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Economic Benefits of the Commonwealth Games: Manchester

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Economic benefits that Manchester gained by hosting the Commonwealth Games 2002

This paper discusses Manchester’s hosting of the 2002 Commonwealth games, and how it was used as a catalyst for urban regeneration. It discusses the theory and history behind hosting Mega events. The rationale behind cities bidding for mega events has shifted. They bid not only to raise the image of their city on the world stage, button use the new facilities as a catalyst for urban regeneration.

The Manchester case study is drawn from the local council websites and reports published during and after the event. This gave an insight into the long term economic gains for the city.

The paper concludes that the hosting and the urban regeneration were successful for Manchester. This success has promoted other cities to bid for Mega events.

2.0 Introduction

There are three advents that are described as mega events, the Football world cup, the Olympic and Commonwealth games. These events are held every four years, with cities around the world bidding to host them. For the purpose of this paper the discussion will be on the Olympic and Commonwealth games. The main Focus will be on Manchester hosting of the2002 Commonwealth games.

Mega events as steeped in tradition, they are a platform for host cities to show what they can do. Cities plan for them years in advance, putting their bid forward so they can succeed on the world’s stage. When a city is successful in a bid, there are other cities that are disappointed. This paper discusses Manchester’s successful Commonwealth games bid after two failed Olympic bids.

When a city hosts a Mega event it is in the public eye, everybody remembers the spectacle of the opening and closing ceremonies. What is not so public is all the planning behind the scenes, committing resources to the success of the games. These resources are committed at an early stage; the bid has to be viable to be considered.

The rational for hosting games has shifted from the prestige associated with the attention of the world’s media, to a tool for regenerating rundown areas of the host city. Therefore the planning of the venues has shifted from temporary buildings, to long term facilities for the local communities.

Some cities hosting mega events are looking at the long term usage for the new facilities after the event, in the past a lot of these buildings were built as temporary structures and pulled down shortly after the closing ceremony. This is viewed by some commentators as waste of resources, with prolonging the life of these buildings cities, can benefit long after the games are finished.

This shift has attracted new cities to bid for Mega events, with the justification that it will lead to economic growth both short and long-term. The benefit can be two fold, raising the image of the city and regenerating a rundown area. Although not all host cities have been successful at obtaining growth, some are still repaying the debt that was run up to host the games.
The resources that each city has ploughed into holding these prestige games are immense. To succeed they require the backing of local residents, council, sports providers, grants, the government and their agencies. This should be incorporate at the planning stage to increase the chance of a successful bid.

The value to local residents of a city hosting a mega event is immense in economic terms. It is not only the new facilities that can generate income, if the games are a success, the city can attract tourism long after the event.

The games cannot be viewed in isolation of the sporting stage, there is the build-up to the bid, the planning of hosting the games and the long term value they van add to the city. All these factors make up a successful mega event bid.

Manchester spent a long time planning for the games. This is illustrated in the time line that appears in the appendices of this paper. This was not an easy ride, as financial problems affected the plans. Manchester overcame these and held the 2002 Commonwealth games.

3.0 Aims and objectives

The aim of this paper is to assess the economic impact of cities hosting mega event; this will concentrate on the 2002 common wealth games held in Manchester.

The objectives are
• An in depth analysis of the history of mega events, with the resources and planning to host such an event 

• An analysis of the economic benefits that can be gained and the disadvantages of hosting a major sporting event.

4.0 Methodology

This chapter discusses the research methods used for the project and the rationale for their choice. It discusses methods that were not used, with justification of why they were not included. Included is a critique of methods selected, and with hindsight identifies any changes that would have enhanced the research. 

This paper critically evaluates the impact of the 2002 Commonwealth games on the city of Manchester. This paper will investigate the economic impact of a mega event and the subsequent urban regeneration. This will be compared to other host cities, both with the Commonwealth and Olympic games.

Selection of the topic was stimulated and formed out of heightened publicity on the topic. The aim of holding the games was not only publicity for the city but to use it as a tool of urban regeneration. The nature of the research was discussed with colleagues and fellow students this not only added practical ideas and suggestions, it opened new avenues of thought. This was the discussed with lecturers sounding out ideas, gauging opinions and clarifying the question. Focusing in on the question was obtained by employing relevance trees, narrowing the research area. This gave direction to the research, although with reviewing the literature this changed several times (Buzau, J. 1995). 

Next, a research proposal was compiled, with the benefit of organising ideas and setting a time-scale for research. Theoretically, the proposal would highlight any difficulties with the research question and access to data. Creating a time-scale would focus on targets and meet deadlines in the completion of the paper. 

The literature review, discussing theories and ideas that exist on the topic formed the foundation of the paper. The findings from the research are then tested on theories for validity (Saunders, M. et al1997). The literature review was challenging, there is very little academic research on the topic area. Most of the literature focused on individual’s performances at the games, and the impact of hosting the Olympic Games. This information proved relevant in understanding the justification for bidding for mega events. Journals and newspaper articles were the back bone for the review, together with internet sites and reports.

Tertiary data sources, such as library catalogues and indexes were used to scan for secondary data. This produced journals and newspaper articles, and Internet addresses. With the amount of literature, it took time to sort out relevant material to the research. Narrowing down the search Bell’s (1993) six point’s parameters was applied. Applying key words that were identified in the first search produced relevant and up-to-date material (Bell, J.1993). A limitation on the literature search was the amount of time to read all articles and books on the subject. Whilst reviewing the literature references to other publications were followed and reviewed. Bells checklist on identifying the relevance of literature found was a practical method to reduce the amount of reading (Bell, J. 1993).

