Importance of Events in Tourism: Impacts of the UEFA-EURO 2004TM on the Accommodation
Industry in Algarve, Portugal

FERNANDO PERNA
Universidade do Algarve

MARIA JOÃO CUSTÓDIO
Universidade do Algarve

ABSTRACT
In June 2004, Portugal organised the final phase of the European Football Championship, the Union of European
Football Associations – (UEFA-EURO) 2004TM. Algarve was one of the four hosting regions, organising three matches including the quarter finals. The bid for the final-phase organisation was politically controversial at the regional level, with arguments revolving around destination-image projection and economic benefits of tourism, particularly with respect to the accommodation industry. Considering the possible advantages that such an event has on the economy, this paper defines the role and typology of the UEFA-EURO 2004TM event and quantitatively assesses its economic impact on the accommodation industry. Using official data from the Portuguese National Institute of Statistics, the current findings show that the price effect partly explains the net decrease in overnight stays during the event, leading to an almost nil result for a short term¬ impact analysis. Future research developments related to medium - and long-term analysis are necessary to assess the material benefits for other industries and market, in addition to evaluating the immaterial gains associated
with destination image.
Key words: Events, UEFA-EURO 2004TM, economic impacts, tourism economics.