Budget: America’s Cup Spending & Revenue
The total Government budget for America’s Cup related expenses during the 2016/17 fiscal year will be $24 million, Finance Minister Bob Richards said in today’s Budget Speech, adding that the hotel, retail, transportation and restaurant sectors reported healthy spikes over the World Series event and “it is anticipated that total additional spending will exceed the $1.7 million original estimate.”
The relevant portion of the Budget Speech said, “Mr. Speaker, following the success of the Bermuda Louis Vuitton America’s Cup World Series event in October, attention is now focused on continuing preparations for the 2017 AC Event Village at the Royal Naval Dockyard and associated site works for additional team bases on the South Basin dock.
“The WEDCO land reclamation project in the South Basin will be the primary location for the America’s Cup Event Village. It is a collaborative effort led by WEDCO and the Ministry of Public Works with technical assistance from the ACBDA.
“The tendered project is currently ahead of schedule and on budget with financing for the projected $39 million reclamation cost provided by a local banking institution.
“Following Oracle Team USA and SoftBank Team Japan, Groupama Team France and team BAR, UK, are scheduled to set up bases on the South Basin dock before the end of 2016.
“Artemis, the Swedish Team, has nearly completed construction of their base and boat building operation at Morgan’s Point. They employed over 70 local workers for the project.
“Mr. Speaker, since April 2015, Oracle, Artemis and Team Japan have established business operations in Bermuda with a cumulative spend of over $10.2 million to date for fiscal 2015/16.
“This local spending excludes additional economic activity generated by the relocation to Bermuda of some 147 America’s Cup team employees along with their families, who have become fully integrated and are utilizing goods and services provided by restaurants, transport services, construction and trades, wholesale and retail operators, security services, marine services, shipping and forwarding companies, telecommunications providers, service industries, small businesses and real estate.
“To date, two teams have accounted for more than 80 house and apartment rentals from local landlords, primarily in the central and western parishes
Slideshow of the America’s Cup World Series in Bermuda:
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“In addition, some 390 workers were employed in America’s Cup related projects in the Royal Naval Dockyard valued at over $4.9 million.
“Approximately 70 subcontracting companies were involved in the projects. This amount does not include local spending associated with sectors such as transport, shipping, shipping agents, hotels and airlines.
“A detailed economic impact assessment for the October Bermuda World Series event is in the process of being finalized.
“The hotel, retail, transportation and restaurant sectors of the economy all reported healthy spikes in activity in the lead up to and during the World Series event. It is anticipated that total additional spending will exceed the $1.7 million original estimate for the event.
“More than 60 local vendors provided retail, food and beverage, and direct professional services over the three days of the event. In addition, there was the extraordinary visibility Bermuda gained from television and media coverage as well as visiting sponsors and spectators.
“The media exposure is expected to continue this year with confirmed Louis Vuitton World Series events in Oman, New York, Chicago, the U.K., and France, where Bermuda as the host venue for 2017 will be prominently featured.
“In the current fiscal year, the estimated $11.7 million in America’s Cup-related expenditures, including $4 million in sponsorship and $4.9 million in capital costs are on budget, with the capital development projects on schedule.”
“Mr. Speaker, the total Government budget for America’s Cup-related expenses during the 2016/17 fiscal year will be $24 million.
“This amount includes $5 million for the third tranche of the $15 million committed sponsorship to the America’s Cup Event Authority that will be spent in Bermuda, and $15 million in capital spending on infrastructure and site preparations for team bases and event sites for AC35 Finals from May through June of 2017. The remainder will be allocated to operational costs.
“So, Mr. Speaker, in response to those asking why is Government spending all this money on America’s Cup when there are so many other worthy things upon which we could spend, the answer can be summed up in three words: Jobs, rents, and income.
“In addition to the continuing economic impact and excitement generated by the AC teams and international World Series Events, Bermuda will further benefit in 2016 through the America’s Cup Endeavour Programme which focuses on the development of young Bermudians, both on the water and through the school STEAM educational programme.
“The selection of a Bermuda youth team to represent the Island in the Red Bull Youth America’s Cup in 2017 will also provide young Bermudians with world-class exposure and opportunity.”
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The Opposition,(Progressive Labour Party) need to “count their blessing” also…
“We’d been on the verge of becoming another third world country had it not been for the America’s Cup spending, i.e.“The tendered project is currently ahead of schedule and on budget with financing for the projected $39 million reclamation cost provided by a local banking institution etc.”
“To date, two teams have accounted for more than 80 house and apartment rentals from local landlords, primarily in the central and western parishes”
To the 7 people, (thus-far) that objected to my previous comment, following there will be more of this happening: “Police responding to disturbances, thefts and burglaries” All that crap had occurred within 24 hours.”
How anyone with the slightest interest in the prosperity of Bermuda for all it’s people can dislike this is beyond me.