KINGSTON – Jamaica is expected to generate some US$700 million in long-term revenues from the hosting of the ICC Cricket World Cup 2007 up to 2012. This figure which represents expected returns from new investments and exports, is in addition to what is to be realized from direct tourism spend and ticket sales.
Pat Francis, President of JAMPRO noted that “the hosting of an event such as the CWC 2007 is a major economic benefit for the country not just in the short term, but primarily over the medium to long-term and JAMPRO has developed a Legacy Strategy to ensure that the country maximizes the outcomes from the event”.
Based on analysis in the development of Jamaica’s Legacy Strategy, in addition to direct earnings of US$9 million to come from ticket sales, the country is expected to gain significant tourism earnings from the over 20,000 visitors coming to the island for the event over the three month period (each anticipated to spend an average US$1300). CWC 07 is also anticipated to stimulate new non-traditional exports worth US$198 million and new Foreign Direct Investment of US$400 million over the five year period between 2007 and 2012.
Another issue which needs to be highlighted, Mrs. Francis stated is the huge media spotlight to be focused on the island with over 1000 international media personnel expected in the country for CWC 2007. “We have calculated the value of this media attention at over US$102 million. This media value from a television viewing audience of over 2 billion persons from countries such as South Africa, India, Australia and other cricketing nations around the world, is priceless. “This media attention is not an everyday occurrence. It is a major boost for our tourism, but beyond that, it is a massive chance to open up new trade gateways into non traditional export markets for Jamaican goods and services. JAMPRO is using the opportunity to reposition Brand Jamaica as a place to do business.
Economic spin-offs from capital expenditure on the event are also being pumped back into the local economy. Between 30 to 40 per cent of the funds being expended for the development of the two stadia, is being spent locally with additional benefits in terms of employment.
Cricket Legacy Consultant David Faulks pointed out that major events such as the ICC Cricket World Cup 2007, have proven to be tremendous stimulants for economic development of host countries and cities.
” The Sydney Olympic Games generated over US$8.8 billion, the Rugby World Cup earned some US$307.5 million while Salt Lake City through the hosting of the Winter Games in 2003 earned over the US$4.8 billion in total economic impact,” Mr. Faulks said.
Underscoring that ticket sales are not the main measure of the economic impact of a major event, Mr. Faulks noted for example that “of the US$8.8 billion earned in Sydney, just over US$1.8 billion was generated from ticket sales. A total of $1.5 billion was earned through direct incremental tourism spend over the period of the event while new tourism business generated over the seven years following the event amounted to US$4.5 billion. New investments generated over US$ 555 million while new exports yielded US$403.5 million for Sydney Australia.
Cricket is also bringing major investments in the social infrastructure of the country and direct spin-offs for community development. The construction of a new stadium, roads and improvements in the health sector are assets which the country will own long after the event.
“The hosting of the ICC World Cup Cricket 2007 is an investment. The impact of this investment will not only be felt in the short term, but over the medium and long-term.” Mrs. Francis reiterated.
Mrs. Francis explained that the Legacy Strategy which JAMPRO has devised, is helping to guide Jamaican businesses to leverage the business opportunities out of the event so that the linkages can be felt in all areas of the economy and at the community level. In executing the Legacy Strategy, JAMPRO is working in conjunction with both public and private sector partners including Jamaica Cricket 2007, Jamaica Tourist Board and Cable and Wireless.
