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The Case for the Adelaide 2026 Commonwealth Games

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The Case for the Adelaide 2026 Commonwealth Games www.pwc.com.au The Case for the Adelaide 2026 Commonwealth Games Commonwealth Games Australia September 2020 Disclaimer This report is not intended to be used by anyone other than Commonwealth Games Australia. We prepared this report solely for Commonwealth Games Australia’s use and benefit in accordance with and for the purpose set out in our engagement letter with Commonwealth Games Australia dated 11 August 2020. In doing so, we acted exclusively for Commonwealth Games Australia and considered no-one else’s interests. We accept no responsibility, duty or liability: • to anyone other than Commonwealth Games Australia in connection with this report • to Commonwealth Games Australia for the consequences of using or relying on it for a purpose other than that referred to above. • We make no representation concerning the appropriateness of this report for anyone other than Commonwealth Games Australia. If anyone other than Commonwealth Games Australia chooses to use or rely on it they do so at their own risk. This disclaimer applies: • to the maximum extent permitted by law and, without limitation, to liability arising in negligence or under statute; and • even if we consent to anyone other than Commonwealth Games Australia receiving or using this report. Liability limited by a scheme approved under Professional Standards legislation The Case for the Adelaide 2026 Commonwealth Games September 2020 PwC 2 Contents 1. Introduction and approach 7 2. Strategic context & alignment 10 3. The economic case for the 2026 Commonwealth Games 16 The Case for the Adelaide 2026 Commonwealth Games September 2020 PwC 3 Hosting the 2026 Commonwealth Games supports South Australia’s ambitions to drive long term growth and opportunity and elevate its international brand $2.5bn $790m $150m+ $1.1bn Estimated upper band of In trade deals and investments Federal Government investment Estimated South Australian additional economic boost for to South Australia in sports infrastructure Government investment to stimulate South Australia before, during the economy, comprising: and after the Games $650m in operating costs, $100m in Games security and $350m in infrastructure Examples of benefits from past Games: 250,000 25% 21,000 87% Additional hotel visitor Increased tourism Additional employment Games related contracts Sporting participation in nights before, during and visitation to the in Queensland from the awarded to local Victoria increased by 10% after Gold Coast 2018 Gold Coast in the Gold Coast 2018 businesses as a result of the with a Games time three years after Commonwealth Games Melbourne 2006 occupancy of 88% hosting the Games Commonwealth Games * Based on evidence from past Games. Figures are presented in 2018 Australian dollars The 2026 Commonwealth Games can inspire, grow and support recovery of the South Australian economy in the lead up to, during, and after the Games Announcement and pre-Games Hosting the Games Post-Games benefits investment Between 2021and 2026, the South Australian Government promotes the Games and invests into supporting infrastructure including a new Games Village or villages 2020 2021 2022 2026 2030 Announcement of The Birmingham 2022 Adelaide host the Australian The Games boost South Continued post Games benefits from tourism, the Games in Adelaide Commonwealth Games leg of the Queen’s Baton Australia’s and Adelaide’s trade, and investment as a result of international boosts morale, pride Queen’s Baton Relay Relay profile internationally profile and confidence provides a platform for reaching up to worldwide Establishment of South Opportunity to repurpose the Games Village or trade, investment and TV audience of 1.5 billion Australian hospitality and villages into sustainable and affordable housing or tourism promotion for networking venue in community spaces Adelaide and South Birmingham Australia Benefits from accelerated infrastructure programs At the Birmingham 2022 and better connectivity in Adelaide Promotional event hosted Commonwealth Games in Australia House in Closing Ceremony, the London and opportunities Commonwealth Games Flag to showcase South will be handed to the South Australia’s local products Australian Government. including food and wine 4 years of events and opportunities in the lead up to the Games will build upon these events The 2026 Commonwealth Games in Adelaide will drive long term growth and opportunity 1. Delivery of the Games aligns to the Sports Infrastructure Plan and 4. Establish partnerships at all levels of government, the private other key Government objectives sector and the third sector to combine and lever funds to achieve wider policy objectives The Games should be seen as a potential key driver of Adelaide’s wider long term strategy not a stand-alone event. For example, Manchester used The Games helps to achieve a wide set of benefits which are key the Games as a catalyst for its wider regeneration of East Manchester and objectives for a range of organisations. As such, a number of different to drive transformation of how it delivered local public services. $725 public, private and charity organisations may be willing to contribute to million in improvements to road, heavy and light rail infrastructure on the Games funding. Moreover, existing budgets can be re-allocated to the Gold Coast were accelerated for the 2018 Commonwealth Games. costs of hosting the Games and existing investment plans can be accelerated. 