The Economic Benefits: Facts versus hype

by Kerry Banks

In the euphoria that followed the announcement that Vancouver had won the bid to host the 2010 Winter Olympics, there was a lot of talk about how the Games would be a gold mine for the local economy: creating jobs, boosting tourism and providing a bonanza for local suppliers. But while it is undoubtedly true that same local businesses will make a killing – porta-potty companies, for example, and parking lot owners, limousine rental firms and flower shops – a number of studies by top economists reveal little evidence that hosting the Games produces significant economic benefits for any host city or region. In fact, according to a 2008 study by three economists who specialize in the economics of sport, in the short-term, taking on the Games can actually be damaging. In their analysis “Slippery Slope? Assessing the Economic Impact of the 2002 Winter Olympic Games in Salt Lake City, Utah,” for example, the authors found that “general merchandise stores suffered a net loss of $167.4 million during  the Games time,  as did ski resorts and other recreation firms.” As Victor Matheson, one of the paper’s authors, noted, “It’s a fun time to be in the spotlight, but most cities lose money.”

Although the accounting methods of Olympic organizing committees are often murky, the evidence further suggests that all of the last six Winter Olympics ended up losing money. The organizers of the Turin Games in 2006 admitted to a $32 million deficit. And while organizers of the 2002 Salt Lake City Winter Olympics boasted an operating profit of $110 million, the U.S. General Accounting Office determined that the federal government contributed $1.3 billion toward the event. Plagued by cost overruns, the 1998 Nagano Olympics also lost huge piles of dough, though no one knows exactly how much because the organizers burned the accounting books, leaving the financial impact a mystery.

Likewise, the 1994 Lillehammer and 1992 Albertville Olympics ran multimillion-dollar deficits. Even Calgary, where the 1988 Winter Games were claimed to have turned a $90-million profit, lost money. In 1999, Tom Walkom, a Toronto Star reporter, discovered that Calgary’s organizing committee had omitted the cost of building sports facilities from its figures, and the federal, provincial and municipal governments contributed $461 million toward the games – nullifying any profits.

In light of the past record of host cities, then, Vancouver’s chances of avoiding a similar financial disaster are slim. As a recent editorial in Forbes magazine ominously states: “Over the past five years the operational costs of the 2010 Winter Games has mushroomed from $1.3 billion to almost $2 billion. In other words, Vancouver is going to take it on the chin as declining sponsorship and tourism revenue combined with higher security costs push the Vancouver Olympic Committee deep into the red.”

Local gal to carry the Olympic torch December 19

by Bernice Paul

The Olympic Torch Relay, which began locally on October 30 in Victoria and  is wending its way some 45,000 km across Canada,will be borne by a total of 12,000 torchbearers – athletes and civilians alike. Twelve thousand, each of whom will carry the torch for 300 metres before the final bearer enters the Games’ opening ceremonies and lights the Olympic flame. Not even I, a mild sports fan at best, can help but sprout goose bumps just reading about it.

One of the selected torchbearers is Jessica Langelaan, who has been associated with 2010 for some time now. In fact, last year she was given the enormous and never-been-done-before task of measuring the carbon footprint of the entire 2010 experience, including the torch relay. And apparently the relay accounts for about 3,000 tonnes of greenhouse gases – approximately one per cent of the total footprint of the Games. Because the relay is on foot, its emissions all come from the travel associated with the support teams, security and medical assistance. Oh, and the flame? “It’s butane or propane… and a very, very tiny part of the footprint,” according to Langelaan, who now works as a consultant for Offsetters, the official carbon-offset supplier for the Games.

As for her bid to carry the torch, it goes something like this:

“I auditioned to be in the opening ceremonies,” explains Langelaan,  “and made the mistake of telling my grandmother”  – who became convinced – and very excited – about dear Jessica being on television. Unfortunately, the opening ceremonies didn’t call back and Langelaan couldn’t break the news to Grandma. “So I had to be a torchbearer – for my grandmother.”

Needless to say it’s a once-in-a-lifetime opportunity. And it strikes me that Lanelaan is more proud of being a torchbearer than of having calculated its carbon footprint. And of course, most of her family will be descending upon Oakville, Ontario, to watch her carry the torch, including her best friend from Thunder Bay. (Her aunt has purchased red scarves for the whole family to wear so that they’ll stand out amongst the red-mittened crowd.)

