35th America’s Cup Economic Impact Report
According to the Potential Economic Impact [PEI] assessment released by the ACBDA, the direct spending on-island for the America’s Cup is estimated to be “in the region of approximately $250 million.”
The ACBDA said, “The document was prepared in October 2014 by the Bermuda America’s Cup Bid Committee and summarises the review of economic impacts to host venues of previous America’s Cup events.
“Through analysis of these past events and by applying a range of high level assumptions, it provides a broad forecast of the potential economic impact of hosting the 35th America’s Cup to Bermuda.”
Chart extracted from the report
Mr. Mike Winfield, CEO of the ACBDA said: “The PEI is less extensive than a detailed economic impact assessment which is normally commissioned after an event and this study should not be treated as such.
“It is also important to note that this information was compiled during the bid process and since that time it has been announced that Bermuda will host the America’s Cup Qualifier Series in its entirety.
“It is anticipated that this will provide additional economic impact as Teams, Sponsors, Visitors, Media, etc. will be in Bermuda for a longer period than first assumed,” added Mr. Winfield.
The 14–page document covers a number of different factors including media exposure, additional hotel visitors expected, additional cruise ship passengers expected, superyacht visits, team spending and more.
“The Bermuda Tourism Authority [BTA] has calculated the media exposure generated from hosting AC35 to be worth approximately $20 million,” the report said.
On the topic of potential superyacht visits, the report said, “We have assumed 40 superyachts are here for an average of 6 weeks, therefore 1,680 superyacht days.
“We have taken an average of the per day spend in Valencia and San Francisco, which equates to approximately $7,644 per day. This spending is mainly related to provisioning. This totals $12.8 million.”
The ACBDA said the public is invited to review the PEI document which can be found on www.acbda.bm, and is also posted below.
The ACBDA’s Potential Economic Impact Assessment follows below [PDF here]:
Now can we please have a statement from Walton Brown complaining about how OBA is anti Bermudian. I’ve not heard any sensless moaning from him for over 24 hours now and I’m feeling some serious withdrawal.
Come on Walton, surely you can throw cold water on this with one of your meaningless rants.
You could complain that the sun comes up in the east and unfairly shines on Tucker’s Town first – that would be a good one. Clearly the OBA’s doing.
C James this is such great news it really is inconceivable that we have people who will complain about it. Sad but true! Anyway enough of that. This really is the best thing that has happened to Bermuda in living memory. The more we do to ensure the success of this event the more Bermuda will be praised and be seen in a positive light by the media and that will be broadcast around the globe with potential spinoffs that we are not even aware of. Who comes to Bermuda and is not in awe of its natural beauty? This really is something to seize and run with!
Actually the sun shines on St. David’s first.
Just sayin’
Timely.
Time we tell , if this the best event for Bermuda.
@Picks That’s the type of attitude that will keep so many from reaping any reward from this awesome event.
Oh well, that just leaves more for the rest of us optimists!
Have you got a better idea? Please offer it up.
Yeah, I heard the Black Mayors Conference has had to be cancelled. Couldn’t get any rooms at the Par-La-Ville Hotel.
Nice timing. Takes the sting out of the PAC meeting this afternoon. Well played ACBDA. At least some are playing hard ball and not being caught flat footed. I’m sure plenty of hot air will be produced this afternoon non the less.
I realize this is all estimates but I’m a bit sceptical when 25% of the total impact ($60 million) comes from “legacy tourism benefits”.
I’m not. It doesn’t take much of a long-term boost to produce a pretty huge permanent return to the island.
If you go to Fremantle in Australia it’s still benefitting from the Cup even though it was almost 20 years ago.
How bout San Fran.
Even late in 2013 the impact was assessed in the order of hundreds of millions of dollars.
