Why The Brisbane Olympics Will Boost The Economy
Although the actual event is still over a decade away, the buzz surrounding the recently announced Brisbane Olympics is everywhere - but is this a good thing?
Dubbed “Australia’s Hippest City” by Lonely Planet, Brisbane has started to shake off the perception of being a little bit daggy. Instead, the spotlight is shining bright on the local arts scene, pumping nightlife, and great coffee and restaurants. Hugging the Brisbane River, the appeal of the city stretches far beyond the central business district. Each suburb of Brisbane doubles as an urban village - think bohemian West End, leafy New Farm or the ultra hip hilltop borough of Paddington. Regardless of your personal taste, there’s a place for everyone in Brisbane.
As such, when Brisbane was announced as the winning bidder by the International Olympic Committee in July 2021, it was a big deal. Scheduled to take place from July 23 to August 8 in 2032, it will be the third Summer Olympic Games to be hosted by an Australian city, behind the 1956 Summer Olympics in Melbourne and the 2000 Summer Olympics in Sydney. The Brisbane bid relied on the premise that over 80% of the venues required to host the international sporting event were already existing infrastructure, which significantly helped in getting us across the line.
However, a 2019 feasibility study suggested that over $900 million dollars would be required from both state and federal funding in order to host the Brisbane Olympics. The Queensland bidding committee released a plan for the Games to be based around three hubs - Brisbane, the Gold Coast and the Sunshine Coast. Thanks to our state’s sporting culture and the recent 2018 Commonwealth Games held on the Gold Coast, the required 80% of venues and structures were already in place.
While Brisbane Lord Mayor Adrian Schinner said that hosting the Olympics and Paralympics will provide an $8.1 billion boost for the Queensland economy, according to figures released by The Guardian, the estimated cost to prepare Brisbane for the event is $5 billion. The state government has indicated that the majority of this is expected to be recouped through ticket revenue, domestic sponsorship and broadcast rights.
Although the submission was approved by the Federal Government in 2019, the vast expense has since been met with a wide variety of criticism considering the unforeseen hurdles and pressures that the COVID-19 global pandemic have presented to Australia’s economy. Can our economy afford this, will the potential rewards exceed the required investment, and will taxpayers be saddled with ongoing debt for years to come?
Five Economic Benefits Of Hosting Olympic Games
While media buzz and the current 2021 Tokyo Summer Olympics certainly have the Games well and truly in the spotlight right now, it’s easy to forget that the 2032 Brisbane Olympics are still over ten years away. Thankfully, this gives us time as a nation to get a better hold on the current events that we are grappling with, and to hopefully gain some perspective as to the wealth of economic benefits that hosting the Olympic Games can bring.
Transport Improvements - Major international sporting events on the scale of the Olympic Games means that host cities need to pour funds into their public transport systems in order to avoid significant road congestion. Needless to say, boosts issued to existing rail and bus infrastructure will be a welcome addition in Brisbane and will leave residents reaping the benefits for years to come.
Employment Opportunities - Although South East Queensland already has over 80% of the required venues and facilities in place, there’s still another 20% to build over the next decade. The good news? In order to get the job done, the state government will need to go on a hiring spree for both employees and vendors, which will in turn have a ripple effect on the local economy for as long as it takes to ensure Brisbane is ready to go by 2032.
Hello Tourism - More than 56% of foreign visitors to Brazil for the 2016 Olympic Games were new visitors, and in turn, the buzzing South American nation broke inbound tourism records. With 6.6 million foreign visitors arriving for the Games, those visitors went on to spend a whopping $6.2 billion dollars. As Brisbane is the capital of one of Australia’s most tourism reliant states, the entire nation is set to benefit from the influx of arrivals.
International Trade - According to economics professors Robert A. Baade, PhD, and Victor A. Matheson, PhD, “the very act of bidding for the Games serves as a credible signal that a country is committing itself to trade liberalisation that will permanently increase trade flows.” With Australia about to be front and centre on a global scale, history tells us that hosting the Olympic Games offers nations a chance to capitalise on the ongoing networking opportunities.
National Legacy - The 2000 Sydney Olympics is still relatively fresh in the memories of many Australians. Who didn’t swell with pride when Cathy Freeman took out the 400 metre gold while the entire nation cheered her on at home? Even if we look back to the opening ceremonies alone, there’s nothing quite like hosting the Olympics to bring our diverse community of cultures together and celebrate the tapestry of what makes us all Australian.
Getting Your Business Financially Fit
While hosting the Brisbane Olympics may work wonders for our economy in the long term, many of us are busy focussing on the now. While times have been tough for many small and medium business owners, it’s important to both plan for the future, and make the most of the opportunities that are available to you in today’s economy.
Considering the new world in which we live in, any form of grant or funding usually goes a long way when it comes to ensuring your business remains profitable. Depending on the size of your enterprise, location or industry, there may be a whole range of funding options available to you as a way to boost your brand’s approach to innovation, ability to adapt, and overall profitability in the long term.
If understanding your finances, or the in’s and outs of doing business isn’t your strong point, then it may be reassuring to know that you’re not alone. In fact, many businesses big and small enlist the services of an accountant and business advisor, in order to free up their time while knowing that their financial obligations are already taken care of by the professionals.
What you choose to invest in or shy away from as a business owner can have a domino effect that ripples through your entire team - so are you confident in your financial choices? At Muro, we are more than just accountants. We offer our clients strategic business advice and ongoing support to help them reach their business and financial goals. Get in touch with us at Muro today to ensure that you’re on the right path for success in starting a business in 2021.