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DATED INFORMATION - Archive Only
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(166 Kb)
Executive Summary (597 Kb)
Introduction (431 Kb)
Organisations (260 Kb)
Investment (751 Kb)
Business Development (681 Kb)
Facility Development (612 Kb)
Tourism/Retail (708 Kb)
Olympic Activity (604 Kb)
Benchmarking(548 Kb)
Bibliography (140 Kb)
Executive SummaryThe first anniversary of the Sydney 2000 Olympic and Paralympic Games was an appropriate time to commence an assessment of the success of the Games, their impacts on Sydney, New South Wales and Australia, and the benefits they delivered to the people of this country.
This study was conducted by PricewaterhouseCoopers at the request of the NSW Department of State and Regional Development (DSRD) in order to collate evidence as to the range of business and economic benefits of the Sydney 2000 Olympic and Paralympic Games. Readers of this report should be cognisant of the scope of the study which is set out in section 1.1 of the report.
The Department took a role in implementing many of the business programs that generated the benefits this study identifies. This role was often in conjunction with various other State and Commonwealth Government agencies, such as Tourism NSW, the Australian Trade Commission (Austrade), business associations, the consular corps and the private sector. Data is taken into account up to December 2001.
The evidence collated in this report supports the view that the Games delivered substantial benefits to Sydney, New South Wales and Australia. For example:
- some $3 billion in business outcomes, including:
- $600 million in new business investment
- $288 million in new business under the Australian Technology Showcase
- almost $2 billion in post-Games sports infrastructure and service contracts
- of the above $3 billion, over $500 million has been secured in contracts, sales and new investment by businesses located in regional NSW,
- injection of over $6 billion in infrastructure developments in NSW,
- injection of over $1.2 billion worth of convention business for NSW between 1993 and 2007,
- over $6 billion in inbound tourism spending during 2001,
- greatly enhanced business profile for Sydney, NSW and Australia through the equivalent of up to $6.1 billion worth of international exposure,
- greater expertise and confidence in tendering, both domestically and overseas, on large-scale projects,
- new and improved business programs including strong collaboration with the private sector.
The Players and the ProgramsThe two entities most responsible for directing Games-specific activities described in this report were the Sydney Organising Committee for the Olympic Games (SOCOG), which can be viewed as a franchisee of the IOC and managed the Games as a sporting event; and the Olympic Co-ordination Authority (OCA), which supervised all construction on Games related venues, with both public and private funding.
The NSW Government played a pivotal role in delivering many of these Olympics related benefits. Beyond its Games-specific agenda, the NSW Government committed to an unprecedented program of business development and investment attraction to leverage the Games and their global audience.
The NSW Government delivered the Games with a high level of public/private sector cooperation with a highly effective network of State, Commonwealth and corporate entities. The NSW Department of State and Regional Development, in collaboration with other NSW bodies, such as the State Chamber of Commerce’s Olympic Commerce Centre, helped to deliver many of the Olympics business-related programs.
In doing so, the Department was strongly supported by the Olympic Business Roundtable (OBRT), which initiated a range of business promotions in association with other State and Commonwealth Government agencies, industry and private sector organisations, in order to leverage long-term economic benefit from the Games.
Business and Economic Benefits - HighlightsBusiness Development and Investment Attraction - The NSW and Commonwealth Governments organised the most comprehensive business development program ever held in association with an Olympic Games. The program featured:
- the Australian Technology Showcase, which highlighted over 300 innovative NSW technologies and contributed to $288 million in new sales, investments and exports to December 2001, including over $90 million by ATS companies located in regional NSW,
- Business Club Australia, which provided significant networking opportunities. BCA linked to the Commonwealth’s Trade Visitors Business program and attracted 16,000 visitors to networking events,
- the Sydney Media Centre, hosted 5,000 unaccredited journalists and 55,000 visits for briefings, story leads, images and information on NSW and Australia,
- new business investment exceeding $600 million supported by DSRD’s post-Games business strategies and by Investment 2000, a unique government / private sector investment attraction initiative,
- post-Games business strategies also assisted in the generation of sports infrastructure and services sales worth almost $2 billion by NSW businesses leveraging from their Games experience, including over $50 million in sales by regional NSW companies.
