Potential Economic Impact Assessment of AC35
This document summarises the review of economic impacts to host venues of previous America’s Cup events, and through analysis of these past events and by applying a range of high level assumptions, produces a broad forecast of the potential economic impact (“PEI”) of hosting the 35th America’s Cup (“AC35”) to Bermuda.
Assumptions are made, where possible, to adjust these historical outcomes to more realistically portray the anticipated outcomes for the Bermuda economy.
Potential Economic Impact Assessment for Bermuda (View/Download PDF)
Louis Vuitton America’s Cup World Series Bermuda – Economic Impact
The total economic impact of the Louis Vuitton America’s Cup World Series Bermuda, held from October 16th – 18th, 2015, has been estimated at $8.6 million.
The results were released by the ACBDA at a press conference held on February 25, 2016.
At the press conference Minister for Economic Development, Dr. Grant Gibbons, said the event had attracted a significant number of visitors to Bermuda as well as garnering worldwide media coverage through television, print and social media.
The Minister also said that the economic impact was felt across the spectrum of Bermuda’s community and specifically in the important areas of tourism, retail, small businesses and entrepreneurs that were either vendors for the Event Village or service providers for the production of the event.
In breaking down the figure ACBDA Chairman, Peter Durhager, explained that of the $8.6 million of economic activity created by the event 70%, or $6.1 million, came from overseas visitors and that the net cost to Bermuda was estimated at $635,000.
The economic activity included $2.6 million in hotel revenue, a 43% increase over a similar week in October, $1.5 million in retail sales and $300,000 in boat charters. The event village vendors generated $320,000 or revenue.
The total cost and revenue figures were compared to the original economic impact assessment produced when Bermuda was bidding on hosting the America’s Cup finals. That report allocated a net cost to Bermuda at $500,000 for hosting the World Series event and estimated $1.7 million in economic activity to be generated from it.
Mr Durhager said the difference between the projections and the actual costs and revenues were a result of an increased scale and scope of the event, particularly with regards the number of visitors who came for the event. He said that, for example, the America’s Cup’s commercial partners were a major presence at the event, much more so than anticipated.
The value of the television exposure, which reached a total viewing audience of 8.1 million was estimated at $14.1 million, according to an independent report commissioned by the America’s Cup Event Authority.
Mr Durhager also took time to thank the associations, businesses and individuals who provided the economic data to produce the report and made special mention of the volunteers who helped manage and run the event. This included an estimated 4000 volunteers hours which, when combined with both businesses and individuals that waived fees and charges, produced a value of $600,000 towards the success of the event.
To view the full economic report and other supporting documents please visit: http://www.acbda.bm/economic-impact/