure and behavioural intention at International sports events: The case of the 2018 Asian Games. International Journal of Applied Sciences in Tourism and Events, 9(2), 149–163. https://doi.org/10.31940/ijaste.v9i2.149-163
Schulenkorf, N., & Schlenker, K. (2017). Leveraging Sport Events to Maximize Community Benefits in Low- and Middle-Income Countries. Event Management, 21(2), 217–231. https://doi.org/10.3727/152599517x14878772869766
Seguino, S., & Were, M. C. (2014). Gender, Development and Economic Growth in Sub-Saharan Africa. Journal of African Economies, 23. https://doi.org/10.1093/jae/ejt024
Shao, F., Gong, Y., & Zhang, Q. (2023). After the Crowds: Redemption Frameworks for Overbuilt Olympic Sports Venues. Advances in Economics Management and Political Sciences, 19(1), 342–352. https://doi.org/10.54254/2754-1169/19/20230158
Sorrentino, A., Fu, X., Romano, R., Quintano, M., & Risitano, M. (2020). Measuring event experience and its behavioral consequences in the context of a sports mega-event. Journal of Hospitality and Tourism Insights, 3(5), 589–605. https://doi.org/10.1108/jhti-03-2020-0026
Steiner, L., Frey, B. S., & Hotz, S. (2014). European Capitals of Culture and life satisfaction. Urban Studies, 52(2), 374–394. https://doi.org/10.1177/0042098014524609
Sterken, E. (2006). Growth Impact of Major Sporting Events. European Sport Management Quarterly, 6(4), 375–389. https://doi.org/10.1080/16184740601154516
Taks, M., Késenne, S., Chalip, L., Green, B. C., & Martyn, S. (2011). Economic Impact Analysis versus Cost Benefit Analysis: The Case of a Medium-Sized Sport Event. International Journal of Sport Finance, 6(3), 187–203. https://doi.org/10.1177/155862351100600301
Thabi, K. (2024). Economic Impact of Major Sporting Events on Local Economies. International Journal of Arts Recreation and Sports, 3(3), 1–13. https://doi.org/10.47941/ijars.1940
Widianingsih, I., Abdillah, A., Herawati, E., Dewi, A. U., Miftah, A. Z., Adikancana, Q. M., Pratama, M. N., & Sasmono, S. (2023). Sport Tourism, Regional Development, and Urban Resilience: A Focus on Regional Economic Development in Lake Toba District, North Sumatra, Indonesia. Sustainability, 15(7), 5960–5960. https://doi.org/10.3390/su15075960
Wikarya, U., Widyasanti, A. A., Revindo, M. D., Siregar, C. H., & Dewi, C. E. (2022). Impact of International Sports Event on Local Businesses: Insight from the Stallholders and Official Partners of the 2018 Asian Games. Jejak (Jurnal Ekonomi Dan Kebijakan)/Jejak, 15(2), 336–353. https://doi.org/10.15294/jejak.v15i2.36216
Zhao, F., & Gao, H. (2025). Optimizing and forecasting the development of China’s sports industry structure. PLoS ONE, 20(10). https://doi.org/10.1371/journal.pone.0328418
Zimbalist, A. (2015). Circus Maximus. In Brookings Institution Press eBooks. Brookings Institution Press. https://doi.org/10.5040/9780815751694
Downloads
Published
Issue
Section
Categories
License
Copyright (c) 2025 Pijai Prana Sitepu, Rama Wati, Agnes Monica Hutahaean, Revaldi Sembiring, Ricky Ariya Sitepu (Author)
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