Facility Development and Supporting Infrastructure – This area of benefit had its greatest direct impact prior to the Games and has left a legacy of world-class sporting facilities and enhanced transport and communications infrastructure: Highlights include:
- over $1.9 billion in public sector expenditure on Games related venues and infrastructure by the NSW Government, the Commonwealth Government, SOCOG and others, with a further $1.1 billion on Games related venues from the private sector,- the completion of major transport and construction projects which enhanced Sydney as a business location and assisted the efficiency of the city at Games time. These include projects such as:
- $2 billion Sydney airport upgrade
- $700 million Eastern Distributor
- $320 million beautification of Sydney CBD.
Tourism and Retail - The Games provided enormous benefit to Australia’s tourism and retail sectors. Highlights in relation to tourism and retail include:
- the Games’ generation of up to $6.1 billion worth of international publicity,
- over $6 billion in spending by an additional 1.6 million visitors during 2001,
- the Sydney Convention and Visitors Bureau’s (SCVB) success in winning 210 events between 1993 and Games time, attracting more than 250,000 delegates and injecting more than $1 billion into Sydney’s economy,
- in addition, $203 million from projected business events committed since October 2000,
- the attraction of more than 110,000 Games-time specific international visitors,
- a substantial improvement in international perceptions of Australia in terms of customer service, quality, value and reliability.
Olympic Activity – The success of Olympic activities such as the sale of broadcast rights, sponsorships, licensing and ticket sales yielded enormous benefits for Australia. Features of this success include:
- the generation of over $1.1 billion for SOCOG from the sale of broadcast rights to the Games with the Games themselves being the most-watched event in history to that time,
- the generation of over $680 million in sponsorship revenues for SOCOG, well in excess of bid estimates,
- record Olympic ticket sales generating over $610 million for SOCOG,
- the provision of substantial in-kind assistance from sponsors, including equipment, training and know-how.
BenchmarkingThe Sydney 2000 Games, like most others preceding it, had a very broad range of objectives. In comparative terms, however, the focus on industry development, investment attraction and national tourism was stronger than for any recent Olympics. In terms of financing, the Games followed the Mixed Funding model characterised by a high level of private sector funding, although two-thirds of the funding for sporting facilities was provided by government.
The overall investment in infrastructure for Sydney was, in relative terms, greater than for Los Angeles in 1984 or Atlanta in 1996, but less than Seoul 1988 or Barcelona 1996. However, when visitor spending and SOCOG revenues are counted, the total economic stimulus from the Sydney Games ranks among the highest for recent Games.
No comparable data is available with which to compare the export development and investment attraction performance of other Games to Sydney 2000 – principally because no other Games host undertook systematically to leverage the international visibility of the host city and the host country, to the advantage of so many industry sectors.
ConclusionsGiven the broad range of objectives, the Sydney Games were a remarkable success that delivered on the expectations of almost all of their stakeholders, public and private. Strong partnerships and co-operation among the public and private sector organisations involved were central to the successful implementation of numerous business and tourism programs that have yielded substantial business and economic benefits to NSW and Australia.
The Games also served as a magnet for domestic and international tourism and rapidly accelerated the process of elevating Australia’s international profile and brand in a way that would not otherwise have been possible.
Importantly though, the Games provided a unique opportunity for building skills and capabilities in Australian businesses and for showcasing the depth of talent, creativity and skill of Australian business to the rest of the world. In the long term, the benefits to business generated by the Games – in terms of skills, contacts, international awareness, partnering and investment – may come to be recognised as their most enduring legacy.
The great challenge for Sydney, New South Wales and Australia is to continue capitalising on the vast array of opportunities that the Games have delivered. Important work is already underway in this regard via the NSW Post-Olympics business strategy which aims to maintain the momentum of the Games by pursuing business leads, maintaining an international profile, and using trade missions and official visits to build on the confidence and competitiveness gained by NSW firms via the Games experience. The success of Australian business in the provision of services for the Salt Lake City Games in 2002, and of major sporting infrastructure and services for the Olympics in Athens in 2004 and the Asian Games (Vietnam in 2003 and Qatar in 2006), bears testament to the ongoing opportunity created by the Sydney Olympics. The quality and magnitude of the opportunity is further reinforced by the experience of Australian firms in successfully competing to undertake work on the Beijing 2008 Olympics bid and the ongoing potential to win work associated with the $30 billion in projected expenditure on the Beijing Olympics in 2008 and related infrastructure.
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