Economic boost for ports

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The Volvo Ocean Race has attracted a large proportion of spectators not previously associated with the sport and thus is successfully broadening its fan base ...

Monday 16 November 2009 15:30 GMT

The Volvo Ocean Race generated sufficient economic impact for the host port events to be regarded as "amongst the sports world's highest impact, short-duration major sports events", according to the findings of an independent study into the 2008-09 race.

The results put the Volvo Ocean Race considerably above the UEFA Cup Final and the Open Golf Championship.

The study, undertaken by the Sports Business Group at Deloitte, was carried out into the 2008-09 start in Alicante, in the Valenciana region, and the stopover ports of Singapore, Galway and Stockholm.

The methodology involved research with key stakeholders including teams, organisers, partners, and the media, and extensive spectator research and economic impact modelling.

The highlights of the Deloitte report show a Euros 89.2 million (US $131 million) total economic impact for Alicante - a 46% increase on the 2005-06 start port in the Galicia region.

Galway generated Euros 55.8 million total impact - 30% above initial projections. There were 40,500 international visitors and 46,000 visitors from elsewhere in Ireland went to Galway.

Singapore produced a total economic impact of Euros 33 million, with a direct impact of Euros 20 million, more than what was generated by the UEFA Cup Final in Scotland in 2007 (Euros 18 million).

In Singapore there were 1,400 corporate hospitality visitors and 74,000 visitor nights.

The race delivered almost Euros 32 million in direct economic benefits to Stockholm, the largest element being spectator spending with Euros 1,000 expenditure per head for international visitors.

When indirect impact is included this rises to Euros 43 million. 16,000 visitors were involved in corporate activities in the race village, at least 2,300 of them were enjoying structured corporate hospitality programmes.

 

Additionally there was Euros 23 million of spending by race spectators and media from outside the local region.

The report also illustrates the fact that the race is reaching out beyond traditional sailing enthusiasts. Almost two thirds (63%) of the 1,256 spectators that were interviewed by Deloitte (Click on graphic to enlarge) had no previous active interest in sailing. "This means the Volvo Ocean Race has successfully attracted a large proportion of spectators not previously associated with the sport and thus is successfully broadening its fan base," the report concluded.

An overwhelming 98.44% of the 321 local spectators that were interviewed thought that hosting the Volvo Ocean Race was a good thing for their cities, and over 85%  agreed that hosting the Volvo Ocean Race made them feel more positively about their cities.

Hosting the race has had a positive influence towards future tourism, since 76% of the 455 international spectators interviewed said they were more likely to return to the hosting cities after their visit.

In terms of race village footfall, the total figure of 3,879,362 represents a 35% increase from the 2005-06 race. There was a 156.87% increase in spectators compared to 2005-06 after the first five ports. The peak day crowd in 2008-09 was 160,000 in Stockholm.

KEY FINDINGS

Economic impact

Alicante

  • Euros 89.2 million (US$131m) - total economic impact, an increase of 46% over the previous start port in the Galician region
  • 5,000 corporate visitors from teams and sponsors
  • 85% hotel occupancy rates

Singapore

  • Euros 20 million direct impact in Singapore (total economic impact Euros 33m) - more than the UEFA Cup Final in Scotland in 2007 (Euros 18m)
  • 1,650 corporate guests

Galway

  • Euros 55.8 million total impact - 30% above initial projections
  • Euros 36.5 million of spending by race spectators from outside the local region
  • 99% of international visitors would recommend Galway as a holiday destination

Stockholm

  • Euros 32 million in direct economic benefits. Rises to Euros 42 million with indirect impact
  • 16,000 visitors involved in corporate activities
  • Euros 23 million of spending by race spectators and media from outside the local region
  • Euros 1,000 expenditure per head for international visitors in Stockholm

 Footfall

  • 3,879,362 total - 35% increase over 2005-06 race

Top five in terms of spectator numbers:

  • 937,000 - Alicante
  • 811,677 - Cochin
  • 737,000 - Stockholm
  • 420,000 - Galway
  • 363,700 - Qingdao
  • 160,000 peak day crowd - Stockholm
  • Daily race village average of 24, 399.

Sources: Deloitte, VEMUK/Stopover organisations

 

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