2010 WINTER GAMES CREATE JOBS, STIMULATE ECONOMY

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NEWS RELEASE
COMMUNIQUÉ

For Immediate Release
2009HLS0034-000582
November 5, 2009

Ministry of Healthy Living and Sport
BC Olympic And Paralympic Winter Games Secretariat
Government of Canada

2010 WINTER GAMES CREATE JOBS, STIMULATE ECONOMY
PRICEWATERHOUSECOOPERS REPORT SHOWS

VANCOUVER – The Honourable Gary Lunn, Minister of State (Sport), and B.C. Minister of State for the Olympics and ActNow BC, Mary McNeil, are pleased to announce the results of the Socio-economic Impact Study conducted by PricewaterhouseCoopers. The report points to wide-ranging positive social and economic impacts for British Columbia and Canada from the planning and hosting of the Vancouver 2010 Olympic and Paralympic Winter Games

The report covered the period of 2003 to 2008, and positive impacts were recorded in all eight areas studied. The greatest impacts occurred in employment, where more than 22,000 jobs were created; sport development, where our athletes have improved tremendously; environmental sustainability; and arts and culture. The PricewaterhouseCoopers report is part of a series commissioned by the governments of Canada and British Columbia to measure social and economic impacts of the Games.

In addition, from 2003 to 2008, the Games generated between $684 million and $884 million in real gross domestic product (GDP) to B.C. and an additional $170 million in real GDP to Canada.

“While this is just a snapshot of what has already happened, the report provides concrete evidence that the Games have given the B.C. and Canadian economies a boost,” said Minister of State Lunn. “Our investments are achieving their intended results, including improved athlete performance in international competition, made-in-Canada innovations in building design, and unprecedented Aboriginal participation.”

The findings of this report also demonstrate that our investments in sport are achieving the intended results. Our winter athletes are reaching new heights in performance and medal finishes.

“We’ve always believed that the Games would provide the catalyst for economic, social, and athletic development provincially and nationally,” said Minister of State McNeil. “These results are just the beginning, and we know that once we start to measure 2009 and 2010, we’ll see that British Columbia is continuing to get a powerful economic lift from the Games just when we need it most.”

The report found that investments have produced up to 20,780 jobs in B.C. so far and a further 1,750 jobs across Canada through interprovincial trade.

“We believe that this comprehensive study of an Olympic and Paralympic Winter Games during a five-year period prior to the event is unprecedented,” said Ed Mansfield, Associate Partner and leader of PwC’s Economics and Statistics practice in Canada. “The study findings are based on interviews and inputs from a wide cross-section of organizations and communities in B.C. and Canada plus data analysis and economic modelling.”

Over 800 new businesses were created as a result of the incremental economic growth stimulated by the Games. Approximately $54 million in venue construction contracts were awarded to self-identified Aboriginal businesses between September 2003 and July 2008.

The report also noted that significant innovations were introduced in environmental building design and construction as a result of hosting the Games.

PwC will monitor the impact of the Games over a five-year period from 2008 to 2013. It has previously produced studies on the Sydney 2000 Summer Games and the London 2012 Summer Games.

See attached backgrounders for additional information. Electronic copies of the report are available at www.2010wintergamessecretariat.com/About/Publications.aspx.

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BACKGROUNDER

2010 Socio-economic Impact Study

The Government of Canada and the Government of British Columbia (through their respective 2010 Winter Games secretariats) have jointly commissioned an independent study of the direct and indirect impacts of hosting the Vancouver 2010 Olympic and Paralympic Winter Games (the Games). This study will report on the impacts experienced in key topic areas during the period from 2003 to 2008.

PricewaterhouseCoopers (PwC) has been undertaking this work, providing research and benchmarking services, and developing a series of reports outlining the results analysis. A Framework Report (Report #1) has been developed to outline the economic and social indicators to be examined, as well as methodologies to be used in collecting data for the study. Earlier this year, PwC also developed a summary report (Report #2) outlining preliminary results for the 2003 to 2007 time-period.

The reports are being released beginning in 2009. A final report summarizing the complete results of the study will be available in 2013. Each data report, along with the final report will examine eight topic areas: economic development, business development, employment, social development, environmental sustainability, arts and culture, sport development, and tourism. Aboriginal participation will also be examined as a special area of focus.

This study will be among the most thorough and comprehensive of its kind and will assess and measure the economic and social impacts that result from hosting the Games. The study will serve as a legacy to future hosts of Olympic and Paralympic Games and other major international events.

