Jury is still out on claims of Commonwealth Games boost for Gold Coast

We all know that the Gold Coast won the right to host the 2018 Commonwealth Games. Congratulations to Mark Stockwell and his team.

This two-week event will be held in April 2018. Some amazing claims are already being made as to the impact of such an event on the Gold Coast market and economy. While some statements seem to have gone through some rigour, others are just utter spruiking – “the Gold Coast will be exposed to billions of people around the world as preparations unfold in the lead-up to April 2018” and “property markets will reap rewards too” are two recent examples.

So far, we understand that these games will cost $1.97 billion, with local taxpayers expected to foot close to three-fifths of the bill. Up to $500 million of this money will be spent on sport and infrastructure projects. Queensland will also go $1 billion further into debt to host the event. But apparently 30,000 new jobs will be created and $2 billion worth of economic benefits will be derived. It is estimated that 120,000 extra tourists will visit the coast because of the games.

Out of the 53 sovereign states that make up the Commonwealth of Nations, just two competed for the 2018 games, with the other being Sri Lanka. Hambantota budgeted to spend just $650 million if it won the right to hold these games.

Melbourne held the 2006 Commonwealth Games – 245 events were held across 17 sports; 71 countries, territories and bodies competed and 635 medals were awarded, of which Australia won 222 or a third; and when combined with England and Canada, these three nations took home two-thirds of the spoils.

As the tone above indicates, I remain very sceptical about the real economic impact of such sporting events.  But before we finalise our post on this topic – to be released in coming weeks – we are seeking your thoughts.

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Michael Matusik is the director of independent property advisory Matusik Property Insights. Matusik has helped over 500 new residential developments come to fruition and writes the weekly  Matusik's Missive.