Case study Melbourne Commonwealth Games

Melbourne, Australia hosted the 2006 Commonwealth Games. Unlike a majority of hosts whose main objectives are focused on generating an economic impact and building an international profile, the Victorian Government also viewed the Commonwealth Games as having the potential to focus on social objectives as well. 

Village Park Development - formally the Athletes Village, famous for its low impact urban design and development initiatives
http://www.wtpartnership.com/index.cfm?l=en&c=&p=21aaa8f6-6029-469e-bf60-5ae403682b08&s=&projectid=251

The Government saw the creation of social legacy as one of the primary elements to the games success. An athletes’ village in the suburb of Parkville housed approximately 7000 athletes and staff during the Games, and has been transformed into commercial housing with distinctly eco-friendly image.

Another initiative taken by the Government was to get people back into the workforce. It also included getting people to volunteer at the Games and keep them involved afterwards. These programmes were built on lessons learned from the Sydney Olympic Games where the sudden increase in volunteers during the Games did not transfer to a long term increase in volunteer participation.

Melbourne 2006 Volunteers
http://www.flickr.com/photos/rickmonk/117636043/

It is reported, according to a research prepared for New Zealand Major Events and SPARC in 2007 that more than half of the Games’ volunteers (around 7000 people) have indicated they want to keep volunteering, while 41% of the general public indicated some level of desire to participate in a community event in the future. The possible social benefits here may include better civic participation and social inclusion for sectors of the society,

Tickets...how fast will they sell?

There were more than 100,000 Eden Park tickets remaining with less than 100 days to go to the tournament, and only about half of the 1.6 million total world cup seats filled.

Last month tournament boss Martin Snedden said that reaching the World Cup slaes target of 1.35 million would be challenging but achievable. He went on and said " event history tells you an awful lot of ticket sell once the tournament starts".

But he would still be glad to hear the news headline tearly this morning: there are no more tickets available in the public pool. The second-change offer was snapped up 15 minutes after the offer began on Friday.

Source:

http://www.nzherald.co.nz/rugby-world-cup-2011/news/article.cfm?c_id=522&objectid=10730547&ref=rss

A very contradictary view to mine

http://warmandloving.blogspot.com/2011/04/rwc-2011-will-be-financial-disaster-for.html
A gentleman by the name of Paul has expressed his strong opinions that the RWC2011 will be a financial disaster for NZ in his blog.

His main concern is that there are better ways of promoting NZ than the $500-900 million we have spent on hosting the tournament. He also believes that the so called "tourist" that come to NZ are not here to enjoy our envionment and culture, which are things we are proud of as a country and have worked hard to promote.

I can see where he is coming from. However I still believe that hosting the RWC is possibly the best way to give a boost to the NZ economy. What i can say however is that the government has not been making the best of the opportuntity to invest for the future (i've discussed this issue in my earlier blog "an opportunity lost").

He does make a good point though, that "if this was any other sport but rugby there would be a national enquiry into the financial (aspect of the event)".

P.S. i've read another blog of this person http://warmandloving.blogspot.com/2011_06_01_archive.html 
He said that for every tourist who come during the event, you can expect another avoiding visiting the country during the tournament. I think he has a point here also

The Cloud

"The Cloud" i am talking about its the Party Central, the controversial $9.8 million dollar temporary structure built especially for the RWC. It hosts up to 6000 people.

The Cloud under construction
http://www.worldcup2011newzealand.com/2011/04/aucklands-new-party-central-unveiled-2/

The structure is due to complete next month (just before the RWC commences).  A recent new article from the Heral has indicated that the "Cloud" could stand for 15 years after the RWC. Bob Harvey (Waterfron Development Agency Chairman wants to keep the structure there as he thinking "the cloud" "will become a focal point for the wharf.

The construction of the project had always been as controversial one, and the critics have labelled it "the slug", and argue there wil be problems with drunken revellers." Being situated next to the water, there is also likely to to safety issues associated with drunken people falling off into the water.

