Revised Executive Summary
The Commonwealth Games 2002: A Cost
and Benefit Analysis
February 2016
Newton Hall
Newton
Cambridge CB2 5PE
Tel: (01223) 871551
Fax:(01223) 871303
cpc@campolco.demon.co.uk
REVISED EXECUTIVE SUMMARY
1.
Cambridge Policy Consultants (CPC) prepared The Commonwealth Games
2002: A Cost and Benefit Analysis – Final Report for Manchester City
Council in April 2002. The purpose of this updated Executive Summary is to
provide a rapid assessment post-Games of the key economic benefits
identified in the original report, in light of actual rather than estimates of
impact. However, this revised Executive Summary should be read in
conjunction with our original Report and Executive Summary.
2.
Previous estimates of the impact of the Commonwealth Games (KPMG,
1998) suggested that Manchester would benefit from almost 4,500 full-time
equivalent (FTE) jobs of which 1,000 would be additional to the local
economy. Our own estimates prior to the Games of the benefits were
significantly higher - 6,100 direct FTE jobs attributable to the Games of
which 2,800 would be additional direct and indirect jobs to Manchester.
3.
However, our revised estimate - based on actual evidence from the Games
period - is now slightly higher with 6,300 direct FTE jobs attributable to the
Games, of which 2,900 would be additional direct and indirect jobs to
Manchester. This increase is modest as our revised estimate is only informed
by activities over the last 6 months. Our expectation is that this estimate will
be further revised upwards over the coming years.
4.
The impacts of the Games on Manchester still compare favourably with
reported impacts from other international sporting events held in the UK,
supporting 10 - rather than our original estimate of 9 - FTE jobs for each £1m
of public investment. They also place the Manchester Games on a par with
the rate of return for economic benefits achieved by the host cities of the last
four Olympic Games - in Seoul, Barcelona, Atlanta and Sydney, generating
some £2.7m additional value added for every £1m of public investment.
5.
Our estimate of the total number of employment opportunities generated by
the Games has now increased from 16,000 to 20,000 jobs - including
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Revised executive summary
temporary jobs and jobs lasting over 10 years. As stated above, this total is
equivalent to 6,300 FTE jobs over the next 10 years.
6.
Clearly, not all these jobs will have been created during the period of the
Games as there will be a long-term stream of investment in East Manchester
and the City - owing to the success of the Games in re-positioning
Manchester as a truly international investor and visitor destination.
Therefore, we re-estimate that 2,050 jobs will have been created before the
Games, 250 during the Games, with a further 4,000 arising from
developments 3-5 years post-Games. Our original estimates were 1,890, 300
and 3,910 jobs, respectively.
7.
Our revised estimates of additional employment impacts show that the impact
in Manchester will still be greatest in East Manchester, the focal point of the
Games. Additional employment impacts for East Manchester amount to
some 2,000 jobs in total; for the City of Manchester 2,900 jobs in total; for
the North West 2,080 jobs in total; and 340 jobs in the whole of the UK. Our
original estimates were 2,000, 2,800, 1,970 and 330 jobs, respectively.
8.
The public investment in the Games and the associated regeneration
infrastructure and activity has increased from £640m to over £670m, at 2002
prices, of which some £570m has been or will be in East Manchester. The net
additional public sector investment of the Games venue construction and
operation are some £320m at today’s prices, of which some £120m was
contributed by Sport England, with a further £225m of regeneration spend
associated with the pre-Games and parallel activities. The Games have, in
addition, brought forward a number of major transport schemes (with a total
cost of nearly £800m), and we estimate the additional public investment in
transport infrastructure to be £125m.
9.
The operating costs of the Games were also well within budget, with ticketing
sales exceeding targets and with TV rights, sponsorship and licensing on or
above target. Over £25m of sponsorship was secured, with nearly £15m in
cash and £11m in kind. As a result, the surplus remaining in the Games
contingency fund was returned to funding partners.
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10.
Key business benefits and opportunities also included:
*
commercial developments in East Manchester including a regional
retail centre, a four star hotel, offices and new housing developments
supporting up to 3,800 jobs. The development of North Manchester
Business Park will add a further 6,000 or more jobs;
*
the new ASDA/Walmart superstore, which has created some 800 jobs,
of which about 30% have been filled by East Manchester residents,
with 90% of jobs filled by residents within a 15 minute drive time of
the store;
*
the Commonwealth Economic Benefits programme - under the
auspices of SRB NW2002 and MIDAS - has engaged with and
extended the benefits of the Games to businesses in the North West.
Through trade development and supply chain initiatives
approximately 250 companies should realise an additional increase of
£22m - no change from our original estimate - in their turnover, as a
result of the Games;
*
The centrepiece of the Economic Benefits programme was the
creation of the Commonwealth Business Club which now has more
than 5,500 businesses registered from a wide range of countries. The
Business Club also organised 56 events, including two major
conferences, attended by over 4,000 business representatives;
*
a network of 700 businesses in a new North West Trade directory;
*
a business matching service provided by Chamber Business
Enterprises under the umbrella of the Commonwealth Business Club.
There have been over 8,000 company searches on its website, 75 new
requests for assistance received and 150 detailed manual business
matching exercises carried out; and
*
tourism spend from Games participants and visitors is now estimated
at £29m - we previously estimated £28m - for Manchester.
