Part I. Economic Impact on stakeholders I.1 State Government of Victoria According to Glenn Fenton (cited in Royall, 2016), the Show Chairman, there is a positive economic impact at around $9 million annually to Victoria, mostly generated by visitors. There is a huge number of tourists and over a hundred exhibitors who are from outside of Melbourne. As a result, there is a huge spending on accommodation, restaurants and transportation from them (Committee report to Council, 2016). In addition, each floral display at the show cost around $9,000 while each Gardens landscape displays invests around $40,000(Committee report to Council, 2016). Around $3 million were generated from these displays and exhibitions alone. There are also economic …show more content…
Staging the event According to the committee report to council, it costs approximately $2.5million each year to stage the event (committee report, 2015). B. License The 2011-2017 license states that the cost of license in 2016 was $126,000, and will increase by $4,000 in 2017, reaching $130,000 (committee to council). C. Promotion In project management, promotion is an important part of an event organization. For instance, a full page cover in the Sun-Herald newspaper cost from $50,000 (Herald Sun Media Kit, 2016). However, due to strong partnership, especially with the Herald Sun and Channel 7, the MIFGS is able to save a great amount of money in advertising. Therefore, we estimated the budget of advertising at around $350,000. D. Other expense Company spend $30,810 on contribution toward public parks works in accordance with priorities contained in the Carlton Gardens Master Plan (committee to council). For other expenditures, we compare to RHS Chelsea flower show in UK which has similar business pattern as a reference, estimated at $200,000. E. Future Growth Rate The expenses and revenues of 2017 we did not discuss in the explanations; we assume the future growth rate as the economic inflation rate which is