Artist's impression of the structure
http://www.worldcup2011newzealand.com/2010/10/2011-rugby-world-cup-party-central-auckland/

Despite being a young person, I can't say I am very supportive of this idea. Going to a pub before a rugby game is great. However creating this flash, unreal structure as a money generating machine for the so-called rugby fans who want to spent more time enjoying the night life rather than rugby games is not what the RWC is about. The venue is likely to provide overpriced entertainment and alchohol for irresponsible people. I don't think those are the people we want to attract with the biggest sporting event in the history of this country.

Maybe i am just old fashioned? Or is the decision to spend $9.8million on the "cloud" rather than on public utilities a stupid choice?


http://www.viewauckland.co.nz/insidersguide/rwc-2011-party-central-plans-announced-feature-4393.html

The problem with the strong kiwi dollar

The stronger the Kiwi dollar, the more expensive things will be for foreign visitors. Maybe the kiwi dollar has peaked at the wrong time? HoweverThe RWC organisors are confident overseas fans will be ready to spend even as the strength of the Kiwi dollar against the US dollar and the British pounds.

NZ dollar is as strong as it has ever been against the US dollar
http://www.3news.co.nz/NZ-dollar-hits-multi-month-highs-against-major-currencies/tabid/420/articleID/122309/Default.aspx

19500 Of the 85,000 visitors are expected to be from the U.K. and 6,900 from North America. However if people are prepared to travel to this country a spend almost two months here, they are likely to spend whether or not the kiwi dollar is strong or weak. Furthermore, according to the same source there are around 29,000 visitors expected from Australia. And as some of us might be aware, the Aussie dollar is really strong right now, the purchasing power being even higher than the US dollar. So if even if the strong kiwi dollar will affect the British and US tourists' spendings, our rich Australian friends should be able to balance things out.
Major sporting events will benefit the economy of the hosting city/nation, this is why cities and countries try so hard to win the rights to host such events. The changes in economic condions will inevitable have some degree of influence, but the the overall benefits will still be there. Just recently the rights to host the 2018 and 2022 football world cup have been decided. The hosting countries are Russian and Qatar respectively. No economist will be able to predict how strong the Russian ruble or the Qatar riyal will be then, but one thing is almost certain, that the events will attract wealthy tourists who are willing to spend.



Russia's Deputy Prime Minister Igor Shuvalov receives the World Cup trophy from Fifa President Joseph Blatter after the official announcement that Russia will host the 2018 World Cup  

http://www.telegraph.co.uk/sport/football/8181639/England-World-Cup-bid-how-did-we-get-it-so-wrong.html

Source:

http://www.3news.co.nz/NZ-dollar-hits-multi-month-highs-against-major-currencies/tabid/420/articleID/122309/Default.aspx

http://www.bloomberg.com/news/2011-05-31/n-z-rugby-organizer-confident-fans-will-weather-soaring-kiwi.html

Security Implications of the RWC

For a almost two months between september and october of this year, NZ will be the focal point of the sporting world. Despite the country's relative low profile in the international arena, the country's security needs to stay on extra alert to eliminate any threats that might happen during the event.

http://thepigeon.co.nz/sport/police-to-recieve-premium-seating-access-to-players-in-order-to-maximise-security-during-world-cup/

Major sporting events have the potential to attract a range of criminal activities, from petty crimals trying to trip off the foreign tourist, to terrorism threats. Security for the RWC will be the biggest police operation in a NZ sporting event since the Springboks Tour of 1981. The Police are preparing for everything from drunken fans to terrorist attacks, but admit that they cannot guarantee a totally safe tournament.

The agencies involved in the securities for the RWC include customs, the defence force, elite police squatds, and even the spy base at Waihopai (i wonder how good these spys are when they tell the public that they are involved).

The organisers have indicated that this year's Super 14 matches will be used as practice for the RWC security team. The team was involved in organising safety measures in the South African world cup in the previous years.The bombings at india's IPL cricket tournament is a warning that major sporting events are targets for terrorist.

So New Zealand, be prepared for a wonderful event, but always stay alert. New Zealand is not used to attracting so many people within such a short period of time. The RWC will really test the NZ police's capacity and capability.