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11.
The media coverage of the Games and the improved ‘Look of the City’
during the Games period will make a major contribution to the image of
Manchester worldwide. For example:
*
nearly 800,000 tickets were sold for Games sessions to an estimated
total of around 400,000 people;
*
hotel occupancy rates in Manchester were significantly up on previous
years, with the number of rooms sold in July 2002 (57,689) being the
highest ever;
*
Sportsworld, the accommodation management agency appointed for
the Games, had the widest remit ever given by a major event, ranging
from VIPs to the general public. Over 50,000 room nights were sold
to Games visitors over the period, more than twice the expected
volume, in over 60 different hotels. The wide remit allowed not only
much higher utilisation of rooms but a more even spread of utilisation
over the period;
*
press coverage in the national and international media promoted
Manchester and the Games via nearly 100 articles which were read by
over 44m people across the world, securing over 88,000 cm2 of
favourable print coverage;
*
TV media coverage of 750 hours with a target audience up to 1 billion
people;
*
a ‘Look of the City’ initiative that spent £4.5m on transport and traffic
management schemes, landscaping, cleaning, lighting and dressings
such as banners and building wraps, mainly during the Games period,
that greatly enhanced the quality of the visitor and resident experience
of the city centre and the Games;
*
the attraction of 300,000 new visitors per annum - no change from our
original estimate - as a legacy of the Games, spending some £18m unchanged from our original estimate;
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*
the hosting of the prestigious Bid to Benefit Conference, attended by
over 200 potential bidding partners for national and international
events;
*
a greater capacity and image to host additional events, such as
business conferences, major entertainment events (e.g. international
festivals) and major sporting events (e.g. national and international
championships);
*
image effects post-Games - it is now estimated that an additional
£35m of inward investment (£11m value added) will be attributable to
the raised profile of the City over the next 2-3 years. It is also
expected that the Games will encourage nearly 30m people to
consider Manchester as a possible business and visitor destination;
and
*
12.
over 2.5 million visits to englandsnorthwest.com, the Games
Exchange website for information about Manchester and the Games
since its launch in March 2002.
The Games has also developed a number of platforms on which to engage
local and regional communities. For example:
*
Over 10,500 volunteers accredited and employed by M2002, of which
862 had come through the Pre-Volunteer Programme from
regeneration areas across the North West;
*
15,423 people benefiting from the Pre-Volunteer Programme (5,823)
and Passport 2002 (9,600) funded by North West 2002 SRB
programme to engage both people in local communities and those
throughout the North West, with 2,423 to date, well in excess of the
1,400 target, having achieved an accredited qualification for event
volunteering;
*
Cultureshock had 112 projects of which 68 had specific links to ethnic
groups from Commonwealth countries (33 African, 36 Asian, 9
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Caribbean, 14 Canadian and 9 Australasian). The impacts of this
programme are currently being evaluated;
*
Additional take-up of new and existing sports facilities is still
estimated to be around 250,000 visits, made up of some new users and
greater use by existing users. The new facilities are also still expected
to provide over 31,500 places on sports development courses per year;
*
NW2002 developed a Commonwealth Games curriculum pack for
primary and secondary schools which was sent to all schools
nationally (33,000) as part of the Spirit of Friendship Festival. There
were nearly 250,000 visits to the curriculum pack website between
July and September 2002, averaging 2,700 per day which was more
than the 2,500 average expected;
*
over 1,000 schools across 50 countries have registered with the
Commonlink website at the Commonwealth Institute;
*
Around 75,000 primary age pupils participated in over 750 events as a
part of the TOP Link Programme organised by the Youth Sports
Trust;
*
a survey of East Manchester residents carried out during the summer
of 2002 before the Games showed that 52% felt that the area was
improving. Local perceptions of East Manchester are being
transformed, as only 17% of residents felt that the area was improving
in 1999.
13.
We are still of the view that key to the achievements of the Games has been
and will be:
*
the comprehensive approach to realising the benefits of the Games;
*
the emphasis throughout on securing the legacy of the Games;
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14.
*
a positive discrimination in favour of quality outcomes; and
*
an inclusiveness in the way in which Games-related activities have
been developed by all partners.
We also believe that this reflects the positive and successful steps taken by
Manchester City Council and its partners to integrate the Games within the
regeneration strategies for East Manchester and the City; involve businesses
across the North West; and secure community involvement in sport, health,
education and cultural events by using the Games as a mechanism to engage
peoples’ interest.
15.
This view of a ‘successful’ Games is also confirmed by a number of separate
reports completed post-Games, including The Lessons Learned: Review of
the 2002 Commonwealth Games in Manchester prepared for DCMS, Sport
England and Manchester City Council, The Business Benefits Associated
with the Commonwealth Games Legacy Programme prepared for
NW2002, and The Review of the 2002 Northwest Tourism Hub Team
prepared for Manchester City Council.
16.
Many of the business and visitor impacts will arise over the next few years
and those have been estimated in this report. Comprehensive monitoring and
evaluation arrangements are being put in place to ensure that future impacts
attributable to the Games will be captured and measured, so that the impact
assessment can be updated regularly.