2. Leaving a legacy for Adelaide and South Australia that will last 5. Use the Games as a platform to boost other non-sports events generations To help achieve Adelaide’s wider objectives, the Games provides a To maximise the long term benefits of hosting the Games, potential legacy valuable platform for a range of non-sports events before, during and after outcomes should be planned from the outset (e.g. the post-Games use of the Games. For example, a year-long programme of cultural events was new capital assets). There should also be clear legacy leadership, held in the run up to the Manchester and Glasgow Commonwealth Games governance and accountability from the outset to ensure that legacy is at in 2002 and 2014 respectively. Further, the UK Government is planning a the heart of Games planning. For example, the Gold Coast athlete’s village three years UK Trade and Investment Programme centred in Birmingham was well aligned with the wider Trade 2018 strategy and became an and the West Midlands and a UK-wide Cultural Festival running integral part of the wider Gold Coast Health and Knowledge Precinct throughout 2022, which is being led by the Birmingham 2022 team. development which will support up to 26,000 jobs. 3. Put Adelaide and South Australian communities at the heart of the 6. Momentum and growth into the future Games To sustain the benefits from the Games, it is important for the Games to The feel-good factor in the build up to and during the Games is an continue to drive benefits in the years after the Games, for example by important benefit which requires local communities to be engaged from the hosting follow-on events in Games venues. For example: outset. Any antipathy towards the Games puts these benefits at risk and • Glasgow 2014 Commonwealth Games adopted this strategy could detract from the positive image Adelaide wishes to project successfully, securing the inaugural European Championships in 2018 internationally. Plan the use and integration of Games assets’ (volunteers, and the Tissot UCI Track Cycling World Cup in 2019 QBR, teams and athletes, festivals and ceremonies) across Adelaide • Gold Coast 2018 also secured a number of high profile events, communities to drive social and community benefits, and shared including the 2018 World Triathlon Series Grand Final, the 2019 and experiences that enhance social cohesion. The Games align perfectly with 2021 Track Cycling World Cup and the 2020 Bowls Championships. the recently announced *Game On* strategy and will act as a catalyst to The success of Gold Coast 2018 Commonwealth Games is a key achieving the Government’s objectives. driver behind the South East Queensland bid for the 2032 Olympic Games. The Case for the Adelaide 2026 Commonwealth Games September 2020 PwC 6 1 Introduction and approach ThePwC Case for the Adelaide 2026 Commonwealth Games September 2020 PwC 7 Introduction and scope of this report Context Commonwealth Games Australia’s (CGA’s) vision is pursuing sporting excellence while connecting with communities. To support this vision, CGA has five strategic priorities being: • Delivering Team Success • Connecting with Communities • Presenting a Powerful Brand • Leading the Way • Hosting Great Games. CGA is currently engaging with the South Australian Government on a potential candidature for Adelaide to host the 2026 Commonwealth Games. This report is to assist initial discussions as part of a broader engagement with the South Australian Government. The Case for the Adelaide 2026 Commonwealth Games September 2020 PwC 8 We have applied five key steps to develop this report Understand the baseline context (e.g. social, economic and 1 environmental conditions) of Greater Adelaide* and South Australia. Review South Australia’s ambitions in the short, medium and The rest of the report covers: 2 longer-term. • Section 2 – provides an overview of the strategic context of South Australia and showcases its capacity for hosting major international events. It then outlines the strategic plans and priorities of the South Australian Government to which the 2026 Commonwealth Games Assess South Australia’s existing strategies and plans set out will align, bringing growth and opportunity. by the Government for achieving its ambitions. 3 • Section 3 – sets out the case for the 2026 Commonwealth Games in Adelaide, detailing the investment and economic benefit that the state stands to gain. The remainder of this section details supporting evidence from past Games that illustrates how their host cities have Identify how hosting the Games can support South Australia’s benefited economically and socially. 4 ambitions, strategies and plans.
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