journal N1 2025

DOI: 10.52340/ekonomisti.2025.01.01

Expanded Summary

In recent years, event tourism has firmly taken a leading position in the preferences of modern travelers, although many of them are not yet fully aware of all its benefits. Research on tourism market trends confirms that interest in large-scale events—whether in the fields of business, sports, cultural holidays, or festivals—is steadily growing. It is these trips that allow travelers to experience unforgettable emotions and a unique experience, often surpassing the impressions of a regular beach vacation, even with an extensive excursion program.

This form of tourism not only attracts the attention and emotions of tourists but also becomes a powerful engine for economic growth for countries and regions. World-class events act as catalysts for the modernization of cities, improving service levels, and attracting investment to the tourism industry.

So, what exactly is event tourism? Which significant events around the world can inspire tourists and become key elements in their future travel routes? Why has this form of tourism gained such popularity, and what contributes to its success?

According to Russian scientist S. Donskikh, "event tourism is a type of tourism in which tourist trips are scheduled to coincide with certain events or activities. These events can range across sports, culture, business, and social or political life."

Event tourism provides tourists with a unique opportunity not only to enjoy entertainment and cultural events but also to immerse themselves in the atmosphere of the event and learn about local culture and traditions. The uniqueness of this type of tourism lies in its inexhaustible content, with new events being added every year, turning once-random occurrences into regular events.

Carnival and football are integral symbols of Brazil, stirring a wave of emotions among locals. However, it is the carnival that becomes the main center of attraction for tourists from around the world. The Rio de Janeiro Carnival is a true extravaganza of art, traditions, and creativity, transforming the Brazilian capital into the center of the carnival world. For several days, the city pulses with the vibrant rhythm of samba, creating an exciting atmosphere amidst colorful processions, stunning costumes, and energetic dances.

In 2024, the carnival took place from February 9 to 17, providing visitors and residents with unforgettable emotions and vivid impressions. The Brazilian carnival in 2024 was expected to provide a significant boost to the tourism industry, generating an impressive R$9 billion (US$1.84 billion) in revenue, an increase of 10% compared to 2023. According to the Brazilian Hotel Association, between February 10 and 13, 2024, hotels in Rio de Janeiro municipalities had an average of 81.24% of their rooms booked. As part of this initiative, the Governor of Rio de Janeiro guaranteed the largest financial incentive in history for the carnival. Organizers will receive a total of R$13.35 million (about US$2.6 million).

Thus, the Rio de Janeiro Carnival 2024 is not only an important cultural event for the city and country but also has a significant impact on the regional economy. Direct revenues from the event, government support, high hotel occupancy, and the multiplier effect show that the carnival industry plays a key role in the city’s economic development. Rio de Janeiro remains an attractive tourist hub, and the carnival contributes significantly to job creation—both temporary jobs related to the event and permanent ones in the hotel, restaurant, transportation, and other sectors—while also increasing tax revenues and preserving cultural heritage, providing a solid foundation for the city’s and its economy's continued growth.

Since 1985, Melbourne has hosted a round of the Formula One World Championship in March. The races take place at the Albert Park circuit, a street circuit due to its proximity to the city's business districts and waterfront. Over the course of each race weekend, Albert Park attracts over 300,000 spectators every year, and local businesses directly or indirectly linked to the Grand Prix generate an estimated AUD 39 million (US$24.5 million as of 2023) [5].

In 2016, the city of Baku first joined the ranks of Formula 1 race organizers. With the exception of 2020, when the COVID-19 pandemic affected the global schedule, the Baku circuit has regularly hosted this sporting event, attracting thousands of dedicated fans and enthusiastic participants.

Between 2016 and 2017, Azerbaijan’s total income from hosting Formula 1 races in Baku amounted to $277.3 million, with $164.2 million being profit. One thousand business entities were involved in the event, generating $22.7 million from tourism, hotel services, and transportation. According to official data from the Baku City Circuit operating company, in the first four years of hosting the event, the Formula 1 Grand Prix brought $500 million in revenue to Azerbaijan’s economy. And, if in 2022, 10,000 tourists from 70 countries visited Baku during the Grand Prix, then in April 2023, as part of the Formula 1 Azerbaijan Grand Prix, the country was visited for the first time by 154,233 tourists (a 1,442% increase from April 2022), coming from over 100 countries.

This confirms the significant impact of this international event on the development of the tourism industry, hotel and transport sectors, as well as other related sectors of the economy. Formula 1 continues to be a key economic catalyst for Azerbaijan, attracting not only tourists but also investors, strengthening the country’s image on the world stage, and contributing to its economic growth. In the long term, such events will play a central role in the sustainable development of the national economy and solidifying Azerbaijan’s position as an attractive tourist destination.

Modern technologies and marketing strategies play a key role in the development of event tourism, helping significantly expand the reach of the event tourism audience. Social networks, digital advertising, and specialized online platforms enable organizers to effectively promote their events and attract tourists from all over the world. With the rise of social networks like Instagram, Facebook, and TikTok, events are gaining even more popularity. For example, the Coachella festival—one of the largest and most famous music and arts festivals, held annually for over 20 years in California’s Coachella Valley—actively uses social media marketing, attracting thousands of tourists each year, boosting attendance and interest in the event. This large-scale event brings together performers from various musical genres—from indie rock and hip-hop to electronic and pop music—attracting viewers from around the globe.

In addition, technologies such as virtual reality (VR) and augmented reality (AR) are already being used to host online events or create unique content types to attract viewers to in-person events. These technologies provide users with a unique experience even without physically attending the event. Moreover, NFT and blockchain technologies are gaining popularity, being applied in ticket sales and creating unique digital content for event participants. For example, festivals and sports events issue limited-edition NFT tickets, which not only grant access to exclusive areas but can also be resold on specialized platforms.

In other words, modern technologies are not only transforming the way event tourism is promoted but also making it more accessible, interactive, and personalized. Their development will continue to significantly impact the industry, creating new formats of audience interaction and enhancing the economic efficiency of events.

According to the Tourism Events Market Report, the global event tourism market generated $1.6 trillion in 2022, and by 2032, it is expected to reach $2.5 trillion with a compound annual growth rate (CAGR) of 4.6% [8]. This confirms the steady growth of this segment. In particular, the demand for large cultural and sporting events, as well as the growing interest in specialized niche events such as gastronomic festivals, music events, and sporting competitions, will continue to stimulate the market.

         The key factors driving the growth of event tourism remain the following:

         - increased global mobility and accessibility of air travel;

         - development of new technologies to enhance the user experience;

         - growing interest in environmentally friendly and sustainable events;

         - rising interest in a wide variety of specialized events, from sports to gastronomic.

Thus, event tourism is a significant driver of economic growth, cultural exchange, and social sustainability. It helps not only develop infrastructure but also preserve unique cultural traditions, contributing to the creation of new tourist routes and strengthening international ties. The sector is expected to continue expanding in the coming years, with innovations and new marketing strategies helping to attract even more tourists to the world’s largest events.