A case study on the impact on the city of Manchester of the 2002Commonwealth games was chose to replace primary research. This would report the actual benefits gained by staging such a major event. There is a lot of information presented in articles on the benefits of hosting Mega games, but little on the problems. Therefore a lot of information was rejected due to the bias of the content. Articles and web sites were used to form a picture of the impact. This would then be compared with the literature and previous host cities

To produce primary data the success of a mega event proved to be vast task, taking a lot of time to produce results. Internal and external operations of several organisations, providers, spectators and competitors would have to be compared to reach any level of validity. Instead it was decide to review a case study. This was then compared to the literature review.

5.0 Literature Review

This section will review all the relevant literature on mega events, including cities that have bid and hosted them together with the history of the games. The review will also discuss the rationale behind bidding and the benefits it can bring to a City who hosts an mega event.

5.1 Mega Events

Mega events are regularly defined as special events, these have unique status. Hamilton, (1997) characterise these events containing similar features, including "international dimensions, short-termed, and may be either a one-off occurrence or conducted on a regular cycle". From the literature, size emerges as a dominant distinguishing feature separating mega from non-mega events. Both the Olympics and the commonwealth games fall into this category, they are international, short termed and held on a regular cycle. They are held every four years, at different locations (Hamilton, L 1997:124).

Sporting events are rapidly increasing in popularity as a means of attracting attention to particular geographic locations (Getz, 1998).Increasingly, cities are basing their marketing around Mega events(e.g. Manchester and the Commonwealth Games), in order to maximise the benefits to be achieved from event-driven tourism, sponsorship, and media exposure. Sporting events make up an important part of the overall Mega event industry. In reality there are a limited number of Mega sporting events that exist. This has led to fierce competition among cities to be successful in "winning the business" of playing event host (Getz, (1998) cited in Westerner, H et al 2002:303).

5.2 Resources Required

The size of an event can be discussed in four different ways. First is determined by the noticeable involvement of national and regional government authorities. Government agencies provide an event with the development of policies, infrastructure or making resources available supporting the attraction of events to major cities (Westerner, H teal 2002).

Higher technical competencies are required, such as advanced facilities, suitable event location and skilled personnel; these are directly related to size of the event. The demands placed on services provided by host cities to deliver an event is of superior quality when compared to other event types. The technical competencies must satisfy number of requirements. This includes the technical standards set by international federations pertaining to competition, non-competition elements (accommodation and transport) and personnel issues competition management, and personnel issues (Westerner, H et al 2002).

The higher competencies are a requirement for the event management team, made up of both bid and operational teams, it is composed of expert people capable of carrying out professional relations with event owners and organisers prior to and throughout the event as well as having the technical expertise to stage the event (Westerner, H et al2002).

The hosting City requires broad support from both direct and indirect stakeholders. Overall approval must come from the general public, government, (target) markets and other business sectors. The large amount of capital invested from the "public purse" in bidding for and staging an event, it is essential for strong community support for the process (Ernst & Young, (1992) cited in Westerner, H et al2002:305).

5.3 Planning for the Games

International and worldwide events are more important now than ever before. In most countries major events are significant to all levels of society and institutions, whether at local or national level. Sporting events dominate large sections of the press, television and radiobroadcasts. Therefore event management has become an industry in its own right, with both specialist organisations and individuals(Torkildson, G 2005).

The decision making process for the bid will develop a long term strategic plan (Johnson G, &, Scholes, K 2004). This strategy is the direction and capacity of an organisation, (i.e. the committee forth games) which achieves advantages through its configuration of resources within the changing environment. The strategy answers both the questions "where do you want to go?" and "how do you want to get there?" The first question is answered when the bid is accepted and the second is answered when the strategies are planned (Mullins L2005).

Planning is the first stage of implementing the development of the city for the capacity to hold the games. Managers are required to step back to look at the environment, competitors, market place and review both the internal and external strengths and weaknesses. A SWOT analysis will focus the managers on both internal and external factors that can affect a new strategy. The host city must recognise its strengths and utilise them, and reduce weak areas through planning (Groucutt, J. teal 2004).

Managerial decisions are made to identify what is required to implement the new strategy. What are the new resources are required? I.e. Property, finance or employees, and how will the city gain these resources? Then the risk should be assessed for its long term value to the host. Strategies should not only be considered on how they will affect existing resource capabilities, but also if needed new resources and how they will be controlled. The costs to the host should be weighed against the long term gains, and if needed it can be reviewed, accessed and amended accordingly (G, Johnson & K, Scholes, 2004).

Mega Events are a dynamic and multi-dimensional phenomena, there are at the same time, urban events, tourist events, media events and international global events. They are the subject of collective corporate recourse, with action in each of the sections. Therefore amulet dimensional approach is required in the planning and managing of the games. This requires multi-disciplinary team based approach(Torkildson, G 2005). 

5.4 Marketing

Kilter et al (1993) identify several target markets to which place marketers direct their attention. These include visitors’ athletes, officials, spectators and the media, residents and workers, business and industry, and export markets. The focus of sporting events is on the visitor segment, including business and non-business visitors. Business visitors include persons who travel to a place for meetings, conventions, to inspect sites or to buy or sell a product. Non-business visitors include tourists who travel to see the place and travellers who are visiting family and friends. Individuals travelling to particular destination to attend the event or teams and participants attending events as well as organizing committees and such can also be categorized as non-business visitors (Kilter, P et al 1993).

