Annex
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 six 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 nine—FTE jobs for each £1
million 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 £2.7 million
additional value added for every £1 million 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 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 three-five 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 £640 million to over £670 million, at 2002 prices,
of which some £570 million has been or will be in East Manchester.
The net additional public sector investment of the Games venue
construction and operation are some £320 million at today's
prices, of which some £120 million was contributed by Sport
England, with a further £225 million 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 £800 million), and we
estimate the additional public investment in transport infrastructure
to be £125 million.
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 £25 million of sponsorship was secured, with nearly
£15 million in cash and £11 million in kind. As a result,
the surplus remaining in the Games contingency fund was returned
to funding partners.
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 per cent have
been filled by East Manchester residents, with 90 per cent 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 £22 million—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 £29 million—we previously
estimated £28 million—for Manchester.
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 44 million 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 £4.5 million 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 £18 million—unchanged
from our original estimate;
— 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 (eg international festivals) and major sporting events
(eg national and international championships);
— image effects post-Games—it
is now estimated that an additional £35 million of inward
investment (£11 million value added) will be attributable
to the raised profile of the City over the next two-three years.
It is also expected that the Games will encourage nearly 30 million
people to consider Manchester as a possible business and visitor
destination; and
— 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.
12. 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 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 per cent felt that the area was improving. Local perceptions
of East Manchester are being transformed, as only 17 per cent
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;
— 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.
14. 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.
10 December 2002
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