“I don’t want to build it up too much – it’s only 300 metres!” says Langelaan. “No one’s ever come to watch me do anything and suddenly the world will show up to watch these 300 metres!” True, and a tedious leg it will be, too. It has already snowed in Ontario, so graceful trotting could prove challenging.

Langelaan takes the torch on December 19 at 3 pm EST – her very own red carpet moment. Here’s hoping it’s the longest and happiest 300 metres in her life.

You can follow Jessica or the entire Torch Relay on Twitter.

Part Two to follow

Lead photo courtesy Jessica Langelaan

Although it is clearly not too difficult to design an Olympic clothing line that will make scads of money, impressing the critics is a different matter entirely, as Hudson’s Bay is finding out

by Kerry Banks

Back in 2005, HBC defeated Roots and Lululemon to win the bidding war for the athletic wear sponsorship for the next four Olympic games (2006 Torino Winter Games, 2008 Beijing Olympics, 2010 Vancouver Winter Games, and 2012 London Olympics). For this privilege, HBC forked over a hefty $100 million.

Macleans magazine dubbed the HBC's winter Olympic line as "banal, but wearable."

However, the Canadian Olympic clothing that HBC produced for Beijing in 2008 met with scathing reviews:  “garish,” “loud,” “psychedelia run amok,” were just some of the reactions. In its company blog, Lululemon dubbed HBC’s sartorial stylings the “vomit pajama line.”

Chastened by that reception, HBC opted for a more conservative approach with its 2010 Winter Olympic consumer line, which is based on four distinctly Canadian items: the parka, toque, knitted sweater and buffalo plaid. Even so, the company still managed to spark controversy. After surveying surveyed the line of red, white, black and grey clothing, Vancouver Liberal MP Hedy Fry thought she spotted a partisan conspiracy, comparing the HBC’s official Olympic log, (a black ‘C’ with a red maple leaf in the centre) to the logo for the Conservative Party (a slanted blue ‘C’ with a red maple leaf in the middle). Others felt it was a direct rip-off of the Royal Canadian Air Force’s logo—a red maple leaf inside a black ‘C.’

It turns out, the HBC was sensitive enough to the similarity between its new logo and the military logo that it called in its lawyers for a meeting to determine that they were, in fact, different enough. As Hudson Bay’s fashion director Suzanne Timmins told Canadian Press, “When you’re dealing with the maple leaf, red, white, black, you’re going to come across a lot of different logos that are very close to other people’s logos.”

"Cowichan First Nation officials accused HBC of stealing their iconic sweater design after rejecting their proposal to produce Cowichan sweaters for HBC's line of 2010 Olympic clothing."

But there was more flak to come. Cowichan First Nation officials accused the retail giant of stealing their iconic sweater design after rejecting their proposal to produce Cowichan sweaters for HBC’s line of 2010 Olympic clothing. (HBC’s $350 Olympic sweater – featuring a maple leaf and elk — has become one of the clothing line’s most popular items since it was unveiled in October.) Hudson’s Bay initially dismissed the comparison, insisting its hand-knit sweater was not a Cowichan, and that the Vancouver Island band couldn’t meet the company’s production requirements to be an official supplier in any event. But after being threatened with legal action and public protests, HBC changed its tune. The company is now close to finalizing a deal with the band that will likely see Cowichan sweaters sold in Hudson’s Bay Company’s Olympic superstore in downtown Vancouver and in an aboriginal pavilion during the Games.

Meanwhile, the media’s reaction to the HBC’s Winter Olympic line appears to be lukewarm. Macleans magazine dubbed it “banal, but wearable.” The Globe and Mail declared: “These are items that have been designed to sell. Even if some Canadians are left cold by the nostalgic knitwear, foreigners will likely regard the pieces as quaint and worth buying as stylish souvenirs. Where the apparel comes up short is originality.” Chris Rudge, boss of the Canadian Olympic Committee, was more enthusiastic. He said the clothing “screams Canada” and is “bold, inspiring, modern, contemporary and cool.” Even so, “bold and “contemporary” do not seem to be the appropriate adjectives for designs that HBC fashion director Suzanne Timmins admits were inspired by the 1970s Crazy Canucks alpine ski team and the classic Canadian comedy show SCTV, featuring Bob and Doug McKenzie. She also noted that designers decided not to go with seal-skin trim, as requested by Canadian MPs to support Canada’s seal hunting industry.

The total value of licensed Olympic merchandise sales worldwide is expected to top the $500-million mark by the time the Games end, resulting in about $54 million in revenues for VANOC.

