Economic Impact of the America’s Cup

With the conclusion of the 35th America’s Cup, an independent assessment has been commissioned to determine its economic impact on Bermuda.

PricewaterhouseCoopers has been hired by America’s Cup Bermuda (ACBDA), the local organizing committee, to conduct an independent study for completion by October, according to Grant Gibbons, the Minister of Economic Development.

Giving his congratulations to victors Emirates Team New Zealand, along with all the teams that took part, Dr Gibbons added: “Without a doubt, Bermuda has never hosted an event of this magnitude, and our success has already put us in an excellent position to host future international sporting and leisure events of similar scale.

“Although it is understood that AC36 will be held in New Zealand, decisions by teams, including the location of their bases, will be influenced by the timing of AC36, the style of boat and other race protocols for potential World Series events and races leading up to the finals. It is anticipated that announcements regarding AC36 will be made by the new Cup holder over the next weeks and months.”

In the meantime, Emirates Team New Zealand, Team France and Land Rover BAR will depart Bermuda by the end of July.

The minister continued: “We would like to give Oracle Team USA, Artemis and Softbank Team Japan the ability to maintain some presence in Bermuda even if it is substantially scaled down.

“This may require legislative amendments to continue existing concessions provisions. ACBDA is working with departing teams to facilitate their exit and will continue to liaise with the other teams regarding their future plans.”

The America’s Cup Event Authority is winding down its operations, leaving a small team on the island.

The decommissioning of temporary structures in the Event Village and along Freeport Drive has begun, with Cross Island expected to be clear by the end of September.

“Pop-up structures can always be brought back and tailored to meet the needs of future events,” Dr Gibbons said.

“The new infrastructure underneath Cross Island is permanent, flexible and available for future use. This includes IT, water, drainage, electricity and sewage.”

Meanwhile, the economic assessment of the event will also cover its social and environmental impact, which Dr Gibbons said was comparable to the studies completed by previous America’s Cup host venues, such as San Francisco and New Zealand.

“Additionally, ACBDA will produce an event report by September that will detail their work and describe how AC35 was delivered. ACBDA currently plans to wind down by the end of the calendar year.

“Some information about AC35 is already available. I am pleased to note that through this prestigious sailing event, Bermuda received extraordinary visibility on the world stage as the Cup was broadcast to 162 countries with millions of people watching. This is only a snapshot. More details about Bermuda’s media exposure will be released as part of the final assessment report. Over 100,000 people visited the Village over 22 days, there were 62,315 booked tickets on the special AC ferries alone, and some 2,000 boats registered as spectators of the event.

“Bermuda hosted over 460 visiting boats, with over 80 of them being superyachts. We received extremely positive feedback from the owners and captains of these boats, some who had never been to Bermuda before. As a result of this success, we have been developing a long-term superyacht policy and legislative framework. Another positive feature of AC35 has been the development of new marinas and marine services at the Hamilton waterfront, Hamilton Princess, Caroline Bay and the facilities at South Basin in Dockyard.

“Small Bermudian-owned businesses also benefited from AC35. ACBDA formed partnerships with the Bermuda Economic Development Corporation, the Bermuda Chamber of Commerce, the Imperial Group and others to support small-business involvement during the events. More than 30 Bermudian small businesses, some of them new, were represented in the AC Village, and our food and beverage vendors enjoyed a huge volume of business.

The event brought new sailing regattas to the island, with more expected, the minister said.

“Our Red Bull AC Youth Team, composed of a new generation of sailing talent, proved they can compete successfully against the best young sailors in the world. Discussions are currently under way as to next steps for the team. In addition, the Endeavour Sailing Programme has been privately funded through 2018.

“Bermuda was chosen to host the greatest race on water, with the finest sailors in the world racing the fastest boats ever to race in the America’s Cup. In front of thousands of fans in Bermuda, and millions more worldwide on TV and online, Bermuda delivered a first-class event that has benefited Bermuda now and in the future.

“This could not have been accomplished without the magnificent engagement of a host of organisations. For three years the ACEA has been a strong partner of ACBDA. We would like to thank them for all they’ve done to help put Bermuda on the world stage. In particular, thanks go to Larry Ellison and Sir Russell Coutts for their faith in Bermuda.

“Hosting AC35 would not have been possible without the extraordinary support of many organisations, businesses, residents and volunteers, including the following:

• The Joint Agency Coordination Centre

• Royal Bermuda Regiment

?• Bermuda Police Service

?• Bermuda Fire & Rescue Services

?• HM Customs

?• St John Ambulance

?• Bermuda Hospitals Board

?• Bermuda Civil Aviation Authority

?• The Cabinet Office

?• Department of Health

?• Bermuda Regulatory Authority

?• Department of Marine & Ports Service

?• Department of Parks

?• Transport Control Department

?• Department of Public Transportation

?• Bermuda Maritime Operations Center

?• Bermuda Tourism Authority

?• Attorney-General’s Chambers

?• Department of Youth, Sport and Recreation

?• Department of Information and Digital Technologies

?• Department of Communications

?• Ministry of Economic Development

?• Ministry of Public Works

?• Ministry of National Security

?• Bermuda Shipping and Maritime Authority

?• Department of Immigration

?• Department of Planning

?• Government House and their partnership with the UK National Policing and Coordination Centre and UK Border Force;

?• Wedco

• BAMZ

?The minister additionally thanked the approximately 600 local and foreign volunteers, who provided services including broadcast support, security, marshal boats and course safety, medical support, public health, superyacht services, visitor information and guidance.

“AC35 required extraordinary coordination and collaboration to be such a spectacular success. These volunteers became yet another Bermuda team that performed superbly and demonstrated what Bermuda can accomplish by working together.”

Source: The Royal Gazette