Regular Major events major results Regular Welcome MajorT · 2015-07-29 · major events have...
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29 August 2014 Citizen Today T he roar of the crowd as a home favorite kicks for home on the final lap is one of many exhilarating moments during an Olympic Games. It’s an experience to be cherished, one that will live long in the memory for all those present. But sporting glory — while important — is only one of many benefits that arise from hosting a major event. Looking more broadly, they also result in unprecedented levels of civil and commercial change and progress. Little wonder, then, that emerging countries are so often keen to play host. Take the World Cup, for example — South Africa in 2010, Brazil in 2014, Russia in 2018 and Qatar in 2022 have benefited from accelerated infrastructure investment, growth in domestic and international tourism and social and economic legacy. EY has been supporting the delivery of such events since the 1984 Los Angeles Summer Olympic Games. With hundreds of millions, and even billions, of dollars being spent on some of these events, citizens increasingly want to see, and challenge, what benefit they are getting for the public money being invested in the stadiums and infrastructure. The recent protests in Brazil in the buildup to this year’s World Cup show how important it is to involve citizens from the beginning so that they believe in the event legacy from the start. The key to achieving this is through transparency and communication around what the cities will get from the event and how each dollar of public money spent on an event will contribute to a better society and working world. Building a better working world through major events When we think of a better working world we think of businesses and economies working more effectively, efficiently, economically and fairly. However, if we look beyond this to the potential outcomes that could be achieved from major events, we can also see opportunity for societal, cultural and economic change that can influence business behaviors and present an accelerated opportunity for progress. Many recent major events have delivered, as a direct or indirect consequence, a significant contribution to a better working world in a number of different ways. • Building trust and confidence in the economy Major events encourage transparency within governments and their supply chains by making policymakers show what public money is being spent on, who is receiving it, when and where it is being spent and what legacy business and citizens are receiving. A major event can also have the impact of putting a city or country on the world stage by showing its market potential. With policymakers having to underwrite major event finances and bid commitments, confidence is given to the market that potentially lucrative contracts will be guaranteed and, with the world watching, transparency will give hope and confidence that there will be fairness in awarding them. • Improving government effectiveness There is always a risk that public sector projects — much like their private sector counterparts — can be late, over budget or failing to deliver the outcomes expected. However, the UK’s Institute for Government found that the London 2012 Olympic Games taught the UK government several lessons in delivering big capital projects. These included how to avoid policy and delivery silos, the importance of cross-party political cooperation and how transparency can serve as a driver for cost reduction. Major events are also ideal opportunities for governments to deploy public-private partnerships (PPPs) that can reduce the burden on the public purse, while at the same time delivering a valuable commercial legacy. • Growing businesses sustainably and responsibly Business supply chains also stand to benefit from major events as they encourage private sector organizations to meet the fluctuating demands, as well the competitive pricing that is usually required. Not only do they encourage new services and products to meet event requirements and companies to showcase new ideas — such as Qatar 2022’s new stadium-cooling technology — but they also force companies to look at their sourcing contracts and often make improvements to meet the strict international standards on sustainable procurement. Entrepreneurs, too, stand to benefit: a potential event supply chain of about US$25b encourages the development of new markets and services. • Giving investors better and more informed data for decision-making Major events put countries and cities on the FDI watch list. In Brazil, the international promotion agency for the city of Rio de Janeiro, Rio Negocios, has used the World Cup and Olympic Games as an opportunity to showcase the city of Rio and all it has to offer. As a key business linked to the Rio Games, EY has been invited to do presentations to hundreds of businesses that arrive on trade missions to Brazil. These companies are eager to understand where the opportunities are in the market and where to focus their time and money. • Promoting diversity and inclusiveness The next Special Olympics World Summer Games will be in Los Angeles in 2015 and will host 7,000 Special Olympic Athletes from 170 countries. Its goal is to “bring public attention to the talents and capabilities of people with intellectual disabilities, helping to change attitudes and break down barriers that excluded them from the mainstream of the community.” The London 2012 Paralympic Games seems to have led to a significant shift in perceptions. According to research done in March 2013 by the UK’s Office for National Statistics and Department for Work and Pensions, 53% of 2,880 survey respondents acknowledged their view of disabled people had been changed positively by the Games. • Governments investing in their citizens The largest of the major events require significant infrastructure improvements and often accelerate government spending plans by many years. These investments strengthen the economies in which they are spent and help the citizens of the host countries benefit from better roads, rail and other transport options, as well as improved environment conditions. • Developing talent, jobs and working standards The need for skilled labor for construction of venues and supporting infrastructure often