Of course, despite what the fashion mavens think, the total value of licensed Olympic merchandise sales worldwide is expected to top the $500-million mark by the time the Games end, resulting in about $54 million in revenues for VANOC. And no one need shed any tears for American-owned HBC, with its 21,000 square-foot Olympic superstore on the main floor of its downtown location jam-packed with more than 1,000 pieces of officially licensed Games merchandise. The store also features a Coke cafe decked out in Coca-Cola colours, a pin wall that can hold 21,000 pins; a display of special-edition watches from the 2010 Winter Games and past Games presented by Swatch; a concierge service offered by Purolator to ship purchases to a customer’s hotel or anywhere in the world; and replica Olympic Torches presented by Bombardier. With the Winter Games still several months away, Hudson’s Bay has already struck gold.

To view all of HBC’s Winter Olympic designs: http://store.hbc.com

So, how do you feel about the HBC’s new line of Olympic clothing? Are these items that you would buy?

Photos: Kerry Banks

Whistler hopes record-breaking snows are enough

by Kerry Banks

Record-breaking snows in Whistler this month have been attracting droves of skiers. In fact, the resort has already surpassed its record for November snowfall, with several days still remaining for the month. Even so, tourism officials are worried about the effect of “Olympic Aversion,” a threat that has nothing to do with the weather.

“Olympic Aversion” is a documented phenomenon that kept people away from previous Olympic venues such as Turin, Salt Lake City and Beijing because of fears that the sites would be too crowded, too expensive, and with too much construction around and no accommodation available. Ominously, early reports indicate that accommodation bookings for this winter at Whistler are already behind.

Officials with Tourism Vancouver and Tourism Whistler are working hard to assure people that these sorts of concerns are not warranted. They want to make it clear to skiers, for example, that there are plenty of deals on lift tickets to be had, that 90 per cent of the skiable terrain will be open during the Olympics and also that the major construction was completed years ago. And though anyone who want to go to Whistler during the Olympics for the day to ski or snowboard will have to take a bus (no driving will be allowed), that scenario won’t come into play for a few months yet. In the meantime, Tourism Whistler claims there has never been a better time to visit the resort because visitors can gain a sneak preview of the Olympic site; transportation has been made easier; and people can try out the Olympic runs ahead of schedule.

What’s your take? How do you feel about not being able to drive to Whistler during the Olympics? Are you avoiding Whistler this winter because of preparations for the Games?

***

How will I access Whistler during the 2010 Winter Games?

There will be no public parking in Whistler during the Games, so the best way to get to Whistler will be by bus services offered by private carriers. Travel by vehicle will be possible for visitors with accommodations if they have a permit (see below). Additional travel time will be required at Games time, no matter what mode of transportation you choose.

The best way to get where you need to go and avoid delays is by planning ahead, avoiding peak travel times and knowing your transportation options now before you step out the door in February 2010.

Ticket holders travelling from Vancouver to events at Whistler venues must do so using the Olympic Bus Network. You can book your Olympic Bus Network tickets in advance starting November 24, 2009.

Once in Whistler, public transportation will be the most convenient and preferred mode of transportation. There will be expanded bus routes in Whistler around the clock, seven days a week for the month of February 2010. Ticket holders travelling from within Whistler to events at Whistler venues can do so by using this service.

More details can be found at www.travelsmart2010.ca.

I heard that there will be a checkpoint along the highway to Whistler. Will that affect me?

Given the need to manage traffic flow to Whistler during the Games, a checkpoint will be in effect on the Sea to Sky Highway near the Alice Lake turn-off, north of Squamish. The checkpoint will be open from 6 a.m. to 6 p.m. from February 11 to 28, 2010.

To pass through this checkpoint within the 6 a.m. to 6 p.m. window, visitors to Whistler must have an official permit. Visitors who choose to drive to Whistler by private vehicle should get this permit mailed to them from their hotel before leaving home. If you don’t get this from your hotel in advance, you must get one from one of the Sea to Skypermit offices (located in either Whistler, Squamish, Pemberton or Vancouver) before you begin your trip up the highway. You will not be allowed to pass through the checkpoint without a visible permit; simply having a hotel reservation confirming parking is not sufficient. If you arrive at the checkpoint without a permit (but you have a hotel reservation confirming parking), you will be required to go the Sea to Sky permit office in Squamish to get one before continuing your trip up the highway to Whistler. If you travel outside the 6 p.m. to 6 a.m. window, you do not require a permit.

