Research Project: The Link between Marketing and Tourism Revenues for the Vancouver and PyeongChang Winter Olympics

Abstract

This research paper explores the impact of marketing strategies employed during the PyeongChang and Vancouver Winter Olympics. The two key strategies examined are Olympic branding and promotional campaigns. The paper explores how these strategies influenced hospitality and tourism revenues in the respective host countries. In Vancouver, the Olympic branding highlighted the natural beauty and cultural diversity of the region, incorporating elements inspired by the local landscape. Meanwhile, the PyeongChang Olympics introduced their own unique branding, including mascots that represented local mythological creatures. Vancouver 2010 focused on attracting local spectators, and, in contrast, PyeongChang 2018 put efforts into promoting K-Culture and therefore attracted foreign tourists. Despite the contrasting marketing strategies, both countries reported similar short-term tourism spikes. However, one main difference is the more sustained long-term impacts of the PyeongChang Olympics on tourism. Through the analysis of these marketing strategies, the study aims to highlight their impact on attracting spectators and driving tourism revenues in both host countries.

I.              Introduction

Mega-events, such as the Winter Olympics, generate high revenues in the sports industry. As the use of winter mega-events as tourism catalysts became common, Olympic marketing strategies have adapted to generate tourism revenues (Gaudette et al., 2017). This means that the Winter Olympics these days are commonly used to captivate tourists and proliferate revenues. Hence, host countries put in a lot of efforts into marketing. Olympic marketing strategies reflect the promotional efforts employed by the International Olympic Committee (IOC), National Olympic Committees (NOCs), and Olympic Games organizers including the local governments. These strategies incorporate a range of activities such as sponsorship from various companies, social media campaigns, merchandising, etc. They aim to promote the Olympic Games in general, attract tourists, and enhance the quality of spectators’ experience, ultimately driving economic growth of the host countries.

Employment of marketing strategies for increasing revenues goes back many decades. Seeking tourism revenues through mega-events existed even during the US recession in the 1980s. There was an increase in demand for sports and gaming during recessions, which the government targeted to increase tourism levels. Local governments anticipated positive economic impacts such as employment opportunities and tourism revenues by attracting more tourists through this strategy (Cantor and Rosentraub, 2012). This clearly shows that one of the reasons why host countries of Olympics focus on marketing strategies is potential tourism revenue gained from them. Later in 2012, Paris, one of the final two contenders for Olympic 2012, expected to see “42 billion (EUR 35 billion) additional economic impact, resulting from additional 7 million tourists annually 4 million new people playing sport on a regular basis, and the creation of 42,000 permanent jobs” in 2019 (Dawson, 2012). Mega-events like the Olympics not only generate short-term tourism revenues but also promote the host country itself, which may have significant long-term effects.

This brings to a question of similarities and differences between marketing strategies employed by different host countries to increase tourism revenues and how effective they are. In this paper, I contrast the marketing strategies of the Vancouver 2010 and PyeongChang 2018 Winter Olympics and how they resulted in host countries’ tourism revenue. These two Olympics are the most recent winter mega-events that took place before the pandemic, for which we do not have to consider the effect of Covid-19 when analyzing the data. Also, I aimed to investigate the differences between Asian and Western marketing.

I find that the focus of Vancouver 2010 and PyeongChang 2018 contrasts with each other: while Vancouver 2010 focused on the country’s landscape and tradition, PyeongChang 2018 highlighted Korean language and the ideas of the Olympic games itself. In contrast, their focus is switched in promotional campaigns—Vancouver 2010 promoting the Olympic with its unique features and PyeongChang 2018 promoting Korean culture in different parts of the world. In the following sections, findings regarding marketing and tourism during and after Vancouver 2010 and PyeongChang 2018 are introduced and discussed in detail. Although both countries benefited from these strategies in a short-term, these strategies resulted in the data with slightly different trend in long-term.

