Portsmouth Predicts $187 Million Into Economy
The America’s Cup qualifiers which will be held in Portsmouth, UK are expected to attract some 160,000 spectators and pump more than £120m [$187 million] into the local economy, according to a report from the Portsmouth press.
The report said, “As we start 2015, excitement is building to when the eyes of the world will be on the city as an anticipated 160,000 spectators come to witness the spectacle that is the America’s Cup World Series.
“The area will be bursting with pride as the contest forms part of a four-day family festival from July 23 to 26, providing a huge boost to the Portsmouth area.
“And it is anticipated Portsmouth’s America’s Cup qualifiers, which will be coming back to the city in 2016, will pump more than £120m into the local economy, providing a massive boost to shops, hotels, bars and restaurants.”
The America’s Cup World Series is the first stage of competition in the 35th America’s Cup and begins in the summer of 2015. Featuring all of the America’s Cup teams racing in one design AC45 catamarans, the circuit is an early opportunity to put points on the board that carry forward into the next stage of the competition.
Overall ranking position in the America’s Cup World Series determines the starting points score of the teams in the America’s Cup Qualifiers in 2017.
Bermuda will be hosting part of the America’s Cup World Series in October of 2015, as well as hosting the America’s Cup finals in 2017, which the Government has predicted will create approximately $250 million in additional on-island spending.
Is that it?
Thank God you’re not in charge. You also remind me of a spoilt brat who goes “is that it” when given a new bike. Grow up and be grateful the world is looking after you’re sorry ***.
If Portsmouth anticipate $187M over 4 days, then I’m confused as to why Bermuda is talking about “only” $250M over a considerably longer period.
Maybe the $250 estimate is on the safe side as the AC will be politicized by both sides here. If revenue is less than estimated the PLP will jump on it.
Also, Portsmouth is able to welcome day trippers from within UK. If you think about how many hotel beds are within a one hour drive or train ride. These day trippers will still spend money in Portsmouth (parking, food etc.). That is obviously not an option in Bermuda.
Edit $250m estimate. $250 would be shockingly low!!
Maybe the Portsmouth number is too optimistic.
@ Tony: That was my point also… Black Soil must have his head buried deep in soil…
$250 million is an overly optimist estimate. Government has not released their spreadsheet with assumptions and calculations for a reason – the numbers do not add up. One cannot drive to Bermuda for the event and drive back home at night. Think more like 500 to 1,000 max new air tourists on top of the annual average for the relevant months.
Most of the $250 million spending likely will be in infrastructure improvements over the next 2.5 years, mostly funded by the taxpayer & investors. City of San Francisco lost $5.5 million in the last AC.
I doubt the suggested estimate of headcount of 70 long term people per team. My guestimate with team members, support, and family members, is around 30 per team average. 6 x 30 = 180 people. Each team has their own headquarters in their own country where it makes sense for the development team to stay most of the time. Development can design & test remotely without needed to move to Bermuda.
Per terms with the AC organization, BDA Government granted tax, fees, and other exemptions to the organization, team, sponsors, etc. See AMERICA’S CUP ACT 2014.
PART 2 – CONCESSIONS & EXEMPTIONS
Advertising
Air navigation
Broadcasting and electronic communications
Customs duty
Employment
Food and drink
Health practitioners
Motor vehicles
Ships and boats: port dues, registration and mooring fees
Ships: compulsory pilotage
AND WHEREAS it is in the national interest to support the event by providing relief from certain taxes and fees, and by providing certain other modifications of legislative requirements which would otherwise apply, with a view to facilitating and assisting in the
conduct of the 35th America’s Cup in Bermuda.
Ve here to PUMP YOU UP
– Hans & Franz
the AC is a one off sporting event
so the grim reality is that you won’t see any real economic activity until around the time the event is to be held and ending sometime shortly thereafter
any other suggestions about long term activity is just politicizing
Actually, the economic activity will lead up to the event. Saltus has already had 20 overseas applications from America’s Cup participants and the other private schools have also received applications. This is because those families are moving to Bermuda to set up base here in preparation for he event. When not racing in the America’s Cup World Series events (which Bermuda is hosting one later this year), they will be sailing here testing the conditions of the Great sound to give them the best possible edge of winning it in 2017.
An official and Youth & Sport told me the teams have already been here scouting out their living arrangements with one group looking to book out an entire smaller guest property. Each team has up to 70 members (including sailors, managers, design team, shore support). We will have 2 1/2 years of economic activity from this. They will be buying groceries, renting houses, guest cottages, hotel rooms, eating in restaurants, shopping in restaurants, using electricity, buying insurance from the local insurers, buying gas, using taxis, buying scooters, etc etc.
We are going to get a solid financial benefit from this. It isn’t going to be as much as San Francisco or Valencia (the last two places the AC was held) because we can’t handle as many people, but it will still be significant.
Don, you are correct. One team will be here with their boats later this month and plan to spend much of the next 2 years in Bermuda preparing their team for our waters.
