Gold Coast 2018 event
The aim of this report is to recognize the economic cost as well as benefit of Gold Coast hosting the Commonwealth Game in 2018. The Goal Coast Commonwealth Games in 2018 (GC2018) is asserted to be one of the biggest sporting event in Australia in the year 2018. This study elucidates on how the microeconomic and macroeconomic environment influences on various business activities in the Australian economy. These two environmental factors influence the decision-making and activities of the organizations. However, these internal as well as external factors affect the performance of the business. The study also discuses on whether the benefits outweigh the cost of the business.
Gold Coast 2018 is also known as XXI Commonwealth Games is a multi-sport event that is going to be held between 4th to 15th April 2018. This international sport event will be staged in this nation for 11 incredible days. It will be for the fifth time that Australia will stage this event in this decade. More than 71 countries and territories and 6500 athletes will participate across 17 various sports events. (Popescu 2013) The office of Commonwealth Games (OCG) leads the program that embraces 2018 in maximizing the benefits of legacy from hosting this game. They work with other agencies that include federal government in order to deliver security arrangement and infrastructure for this game. The Federal Government of this nation will provide financial support to gold coast 2018. In addition, the commonwealth Games Federation (CGF) takes the responsibility in directing and controlling the games. The department of tourism , major events , small business and the Commonwealth Games (DTESB) will also coordinate with their corporation for maximizing benefits for this state from this game. However, this major event plays a crucial role in attracting more visitors to Australia.
Gold Coast 2018 Commonwealth Games Corporation (GOLDOC) will focus on environmental sustainability for leaving the state green legacy. Both the micro and macro environmental factors directly influence the operations of the GOLDOC and its success. Micro-environmental variables that affects the business activities of this nation includes- Visitors, employees, shareholders, social media and other international countries. GOLDOC should strategize proper promotion plan in order to attract and retain large number of international visitors. Shareholders play a crucial role in attaining higher profit and expanding the business (Fischer and Heutel, 2013). The stakeholders of GOLDOC put pressure for increasing profits and hence this affects the activities of corporation. GOLDOC manages social media in proper way so it facilitates in promoting positive things about this game event for influencing the visitors in attaining the events. On the contrary, macroeconomic environmental factors refer to the external forces that includes- economic, social, political, demographic, technological that influences the business activities of GOLDOC. Australia’s economic conditions and policies including income distribution of the people, public finances, peoples purchasing power etc affects the business activities of GOLDOC (Polley 2014). Political factors including tax policies of the Federal Government and legal system also impacts their activities. In addition, implementation of advancement of technologies in the business may increase or reduce the efficiency of the workers in GOLDOC.
Micro and Macroeconomic environment effect on the GOLDOC activities in the Australian economy
The Federation of Commonwealth Games aims in building public, social and private partnerships that aids to economic benefit of Gold Coast 2018 (Byrne 2014). The partners of GC2018 are working jointly for providing the nation with economic as well as social uplift with the help of these activities. It is predicted that embracing legacy will provide benefits to games (Paton 2012). It spotlights on three main areas that includes- economy, community and lifestyle. This program involves-
- Demonstrating the ability of Queensland to create the international event memorable to the people
- Leveraging this game for obtaining economic benefits and expanding local business
- Maximize long-term sports and community advantage from this commonwealth games.
The economic benefits that Gold Coast 2018 will provide to the nation are given below:
- It will aid to transform Queensland into diversified knowledge
- This event will help in attracting huge number of international students to the nation
- It will offer economic return to the Australian economy
- Overall, the rate of employment in Australia will increase leading to fall in unemployment rate (Oliver 2014)
- Commonwealth Games 2018 will help the economy in retaining and protecting their natural assets
- It will facilitate in building the cultural zone of this country
- This major event will enhance the reputation and growth of this nation
- The international profile of the city will raise as it will attract huge trade and raise national income
- GC2018 will stimulate economic value of some major events in the nation after the games
- Overall, it will bring in trade opportunities for the economy
The GC2018 business trade and investment program (GC2018 BTIP) generally concentrates on the maximizing various opportunities of the business activities that will be available owing to GC2018 (Fischer and Heutel 2013). These include attraction of investment, procurement, development of other business, skills development, trading activities and collaboration through wide variety of initiatives.