The 2010 Olympic and Paralympic Winter Games Federal Secretariat (Federal Secretariat)

The Federal Secretariat, a division of the Department of Canadian Heritage, is the focal point for the Government of Canada’s participation in the Games. The Federal Secretariat pursues activities to foster positive domestic and international exposure to help make these “Canada’s Games,” to globally position Canada as a country of excellence and innovation, and to ensure that the Games leave sustainable social, cultural, economic, and sport opportunities and legacies for all Canadians. The Government of Canada’s total commitment to the Games is $1.23 billion.

The B.C. 2010 Olympic and Paralympic Winter Games Secretariat

Working within the Ministry of Healthy Living and Sport, the British Columbia 2010 Olympic and Paralympic Winter Games Secretariat (B.C. Secretariat) is the provincial agency responsible for overseeing British Columbia’s Winter Games financial commitments and ensuring our Olympic vision is achieved. The primary role of the B.C. Secretariat is to provide the strategic leadership, coordination, and oversight to ensure the Province meets its financial infrastructure and service commitments. The Province has committed $600 million to the Games’ venue construction, endowments and legacies.

PricewaterhouseCoopers

PricewaterhouseCoopers (www.pwc.com) provides industry-focused business advisory, assurance, and tax services to governments, public and privately-owned organizations, and their stakeholders. In Canada, PricewaterhouseCoopers LLP (www.pwc.com/ca) and its related entities have more than 5,200 partners and staff in offices across the country. “PricewaterhouseCoopers” refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership, or, as the context requires, the PricewaterhouseCoopers global network or other member firms of the network, each of which is a separate and independent legal entity.

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For more information (media only), please contact:

(This news release is available on the Internet at www.canadianheritage.gc.ca under Media Room.)

BACKGROUNDER

PwC REPORT – ECONOMIC BENEFITS

A PricewaterhouseCoopers (PwC) report points to wide-ranging positive economic benefits for British Columbia and Canada because of the 2010 Olympic and Paralympic Winter Games.

While this report is a snapshot of benefits already identified between 2003 and 2008, it represents a significant landmark in verifying the progress we’ve made so far.

The Governments of British Columbia and Canada have made significant commitments, financial and otherwise, to ensure the success of the 2010 Olympic and Paralympic Winter Games (the Games) and to maximize benefits associated with hosting the Games.

Specific economic impacts by category:

GDP:

· 2010 Winter Games preparation generated between $684 million and $884 million in real GDP to B.C. from 2003 to 2008, and an additional $170 million in real GDP to Canada.

· The 2010 Winter Games generated as much as $425 million in real GDP in BC in 2008 alone (and $90 million in the rest of Canada).

Job Creation:

· The Games produced up to 20,780 jobs in B.C. and a further 1750 jobs across Canada through inter-provincial trade during the time frame of the report.

· Employment growth from the 2010 Games has led to an unemployment rate that was approximately 0.4 per cent lower than it would have been without the Games.

New Business:

· As many as 3,400 new businesses were created as a result of the incremental economic growth stimulated by the 2010 Winter Games.

· Approximately 1,000 businesses formed in the past five years have registered with the 2010 Commerce Centre for Games procurement opportunities.

Construction:

· Much of the employment generated in the 2003 to 2008 period was in construction and related industries. Of the 103,000 construction jobs noted from the period, PwC directly attributes 5,130 to the Games.

· The total number of jobs created by venue construction through both direct and indirect activity is estimated to be approximately 10,000.

· $525 million has been spent on the 2010 Games venue construction by the provincial and federal governments. PwC estimates that a further $600 million of additional venue construction has been funded by other 2010 Games partners.

· Housing starts in BC over 2003 to 2008 were between 0.6 per cent and 1.3 per cent higher due to games-induced impacts (due to an increase in migration and employment).

Taxes:

· The 2010 winter Games are estimated to have generated between $79.5 million and $104.2 million in provincial tax revenues and between $70.2 million and $91.9 million in federal tax revenues from 2003 to 2008.

Tourism

· While the tourism industry has experienced tremendous growth since 2003, PwC was unable to attribute this growth to the 2010 Winter Games.

· Governments anticipate that tourism benefits from the Games will become easier to measure after the Games are over.

· The Canadian Tourism Commission, Tourism BC, Tourism Vancouver and other tourism organizations developed plans to leverage the impacts of the 2010 Games.

Aboriginal people:

· Four Host First Nations have identified approximately $54 million in venue construction contracts awarded to self-identified Aboriginal businesses between September 2003 and July 2008.

In addition to being on track with overall economic impacts, the PwC report identifies a host of broader benefit that have occurred to date. These social impacts are dealt with in a separate backgrounder.

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Contact:

Greg Dickson

2010 Olympic and Paralympic Winter Games Secretariat (BC)

604 660-2923

BACKGROUNDER

PwC REPORT –SOCIAL BENEFITS

A PricewaterhouseCoopers (PwC) report points to wide-ranging positive sport and social benefits for British Columbia and Canada because of the 2010 Olympic and Paralympic Winter Games.