leads to an influx of expatriates who leave a legacy of improved skills and experience for the local labor force. Where an event requires specific skills that a company does not have, the employer will have to invest in training their people so that they are able to provide the right service levels. Individuals and teams will be forced to be more innovative and develop their ways of working. In less developed economies, major events also encourage businesses to work with their people to improve levels of customer service. • Supporting economic growth A Brazil 2014 World Cup study by EY and Fundação Getúlio Vargas in Brazil found that an estimated R$64b (US$25b) will have been added to Brazil’s GDP between 2010 and 2014. This type of headline-grabbing figure is not unusual when you consider the level of public and private investment. Major events also bring companies together with a common purpose. The most committed of these companies look for ways to collaborate with other organizations, and these relationships have the potential to last for the long term. It is clear, then, that hosting a major event presents significant economic, social and infrastructure development opportunities but only if the event is built into the investment plans of the city and country and not the other way around. Richard Evans is EY’s Global Major Events Leader. [email protected] Rohan Malik is EY’s Emerging Markets Leader for Government & Public Sector. [email protected] EY advice on major events Every day, EY people are working with organizers, governments and private enterprises to help contribute toward a significant improvement in the working world of the cities, countries and regions that are hosting events. Our people are proud to fulfil this important role and we look forward to continuing to do so. Continuing our series about how we are helping build a better working world, EY’s Richard Evans and Rohan Malik explain how major events can lead to transformational change for host cities and their citizens. Building a better working world • Getting the business case right before bidding is vital in order for citizens and businesses to get the best value from a major event. The business case should be built with the involvement and support of all the key stakeholders to minimize resistance and maximize positive impact for the hosts. • The infrastructure and venues should serve a purpose before and after the event, not just during. This means getting legacy owners included in new venue designs and new technical overlay that will influence the legacy operations of the venues and infrastructure. • Ensuring that sustainable skills and employment opportunities are developed is essential toward building a better job market that will support different social classes across the city. • Promoting the host city across the region and the international markets will support the inward investment of foreign funds looking to profit from a typical “event effect” on assets such as real estate. • Transparency throughout the lifecycle of the major event delivery is critical to its success, as the host city’s inhabitants and businesses can better understand how they are getting value for money and, ultimately, how the event is contributing to building a better society to live, work and play. results Major Regular | Major events major results events, major
Transcript of Regular Major events major results Regular Welcome MajorT · 2015-07-29 · major events have...
29August 2014Citizen Today
Regular | Welcome
The roar of the crowd as a home favorite kicks for home on the final lap is one of many exhilarating moments during an Olympic
Games. It’s an experience to be cherished, one that will live long in the memory for all those present. But sporting glory — while important — is only one of many benefits that arise from hosting a major event.
Looking more broadly, they also result in unprecedented levels of civil and commercial change and progress. Little wonder, then, that emerging countries are so often keen to play host. Take the World Cup, for example — South Africa in 2010, Brazil in 2014, Russia in 2018 and Qatar in 2022 have benefited from accelerated infrastructure investment, growth in domestic and international tourism and social and economic legacy.
EY has been supporting the delivery of such events since the 1984 Los Angeles Summer Olympic Games. With hundreds of millions, and even billions, of dollars being spent on some of these events, citizens increasingly want to see, and challenge, what benefit they are getting for the public money being invested in the stadiums and infrastructure. The recent protests in Brazil in the buildup to this year’s World Cup show how important it is to involve citizens from the beginning so that they believe in the event legacy from the start.
The key to achieving this is through transparency and communication around what the cities will get from the event and how each dollar of public money spent on an event will contribute to a better society and working world.
Building a better working world through major eventsWhen we think of a better working world we think of businesses and economies working more effectively, efficiently, economically and fairly. However, if we look beyond this to the potential outcomes that could be achieved from major events, we can also see opportunity for societal, cultural and economic change that can influence business behaviors and present an accelerated opportunity for progress. Many recent major events have delivered, as a direct or indirect consequence, a significant contribution to a better working world in a number of different ways.• Building trust and confidence in the economy
Major events encourage transparency within governments and their supply chains by making policymakers show what public money is being spent on, who is receiving it, when and where it is being spent and what legacy business and citizens are receiving. A major event can also have the impact of putting a city or country on the world stage by showing its market potential. With policymakers having to underwrite major event finances and bid commitments, confidence is given to the market that potentially lucrative contracts will be guaranteed and, with the world watching, transparency will give hope and confidence that there will be fairness in awarding them.
