LAUSR

Purpose This paper aims to discuss the impacts of sports events, considering these: from the perspectives of residents (in terms of self-esteem, increase of social problems, car traffic, cultural self-development and entertainment); and for the host territory (in terms of economic development, price level, destination image and environment). The paper analyzes the case study of a hallmark event of the European Rally Championship – the Azores Rally. Design/methodology/approach During the Azores Rally of 2014, 669 inhabitants on Sao Miguel Island answered a survey. The questionnaire assessed 12 items that are ex ante quality of life (QOL) indicators, ten items of event attributes and overall satisfaction with the event and nine items of event impact perceptions. Findings The satisfaction with the event is positively influenced by the host destination’s overall QOL, particularly by the entertainment and local gastronomy and is reinforced by the event-management mix. On other hand, the QOL attributes rather than the event performance indicators determine the perceptions of the promotion of image destination and economic development. The event spectacle level has a particular influence on the residents’ self-esteem. Practical implications The paper discusses the implications for public decision-makers, tour operators and event managers, focusing on the community as an important driver for placemaking. Social implications This type of event has an impact on residents’ self-esteem, thus enhancing their QOL and hospitality. Originality/value This study supports the role of a peripheral island’s community as an active stakeholder, which interacts with the event organization’s key success factors.