Games benefits ‘magnified’
But reality hurt local businesses: research
COMMONWEALTH Games organisers “miscalculated” projections on the event’s impact on local businesses, causing widespread financial loss and overwhelmingly negative sentiment about the multibillion-dollar event.
New research by Griffith Business School has revealed the local businesses believed organisers “over-promised and underdelivered” on Games benefits which promised 1.1 million visitors and $870 million in spending across Queensland – most of which did not materialise.
After releasing a snapshot of their post-Games study yesterday, researchers Dr Joan Carlini and Professor Andrew O’Neil have unveiled their full report in front of the city’s business and community leaders last night.
The researchers, who successfully predicted the downturn before the Games, found a lack of reliable and accurate information left businesses unable to prepare effectively, while disrupted market forces and increased costs also contributed to operators reporting negative impacts.
The data, based on 39 faceto-face interviews and 150 surveys of business owners, found 80 per cent considered the cost of preparing for the Games substantial; that 74 per cent viewed the impact on their business as negative and 64 per cent would not prepare in the same way if a similar event was planned.
Almost three quarters of businesses surveyed said they had no boost from the Games and 77 per cent did not think their return on investment was good.
A majority, 57 per cent, of businesses reported reduced customer numbers, while 52 per cent reported reduced sales volume.
Other negative impacts were caused by vehicle (42 per cent) and pedestrian access (41 per cent), and changes to customer behaviour (40 per cent).
Two out of five (40 per cent) reported their personal wellbeing had been “very negatively affected” with one accommodation and food service business reporting they went from serving 200 customers a week to zero.
A tourism business said it had experienced its worst Easter holiday period in 25 years of trade, while a food provider reported there were “few travellers, roads were deserted, and no-one was spending money”.
A retailer said organisers “should have been upfront with all of the planning. We were told we would be real busy; this was not the case. They shouldn’t have exaggerated the benefits”.
The researchers’ 2014 report, Gold Coast Business and the Commonwealth Games: Impact, Legacy and Opportunity, predicted a 40 per cent reduction in demand for nontourism businesses but was largely ignored by the council and State Government’s Get Set for the Games initiative.
The researchers found Get Set for the Games was the most commonly used source of planning information by local businesses.
They recommended organisers do more meaningful consultation with businesses ahead of major events instead of “speaking at them”, and that businesses themselves be more critical in their questioning of what authorities tell them.
The researchers said businesses could collaborate more with each other to maximise planning for major events and that further research be undertaken.
Dr Carlini said while operators did not feel direct benefits from the Games, they acknowledged there had been wider benefits for the host city.
“Ultimately, although owners and operators were evidently able to appreciate the reputational upside to the Gold Coast Games, there apAUSTRALIA’S
pears to be an enduring sense that local businesses were not adequately consulted or considered by organisers in the lead-up to the event,” she said.
“In future, it will be crucial for organisers and government to engage in meaningful conversation with local businesses, and for them take a proactive role in the planning and execution of such events, to enhad sure they feel seen and heard.”
The views of business owners about whether the Games had wider benefit for the city was mixed, with many agreeing they had contributed to the Gold Coast’s capacity to attract future sporting events.
Of those surveyed, 62 per cent agreed the Games would aid in attracting more sporting events; 57 per cent agreed they contributed to the ability of the city to offer attractive cultural, artistic and recreational resources; and 65 per cent described their overall experience attending GC2018 events as “good to excellent”.
A majority of respondents, 69 per cent, described the decision to hold the Games during the usually-busy Easter holidays as a bad idea.