BACKGROUNDER
2002MCAWS0063-000996 Nov. 22, 2002		Minister of State for 2010 Olympic Bid Ministry of Community, Aboriginal and Women's Services
WINTER GAMES ECONOMIC IMPACT UPDATE

Synopsis

 

In January 2002, the B.C. Ministry of Competition, Science and Enterprise completed a study of the economic impact of hosting the 2010 Olympic Winter Games.  This update was commissioned to a) review that study and make adjustments when appropriate, and b) update the study with more recent information on expected spending and revenues.  The study focused only on the impacts in B.C. from spending that is funded from outside B.C.  This is referred to as the incremental economic impact of hosting the Olympics.  Economic impacts due to B.C.-financed spending were excluded.

 

This study found that the original study was generally thorough and conceptually valid. 

 

Some changes were made that reduced the impacts of the original study.  Specifically:

 

·        This update recognizes that some visitors (such as those who stay with friends or relatives rather than in hotels) will spend less than the average tourist.

·        This update excluded any tourism impacts earlier than 2008 and after 2015 in all but the high scenario, in order to be conservative.

·        Transport investments were excluded from the incremental impacts.

 

Some changes were made that increased impacts somewhat:

 

·        More recent data on Olympics spending increased impacts.

·        Visitor spending by Canadians living outside B.C. was added in this study, whereas the original study had not included it.

·        The use of discounted impacts was corrected.  This study uses inflation-adjusted spending to get real economic impacts.

 

The overall effect of these changes is to increase slightly the estimated impact of hosting the 2010 Winter Olympics. 

 

The study outlines different scenarios, ranging from low to high. If the high scenario is considered, which posits higher and more lasting tourism impacts, then the total impacts are 99,000 total person years of employment (and $4.2 billion in total GDP) for the Olympics alone and 244,000 person years ($10.7 billion GDP) if the effect of the VCEC expansion project is included.

How the numbers compare: Combined impacts of Games and VCEC expansion

 

Preliminary figures from January 2002 Economic Impact Study

Update figures from October 2002 InterVISTAS study

 

Total Incremental Economic Impacts

 

	GDP	Full Time Equivalent Jobs	Tax Revenues
Low Scenario
Preliminary	$5.7 billion	118,000	$1.3 billion
Update	$6.1 billion	126,000	$1.4 billion
Moderate Scenario
Preliminary	$8.1 billion	182,000	$2 billion
Update	$8.4 billion	187,000	$2 billion
High Scenario
Preliminary	$10 billion	228,000	$2.5 billion
Update	$10.7 billion	244,000	$2.6 billion

 

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