Day skiers and other visitors to Whistler are encouraged to take commercial motor coaches or travel during off peak hours. You do not require a permit if travelling by bus.

Lead photo courtesy iStock.

by Tyee Bridge

In his 2004 travel memoir The Last Heathen, Charles Montgomery followed the trail of his great-grandfather, a 19th-century Anglican missionary, to the Melanesian Islands of the South Pacific. (Praised by critics at the New York Times and the Globe & Mail, among many other publications, the book won the 2005 Charles Taylor Prize for Literary Non-Fiction.) Five years later, in talking about his current projects, Montgomery recounts one of the book’s early scenes: “There was this village of grass huts at the base of a volcano on the island of Tanna, where I arrived at sunset, alone, not knowing anybody. Some young men saw me and led me to a clearing in the woods, their sacred kava drinking grounds, and greeted me by letting me take part in their kava ritual.”

The generosity of the locals on Tanna Island led to Montgomery's latest project: a 2010 Olympic Games program benefitting both travellers to Vancouver and the city's homeless population.

After he was pleasantly drunk – the root of a local pepper plant, kava has relaxant and anaesthetic properties – the villagers then escorted him, head spinning, to a hut for a plate of steaming root vegetables and a warm bed. It was a pivotal moment. “I was amazed and impressed that these people would be so generous to a stranger,” says Montgomery. And though The Last Heathen includes far more bizarre experiences, it’s that generosity and hospitality that are most on his mind these days. In fact, the villagers’ open-heartedness is what has led Montgomery to his most recent initiatives: a book in progress, tentatively titled Happy City, and a 2010 Olympic Games program benefiting both travellers to Vancouver and the city’s homeless population.

Montgomery grew up in Vancouver Island’s North Cowichan, on a hobby farm with chickens, turkeys and a few cows.  “Looking back, I suppose that was my introduction to the culture of exchange. The rule was, when you come to the farm, you work. But that wasn’t a bad thing. My relatives loved it. They’d fix fences, clear Scotch broom from the fields and till the garden in spring.”

After journalism school and an internship at B.C.’s regional Lillooet Bridge River News, Montgomery then followed a long line of Canadian journalists to a Hong Kong expatriate community where he reported on stories in Southeast Asia from 1996 to 1998. Travelling abroad led to inevitable comparisons with his own culture, and by the time he was writing The Last Heathen four years later, a clear question had emerged. “When I came back to Vancouver I wanted to know, what makes people around the world so generous and trusting, and what stops many of us in North America from being that way?”

“We want folks across Canada to know

they’ve got a place to stay for the Games, and

that just by coming and having a great time,

they’ll be helping Vancouver deal with homelessness.”

–Charles Montgomery

In 2006, Montgomery discovered a group of UBC economists and psychologists, led by professor emeritus of economics John Helliwell, who were studying the nature of happiness and the economics of trust. “The single most powerful correlate of human happiness, they said, is the quality and number of trusting relationships we have with others. So the best way to be happy is to be generous – not just with money, but by giving of yourself, by being open to other people.”

That premise is the core of Happy City, which is set in Colombia, Paris and Mexico City. In Montgomery’s words, the book “explores the intersection of the design of cities and the design of our minds . . . and how cities can make or break happiness.” His encounter with Helliwell also led Montgomery to launch Home for the Games, a project that opens Vancouver homes to Olympic visitors while raising money to combat homelessness in the city.

“At the time I was asking these questions, everyone in Vancouver was talking about the Olympics. So I asked Helliwell, ‘Will the Olympics make Vancouver happy?’ He said the most powerful effect the Games could have on happiness is if they fostered a culture of engagement and generosity. That got me thinking.”

Later, at his kitchen table, Montgomery and a few friends took two related problems – Vancouver’s growing homeless population and the lack of hotel rooms for thousands of 2010 Olympic visitors – and cracked them together like a pair of walnuts. The resulting project, Home for the Games, will enable residents to share their homes in return for modest compensation, with more than half the proceeds donated to two local charities focused on homelessness (Covenant House and Streetohome Foundation). The payoff? Not just money saved and donated, but the chance for visitors and hosts to celebrate together – and get happy.

Get Mobilized for the Games – and Homelessness

Launched in August 2009, the Home for the Games website lists everything needed to register (free for homeowners and visitors) and get connected — whether you’re a Vancouver home-owner or an Olympic visitor.

For more information see: “Lodge in the Heart.”

Lead image courtesy Charles Montgomery