II.            Methods

Before researching each country specifically, I gained an overview of Olympic Marketing through Marketing Report by International Olympic Committee (IOC). In order to collect data for marketing of each host country, I investigated each country’s strategies by watching promotional videos posted before and during the Olympics, the countries’ social media accounts, official news articles published, official marketing report by IOC (Vancouver 2010 and PyeongChang 2018) and tourism reports from each nation. To gather and organize data for travelers' entrance and tourism revenues, I researched statistics that include real GDP, tourist spending, and tax revenues. Data for Canada tourism revenues was found from the official website of British Columbia, which contains monthly and annual data of tourism industry. Data for Korea tourism revenues was found from 한국관광 데이터랩 (Korean Tourism Data Lab), which contains annual data of tourism from 1995 to 2024. Regarding data collection for marketing strategies, I conducted qualitative analysis and literature review, focusing on details of two Olympic marketing. I compared the data collected by time. For effective comparisons, I plotted tourism data over month and year to investigate the data around the time of the events.

III.          Results

A.            Olympic Branding- Vancouver 2010

The slogan of the Vancouver 2010 Olympic Games was "With Glowing Hearts," which was taken from the lyrics of the Canadian national anthem, O Canada (Levitz, 2008). Referring to the national anthem, this slogan essentially reflected the pride and patriotism. It was significant for both Canadian citizens and the global community as it represented the mindset of athletes participating in the games and reminded them of the passion, dedication, and unity that characterized the spirits of the Olympic.

According to the IOC Marketing Department (2010), the design and branding of the Vancouver 2010 Olympic Games highlighted the natural beauty of the host region—with various elements that celebrated Canada's diverse cultural heritage. In particular, the design team utilized graphics that were inspired by the local coastal landscapes, lush forests, and mountain peaks of the host region; these elements were combined with urban graphics that symbolized the geographical diversity of Canada, manifesting the country's multicultural identity with diversity. In turn, the brand identity created through this process reflected the unique values and features of the Vancouver 2010 Olympic Games.

An emblem of Vancouver 2010 was designed by the Rivera Group in Vancouver and selected from over 1,600 entries through a national design competition. Used as a tribute to Canadian Artic, the emblem was a contemporary interpretation of the traditional Inuit inukshuk structure called Ilanaaq, which represents hope, friendship, and hospitality in Canada. By implying different symbols and meanings that are linked to Canadian cultures to each color, the emblem itself represents the nation (Skorodenski, 2014).

The three Vancouver 2010 mascots, which were Miga, Quatchi, and Sumi, were also inspired by local Aboriginal mythological creatures. Miga was designed as a sea bear, based on Pacific Northwest First Nations legends. Quatchi was based on the sasquatch figure from local Aboriginal folklore. Sumi symbolizes an animal spirit, which is inspired by black bear, orca whale, and thunderbird.(CBC, 2007).

Regarding Olympic goods, according to the IOC Marketing Department(2010), the Vancouver 2010 licensing program featured over 41 licensees and offered more than 5,000 product items across 15 different categories. Alongside the Olympic Superstore, there were eight Olympic-related stores, including an online store, providing fans and visitors with multiple avenues to access and purchase official merchandise. They set a new precedent in the history of the Olympic with the decision to open the Olympic Superstore four months before the Games. This innovative approach to marketing demonstrates Vancouver's commitment to delivering an exceptional experience to the spectators. In addition, the inclusion of other National Olympic Team merchandise within one official retail location allowed a unified and diverse shopping experience, further fostering a sense of companionship among different nations during the Olympic season.

In conclusion, the Vancouver 2010 Olympics prioritized creating a memorable sporting event while recognizing the significance of their indigenous culture and geographical features and providing opportunities for other participating athletes nations to show their pride through merchandise. These global initiatives were employed for the potential overall success and legacy of the Games, including positive impacts on both the local community and the international Olympic events.

B.    Olympic Branding- PyeongChang 2018

      According to the IOC Marketing Department (2018), the official slogan of the PyeongChang 2018 Games, "Passion. Connected." conveyed broad vision PyeongChang 2018. While emphasizing the importance of world-wide connection, it aimed to inspire and ignite a passion for winter sports among nations, athletes, and spectators at the same time. Through the use of two relatively short yet impactful words, the slogan fostered a strong sense of unity and passion, which represent the essence of the Olympics.