The increase in the competition and the globalisation has not only saturated the extent of competition in the markets but mainly saturated the target markets itself as argued by Brassington and Pettit (2003).This is mainly because of the fact that the high level of competition among the participating organisations in a given market segment has increased the product range leaving the customers with an endless variety of products to choose for satisfying their requirements. This level of saturation has also increased the need for further development in the market in order to achieve competitive advantage as well as sustainable growth in the business (Brassington, F and Pettit, S 2003).

Therefore mega events will if correctly marketed stand alone as a once only product. This product offers a unique entry into a market, there is little comparative competition, although all sport and leisure will compete for their market share. Although a Mega event is no normally at the same level as the existing competition. This approach is accomplished through the geographical spread either nationally or internationally by the host (Lynch, R 2003).

The domestic and/or international media, coupled with the selling of broadcasting rights, are important characteristics of mega events The support of the media prior to or during an event guarantees exposure and consequently raises world-wide awareness of the event and host city. The 2000 Olympics in Sydney generated in excess of $1.3 billion in revenue from broadcasting the Games, indicating the substantial financial returns for event owners, organisers and the host city brought about by media support for the event ( Westerner, H et al2002).

5.5 Sponsorship

Corporate sponsorship of sports and other events is one of the fastest growing forms of marketing communications used to reach target audiences. The rate of growth in sponsorship expenditures is greater than for traditional media advertising and sales promotion. Corporate spending on sponsorship worldwide was estimated to grow 12 present in2001 (Roy, D and Cornwell, T 2003).

Sponsorship is viewed as a means of avoiding this clutter by enabling sponsors to identify and target well-defined audiences in terms of demographics and lifestyles. Linking a brand with an event via sponsorship enables firms to gain consumers' attention and interest by associating with events that are important to them. Despite the increased use of sponsorship to reach market segments there has been little research on the impact of sponsorship on consumer behaviour(Roy, D and Cornwell, T 2003).

While sports sponsorship activities range from providing athletes with uniforms to funding entire stadiums, the basic principle behind such sponsor ships appears to be their proposed ability to increase brand equity by means of enhancing brand image. There are several key goals associated with corporate sponsorship of events such as (1) enhanced brand image via associations with positively perceived events; (2)increased goodwill via perceptions of corporate generosity; and (3)elevated brand awareness due to increased exposure (Miyazaki, A and Morgan, A 2001).

The high prices paid for Olympic sponsorships reveals that at least some organisations find these efforts to be worthwhile. This is illustrated by comments from top corporate officials that the Olympics are “the most important marketing opportunity of the decade” and management suggestions that this investment will heighten global recognition and increase revenue (Miyazaki, A and Morgan, A 2001:9).

5.6 Tourism

In the 1980s and 1990s, political, economic, and technological developments that led to the global economy became a feature of the environment within which cities compete for economic growth. This trade in goods and services has become increasingly open and internationally competitive; cities had to compete with cities from around the world for investment capital, businesses, and tourists. Cities such as New York, London, and Tokyo have become “global or world” cities in the urban hierarchy. These cities contain the largest variety of cultural and entertainment facilities of the highest quality, such as museums, galleries, opera houses, theatres, and concert halls (Burbank, J et al2002)

Therefore other cities are a disadvantage when competing for tourism. The pursuit of hosting a mega-event is a mechanism for economic growth. This strategy relies on obtaining a single event large enough to be seen as a way to generate future economic growth. Many events can bring tourists and attention to a city, but the mega-events sufficiently large that it creates a single focal point and timeframe for completing event-related development. It is also noted that stadiums and sports teams are luxuries that financially strapped cities can ill afford; therefore holding a mega event can provide the city with these facilities for the future (Burbank, J et al 2002)

The number of tourists to an area where a mega event is due to take place increases. Individuals are drawn to destinations because of omega (sporting) event rather than the region itself. For example, tourism estimates of visits to Sydney between 1997 and 2004, as direct response to the Olympic Games, have been set at 1.7 million. Actual visits for the period during 2000 have been estimated to be 20 percent of this total (Forecast, 2001).

Arising from the growth of the tourism industry has been an emphasis on place (or city) marketing and promotion and the emergence of mega sporting events to support and enhance this promotion. Place marketing represents the techniques utilised by certain organisations to raise the awareness of their particular destination to specified target markets. Promotional objectives relate to capturing the attention of international visitors and to providing information in an endeavour to entice them to travel to a specific destination (Moutinho, L and Wits 1994).

5.7 Attendance of Events

A standard set of economic factors would be expected to affect demand for attendance. Price of admission and, more generally, the opportunity cost of attendance (including cost of travel, car parking, food and beverages at the venue, and programme), would be predicted to be negatively related to attendance. Income of the potential audience at sporting contest, and size of population in the potential market for contest, would be expected to be related positively to attendance. Availability and price of substitutes would also influence attendance. Some substitutes might be considered “direct”, such as the live broadcast of the event. Other substitutes will be “indirect”, for example, attending a different sporting event or contest; or other types of entertainment alternatives such as theatre or movies (Borland and Macdonald, R 2003)

Macroeconomic factors could have an impact on attendance such as threat of unemployment. Although it has been suggested that attendance at sporting events may constitute a social outlet for unemployed persons, therefore the attendance is higher as the rate of unemployment increases (Borland, J and Macdonald, R 2003)

The infrastructure of the venue has a direct impact on attendance to the events. The quality of viewing, the facilities at the stadium, the quality of seating; the impact of adverse weather conditions; distance from contest and extent of vision to different parts of the sporting field. Catering and bathroom facilities can also have an impact(Borland, J and Macdonald, R 2003)

5.8 Economic Benefits

The national government’s involvement in bringing events to a city is on the increase. The level of spending dedicated to biding for an event demonstrates the strength of governments backing. This is to the detriment of the competition with other (cultural) activities undertaken by government and other interest groups. Openly supporting abide increases the pressure of accountability to the public and hence support will only be given, if it is clear that justifiable and measurable benefits for all stakeholders are generated by hosting the event (Westerner, H et al 2002).

