Commonwealth Games to provide £1.5bn ‘Games Gift’ to the economy

The West Midlands will get a £1.5bn “Games Gift” from the 2022 Commonwealth Games, according to new analysis of the economic benefits of hosting the sporting event.

It will add 1.3% to the region’s Gross Value Added (GVA) – a key measure of economic impact – plus a further £500m one-off benefit from construction projects now taking place.

The analysis by the former Treasury senior economist, Chris Walker on behalf of construction consultancy Mace has been published in a report, “A Golden Opportunity.

The construction projects already planned include a new £60m aquatics centre in Sandwell, the transformation of the Alexander Stadium at a cost of £70m, a £20m athletes village that will be converted into 1,000 new homes in Perry Barr after the Games finish, and upgrades to the local and regional infrastructure.

The “Games Gift” is made up of the increased revenues that will flow into Birmingham, and its environs, through increased visitor numbers coming into the area, and a boost in international trade.

Hosting the Commonwealth Games – the world’s second largest international athletics competition, as measured by the number of countries and athletes competing – will showcase Birmingham to a global audience of 1.5bn people.

Andy Street, Mayor of the West Midlands, said: “It is vital that the Commonwealth Games leaves a legacy for the region. We are determined that we do this through the transport investments we are developing, the housing that will replace the athletes’ village and the sports facilities.

“But perhaps more enduring will be the reputational legacy of showcasing our region to the world, demonstrating a strong, diverse and confident post-Brexit region.”

The Mace report stresses the need to achieve two important objectives to ensure the greatest possible benefits flow from the Games.

The first is to ‘bake in’ the legacy to every element of the Games, and decide now on the future use of sporting facilities created for the Games , in order to guarantee the greatest possible post-Games benefits.

The second priority must be to build strong and enduring relationships between the private sector delivery organisations and the Games organisers, in order to deliver projects on time and within budget.

Mace has managed and delivered big sporting infrastructure, including the City of Manchester Stadium for the Manchester Commonwealth Games of 2002, the Olympic Stadium and Aquatics Centre for London 2012, and the transformation of Hampden Park for the 2014 Commonwealth Games in Glasgow.

Simon Dale, director for the Midlands at Mace added: “The Commonwealth Games will be the largest event ever to be held in the West Midlands and the largest event to be held in Britain after our departure from the European Union.

“Birmingham City Council leader Ian Ward has quite rightly set the city the lofty ambition of hosting the best Commonwealth Games ever. Our research shows that the West Midlands should benefit from a £1.5bn ‘Games Gift’ in the first year, with further benefits each year beyond, as a legacy from the Games.”
 

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