“America’s Cup put San Francisco $5.5 million in the red” (Bottom Line)
“San Francisco is still in the red from hosting the 34th America’s Cup, which so far has cost taxpayers at least $5.5 million, according to draft financial figures from the regatta that The Chronicle reviewed Monday.” [December 10, 2013]
Let’s just call it Vision 2017. It’s palpable isn’t it? Unlike others visions of fancy heard a few months ago from another party. Always nice to have fanciful ideas. Even nicer to have ideas coming to fruition as we speak. That’s real leadership that everyone should be happy about.
You need to read the rest of that report.
It cost $5,5m net and generated $364m of positive economic impact.
This will be such a huge and landmark event, I am confident we will get as many visitors as we allow in. There will be more than we ever thought possible. We will be forced to turn people away there will be that many.
The only Bermudians who will not benefit will be those too lazy to get off the couch. This is quite simply our chance to recover from long hard economic times.
However, I’m sure Walton and the rest of the pathetic PLP will complain about it though. They will find something to moan about.
To say that Walton is like a miserable old woman, would be an insult to elderly females everywhere.
I am so excited by the America’s Cup, but also very concerned on the impact on the rental market. I already know a handful of people who have been asked by their landlords to pay an additional 25% rent or move on, because they have America’s Cup clients.
I understand why we would want to reap the benefits from the rental market, but I really hope that greed does not outweight common sense.
I am concerned that many of us will be out priced of our homes. Has anyone else heard of these stories already?
@Concerned Let your friends know that they have rights. Contact the Rent Commissioner’s Office. They are very helpful.
Hopefully greed does not prevail. But those that get greedy should have the “book” thrown at them!
What rights do they have? Presumably if the house falls under Rent Control then there are rights, but aren’t they for homes towards the lower end of the rental market?
Doesn’t a landlord have the ability to charge what they want?
Landlords can , and do , increase their rents whenever they want to. Even in this plummeting real estate economy .
Rent control is another toothless poodle anyway , even if it only applies to properties at the lower end .
If the tenant disagrees with the increase the landlord simply finds a way to remove the tenant and find a sucker who will pay their demands.
And by the way , real estate values are down by at least 30% in the last 7 years or so , but has there been any decrease inland tax yet ? No.
Have I heard such stories ? They abound . And it’s hard to not drop one’s jaw when they blatantly relate stories how they’re either looking for AC tenants so they can gouge them or how they will move out of their own houses and flog them for thousands more than they’re worth while they move into some $3000 a month cottage .
I just hope the owners of the $3000 a month cottage flog them back and demand $6000 for it ..
Wow, $250 million circulating in our economy!
Let’s put that into perspective. One eighth of the debt the former govt put on us and our children.
That some crazy numbers. Still can’t believe what the PLP did to this island and to its people. Blessed be
24% is future projections…… thus far DOT nor the BTA have lived up to any of their projections…
click, click I believe, Iiiiii do believeeeeeee, am in Kansas…
Typical UBP/OBA’ers , counting millions of chickens and not one egg has hatched !
Typical PLP. Can’t see opportunity when it stares you in the face. Too busy complanng about foreigners and expats. Right-wing tea party morons.
I just rented my house for two years to AC team members.
One egg hatched.
This is really positive and the assumptions are quite grounded and conservative. I genuinely hope we exceed these numbers. We need to work together to make this work – we don’t need petty criticism or gloating either – together Bermuda can work!
Bottom line of the last held America’s Cup.
“America’s Cup put San Francisco $5.5 million in the red”
“San Francisco is still in the red from hosting the 34th America’s Cup, which so far has cost taxpayers at least $5.5 million, according to draft financial figures from the regatta that The Chronicle reviewed Monday.” [Dec 10. 2013]
I see you still don’t get it. Glad you aren’t running things around here.
Red the rest of the article.
If only the PLP could count.
Also, Team Oracle are here and training. That’s quite a large egg (maybe even Beyoncé sized).
we are paying for them to be here…..housing, food transport…and building village to throw them a party…That’s quite a large egg (maybe even 77 X Beyoncé sized).