The economic activity associated with staging mega sporting event can create significant economic benefits for the host destination. Howard and Crompton (1995) defined the economic impact as “the net economic change in a host economy that results from spending attributed to sports event or facility”. Economic impact studies enable the quantification of the benefits to a community to be ascertained in order to justify the investment in the event (Howard, D and Crompton, J1995:55).

The Olympic Games provide an obvious example of significant economic contribution by a mega sporting event. The 1984 Los Angeles Olympics made a profit of US$125 million with the Seoul Olympics exceeding that profit by a further US$50 million. Outcomes of this magnitude serve to encourage cities to bid for high status events (Law, C 1993).

In September 1990, Atlanta won the bid to host the 1996 Summer Olympic Games. In spite of the approximately $2.5 billion price tag, the benefits derived from hosting the Olympic Games were expected to outweigh the costs. Positive media attention, construction of facilities and infrastructure, and employment increases were identified as the primary beneficial output of this massive endeavour. The cash in flow during mega games is relatively easy to identify, the "legacy “of the games in terms of long-term benefits is more difficult to measure. The positive employment impact of the 1996 Summer Olympic Games, led to a 17% increase in long term employment in the surrounding area (Hotchkiss, J et al 2003).

It must be noted at this point that not all events are successful financially. While focusing on the economic benefits presented by mega sporting events, there are significant financial burdens that such events place on host communities. This financial commitment to events often requires a degree of community assistance through public funding. The external benefits associated with mega sporting events enable this financial assistance to be classified as an investment, with clear reciprocal benefits to the host community (Westerner, H et al 2002).

Once the mega-event policy is underway, extra-local interests become increasingly vital to a successful outcome. Hosting modern games requires the authority and cooperation of not only the host city, but other state and local governments and agencies as well. Moreover, the financial demands of the games require support from local public and private sources, but are increasingly dependent on multinational corporations and the government (Burbank, J et al 2002).

Several global cities have had their fingers burned by over ambitious sports development plans. Sydney found itself in trouble finding permanent use for Stadium Australia. The Manchester bid, while ambitious, was also realistic. It already had the G-Mix Centre and MEN arena, Old Trafford and Maine Road football grounds. It has added to this the velodrome, an aquatics centre, Sport-city, and the City of Manchester stadium. These facilities are part of the long term regeneration, the aquatic centre has been appropriately sited for the city’s three universities; Sport-city is to become one of 10 regional centres of excellence in sport; and the stadium will be used jointly by Manchester City football club and community teams (Anonymous 2002).

5.9 Urban Renewal

The Olympic Games are regarded as the world’s most prestigious sporting occasion. They are typical of mega events in that they are transitory, bring short-term international participation and attention and can have long-term consequences for the host city. There is considerable investment in both sporting facilities and the supporting infrastructure, although after the games these then become legacies to the host city. The costs involved in hosting the Games are now so high that host cities can often only justify the expenditure when it is seen as leading to a major programme of regeneration and improvement (Essex’s and Chalked, B. 1997).

Harvey (1989) has discussed that urban policies to compensate Forde-industrialisation have become more proactive and entrepreneurial often involving some form of interurban competition for jobs and investment. The use of ‘urban spectacles’, such as major sporting events, as a strategy for urban renewal are being seen as one of the main products of post-modern society This is also a means by which cities express their personality, enhance their status and advertise their position on the global stage. Urban politics have shifted to ales bureaucratic, more entrepreneurial and autonomous stance (Harvey 1989). An example of these new urban politics is Manchester’s Olympic bids of the 1980s and 1990s, in which local government-based decision-making and bureaucratic politics were essentially replaced bay dynamic business leadership (Essex, S and Chalked, B. 1997).

For the host cities there is important justification for bidding to stage the Games, particularly in recent years, the stimulus to economic development and urban regeneration. The event can promote economic activity as a result of the jobs created by the vast numbers of tourists visiting the city before, during and after the event. The construction of sports facilities can also play a role in programmes of urban renewal by, for example, introducing new sporting and recreational facilities into previously under-provided areas. On broader scale, preparations for the event can also provide a means of justifying new investment in transport infrastructure and in projects to enhance the city’s landscape and physical appearance (Essex, S andChalkley, B. 1997)

5.10 History of Mega events

There are several games that are held on a four yearly cycle; these include the Olympics, Commonwealth, and the world cup. Each has grown in stature with more cities bidding for the right to stage them. The information below was extracted from both the Olympics and Commonwealth Games web sites.

The first Commonwealth Games were the product of discussions and ideas shared over a thirty year period. John Cooper proposed sports and cultural gatherings for English speaking nations in 1891. In 1911 sport competitions were part of the Festival of the Empire in London, in which athletes from England, Canada, South Africa and Australasia competed (www commonwealthgames.org).