While this report is only a snapshot of benefits already identified between 2003 and 2008, it represents a significant landmark in verifying the progress we’ve made so far.

Specific impacts by category:

Sport:

· Canada improved its international ranking in winter sports from fourth (2003) to second (2008), based on the International World Olympic Sports index.

· In 2005, Own the Podium was created as a national sport initiative to help Canada become a leading nation at the 2010 Winter Games.

· 80 per cent increase in the number of international events Sport Canada supported from 2003 to 2008.

· Funding for Sport Canada almost doubled in the 2003 to 2008 period to reach $153 million annually.

· Funding for elite athlete development of $110 million has been attained through a combination of government contributions and private sector funding.

· The BC sport Participation program has attracted 100,000 new participants in 100 communities across BC.

· Venues including the Whistler Sliding Centre, Richmond Oval, and the Vancouver Olympic and Paralympic Centre were completed in 2008.

Accessibility:

· 2010 Legacies Now provided funding of $1.5 million to promote accessibility within 84 communities. By 2008, accessibility upgrades had been completed at 10 facilities.

· Barrier free access was completed at four facilities.

Environment:

· Eight newly constructed Games venues applied for Leadership in Energy and Environmental Design (LEED) certification.

· VANOC has announced a target to neutralize up to 300,000 tonnes of carbon dioxide emissions from the Games.

· Emphasis on travelling smart with expanded public transit during the 2010 Winter Games will reduce fuel use and carbon emissions.

· A number of new innovations in building design and construction were introduced including:

o On-site composting for green materials at the Whistler Olympic Park.

o Consumption monitoring, solar recovery, and waste-heat harvesting technology at the Vancouver Olympic and Paralympic Village.

o An innovative “wood wave” roof design using wood affected by the Mountain Pine Beetle infestation – installed at the Richmond Oval.

Arts and Culture:

· $20 million invested in 123 communities in BC to improve facilities and equipment as part of the Province’s Live Sites program.

· $20 million has been committed by the Government of Canada in the development of the live celebration sites in Vancouver and Whistler.

· Cultural Olympiad 2008 was held in over 40 venues across Metro Vancouver and the Sea-to-Sky corridor. Approximately 170,000 people attended 300 performances and the Cultural Olympiad continues to expand with federal, provincial and private funding.

Housing:

While the PwC report found it difficult to determine the level of new housing attributable to the 2010 Games, the Province notes the following achievements:

· There are approximately 26,000 units of subsidized housing in the City of Vancouver funded by the provincial government through a variety of programs. Approximately 2,000 units have been completed since 2001.

· The total annual subsidy for these units in the City of Vancouver funded by the provincial government is nearly $105 million.

· The Province is investing in approximately 1,400 long-term, supportive housing units on 14 sites owned by the City of Vancouver. Construction is underway at two of the sites, with four more to begin before the end of the year. The rest are in various stages of pre-development approvals with the City.

· The Province has acquired 23 Single Room Occupancy hotels in Vancouver since 2007, preserving and protecting approximately 1,400 units of affordable, low-income housing stock.

· The Province currently provides more than $30 million annually to subsidize over 6,800 units of social and supportive housing, managed by non-profit societies, housing co-ops, or BC Housing, in the DTES.

· This annual subsidy is approximately four times the amount provided in 2001, and more than twice the number of social and supportive housing units at that time.

· In the next couple of years, approximately 440 units of supportive housing are expected to be completed in the DTES.

· The Province has committed to more than 4,000 new and upgraded supportive housing units and shelter beds across the province as a result of the on-going work of the Premier's Task Force on Homelessness, Mental Illness and Addictions.

· The Province has more than doubled the number of shelter beds across the province from just 700 in 2001 to 1,500 today. Annual funding of approximately $56 million for shelters also helps shelters provide ongoing support services and connect people with community supports like housing, addictions services and medical care.

· The Province provides approximately $17 million annually to provide more than 600 year-round emergency shelter beds in Vancouver.

· In the DTES, the Province is currently funding 10 emergency shelters supporting 441 beds in the Downtown Eastside and the immediate area.

First Nations and Aboriginal People:

· For the first time in Olympic Games history, First Nations are full partners in these Winter Olympic Games.

· Four Host First Nations have identified approximately $54 million in venue construction contracts awarded to self-identified Aboriginal businesses between September 2003 and July 2008.

· The Province’s Olympic budget includes $16 million in Aboriginal Game legacy funding.

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Contact:

Greg Dickson

2010 Olympic and Paralympic Winter Games Secretariat (BC)

604 660-2923

For more information on government services or to subscribe to the Province’s news feeds using RSS, visit the Province’s website at www.gov.bc.ca.