The branding of the PyeongChang 2018 Olympic Games was initiated under the consideration of the cultural heritage of Korea. Inspired by Hangul, which is the Korean alphabet, the branding aimed to create a captivating, unique visual representation. This goal could be shown specifically from the center of the design: it incorporated Hangul characters in multiple ways, such as close-up shots of individual letters that resembled abstract design elements and arrangements of smaller letters that formed snowflake patterns, which symbolized the idea of winter Olympic (Lahitou, 2018). The innovative approach resulted in a visually stunning as well as festive look for the Olympic and therefore evoked a sense of celebration and wintery wonder that would resonate with people from different parts of the world.

The emblem of the PyeongChang 2018 Games reflects the essence of their pride of Korean culture. The shapes forming the logo may look simple, but they included Korean twist: they were derived from the first consonants of each syllable in the word "PyeongChang" when written in Hangul (Korean). Beyond its linguistic significance, the pillar's first character symbolized a gathering place where the three elements of Korean humanism—heaven, earth, and humanity—harmoniously connected. Additionally, a star-like symbol placed at the top right of the emblem represented the snow and ice associated with winter sports or mega-events as well as the stick-man figure and the athletes themselves (Dawood, 2018). Together, these elements conveyed the deeper message of the spirit and vision of the Olympic, reflecting the ideas of the union of tradition, nature, and winter sports.

Lastly, the mascots of the PyeongChang 2018 Games, Soohorang and Bandabi, held significant cultural symbolism during the Olympic. Soohorang was designed based on a white tiger that often appeared in Korean mythology and traditional folks. In Korean, "Sooho" means protection, which is utilized to represent its role of safeguarding the athletes, spectators, and other participants throughout the Olympic. This concept also fostered an idea of “safe space” without injuries. The name "Rang" also had a critical connection to Korean culture, resonating with the traditional folk music of Gangwon Province, Jeongseon Arirang. The lineage to the song further tied the mascot to Korean local heritage. On the other hand, Bandabi did not have a conspicuous connection with Korean traditions, but it still represented an Asiatic black bear, a species native to the region of PyeongChang (Waxman, 2018). These mascots not only added an element of fun and excitement to the Games but also served as cultural ambassadors, embodying the spirit and identity of the PyeongChang Games.

C.            Promotional Campaigns- Vancouver 2010

Before and during the Olympic, relevant organizations of Olympic marketing operated

different kinds of promotional campaigns inside and outside the country. For instance, they installed a count-down clock that counts the number of the days remaining until the Olympic in front of the Vancouver Art Gallery. At Stanley Park in Vancouver, BC, five Olympic rings were lit up at night, allowing the visitors to view the beautiful cityscape. As the Olympic was coming up, a lot of festivals and performances were taken place at Robson Street (Levan, 2024).

According to the IOC Marketing Department (2010), the IOC contributed to online promotional campaigns during the Olympic through the “The Best of Us” campaign, which was intended to reach out to and motivate young people across cultural boundaries. They broadcasted a video of athletes that initially seem to be playing against each other, but they are indeed working altogether for the unity of the globe and to celebrate the Olympics. Additionally, they organized “The Best of Us Challenge,” which could be found on thebestofuschallenge.olympic.org. Through the innovative digital campaign, they offered Olympic fans the opportunity to “compete” against athletes. This challenge was organized with the intention of encouraging people to attempt to win against them. The activities like picking up as “many tennis balls as possible in 30 seconds, seeing how far you can walk on your hands and how long you can balance a four-foot stick on your foot, and juggling” are subsumed in the challenge.