The first games in Hamilton Ontario, Canada consisted of six sports, with around 400 athletes from 11 nations. The name of the games has changed frequently. The first four games were known as the British Empire Games. The name was changed to British Empire and Commonwealth Games for the 1954-1962 editions. From 1966 to 1974 the name British Commonwealth Games was used and from 1978 to the present the Commonwealth Games

Kuala Lumpur, Malaysia hosted a very successful 1998 edition of the Commonwealth Games. The Queen’s Baton was carried to the stadium on an elephant and presented to Prince Edward by Malaysia’s first ever Commonwealth medal winner Kohl Eng. Tong, a bronze medallist in weightlifting from the 1954 games 

The Olympic Games are steeped in history. Today, the Olympic Games are the world's largest pageant of athletic skill and competitive spirit. They are also displays of nationalism, commerce and politics. These two opposing elements of the Olympics are not a modern invention. The conflict between the Olympic movement's high ideals and the commercialism or political acts which accompany the Games has been noted since ancient times

According to legend, the ancient Olympic Games were founded by Heracles son of Zeus. Yet the first Olympic Games for which we still have written records were held in 776 BCE (though it is generally believed that the Games had been going on for many years already). Approximately1500 years later, a young Frenchmen named Pierre de Coubertin began their revival. The revival of the ancient Olympics in 1896 attracted athletes from 14 nations. The largest delegations came from Greece, Germany, France and Great Britain. Winners were awarded a silver medal and an olive branch 

To conclude the games are steeped in history and are a prestige event for any city to host. They can raise the city’s image on the world wide stage, thereby attracting tourism in the future. But an emerging factories they can be a catalyst for urban regeneration, therefore the value of holding the games can be immense to host city, if it is conducted right. 

6.0 Case Study Manchester

This section will present the facts of Manchester successful bid forth 2002 Commonwealth games. The information is from the City Council’s web site, reports and articles. The second part will present from the games legacy web site the current and future planes for Manchester generated from holding the Commonwealth Games.

6.1 The Games

After two failed Olympic bids, Manchester took the 2002 Commonwealth Games, although no-one else bid for the. This could be attributed to the failure of Edinburgh's attempt to host the games. Manchester City Council and its partners have been developing their approach to the Games for almost a decade. From the early 1990s, building on Manchester’s bids to host the Olympic Games, the urban regeneration potential of hosting a major international sporting event has been recognised. Throughout, the issue has not just been about generating jobs alone, but what the event can do for the broader and longer-term regeneration process

Prime Minister, the Rat Hon Tony Blair MP stated “The Commonwealth Game swill not only be a major sporting event which will be enjoyed by millions throughout the world, but the Games will also showcase both Manchester and Britain. Universally known as the Friendly Games, the Manchester 2002 emblem highlights this theme. It clearly demonstrates the spirit of friendship associated with the Games and will be lasting image of what we all hope will be a memorable sporting occasion” (Rat Hon Tony Blair accessed through

It was estimated that the games would attract a television audience of1 billion people. This would give marketers a superb opportunity to show off not only their own products, but the city itself. Although spectators packed virtually all sports, despite drizzly conditions there was a downside, too (White B, Et al 2004).

The Manchester Games cost far more than budgeted, it was speculated in2001 that they would be cancelled due to funding shortages. In 1995,the Greater Manchester council was to pay nothing for the games. After the successful bid, the council bill was said to be £21m. Organisers predicted these costs would be met through television, ticketing and sponsorship revenues. By the end of the games, the council bill was at least £73m, resulting in funding cuts for local sporting facilities(White B, Et al 2004).

A cost explosion between announcement and event is hardly a new phenomenon. Billed as the Modest Games, Montreal residents were still paying the debt for the 1976 Olympics in the 1990s. For the 1986Commonwealth Games in Edinburgh, newspaper tycoon Robert Maxwell underwrote what amounted to a £4m deficit from a £27m budget (Sergeant 2002).

The delivery of the Commonwealth Games was used to regenerate the East Manchester. East Manchester was home to much of the City’s heavy engineering and chemical industry and many of their workers. In a period of little more than thirty years, starting in the 1960s but gathering pace in the 1970s and 1980s, East Manchester went from being nationally important area of mature industry and settled population to one of the most intense concentrations of deprivation in the country. By the mid, 1990s East Manchester could no longer retain businesses or residents and became one of the UK’s most acute test cases for regeneration

The 2002 Commonwealth Games in Manchester would generate a total of16,000 jobs that will last from a few months to over 10 years. This is the equivalent of 6,100 gross direct full-time equivalent (FTE) jobs for Manchester of which over a third are additional to the local economy. It was predicted that the Games would bring £22m additional expenditure into Manchester, providing the basis for £36m for business opportunities generated by trade and inward investment

The Sport city and the associated infrastructural development have begun to regenerate the property market in the immediate area. The extension of the Metro link system and commencement of environmental works along of Ashton canal corridor linking the city centre to Sport city have brought forward developments

The venues for the different Games events have a viable after use. These enhanced facilities, will be used by national and regional athletes and local and regional communities. Sport city, the Manchester Stadium and the Velodrome, has created new jobs in its sport facilities and associated catering and retail uses. All have after-uses which will generate sufficient surplus to sustain the facilities in the future and bring new sports events to Manchester

Manchester is using the Commonwealth Games to show itself off to the world. The city that, more than any other represented the power of manufacturing industry has emerged after decades of decline as an exciting, services-based metropolis. The people of Manchester have volunteered in their hundreds to help make the Games a success. Manchester was backed by Sir Bob Scott, a rare civic entrepreneur who managed to reverse the decline of the city's theatres and persevered after leading unsuccessful bids for the Olympics without being a politician (Sergeant, G 2002).