Commonwealth Game 2018 has included beach volleyball in the program and thus adding up to 10 core games. The Gold Coast Council (GCCC) will incur an estimated net cost of $115 million. In addition, 7 venues will be constructed in Queensland that will be accessible to the people of the nation before as well as after the game for a total cost of $200 million (Dredge and Jamal 2013). The corporation of Gold Coast has planned to accelerate GiLink before the start of competition that characterizes of 7.2 km of tracks for a gross amount of $420 million. This chief game event will cost the Australian government $1.78 net billion that is predicted to put pressure on struggling Government of the city and this will be encumbered by inflatable debt greater than other state in the nation. As it is a major event, accelerating construction works can strain the system and might throw negative publicity globally (Biondi and Zambon 2013). Moreover, huge number of residents of Queensland might be influenced by the tourist influx during the event. Hence, this could decline the productivity of the workers involved in this major infrastructure projects. Therefore, it is predicted that this major event will bear net cost owing to environmental damage that results from the construction works. The federal Government of Australia has committed for providing an additional amount of $32.4 million for the securities framework for assisting the authorities of Queensland. As more than 6500 athletes will take part in this major event, it is estimated that the total budget for their accommodation, medical expenses, securities and other cost will be around $2 billion (Beaumont et al. 2013). Therefore, the organizers of the Commonwealth Games predict that total cash spending on this event will be near about $2.027 billion. This amount is mainly offset by the contributions by the Queensland of about $115, $272 million of operating revenues and federal government contributing to $156 million. Thus, it leaves the net cost of $ 1.484 billion to the government of Queensland. Thus, it is predicted that GC2018 will incur huge cost for staging this major event in the year 2018.
Economic benefit of benefitting Gold Coast
Economic benefit will overshadow economic cost incurred by the Commonwealth Games that will be held at Australia in 2018. From the economic view point, it is analyzed that this event will offer huge opportunities to the business as well as tourism sector and also enhances economic activities in the country. Although the corporation bears huge cost for staging this competition, this game offers jobs to the unemployed people in the nation for shorter term. It also provides economic prosperity in longer term in this region (Bajracharya 2013). Moreover, GC2018 will act as catalyst for perking up sporting, commercial infrastructure and transportation links. This game will also endow with larger liveable area because of the up gradation of local facilities. Hence, the requirements of the local people will be met. If the corporation plans the strategy in a proper way, then the benefits gained by the residents will outweigh economic cost incurred by this game. Hence, it is estimated that the economic benefits that will be attained from this maor competition might be in more than $1.9 billion and this can create more than 30,000 jobs in the nation. As opined by (Antal and Van den Bergh 2013), GC2018 will boost the economy by providing huge benefits doubling to 4-5 billion.
Conclusion
From the above report, it can be concluded that Gold Coast 2018 even will improve the economic performance of Australia. This is because it will provide huge job opportunities to the jobless people and this will decline the countries unemployment rate. Even this game will enhance trading opportunities and this will increase the country’s productivity. Moreover, promotional activities will help the federation in attracting more visitors, which enhances the tourism sector of this nation. Overall, the national income of Australia increases owing to this event.
References
Antal, M. and Van den Bergh, J.C., 2013. Macroeconomics, financial crisis and the environment: Strategies for a sustainability transition. Environmental Innovation and Societal Transitions, 6, pp.47-66.
Bajracharya, B., Cattell, D., McPhee, D., Too, L. and Khanjanasthiti, I., 2013. Sense in the city: Making the Gold Coast an intelligent and sustainable city.
Beaumont, J.R., WHITAKER, B. and PEDERSEN, L., 2013. Managing the environment: Business opportunity and responsibility. Elsevier.
Biondi, Y. and Zambon, S. eds., 2013. Accounting and business economics: Insights from national traditions. Routledge.
Byrne, C., 2014. Relationship of convenience? The diplomatic interplay between the Commonwealth Games Federation and the Commonwealth Games host city. Sport in Society, 17(9), pp.1204-1219.
Dredge, D. and Jamal, T., 2013. Mobilities on the Gold Coast, Australia: Implications for destination governance and sustainable tourism. Journal of Sustainable Tourism, 21(4), pp.557-579.
Fischer, C. and Heutel, G., 2013. Environmental macroeconomics: Environmental policy, business cycles, and directed technical change. Annu. Rev. Resour. Econ., 5(1), pp.197-210.
Newbold, P., Carlson, W. and Thorne, B., 2012. Statistics for business and economics. Pearson.
Oliver, B., 2014. The Commonwealth Games: Extraordinary Stories Behind the Medals. A&C Black.
Paton, K., Mooney, G. and McKee, K., 2012. Class, citizenship and regeneration: Glasgow and the Commonwealth Games 2014. Antipode, 44(4), pp.1470-1489.
Polley, M., 2014. Introduction: The Empire and Commonwealth Games and the challenge of history
Popescu, G.H., 2013. Macroeconomics, effective leadership, and the global business environment. Contemporary Readings in Law and Social Justice, 5(2), p.170.
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