D.            Promotional Campaigns- PyeongChang 2018

Employing the popularity of K-Culture, the tourism organizations of PyeongChang 2018 focused on international marketing. In Korea.net, Kim Ji Hoe and Kim Young Shin state that oversea promotional activities were actively carried out in North America to promote the 2018 Pyeongchang Winter Olympics and Paralympics about 200 days prior to the event. On June 22nd, 2017, the "2018 Pyeongchang Winter Olympics and Paralympics Promotion Booth" was established at the landmark Times Square in Manhattan, New York, and the Prudential Center, an indoor stadium in Newark, New Jersey. There, visitors experienced ski jumping, a major event of the PyeongChang Winter Olympics, in virtual reality (VR) and took pictures with the official mascot, Soohorang and Bandabi, experiencing the joy of the upcoming PyeongChang Winter Olympics in advance. The Korean Consulate General and Korea Tourism Organization office in LA collaborated with the Korean Culture Center to further promote the event. These international events were organized by the Ministry of Culture, Sports and Tourism, the Korea Tourism Organization, the Pyeongchang Winter Olympics Organizing Committee, and Gangwon Province.

Furthermore, these organizations operated several live experiences. According to the IOC Marketing Department (2018), Live Site experiences organized at the PyeongChang Olympic Plaza and Gangneung Olympic Park allowed 1,400,000 tourists to visit to watch around 1200 concerts, performances, and exhibitions during the Olympic period.

E.             Tourism Revenues

Whether the marketing strategies employed by Vancouver 2010 and PyeongChang 2018 were effective or not may be indicated by tourism revenues during and shortly after the Olympics. The data collected for tourism revenues are focused on changes in travelers’ entrance and consumption.

Figure 1&2: source: British Columbia Economic Statistics 

The bar chart above shows increases in percent of tourism revenues, real GDP, and consumption taxes for Canada around the Olympic. In 2010, when the Olympic was hosted, we can see a huge increase in all three statistics: total revenues increased by 10%, and real GDP and consumption taxes increased by around 8%. Specifically, increase in consumption taxes is an indication that the government was able to capture advantages as a host country through the collection of taxes. However, following the Olympic, the statistics drop by nearly half, which tells us the possible lack of strategic planning and legacy establishment. A decline in real GDP growth is most significant. Graph 1 indicates the comprehensive trend of the number of tourists that visited Canada via British Columbia. Overall, the graph is generally in the range of 45,000 to 60,000 visitors per month. There was a little drop right before the Olympic, which was held in February 2010. However, it is followed by sharp increase in the travelers’ entries, reaching over 70,000 at peak. The number decreases at a rapid pace, returning to earlier number immediately after the Olympic.

Figure 3&4: source: Korea Tourism Data Lab

      Chart 2 above shows change in percent in total tourism revenue of Korea from one year prior to one year after the Olympic. In 2018, when the Olympic was held, there was a huge increase of around 60% compared to the previous year. However, in 2019, we see a decline in the change in percent, meaning that tourism revenue is still increasing compared to the previous year but increasing at a relatively slower rate. This jump aligns with the trend we see in Graph 2. The number of tourists increased from 1,000,000 to 1,400,000 by the time the Olympic was held, and it stayed at an elevated level for about a year. Although it is a notable increase, it is not the highest peak in the overall trend, possibly meaning that the Olympic was not the most significant event that shaped Korea’ economy. Overall, travelers’ entries to Korea fluctuate a lot before, during, and after the Olympics.

IV.          Discussion

A. Comparative Analysis

Both PyeongChang 2018 and Vancouver 2010 include the same set of colors: blue, black, green, red, and yellow. Another similarity between them is that they utilized figures from emblem as symbols. Vancouver 2010 emblem has the same shape as inuksuk, piles of stones constructed by the Inuit of the Canadian Arctic, and PyeongChang 2018 emblem is inspired by PyeongChang in Korean (평창), as it visualizes the Korean letters. However, there is a distinct difference in the use of colors. While an emblem of Vancouver 2010 had different implications of each color, that of PyeongChang 2018 did not. According to CBC Sports, Green and blue represent coastal woods, mountain ranges, and islands. The red signifies Canada's Maple Leaf, while the yellow represents the spectacular sunrises. The emblem was not only intended to represent Vancouver or the Olympics, but the entire country itself. While Vancouver 2010 focused on what the colors symbolize, PyeongChang 2018 focused on placing Olympic-related figures on the emblem. The straight lines from Hangul “ㅍ,” which is part of emblem, do not touch together, forming an opened rectangular shape. The unique design symbolizes diversity and collaboration in an “open space” during the Olympics. Hangul “ㅊ,” is written in a way to visualize stars, snow, and sports stars. Contrasting designs and implications of each part of the emblems reveal brandings that each Olympics focused on.

