Inevitably hosting a major sporting event within the U.K will have an economic impact, although the event needs planning and investment incorporated with the hosting of the games for it to be beneficial to the area. Games such as the 2002 Manchester Commonwealth games, the IAAF Birmingham games and the 2012 London Olympic bid have all had a major economic impact on a local, regional and national scale. Sporting events such as these are extremely diverse from events such as the F.A Cup final and the 6 Nations tournament, as they are a single location event, spaced over more than one stadium and continue to go on over a period of weeks, whereas smaller events such as the F.A Cup final, take place in one day, therefore economic impact differs for different sporting events.
Without doubt more advantages are expected from the hosting of the games, this is made evident within this table.
Undoubtedly economic impact varies depending on the size of the sporting event. Events such as the Manchester Commonwealth games, the IAAF Birmingham games and the 2012 London Olympic bid all have an effect on the surrounding area.
Employment, Infrastructure and the overall stature of the region all benefit from these types of events. Events such as these put the U.K at the centre of the world stage, they provide opportunities to promote culture, U.K values and expertise and bring with them a range of both sporting and non-sporting public benefits, most notably economic and social development that enhance the life of the nation. Regionally Manchester will profit from the games to a great extent, the Lord Mayor of Manchester makes this apparent as he says ‘The commonwealth games will be our showcase to the world, a great opportunity for the people of this great city to participate in the biggest multi-sports event the U.K has ever seen and to meet people from all over the Commonwealth’, this therefore clearly illustrates the importance of the games, and the impact its having on the city of Manchester.
I will investigate 3 different sporting events, 2 of which have already been hosted within the U.K, and one that is a bid, and I plan to assess whether each of these sporting events where economically beneficial not only to the local and regional areas but the U.K as well.
The Manchester 2002 Commonwealth games, the largest sporting event to be held in the U.K since the 1948 Olympic games, is an example to how sporting events contribute to the enhancing regeneration of our country, as Manchester and the North West all benefited. The impact of the games compares favourably with reported impacts from other international sporting events in the U.K and places them on par with the rate of economic benefits achieved by the host cities of the last four Olympic games. The games generated a total of 16,000 jobs that will last from over a few months to over 10 years, the games would also bring an additional £22 million expenditure into Manchester, as well as the tourist industry greatly benefiting as an additional 300,000 visitors will visit Manchester in the future. Additional employment impacts, including direct and indirect effects, will be the greatest in the East of Manchester area, which was the focal point for the games. The additional employment amounts to 2,400 jobs, and for the North West 1,920 jobs, and over 420 jobs in the whole of the U.K.
The games are seen as a catalyst, a focus and foundation for regeneration in East Manchester. At the same time, it has shaped existing regeneration initiatives and defined policy priorities. More generally, the games are seen as a contribution towards the new image of the area and encouraging diversity, therefore the economic impact Manchester has received has been staggering, and is an example of how major sporting events benefit the entire country.
In contrast the 2012 London Olympic bid, has already been beneficial to the London region, although the actual games haven’t been held in the U.K and most surprisingly London hasn’t been confirmed as the intended host for these games. The decision to bid with London was taken following 3 consecutive failed bids by Birmingham (1992) and Manchester (1996 and 2000). It was made clear following this that only London from the U.K had a chance of being selected by the IOC when put up against other rival cities most notably Paris, Madrid and New York. The government is keen to ensure that if the Games come to East London, there will be a lasting sporting legacy and regeneration of the area.
Staging the world’s biggest sporting event is not only a logistical nightmare but also it is a huge financial burden on the host nation. The cost of staging the games is estimated to be anything from £2.5 – 3 billion and in the event of a successful bid that figure may have to be inflated. It is therefore questionable whether London is going to come up with 3 times the amount of money it cost to build the Dome, and unlike the Dome which was money wasted, will it be money well spent?
This bid clearly is going to be hard work, revenue to support the huge burden of the games will come from the National Lottery, London Council and Tax payers, so inevitably the games will get criticism, there is going to be a joint effort coming from the London council tax and business rate payers and the London Development agency. Londoners will see further increases on their council tax bill to the tune of around £20 a year and business rates in the capital will also see substantial increases. Although the cost of the games is a huge burden, considerable benefits will arise due to the staging of these games.
Tourism
- 1,000,000 will descend on London and the surrounding regions.
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Estimated £2 - £4 billion spent by tourists within the 3 weeks.
- Influx of foreign money could work wonders for a variety of different businesses in London, such as hotels, restaurants, wine bars and pubs.
British Sports
- Athletes will benefit from being on home soil.
- Encourage youngsters to pursue dreams of representing their nation.
Social Cohesion
- The Olympic games features athletes from all over the world, these guiding principles will rub off on everyone that takes part and be a driving force for breaking down divisions whether they be by age, gender, race or religion.
Civil Regeneration
- A derelict and failing part of London got an instant boost.
- Improved infrastructure in a part of East London will benefit from a provision of 4,000 new houses.
Employment
- 9,000 new jobs of which 3,000 will directly serve the local economy in East London
- Hundreds of businesses will also be encouraged to relocate to the area through improved technological and transport links.
The games are seen as a very important feature the U.K could possibly have; this is made evident through the Chairman of the London Business Board, Ian Barlow who states,
‘All of the contact we have had from business has confirmed that this will be good a good thing – for London and the U.K’
This is an enthusiastic quote, which makes clear relevance of how important the games will be if hosted in London. It draws attention to the how beneficial the games will be to businesses within London.
Although the bid has been extremely beneficial to the regeneration of parts of London, it will a be tragedy on the financial side if the bid is rejected, London has put so much behind the bid that the overall expenditure exceeds the benefits if the proposed bid is rejected
This therefore makes the bid a gamble, although the London people are reaping the benefits as parts of the city is regenerated.