The Manchester model combines elected councils, public support, private enterprise, national funds and entrepreneurial co-ordinatingmanagers. The message for planning and for national spending on infrastructure is that development should be focused where people want it. Funds should go where local people want to spend them, where people know what they want and have sensible business plans to make it work. Market forces cannot work fully in such matters. The best proxy for market is what local people want and is prepared to vote for (Sergeant 2002).

The Manchester case shows that growth points have to be built on existing strengths by providing an environment in which people want to live and the facilities to do their jobs. This kind of development can only be generated locally, not from the centre, which is frustrating for ministers and civil servants. Regional government might work. In the absence of civic entrepreneurs, however, it would just be another waste of money (Sergeant, G 2002).

Twelve months on after the Commonwealth Games, an initial assessment reveals long term benefits for the City of Manchester. An estimate that6,300 jobs have been generated from the Games is on track and £22million has been pumped into the City’s economy through new business opportunities

The Commonwealth Games has helped Manchester manufacturers buck the national trend for falling demand. The North West region posted its first increase in output for more than two years, according to the Confederation of British Industry's (CBI) quarterly regional trends survey. The growth was due mainly to new orders to help meet stadium requirements for the games, which concluded earlier this month, but teak production as a whole declined (Parker R 2002).

6.1 Three Years On

The area which was once known as ‘the workshop of the world’ had been in steady decline for the last 30 years. Large scaled-industrialisation had a huge and devastating effect on employment. However, the hosting of the Games and the decision to site the stadium in this area was the catalyst that was needed. This provided the importance of a world event and the focus which would introduce a range of other strategic initiatives to New East Manchester

Over the next 15 years New East Manchester is expected to secure over £2 billion in public and private funding. The momentum gained from the investment in world class sporting facilities at Sport-city presents a new image to the commercial world. There has been a quantum shift imperceptions of the area from current and prospective residents and investors. The New Business Park development is expected to create over 6000 jobs. The development of a new retail centre, four star hotel and the new housing developments are expected to create 3,800 jobs for the people of East Manchester

Manchester City Football club, as the new resident in the City of Manchester stadium, is drawing nearly 40,000 people to the streets of East Manchester for each of its home games. In the summer of 2005concerts by U2 and Oasis enticed over 360,000 music fans. Canal side homes and developers are bringing affordable contemporary design to the housing market. Open top tour buses are starting to bring visitors and tourism to an area of the city which had rarely been frequented by those beyond the local community

Investors find a revitalised landscape and business opportunities on the doorstep of one of Europe's most popular economic destinations. There is still a huge amount of work to be done; complacency is not on anyone’s agenda but without the impetus provided by the Games, investment on this scale could not have been secured

The use of £6.2m of Government Single Regeneration funds matched toe further £12m of other public and private funds, paved the way for the delivery of a unique regional programme aimed at ensuring that businesses and in particular disadvantaged communities benefited from the hosting of the Games in Manchester

The Commonwealth Games Opportunities and Legacy Partnership board was established as a regional board for managing the Legacy of the Games. Made up of senior managers from key organisations across the Northwest, business, sport, arts and cultural interests were represented alongside local government agencies to promote the benefits to the wider region

The role of the volunteer may not have changed but the event managed to attract those who had not considered offering their individual talents in this way before. The huge success of the volunteer programme has resulted in the setting up of the Post Games Volunteer Project in 2003.Games Volunteers have responded to requests for support from organisations across the region and continue to perform a number of roles at major events

In 2005 there are over 2000 volunteers on the database taking part in aide range of events including the Salford Triathlon, the Great Manchester Run and the World Paralympics event. The project was mainstreamed into Manchester City Council in August 2005 with the launch of Manchester Event Volunteers

Over 300,000 visitors each year are now expected as a result of the positive image of the Games. The ability of major events to deliver social and economic benefits across the region has led to the drawing up of a Five Year Regional Events Strategy by the North West Development Agency (NWDA) in 2004. The tourism industry in the region has undergone a complete restructure

The city and the region will continue to maximise the opportunities resulting from hosting the third largest sporting event in the world. The London 2012 Olympic team have credited Manchester's success and legacy with underpinning their successful bid in 2005

7.0 Analysis of Manchester

This section of the paper will review the case study and compare and analysis it with the literature review and the appendices. This section will focus mainly on the economic advantages to Manchester that have been gained through hosting the 2002 Commonwealth Games.

The hosting of any Mega event is steeped in history and tradition. Thesis of vast economic cost to the host city; if this is not used for part of a long term strategy then it is a drain on resources. Cities have hosted games in the past, to be still repaying the debt now. The last city to host the games is an example of what financial disaster can develop from over stretching resources. Therefore with the cost and the tradition of the games at risk, it is imperative that when they are awarded the host city can deliver their promises (5.1, 5.2, 5.10 &appendix 4).

Being awarded the games is both an honour and a great responsibility to the host city. The tradition of the games must be honoured and upheld, throughout the planning and hosting of the event. Therefore the planning and the resources required must be obtainable, practical and actionable. It after the bid is accepted that the real work commences(5.1, 5.2, 5.10 & Appendix 3). 