Besides the direct “AC” temporary jobs there will be construction and hotel positions increasing. This 1 event won’t fix our financial problems but it is a step in the right direction (if we do it right)
the last Cup had 3 challengers plus Oracle
so if each team has up to 70 members there will be approximately 240 persons on island plus their family members
I hope you’re seriously not banking on these less than 500 persons to somehow rent enough houses, eat in enough restaurants, use enough electricity, buy enough insurance etc etc to turn this economy around in the long term
kind of reminds me when Paula Cox compared the US economy to Bermuda’s
when she said the US economy is like a cruise ship in that it is slow and difficult to change course whereas Bermuda’s is like a speed boat being fast and quick to maneuver
personally I’ll rather be on a slow moving cruise ship as opposed to a tiny boat that will probably tip over and sink
Currently there are six teams officially accepted for AC35, plus there are five more teams who may compete.
But don’t let facts get in the way. Carry on with your stupid ill-informed negativity.
so lets do the math
70 members x 6 teams = 420 person + family members
doesn’t look like any significant change to me
Of course it wouldn’t.
420 families, or possibly a lot more, living here for two and a half years or so.
You really can’t imagine that impacting the economy.
I’d hazard a guess that you’re not much of an “ideas” guy.
No way 420 people, not families, are moving to Bermuda. Go with an average of 30 people per team, including family members. 6 x 30 = 180 people.
Take it up with Mr Pessimism, js. I used his numbers. I happen to think ypu’re way off, but they are his estimates, and he wanted to make the numbers look as low as possible.
figure an average of 30 people per team, including family members. 6 x 30 = 180 people. as you stated, the numbers are not significant.
it will be close to 1000 team members including families living and coming and going over the next 2 years or more according to the press conference at the announcement in NYC last month. The first arrive later this month. Welcome!
Trulytruly I cannot find on the internet that NYC press conference you reference. please provide more information like a web site. any breakdown of that number given?
there are six teams currently entered. using the 1,000 person estimate:
1,000 / 6 = 166.67 so 167 per team. Each America’s Cup boat has 11 sailors.
crew member + wife + 1 kid = 11 + 11 + 11 = 33
estimate support staff 20 per crew
33 + 20 = 53 people per team
53 x 6 = 318 people
1,000 – 318 = 682 unaccounted team members & family
estimate support staff 30 per crew
33 + 30 = 63
63 x 6 = 378 people
1,000 – 378 = 622 unaccounted team members & family
Not seeing the 1,000 number as being very realistic.
There are 11 professional sailors in each team. Let’s assume most of them are married and a good proportion have a couple of children. You actually get get to more than 30 just for that group.
But your assumption then is that just the sailing team will come here? That, in your mind, is the whole “sailing team”? And they are the only people who will be here. Is that what you really think?
Heard of a thing called spectators you idiot?
what are you suggesting
spectators for 2 years or spectators for 2 weeks
you jacka**
I can empathize with people that blindly vote plp with answers like this.
check yourself.
like I said “just politicizing”
sad
what about the first time visitors who fall in love with the island and decide to return year after year?
Some of them might meet js and not want to come back.
do you think it was wise for the OBA to put a global spotlight on the island during an election year
new temporary residents and potential visitors alike will get enough of an insight into Bermuda’s political and social issues to formulate their own opinions about whether or not they wish to return
however I’m sure the OBA will handle the AC fallout the same way they handled the passing of the Gaming Act
first they’ll tout it as being critical to Bermuda’s economy and economic survival
then they’ll spout some nonsense about the PLP and their supporters not being onboard and looking to derail the event for political purposes
finally they’ll down play the overall importance of the event by saying it isn’t a panacea for the whole economy just an additional means of revenue for some
thereby lowering the expectations of the average Bermudian who won’t see any real or tangible benefits
Bitter?
Totally and utterly wrong.
Interesting read and remarks above. What I’d like to know is how much did the Government promise in $DOLLARS please. When anyone invest you pray and hope you get a good return, that’s what doing business is about. Also where are all the spectators going to sleep. I’m not holding my breath for the promise of new hotels.
And that to shall pass!! Wake up b.d.a
Once again its the pathetic PLP with their sour grapes comments. Give it up already – you are a part of our past.
Stay there.
With this small injection of cash in the economy and possibly new ventures in tourism in the near future will goverment still go after a second day without pay for civil servants or will the cannibalism cease for now.
Bermuda can no longer rely on ” Were the fate lead us ” If we are to compete in the Global Economy.
Bermuda is in dire need of a concrete sustainable road map.
Dreaming of some miracle to sustain this country for the foreseeable future will not solve our problems .
look what happened to un~sustainable Iceland.
There is an economic war going on .
Time has come for the great minds of this country to sit down and devise an economic plan which will include every one who is prepared to work for it.
Promises do not work any more.
Taxation crushes development.
Unification of our collective talents is the only way.
Playing political football and back biting yields decisive results.
We are where we are because we all dropped the ball.
This country has some thing to offer, we have been doing it for years.
Great stuff OBA. The Americas Cup coming to Bermuda is so………….so positive.Well done!
Ill informed Children that is all i can think of when i read the likes of JS and a few others , why would you try and down play any event that will have a significant economic impact on our future. There is no doubt you have political motives for your little spouts. If these events and there are a few all attached to AC are successful and they will be.It will signal the end of what is today the opposition. Maybe then with new and energetic and forward thinking young Bermudians will the PLP start to regain the respect of many of us Bermudians.
Pangea is correct. We are in this situation because we allowed the PLP to throw out thousands of expats who were spending money and keeping our economy going. People that stupid should not be allowed to run a country – and that’s why they no longer do. Remember this next time you are in the voting booth. Vote in a bunch of retards and you’ll pay the price.