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Liverpool 2022 Commonwealth
Games could deliver an economic boost of around ₤1 billion
A study has revealed that hosting the
2022 Commonwealth Games in Liverpool and Manchester could deliver an economic
boost to the region and wider UK economy of around ₤1 billion.
The study, conducted by Deloitte, the business advisory firm supporting the
Liverpool bid, estimates that ₤110 million could be generated pre-Games, largely
through an increase in tourism due to Liverpool's higher profile, and
construction work in the City creating additional jobs for local people.
During the Games, the spending of visitors and those involved in the Games on
hotels, Hospitality, retail and travel, could generate ₤60 million in additional
economic activity.
Although total economic impacts at both Liverpool and UK level are in the region
of ₤1bn, in Games expenditure, is higher in Liverpool due to visitor origin, and
legacy impacts are higher in the UK due to spillover effects. These 2 effects
broadly balance out.
Benefits are presented in 2022 constant prices and discounted at 3.5%. Benefits
are a mix of market Gross Value Added (GVA) which is analogous to GDP; and non
market social benefits.
Significantly, legacy benefits for the City, mostly in the 5 years after the
event, could account for ₤750 million, with a further ₤120 million shared across
the UK. These would take the form of 'place' benefits, such as the earlier
development of infrastructure and regeneration projects; 'people' benefits, for
example healthier lives through sports participation and giving local people the
skills to succeed; and 'productivity' benefits through increased tourism,
exports and foreign investment.
Liverpool 2022 Bid Chairman Brian Barwick said:- "This report shows what a
successful bid could mean in hard terms for the City, the Merseyside and City
region and the wider UK. Liverpool is a world famous City, which people love to
visit. Our Games plan, centred on Liverpool's iconic waterfront, combines
existing world class venues and stunning new facilities, such as a 50m pool in
the City Centre Docks. It will attract visitors from around the world and
provide a huge boost to the economy during the Games and for years to come.
Liverpool has a rich industrial, cultural and sporting heritage and, as a
globally recognised City that has been on its own journey of reinvention, is the
perfect place to showcase Britain in a post Brexit era. And with Liverpool also
being home to the UK's official biennial International Business Festival which
attracted over 42,000 day visitors and secured ₤600m of trade and investment in
2014 and 2016, the City is uniquely placed to promote UK Plc to the Commonwealth
and beyond in 2022."
Joe Anderson, Mayor of Liverpool said:- "This study shows that hosting the
2022 Commonwealth Games makes huge sense for the City, wider region and UK as a
whole, delivering significant and lasting economic and social benefits. It will
be truly transformational and will accelerate up to ₤1 billion of planned
investments to transform the City's world famous waterfront. Existing plans for
Everton FC's new stadium at Bramley Moore Dock, 1,700 new homes in the North
Docks, the 10 Streets Stadium Gateway Development and Kings Dock destination
development will all be accelerated, creating 12,000 new jobs and leaving a
lasting legacy for communities across the City."
Mark Lawrie, Partner, Deloitte, said:- "We have conducted a robust socio
economic analysis within Treasury guidelines and we are confident that the
analysis confirms a very positive impact for Liverpool, Manchester and the UK.
It is also important to recognise that there are a large number of ancillary
investments planned that will enhance the City's infrastructure enabling it to
both act as a host for the Games, and as a driver of trade and tourism for the
UK. The acceleration of these investments will have a significant impact on the
regional economy and help to secure an enduring legacy benefit for the UK. We
believe that when considered in its entirety this evidence makes a compelling
endorsement of Liverpool's ability to showcase the best of 'UK Plc.'"
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