Manchester bid for the 2002 Commonwealth Games after two unsuccessful bids for the Olympics, through the failures they had started to build a business plan capable of holding a Mega Event. Although there was at first speculation that Manchester got awarded the games because no one else bid, the bid still had to be structured and viable. If the Commonwealth games committee had not believed the city could host the games they would not have been awarded it. The information they had acquired through the failed bids allowed them to generate a successful bid capable of staging a Mega event. This bid was to be used a catalyst for urban regeneration (Case Study, 5.2, 5.3, 5.9, appendix 1 & 4).

The games were named the “Friendly Games”, attracting support from the local residents, businesses and the government, including the Prime Minister. This demonstrates the importance of political as well as local backing for such an endeavour, which Manchester obtained through its planning of the games. This strategy was used in the marketing; the games were for the people (Case Study, 5.2, 5.4, 5.9 & appendix 4).

The games were predicted to attract a large television audience around the world as well as spectators to the events. This is ideal an ideal marketing and sponsorship opportunity for Manchester, to raise their profile as a world city. Manchester displayed itself as a renewing city capable of being on the world stage as a major player(Case Study, 5.4, 5.5, 5.6 & 5.7).

The Games over stretched their budget, this at one point put the games in jeopardy, although this would have led to a waste of the resources already utilised. Through attracting further funding and the television rights and sponsorship, the situation was averted. Other host cities of Mega events have had the same scenario, although Manchester overcame its financial problems. Sponsorship has helped to reduce the deficit (Case Study, 5.2, 5.5 & appendix 2).

Unemployment in the City was rising in the deprived Eastern area. The decline of the British manufacturing industry had a profound affection this area, which was reliant on this type of commercial activity. The games would be used to address not only short term unemployment but create permanent jobs for the future. Unemployment in the city has fallen since hosting the games (Case Study, 5.8, 5.9 & appendix 5).

The planning team was led by a civic entrepreneur, who utilised his knowledge in selecting a team of individuals who could plan for the games. This took the emphasis away from being political, but included the local council, national government and agencies to compile the bid and the resources required to host the event. This plan involved the entire local people who had an interest in both the area and the games(Case Study, 5.3, 5.8 & appendix 3).

Both the early pointers from one year after the games and the current situation are indicating that the games were very successful, both in the hosting of them and in urban regeneration. The legacy from the games has reversed the trend of economic decline in the area. This is demonstrated by the regeneration of an industrial area of the city, which is attracting both business and residential development (Case Study, 5.8, 5.9 & appendix 5).

Manchester is still expecting long term economic growth as a legacy from the games and the urban regeneration that was part of the strategy from hosting the event. They are predicting further investment into the city from both business and government sources. This growth is in the targeted areas, providing employment and housing for the people of Manchester Individual residents are benefiting from the legacy of the games (Case Study, 5.8 & 5.9).

The sporting venues were designed not only to host the games, but also for the long term benefit to the community. The city of Manchester stadium is now the home ground of Manchester City football club, attracting supporters into the area, which has further added to the regeneration of the east of the City. The new sporting facilities are attracting sporting talent into the city. This is fully utilising the venues and the infrastructure that was put in place for the games. The resources are repaying their initial investment (Case Study 5.3,5.4 & 5.8).

Tourism not only increased when the games were on, it is still growing. The city predicts further growth in tourism, which in turn will continue to fuel the growing economy in the area. This tourism will bring in further economic growth for local businesses. They are hosting variety of events which will attract audiences from all over the country to the venues that were used for the games (case study 5.3, 5.4& 5.8).

The games have successfully involved local residents. This has reinforced the message of the people’s games. The games were for local residences to show off their city, and welcome the competitors and the world’s media. A large number volunteered to assist with games, however there is still over 2000 volunteers on the data base that help the city with events today (Case Study, 5.2 & 5.9).

Although the success of the games is discussed in economic terms other factors should be considered. Manchester hosted the largest ever Commonwealth Games with 5,000 athletes from 72 nations competing for Gold medals. These athletes were accommodated by the city, with the facilities attracting competitors from all over the world. This promoted the capabilities of the city on a global level (Case Study,5.2 and appendix 5).

The hosting of the Manchester games is widely accepted as one of the most successful Mega events in recent years. This has an affect on other potential bidders for mega events; this has led to other Cities bidding for Mega events. From the confidence gained from Manchester, London has bid, amongst great competition from global cities and been awarded the 2012 Olympic Games (Case study, 5.3 &appendix 5).

When the case study is compared to the mission statement for the Manchester 2002 Commonwealth games, their objectives have been reached. The original aims and objectives were for the friendly successful games, that will leave a legacy of new sporting facilities and social, physical and economic regeneration and to set a new benchmark for hosting international sporting events in the UK have been achieved(Case Study & appendix 4).

8.0 Conclusion and Discussion

Manchester has demonstrated that using a Mega event as an urban regeneration catalyst can not only increase economic activity in the short term, but can lead to economic growth in the future. This is not the only success factor from the games.

Manchester had gained experience of funding and bidding for Mega games through their two unsuccessful Olympic bids. This had given them the insight into what level of planning was required and the resources needed to host the games. With this knowledge they were able to construct a bid that was capable of hosting the games.

Although it was argued that they were the only bidders, without careful planning and resources they would not have been awarded the games. Therefore their bid was successful though their fastidious planning. This should be noted as the first success from the games.

The city successfully upheld the tradition of the games, they were known as the “friendly games” which was embraced by the citizens of Manchester. The 2002 Commonwealth games were the largest ever, this very factor points to the success of the games.