• Improving government effectivenessThere is always a risk that public sector projects — much like their private sector counterparts — can be late, over budget or failing to deliver the outcomes expected. However, the UK’s Institute for Government found that the London 2012 Olympic Games taught the UK government several lessons in delivering big capital projects. These included how to avoid policy and delivery silos, the importance of cross-party political cooperation and how transparency can serve as a driver for cost reduction. Major events are also ideal opportunities for governments to deploy public-private partnerships (PPPs) that can reduce the burden on the public purse, while at the same time delivering a valuable commercial legacy.
• Growing businesses sustainably and responsiblyBusiness supply chains also stand to benefit from major events as they encourage private sector organizations to meet the fluctuating demands, as well the competitive pricing that is usually required. Not only do they encourage new services and products to meet event requirements and companies to showcase new ideas — such as Qatar 2022’s new stadium-cooling technology — but they also force companies to look at their sourcing contracts and often make improvements to meet the strict international standards on sustainable procurement. Entrepreneurs, too, stand to benefit: a potential event supply chain of about US$25b encourages the development of new markets and services.
• Giving investors better and more informed data for decision-makingMajor events put countries and cities on the FDI watch list. In Brazil, the international promotion agency for the city of Rio de Janeiro, Rio Negocios, has used the World Cup and Olympic Games as an opportunity to showcase the city of Rio and all it has to offer. As a key business linked to the Rio Games, EY has been invited to do presentations to hundreds of businesses that arrive on trade missions to Brazil. These companies are eager to understand where the opportunities are in the market and where to focus their time and money.
• Promoting diversity and inclusivenessThe next Special Olympics World Summer Games will be in Los Angeles in 2015 and will host 7,000 Special Olympic Athletes from 170 countries. Its goal is to “bring public attention to the talents and capabilities of people with intellectual
disabilities, helping to change attitudes and break down barriers that excluded them from the mainstream of the community.” The London 2012 Paralympic Games seems to have led to a significant shift in perceptions. According to research done in March 2013 by the UK’s Office for National Statistics and Department for Work and Pensions, 53% of 2,880 survey respondents acknowledged their view of disabled people had been changed positively by the Games.
• Governments investing in their citizensThe largest of the major events require significant infrastructure improvements and often accelerate government spending plans by many years. These investments strengthen the economies in which they are spent and help the citizens of the host countries benefit from better roads, rail and other transport options, as well as improved environment conditions.
• Developing talent, jobs and working standardsThe need for skilled labor for construction of venues and supporting infrastructure often leads to an influx of expatriates who leave a legacy of improved skills and experience for the local labor force. Where an event requires specific skills that a company does not have, the employer will have to invest in training their people so that they are able to provide the right service levels. Individuals and teams will be forced to be more innovative and develop their ways of working. In less developed economies, major events also encourage businesses to work with their people to improve levels of customer service.
• Supporting economic growthA Brazil 2014 World Cup study by EY and Fundação Getúlio Vargas in Brazil found that an estimated R$64b (US$25b) will have been added to Brazil’s GDP between 2010 and 2014. This type of headline-grabbing figure is not unusual when you consider the level of public and private investment. Major events also bring companies together with a common purpose. The most committed of these companies look for ways to collaborate with other organizations, and these relationships have the potential to last for the long term.It is clear, then, that hosting a major
event presents significant economic, social and infrastructure development opportunities but only if the event is built into the investment plans of the city and country and not the other way around.
Richard Evans is EY’s Global Major Events [email protected]
Rohan Malik is EY’s Emerging Markets Leader for Government & Public [email protected]
EY advice on major events
Every day, EY people are working with organizers, governments and private enterprises to help contribute toward a significant improvement in the working world of the cities, countries and regions that are hosting events. Our people are proud to fulfil this important role and we look forward to continuing to do so.
Continuing our series about how we are helping build
a better working world, EY’s Richard Evans and
Rohan Malik explain how major events can lead
to transformational change for host cities and their citizens.
Building a better working world
• Getting the business case right before bidding is vital in order for citizens and businesses to get the best value from a major event. The business case should be built with the involvement and support of all the key stakeholders to minimize resistance and maximize positive impact for the hosts.
• The infrastructure and venues should serve a purpose before and after the event, not just during. This means getting legacy owners included in new venue designs and new technical overlay that will influence the legacy operations of the venues and infrastructure.
• Ensuring that sustainable skills and employment opportunities are developed is essential toward building a better job market that will support different social classes across the city.
• Promoting the host city across the region and the international markets will support the inward investment of foreign funds looking to profit from a typical “event effect” on assets such as real estate.
• Transparency throughout the lifecycle of the major event delivery is critical to its success, as the host city’s inhabitants and businesses can better understand how they are getting value for money and, ultimately, how the event is contributing to building a better society to live, work and play.
resultsMajor
Regular | Major events major results
events,major
