This paper presents a literature review the research on taxpayer subsidies of large events, or "hallmark" events, such as sporting events. The various components of evaluating whether such taxpayer subsidies are appropriate are presented in turn. The literature reviewed includes: the economic impact of the event (only expenditures that would not have occurred otherwise should be evaluated); the importance of scale and the viewpoint of the analysis (are the costs and benefits being considered at the national or local scale?); does the region or locality accrue any lasting promotional benefit; how are the economic benefits distributed amongst different segments of society; are the taxpayer contributions offset fully by tax revenue; different ways to evaluate or rationalize government assistance; and an examination of the impact of spectator vs participatory sporting events. The literature review demonstrates that most of large sporting events run at a loss and that rarely do taxpayer revenues offset taxpayer contributions. Where the taxpayer subsidy largely benefits the tourism industry, the industry should be encouraged to meet the cost. Where the tourism industry does not contribute, the author finds it difficult to avoid the conclusion that the taxpayer is generally the loser in hosting of major sporting events.

Deller, S. C. and M. Shields. 1996. The Wisconsin Extension Fiscal Impact Model: Preliminary Results. Madison, WI: Department of Agricultural and Applied Economics, University of Wisconsin-Madison.

In this preliminary report, a hybrid model of local government revenues and expenditures for Wisconsin counties and municipalities is developed. Designed with the intent of providing estimates of the impact of economic change on local governments, the fiscal model is linked to a regional (county) input-output model. These regional IO models are based on MicroIMPLAN. An example scenario of an increase in manufacturing employment for St. Croix County Wisconsin is estimated.

This report by the Wisconsin Taxpayers Alliance documents the results of survey of room taxes charged by cities, villages and towns throughout Wisconsin. Room taxes have been rising slowly towards the legal ceiling of 8.0%. Room taxes are used to finance tourism promotion, business and economic development, general revenues, infrastructure and increasingly large scale convention centre projects. The study also presents data and trends of the economic impact of tourism in 26 major markets and northern counties. The study does not analysis the affect of room taxes on Wisconsin tourism demand.

Deller, S. C., D. W. Marcouiller and G. P. Green. 1997. "Recreational Housing and Local Government Finance." Annals of Tourism Research 24(3):687-705.

The study uses "holistic" model of fiscal impact to determine the economic impact of recreation housing on local governments fiscal balance in Wisconsin counties. The "holistic" model uses a traditional fiscal modeling approach that is rooted in the public finance literature and estimates a set of reduced form equations detailing local government revenues and expenditures. In general it was found that recreational housing development just pays for itself in terms of the ability of local governments to generate revenues - such as property taxes, fines and penalties, charges and fees and state aids - when compared to the demand places on services, as measured by expenditures - such as general government expenditures, police and fire protection, road maintenance, waste disposal, health and human services, cultural and education services, parks and recreation, and conservation and development.

Marcouiller, D. W. and J. Alpi. 1995. Using County Sales Tax to Identify Tourism Trends: Selected Wisconsin Counties. Madison, WI: Tourism Research and Resources Center, University of Wisconsin-Extension.

The authors of this document outline trends in tourism-sensitive business sectors at the county level using sales tax information provided by the State of Wisconsin. This is done only for the 43 Wisconsin counties in which the tax was in effect during 1993. A ranked list of counties based upon net sales tax per capita illustrates that Door County and Oneida County had the highest net sales tax per capita at $66.78 and $64.43 respectively. Between 1991 and 1993, 15 new counties have added a county sales tax. Included in this recent set of additions, Dane County had a $59.71 net sales tax per capita during 1993, placing it third in the state using this measure. Generally higher net sales tax per capita are found among counties where tourism is relatively more important. Local economies benefit from the influx of money from nonresidents into these tourism-sensitive areas.

This report looked at the economic impact of visitors and convention delegates on Brown County. Direct and indirect expenditures were calculated along with the creation of new employment due to visitor impacts. In addition, public costs and benefits were estimated. The total expenditure impact was calculated at close to $93 million and total employment impact was estimated at about 4,500 new full and part-time jobs. The public sector saw a net fiscal benefit of about $140,000.

This study uses cost-benefit analysis to analyze the financial support by public agencies of small-scale tourism businesses in rural areas of Israel. When compared to other small-business types, support for tourism businesses is more cost effective. While both tourism and other establishments yield favorable cost-benefit rations and net present values per job, those of the former are consistently higher. This position is further strengthened on welfare grounds, as income distribution impacts of the support program being analyses revealed a more pronounced effect among the tourism firms.

This paper uses the Canadian Provincial and Territorial Satellite Account, input-output tables and tax remittance files to provide a estimate of government revenue generated by the tourism industry in 1998. The study concludes that for every dollar of tourism spending ($45.9 billion in 1998) governments in Canada raised 30.1 cents. The revenue was divided 14.8 cents to the federal government, 13.6 cents to the provincial governments and 1.8 cents to municipal governments. Sales tax were the largest generator of revenue with income tax on employment incomes and business profits the second most important source.