and extra people their city would need to accompany. Overpopulation increases the risk of other negative impacts such as pollution and crime. Despite the complaints, the 2018 Commonwealth Games will still arrive at the Gold Coast next April. Using the criteria of economic, environmental and cultural impact the Games will have on the Gold Coast, the potential pros and cons of the games can be analysed to prepare and predict if the Gold Coast will survive such a historical event.
1 – Economic Impact:
A major concern for the Queensland Government and other stake holding parties, such as the Star Gold and Griffith University, are the massive expenses that the Commonwealth Games will have on the economy. This detrimental phenomenon has been deemed ‘The Olympic Effect,’ which was made infamous by the 2004 Olympics in Athens. Due to poor budget estimations and financial management, it cost the Greek Government 11 billion to run the games (Sanburn, 2012). This was particularly damaging for Greece due to their open economy, and many Queenslanders fear that the Commonwealth Games will have a similar impact, albeit not as severe. To budget such a monumental task, the city is prepared to splurge over a total expenditure of over $2 billion dollars (O’Brien, 2016). Despite the massive costs, running such an event encourages similar gains in tourism, public domain and infrastructure improvements, and most importantly, revenue. Peter Beatie, the Commonwealth Games Chairman, estimate a net benefit of between $1.5 to $2 billion dollars (ABC, 2016). It will cost “will cost the local, state, and national government $1.78 billion net, which will hinder an already struggling Queensland Government, which is saddled by a ballooning debt higher than any other state in the country” (Wicker, 2017). However, the Games promise a potential boom in massive revenues, specifically from ticket sales and tourism. Peter Beatie estimates ticket sales will “recoup about 500 million dollars based on conservative figures” (ABC, 2016). This, along with tourists from 70 commonwealth countries, will provide “a 2.017 billion injection into the economy” (ABC, 2016) from short-term influxes of ticket sales and tourism.
Furthermore, the collaborative investment will currently create 9,200 jobs, with the potential for over two thousand more (City of Gold Coast, 2017).
Stakeholders will feel safer investing in the Commonwealth Games if coal prices increase, for Beatie suggests it would be a “shot in the arm for the economy generally but it also means people are more likely to feel happy about buying tickets, actually investing in the Games in different ways” (ABC, 2016). Therefore, the potential revenue and economic stimulation outweigh the massive costs of running the …show more content…
games.
It will also have an effect on the housing market, for the Games will “massively boost employment opportunities on the Gold Coast, creating upward pressures on rents and therefore residential values” (Schlesinger, 2013). This combined with record low interest rates that are likely to reduce even further, creates a number of catalysts, to drive a lift in residential activity and prices.
The Games also gives an opportunity for Queensland to strengthen its international trade relationship with other Commonwealth Countries, including some of Queensland’s most important trade and investment partners, such as the United Kingdom, India, New Zealand, Singapore, Combined, these markets are worth more than $9.4 billion in export value to Australia, with India worth $5.4 billion alone (Queensland Government, 2017). Trade 2018 is being led by the Queensland Government in partnership with the City of Gold Coast. This program is working with business and industry to leverage trade and investment opportunities in priority Commonwealth markets (Queensland Government, 2017).
One of the Gold Coast’s main goals is to improve their “environmental footprint, carbon emissions and waste management” (Larkins, 2016). However, environmental damage is inevitable by running an event such as the Olympics or Commonwealth Games. The event will have a net cost due to the environmental damage caused by construction. The large projects will degrade the soil in the vicinity, as well as contribute to large amounts of noise and air pollution. However, numerous environmental policies, including “restricting the use of plastics and helium balloons” (Larkins, 2016), as well as building new environmentally friendly transportation options will “have a positive economic impact worth an estimated $2 billion” (CEDA, 2017). The 200-hectare precinct located at Parklands in Southport encompasses over $5 billion in infrastructure development, including a $550 million Commonwealth Games Village (Gold Coast Council, 2016). During the construction phase of the Rio Olympics, the IOC made sure to put emphasis on improving existing structures and providing new ones that could be used long after the Games concluded. Similarly, the new sporting arenas developed for the Commonwealth Games are designed so they can be used in the future. This significantly reduces the costs and detrimental effects demolishing infrastructure can create.
Lastly, the Games serve as an opportunity to improve the Gold Coast’s image and reputation. However, the expedited construction works for major infrastructure projects could cause systems to be strained to breaking point, with a potential for negative publicity when the Gold Coast is on the global stage. Despite the risk, improving the city’s image in the public’s eye can translate into economic benefits. A study by the Reputation Institute in 2013 found a 5% increase in place reputation leads to a 12% increase in tourism receipts and a 7% increase in foreign direct investment (Gold Coast Council, 2017). Furthermore, development for the Games has lead to a large investment into public infrastructure and transportation. 7 Venues are to be constructed or redeveloped in the city, which will be available for public use before and after the completion, for a gross cost of more than 200 million. Stage 2 of the G: Link Train has been accelerated to be ready for the Games, which features 7.2 km of double tracks for 420 million. In addition, 30,000 full time equivalent jobs will be created for local and state residents (Gold Coast Council, 2016).
The Games will also make the city safer, as CCTV cameras will be installed to increase security during the competition and will be maintained after it has ended. As a result, this will increase many resident’s living conditions and public safety. The huge influx of tourists and visitors will cause some problems too. The thousands of tourists could potentially restrict the ease-of-movement significantly for local residents, which will subsequently decrease workers' productivity. Another impact the Commonwealth Games will have is upon the Gold Coast culture. The Games promise over 7,000 athletes competing on a worldwide-televised scale, which could inspire young children to participate in sports. This process is referred to as the trickle-down effect. The main premise of the trickle-down effect is that it is “a process by which people are inspired by elite sport, sports people or sports events to participate themselves” (Sotiriadou, 2015).
The 2018 Commonwealth Games Knowledge-based industry attraction and incubation is critical to the city, region and the State’s long- term economic sustainability.
It is the chance to set a new tone for how we present the city to the outside world – to make first impressions; change minds; and make Gold Coasters proud. Despite the extreme budget, it has the potential to improve the city’s local economy, environment and culture while sharing the experience to a cumulative audience of more than 1.5 billion people. Therefore, the Gold Coast residents should not fear that their city will be the next Athens, Greece. The implementation of environmental policies, economic stimuli and the improved infrastructure should buffer any detrimental effect hosting an event will inevitably have, and will surely create a worthy environment for such a world class sporting
competition.