Figure 5: Vancouver 2010 Emblem. Source: Olympics

Figure 6: PyeongChang 2018 Emblem. Source: Olympics

The organizations of Vancouver 2010 heavily focused on-the-ground promotional activities within the country like installing a countdown clock and lighting up the Olympic rings at Stanley Park. There, a lot of festivals and performances took place on Robson Street, increasing the engagement of local communities. In contrast, the PyeongChang 2018 organizers focused on international marketing by setting up promotional booths in globally popular places such as Times Square and the Prudential Center. They worked to spread Korean cultures through K-POP and organized sports-related activities through virtual reality. While these events were held with collaboration between various Korean government agencies and tourism organizations, Vancouver 2010 collaborated with the IOC to begin digital campaign called “The Best of Us,” attracting young tourists.

Figure 7: PyeongChang in Hangul (Korean). Source: Gangwon 2024

As a result of these marketing strategies, the data chart and graph suggest that although the 2010 Vancouver Olympics served as an effective economic boost, it did not lead to long-term impacts. The significant increase in total tourism revenue (10%), real GDP (8%), and consumption tax (8%) indicates that the notable number of visitors and corresponding economic activities generated by the Olympic had positive, short-term impacts on the country’s economy. However, a rapid decrease in total tourism revenue and real GDP is possibly related to economic slowdown, unsustainable growth, and overreliance on tourism or one specific event, Vancouver Olympic 2010. The lack of legacy is revealed in the trend graph as well. In the years following the Olympic games, entries of travelers returned to pre-Olympic levels. The trends shown in Chart 1 are similar to those in Chart 2, as both Canada and Korea went through a positive change in their economy at a decreasing rate. Change in percent of tourism revenue was negative 20% in 2017 but increased to 40% in 2018, like how the economic indicators of Vancouver increased when the Olympic games were hosted. We can see the surge in visitor numbers in Korea in 2018 as well, but the percentage increase is relatively smaller than that of Vancouver—while traveler’s entries almost doubled for Vancouver, those of Korea increased by around 40%. However, they stay at a high level of the number of tourists longer than Vancouver, indicating that PyeongChang 2018 resulted in comparatively better long-term impacts.  The lasting effect may be attributed to their marketing targeted to foreigners, which is one of the main marketing strategies that contrast with Vancouver. Although both countries put an emphasis on unique aspects of their nations, PyeongChang branched out the promotion through visiting different countries like America, expanding their target spectators to international tourists.

V.   Conclusion

In this paper, I have explored and compared branding and promotional campaigns of the Vancouver 2010 and PyeongChang 2018 Winter Olympics and linked the findings to their tourism revenues, including economic indicators and the number of visitors. I utilized official marketing reports, tourism data, and news articles published by IOC, government websites, and journals.

The results suggest that although each marketing strategy prioritized different features, but they share common focus points: the host countries’ unique traditions and cultures and the Olympic spirit. As they shared similar marketing strategies, the economic impacts of the Olympics were similar. While Vancouver experienced a higher peak in the number of visitors during the Olympic season, it dropped immediately after the Olympics ended. While Korea experienced slightly longer positive impacts on the economy and their tourism statistics, the travelers’ entries still fluctuated a lot.

As the statistics from both countries illustrate the lack of legacy of the Olympic games, policymakers and organizing committees should consider implementing several key strategies. First and foremost, there needs to be a stronger emphasis on sustainable infrastructure development that can be utilized even after the Olympic games. Specific ways to approach to this strategy includes investment in renewable energy and multi-purpose sports facilities. Rather than focusing on temporary Olympic needs, they should enhance the lasting impact of it. Also, they should prioritize programs that engage youth, which can be done through community outreach. For instance, Korea’s strategies of promoting the Olympic to global tourists and spreading K-Culture at the same time would create opportunities to boost its international reputation and inspire future tourism. Although there is a need to address various factors that contribute to the success of Olympics for a deeper analysis, adopting these policy recommendations can ensure more enduring legacies in host countries.

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