Sources:
http://www.telegraph.co.uk/sport/cricket/twenty20/ipl/7610918/IPL-cricket-bomb-attacks-ordered-by-betting-mafia.html

http://thepigeon.co.nz/sport/police-to-recieve-premium-seating-access-to-players-in-order-to-maximise-security-during-world-cup/

News Talk ZB

An opportunity lost

I remember when I was about 10 years old in China, Beijing was making a bid to host the 2008 Olympic games. Everyone in China started learning English, from taxi drivers to senior citizens. TV kept on showing the government’s intentions on investing in huge infrastructural projects etc. I used to wonder why the city goes through so much trouble to host these big sporting events. Now I know: it’s the associated economic impacts.

According to an economic impact report prepared by Horwath Asia Pacific Ltd, hosting RWC 2011 would generate more than NZ$1.15 billion in total economic activity, and pump more than half a billion of actual dollars into the NZ economy. The RWC will also provide the NZ government with an additional $112million in tax revenue*.

It is also one of the most direct methods of attracting tourist. Based on our neighbour Australia’s experience of hosting RWC 2003, NZ can expect to attract up to 6600 international supporters, 2500 international media, and up to 2500 corporate and VIP guests throughout the Tournament. Using a more recent example, though further away: RWC 2007 in France brought in 350000 additional visitors to France and pumped in up to £2.1 million into their economy*.

There are also other indirect socio-economic benefits associated with hosting these sporting events. One of the most significant is the construction of new infrastructure and improvement of existing infrastructures. Such public works may not occur, or would have otherwise not occurred as soon. In other words hosting these events can speed up the overall social-economic development of a city/country.

In New Zealand however, there has been very little infrastructural improvements associated with the World Cup. In fact the single biggest infrastructural investment had been the expansion of Eden Park so that it meets the capacity requirement of the IRB. Other public works around the country seemed to have been happening at the same slow pace as they have always been in this country.



It is not as if the country does not need any new infrastructure. If the RWC - the biggest even in the country's history - can't bring about some changes to the status quo, what will? (Source: NZ Herald)



Overall the event is expected to cost NZ$310million to run and generate NZ$280million in ticket sales (yes, that’s from average $500 semi-final tickets and $750 final tickets)**. The budget may seem big, but let’s compare it to some of the other sporting events around the world.

For the London Olympics there is a budget of £5.3billion to cover building the venues and infrastructure for the Game. Various other costs include an additional contingency fund of £2.7billion, security and policing of £600million, VAT of £800million***.

London gearing up for 2012 (Source: Guardian.co.uk)

Back in 2008, it is estimated that US$40 billion had been spent on hosting the Beijing Olympic Games, which makes it the most expensive Olympic game by a wide margin. The construction of the six main venues alone used up 2.1 billion. In fact the Games was so extravagant that the London Olympic committee declared straight after the opening ceremony that London will not be able to, and will not attempt to match the extravagance of the Beijing Olympics.

“LONDON—How can London, host of the 2012 Olympic Games, possibly compete with China? How can it top the eye-popping pyrotechnics, the cast of thousands, and the architectural gem of a stadium that were part and parcel of the successful Beijing 2008 Olympics?”****”

The Bird's Nest towards its completion (Source: Beijing Olympics 2008)

Water Cube (Source: http://webpressphoto.com/2011/02/earth-hour-2009/)

I know that Rugby World Cup is not at the same level as the Olympics but it is still the 3^rd largest sporting event in the world. I think that the central government should have maybe taken some risks, borrow some money and use RWC 2011 as a fuse to kick-start some large infrastructural projects. The country, and especially Auckland will grow and we will need these soon or later. Really, the RWC has been an opportunity lost for the country. Let us hope that at least we can win the Cup.

Sources:

*http://www.rugbyworldcup.com/destinationnewzealand/aboutrnz/factsheet.html

**http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10459608

***http://www.guardian.co.uk/sport/2008/jul/28/olympicgames2008.china1

****http://www.usnews.com/news/world/articles/2008/08/22/london-admits-it-cant-top-lavish-beijing-olympics-when-it-hosts-2012-games

The Council's Extra Investment

Auckland Council has agreed to make up an almost $3 million shortfall in funding for its three extra Rugby World Cup games despite protestations from some councillors that the Government should foot the bill. Auckland will now hold an extra two quarterfinals at Eden Park and a pool game at North Harbour Stadium.

