The cost of hosting the Commonwealth Games can vary significantly depending on various factors such as infrastructure development, venue construction, security measures, marketing and promotion, transportation, and operational expenses. The specific costs associated with each edition of the Commonwealth Games are unique and dependent on the host country and city's circumstances.
It is challenging to provide an exact figure for the overall cost of the Commonwealth Games as it differs from event to event. The cost can range from several hundred million dollars to several billion dollars. For example, the 2018 Commonwealth Games held on the Gold Coast, Australia, had an estimated budget of around AUD 2 billion (approximately £1.1 billion or $1.4 billion).1 On the other hand, the projected cost for the 2026 Commonwealth Games in Victoria, Australia, rose from an initial estimate of AUD 2.6 billion to over AUD 6 billion, leading to the cancellation of the event.
The economic impact of hosting the Commonwealth Games can have both positive and negative effects on the global economy, although it primarily impacts the local and national economies of the host country.
Positive effects include:
1. Economic Stimulus: The influx of visitors, athletes, officials, and tourists during the Games can boost local businesses, including accommodation, restaurants, retail, and transportation sectors.
2. Job Creation: Hosting the Games can create employment opportunities in various sectors, such as construction, hospitality, tourism, and event management.
3. Infrastructure Development: The need for new or upgraded sports facilities, transportation networks, and other infrastructure projects can contribute to long-term economic development and urban regeneration.
4. Tourism Promotion: The exposure generated by hosting a major sporting event like the Commonwealth Games can attract tourists, boost the destination's profile, and have a positive impact on the tourism industry in the host country.
Negative effects may include:
1. Cost Overruns: As evident in the case of the 2026 Commonwealth Games in Victoria, budget blowouts can strain the finances of the host city or country, potentially leading to economic instability and financial burden.
2. Opportunity Costs: The funds invested in hosting the Games could have been allocated to other areas, such as education, healthcare, or infrastructure projects that may have a more significant long-term impact on the economy.
3. Legacy Challenges: After the Games conclude, host cities may face challenges in repurposing or maintaining the newly built infrastructure, leading to potential financial burdens in the post-Games phase.
It's important to note that the economic impact of hosting sporting events is a subject of debate among economists. While hosting the Commonwealth Games can provide short-term economic benefits, the long-term impact and return on investment are more complex and can vary based on numerous factors.
1 . https://www.bbc.com/news/world-australia-66229574
2. Image source - freepik