Manchester not only obtained the backing of local council, it acquired national backing, through involvement and backing of the government. This event would be prestigious to both the city and teak.

Although the budget for the games ran over, Manchester gained further backing to allow them to go ahead. It appears that were other cities have failed cost wise by leaving long term debt; Manchester acquired grants and sponsorship to enable them to proceed.

The area that was targeted for urban regeneration was in economic decline. The construction of the new facilities and hosting the games addressed the short term unemployment. The continuing use for the venues has increased economic growth in the area attracted new businesses and housing. This has reversed the long term decline in the eastern area of Manchester.

Manchester saw the benefit of building new facilities for the community to use after the event. The prolonged life of these buildings the host cities can benefit long after the games are finished. This is vital to the regeneration of the area, and can justify the costs involved in hosting the games.

The legacy from the games expected to last for quite a number of years. This factor is vital for the continuing growth of the area. The continuing functions of the new sporting facilities will maintain the economic growth. By attracting people into the city for these facilities will increase the cash flow to local businesses adding to the regeneration.

The local council has maintained the interest of local residents during and after the games. There are still a number of locals committed to donating their free time for the benefit of the city. This commitment is a lasting legacy from the games.

The success of Manchester has been underpinned by the successful bid by London for the 2012 Olympic Games. London looked at the success of Manchester, and put forward a bid to host the games. The feel good factor from the success of the games was shared throughout the UK.

The games cannot be viewed in isolation of the sporting stage, there is the build up to the bid, the planning of hosting the games and the long-term value they van add to the city. All these factors make up a successful mega event bid; Manchester has succeeded on all these factors.

Manchester has succeeded in hosting the most successful Commonwealth games ever and regenerating a run down part of the city. Using the games as a catalyst for urban regeneration has led to economic growth for the city during the games, and more importantly continued economic growth as a legacy.

Manchester has looked at an area of its city that was is decline, planned how to reverse the trend, and used a public stage to implement change. This has attracted new business and housing onto the area as well as generating increased income for the existing business. This has not only successfully regenerated the east of the city; it has attracted tourism to the whole of the city.

It can be concluded from this paper that Manchester as a city has successfully used the Commonwealth Games as a catalyst for urban regeneration.

9.0 Bibliography

9.1 Books

Bell, J (1993) (2nd Edition) Doing Your Research Project
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Buzau, T. (1995) (Rev end) Use Your Head.
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Brassington, F and Pettit, S (2003) (3rd Edition) Principles of Marketing
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Cresswell,J. (1994) Research Design (Qualitative And Quantitative Approaches) Sage publications, London

Harvey, D. (1989) The Urban Experience
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Greenberg, J and Baron, R. (2003) 8th edition Behaviour in Organizations Understanding and Managing the Human Side of Work Prentice Hall

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Johnson, G &Scholes J (2004) (6th Edition) Exploring Corporate Strategy
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Kotler, P et al (1993) Marketing Places: Attracting Investment,Industry and Tourism to Cities, States and Nations, Maxwell MacmillanInternational, New York

Law, C. (1993) Urban Tourism: Attracting Visitors to Large Cities
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Lynch, R (2003) Corporate Strategy
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Moutinho, L. and Witt, S. (1994) Tourism Marketing and Management Handbook Prentice-Hall, New York

Mullins, L (2005) (7th Edition) Management and Organisational Behaviour
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Roberts, K (2004) The Leisure Industries
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Torkildson, G. (2005) (5th Edition) Leisure and Recreation Management
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Wass, VJ and Wells P. (1994) Principles and Practice in Business and Management Research Pitman Publishing. London.

9.2 Journals

Anonymous (2002) The Manchester Games: Regenerating a City as Well as UK Sport The Guardian. Manchester (UK): Jul 25, 2002

Borland, J and Macdonald, R (2003) Demand for Sport
Oxford Review of Economic Policy, Oxford: Winter 2003Vol.19, Iss. 4;

Burbank, J et al (2002) Mega Events, Urban Development, and Public Policy
The Review of Policy Research, Fall 2002 v19 i3

Hamilton, L. (1997), Sporting events and place marketing: a meansfor generating tourism in Victoria, Australia Conference Proceedings,5th Congress of the European Association for Sport Management,September 1997.

Hotchkiss, J et al (2003) Impact of The 1996 Summer Olympic Games onEmployment and Wages in Georgia Southern Economic Journal, Jan 2003 v69i3

Miyazaki, A and Morgan, A (2001) Assessing Market Value of EventSponsoring, Corporate Olympic Sponsorships Journal of AdvertisingResearch, Jan 2001 v41

Parker, R (2002) Games help Manchester's companies counter trend
Supply Management London, Aug 22, 2002Vol.7, Iss. 17

Roy, D and Cornwell, T (2003) Brand Equity's Influence on Responsesto Event Sponsorships The Journal of Product and Brand ManagementVol.12, Iss. 6/7

Sergeant, G (2002) Manchester Can Save us from Gridlock
The Times, London (UK) Aug 2nd, 2002

Westerner, H et al (2002) Key Success Factors in Bidding forHallmark Sporting Events International Marketing Review London:2002Vol.19, Iss. 2/3;

9.3 Reports

Essex, S and Chalked, B. (1997) Olympic Games: Catalyst of Urban Change
Department of Geographical Sciences, University of Plymouth

Forecast (2001) The 11th Report of the Tourism Forecasting Council
Tourism Forecasting Council, February 2001

White B, Et al (2004) Manchester’s 2002 Commonwealth Games
Post Games Report 

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