Councillor Mike Lee said Auckland ratepayers were "at the bottom of the food chain and they are the losers in this, really". He would have been one of the councillors who had voted against the council fundings. However I tend to prefer Lens's attitute more. Len has indicated that most of the funding will come from cuts to other areas. The mayor also said that Auckland has no other option but to fund the games.

Councillor Calum Penrose said he's opposed to the funding because he thinks the government should pick up the tab. Penrose said Auckland ratepayers have already paid $100 million towards the Rugby World Cup. Meanwhile, there has been a backtrack from the council on plans to cut $14 million in funding for the arts and rescue services.
Personally i think the Council is realistically the only organisation that has the ability to fund the extra three games. It would be unfair expect the central government to provide the funding as the extra revenues associated with the three extra games are only likely to benefit Auckland.

As i have mentioned in my earlier posts, it is most unfortunate that the Christchurch has lost the opportunity to host RWC games, but Auckland can benefit from the decision. Just think of the extra revenue that will likely to be associated with hosting the extra games. Party Central for one is likely to benefit from the extra visitors who will go their and spend after watching the games.

Source:

http://tvnz.co.nz/national-news/auckland-ratepayers-cough-up-extra-matches-4095503
http://www.stuff.co.nz/sport/rugby/rugby-world-cup/4834926/Auckland-Council-approves-extra-RWC-funding

Implications of the Christchurch Earthquake

So welcome to my blog. It’s going to be about the RWC2011. Of course to make it relevant to the course I will be adding some planning touches to it. 

To kick-off this blog I would like to discuss the decision to not have the World Cup in Christchurch - whether this is the right decision, and the implications of this decision for the city and the country as a whole.

To a region that has just been battered by the devastating earthquake, there doesn’t seem that anything can be crueller than to take away their chance of playing a part in hosting the Rugby World Cup – an event so significant to the country and a sport that means so much to the people of Christchurch.

For obvious social and political reasons the government had been keeping the hope alive for as long as possible, however the final decisions made by the RWC2011 organisers had decided (reluctantly) is that Christchurch will not be hosting the Rugby World Cup. This decisions has taken into consideration

Canterburians are rugby nomads, and we all know that. Despite being a supporter of the Blues I have to admit that the Crusaders have had more success than us. To move the World Cup games from Jade Stadium (or AMI Park as it’s known as now) to Eden Park is like shifting America’s Cup from the Hauraki Gulf to the Wellington Harbour! Imagine what us Aucklanders would think if that happened!!

The AMI stadium

Of course, the politicians and the Game’s organisers thought long and hard about the matter I still can’t help feeling bad for the poor Christchurch. However here are some of my constructive thoughts on the matter:

Christchurch was hit mighty hard by the earthquake (although it has been made less significant by the Japanese earthquake/tsunami/nuclear explosions). We have a small economy which has just gone through a recession. The extent of the Christchurch earthquake can be felt here in Auckland as the promises of infrastructural improvements promised by the poor Len Brown probably won’t materialise in the foreseeable future as John and Bill will most likely use the money for the rebuilding of Christchurch.

Len isn't too happy

"and the money will go to...Christchurch!"

 

So forget about the second harbour crossing and major improvements to the railway for the next few years. All the benefits Auckland will receive will be the extra revenue that will be associated with the wealth rugby fans (especially the English fans) that come to watch the game (and various other activities before and after the games). 

As one of the main stadiums in NZ, the Jade Stadium was supposed to host 5 pool games and 2 quarter final games. Assuming that will mean a whole lot of ticket sales, souvenirs, food & drinks, accommodation for the Christchurch economy. Now all that will be lost.

British Lions Fans

But maybe it is the right decision? Well, firstly people may be reluctant to go to Christchurch after what had happened. Secondly, maybe we should just focus on the rebuilding of the city rather than risk putting it under tourism stress? Thirdly, and lastly – Eden Park has a higher capacity at end of the day, plus the prices are more expensive in Auckland and there more things to do. So the chances are we can in fact earn some extra revenue from the decision that can be donated to Christchurch. Maybe this idea is too naïve, but with the generosity shown by the NZ public after the earthquake I don’t see why we can’t contribute some revenue from the RWC into the rebuilding of Christchurch