Research by Dr Bahar Ghezelayagh and a team of Economics students has found that the Royal Norfolk Show (RNS) generated £20 million for Norfolk in 2018. If you were to ask a member of the public what they think an economic researcher does they would probably picture a lonely figure, hunched over the computer, crunching through numbers to get published in journals only read by other academics. The reality of this project is very different!
Here we see the multifacted impact which is provided by academia. The research provides a platform to forge community links. All involved can benefit. The student interns (Sam Horsfield, Ali Danesh, Jacob Rumley, Natalia Mendonca, Jian Lu, and Uzochukwu Ugochukwu) get to be part of applying economics to the real world, which further promotes their skills-set. And the Royal Norfolk Agricultural Association (RNAA), who organises the RNS, can go beyond celebration of their previous success and consider how to extend impact from future Shows.
The initial stage of this study consists of a triad of surveys: A ‘paper visitor survey’ during the show (on 27th and 28th June); an online questionnaire circulated to spectators in July 2018; and an online questionnaire circulated to all exhibitors/participants of the show in September 2018. Our starting point is to capture the Direct Economic Impact by measuring the cash inflows (positives) and outflows (negatives) from those involved in the event. This can be attendees, participants, exhibitors and the RNAA itself. It provides an estimate of the Direct Economic impact, itself split into two strands: Visitor Spend, referring to the consumer expenditure from the non-local visitors (outside of Norfolk); and Organiser Spend, referring to the additional expenditure in staging an event in the host regional economy. While the Direct Economic Impact considers the immediate transactions, we ultimately require a Total Economic Impact that measures the repercussions of this increased business activity; this is the Indirect and Induced Economic Impact. Consider, for example, a visitor who spends money at a restaurant at the Show. The restaurant might spend the additional money in the local area as the result of the increased business. This could include any extra orders made to the local farmers for the resources, which would then potentially create a positive change in the local and regional jobs. Our research, using this approach, finds striking gains for the regional economy. We estimate that last year the RNS generated £20 million for Norfolk. These findings made the front page of the Eastern Daily Press, you can read their full article on the report here.
How does the RNAA benefit? We know that Economic Impact is a powerful approach for public sector bodies. It enables evaluation of event success. However, it should also be seen for its strategic value. It provides the provision of more fine-tuned information that enables more effective planning. Our research shows that a day trip RNS goer is worth £335.66 to the local economy, whilst a visitor who stays in the county overnight is worth as much as £519.23. This information can be key in developing and enriching current practices, ultimately stimulating regional GDP even further.
But what about our student interns? This research, after all, couldn’t have been completed without them. Let’s leave it to them to describe how they benefited from the experience:
“Participating as part of the survey team for the economic assessment of the Royal Norfolk Show was great. I could not have experienced a better immersion in the Norfolk economic and social culture elsewhere! As a Brazilian master student, I seek to understand the local, social, and economic relations to promote sustainable development and I felt highly motivated to engage in a team that is also moved by the same ideas!”
Natalia Mendonca, from Brazil who was a postgraduate student from the School of International Development.
“As an international student from China, it was a wonderful and educational experience and a unique way to involve with the local culture. Most importantly, I learned how gathering accurate information is highly important for analysing the economic impact of an event such as the Royal Norfolk Show, and I observed how this information is processed and then used in a bigger picture. I would strongly advise other students who would like to know more about the British culture to participate in similar events, as it will provide you with a very different and unique horizon about the UK, which for me was not comparable to what I had read in textbooks or seen and heard in the media.”
Jiang Lu, from China and as a postgraduate student from the School of Economics
“For me this project was a good example of the real-world relevance of the economic multiplier model. A purchase at a locally owned shop is of far greater benefit to the economy than an order at Amazon, and this point was apparent during the project. This research is really important for the RNAA and the feeling of accomplishment at the end was well deserved.”
Uzochukwu Ugochukwuwas, who was first year Undergraduate student at the School of Economics
This is the first time the show’s economic value to Norfolk has been estimated, and here in the School of Economics we are always keen to help the local community. Understanding the economic impact of the Royal Norfolk Show will allow the RNAA to better structure their approaches to future shows. This means that by assessing the impact of the show we have created an impact which will last for years to come. This project research is a great example of how engaging with the community can also generate opportunities for our students to develop their skills.