The Impact of 2012 Olympic Games in Bedford - Assignment Example

Running Header: The impact of 2012 Olympic Games in Bedford Student’s Name: Instructor’s Name: Course Code: Date of Submission: Table of Contents Table of Contents 2 Introduction 2 About Bedford 4 Aims and objectives 5 Political forces 6 Economic forces 7 Social forces 9 Technological forces 10 Environmental forces 10 Legal forces 10 Factors that could affect success 11 Conclusion 13 The impact of 2012 Olympic games in Bedford Introduction The framework of evaluation for the 2012 games provides guidance and forms a structure that assesses the range of impacts associated to the preparation, delivery and the legacy of the games. Louth (2005) describes that this framework has been developed through extensive consultations for example from the past years and using the members who were involved in the 2007 organisation group. This is by reviewing the then available strategies used and planning for the issues that were not achieved. This framework is to be adopted by all the organisations and the leading bodies in order to prepare for the effective delivery. Associations will be expected to approve the structures and used the framework for relevant evaluations. This study evaluates the importance of developing an evaluation for the 2012 games to the organisations. It also shows the objectives and the principles used of the framework. Rationale for developing the evaluation framework for 2012 games In order to plan for public spending and policy, the investments and activities associated to the 2012 Olympic Games and its legacy have to be broadly assessed. Evaluations form an important component in the public scrutiny and are used as a tool for developing and designing public delivery. According to London Assembly Environment Committee (2010) evaluations provide suitable content to various audiences for example to the general public, the media, politicians and academic learners. Evaluation also improves policy knowledge for example by assessing the outcomes of policies and linking them to the activities and resources used. Evaluations also offer considerations of the effectiveness and efficiency of policy development therefore showing better understanding of designing and delivering policies in the future. It also offers and opportunity to develop and evaluate various methodologies used in measuring outcomes. This is important for the development of new techniques and it also enables evaluators to learn and practice various techniques and practices (Adams and Parmenter, 1995). The 2012 Games has effects on particular social groups including women, disabled, young people, and BME communities. Some projects will also pose some impact on the entire population for example there will be increased economic development. Parts of the population will benefit for example the disadvantaged groups will get employment opportunities and the neighbouring communities of East London will benefit from physical activity programmes. The pre-games impacts include construction phase, increased costs and visitor impact in the run up of the games. The impact caused during the games include those related to the revenues for example from the staging the games, the impact caused by visitors, and the cost incurred in staging games. The post games impact include the legacy effect which involves an improved profile of the city therefore attraction of more visitors. The other effect is legacy of infrastructural development which is to provide value for years after the Games. About Bedford Bedford or borough is a county town of Bedfordshire that is found in the East of England. This is a large town and provides administrative services to the wider Borough of Bedford. Hodgkinson (2007) show the population is about 80,000 around town which was estimated in 2005 while the wider population is in the rural area where there are about 155,000 people. The name Bedford was invented from a chief called Beda and a ford was used crossing River Great Ouse. It is a small agricultural town with wool being an important crop in the industry. The town was the England’s lace makers main centre who were skilled for example Flemings. As the largest town in Borough of Bedford, it is led by an elected mayor and the county is divided into 10 wards. Bedford has a maritime climate though the range of temperatures is limited and rainfall is even throughout the year. Aims and objectives The aims and the objectives of Bedford 2012 Olympic are related to the factors that affect success. To achieve this, the macro environment analysis is carried out on the above town. House of Commons (2007) states that the Olympic Board is committed to meet their vision for 2010 Games in Bedford and these include; “to host an inspirational, safe and inclusive Olympic and Paralympic Games and leave a sustainable legacy for London and the UK”. The board has also set objectives that should be achieved in the process of organizing for the big event. These include: one “to stage an inspirational Olympic Games and Paralympics for the athletes, the Olympic family and the viewing public” which is to be lead by London Organising Committee for the Olympic Games and Paralymic Games (LOCOG). Two is “to deliver the Olympic park and all venues on time within the agreed budget and to specification, minimizing the call on public funds and providing for a sustainable legacy”. The leading stakeholders responsible in achieving this objective include British Olympic Association (BOA), the government and London Development Agency (LDA). The third objective state; “to maximize the economic, social, health and environmental benefits of the games particularly through regeneration and sustainable development in London” which the government and the Mayor of London are leading stakeholders. The last objective is “to achieve a sustained improvement in UK sport before, during and after the games particularly in Olympic and Paralympics and grassroots participation” the BOA and the government are responsible in achieving this objective. The LOCOG is estimated to receive more revenue from sale of tickets, giving television rights, transport, and carering and from sponsorship deals. This is estimated to be about 1,700 million Euros. The operation costs spent of developing technology, Olympic village, security, ceremonies and culture and advertising and promotions are estimated to be 1,000 million which is on the higher side (Balfousia-Savva, 2003). Political forces The government is committed in achieving five major legacy outcomes for the 2012 games. They include making UK the worlds’ leading sports nation, changing the heart of East London, motivating young people to be concerned in activities that includes cultural, volunteering, and physical. This is towards making their life better, making the Olympic park as blueprint showing sustainable living and finally is to demonstrate UK creativity, inclusive and welcoming country to live in, visit or invest in. Political influence has relocated people in order to build the Olympic village therefore causing social unrest. The unstable political influence has also contributed to fear of terror attack. About 200 million has been estimates as the security cost of avoiding terror attack. Social organizations have claimed that the Olympics cause economic recession for example what was experienced in the 2000 Olympic in Sydney. The human rights group in London is concerned about the displacement of people from the villages they have lived for a hundred years and therefore advocates that the government should cater fully for the losses caused. Other political forces influencing the 2012 Olympics are the international attacks for example from Iran who threaten to boycott over logo controversy. Tourism is expected to improve from 50 percent to 70 percent after the Games which will benefit the government in receiving more revenues. Economic forces The economic impact of the Olympic Games is much contributed by the effects caused by visitors through their expenditures in the host country. A country also benefits from developments for example in infrastructure investments in areas that had been deprived. The country also benefits from the long term legacy and increased exposure to the international media. This brings about more tourists in future before and after the games. Once these economic effects are combined, they form a complex effect that cannot be determined only by the financial performance of the organisers or the additional revenues that the country gets for hosting the Games. To conduct the economic impact of the Olympic Games, there are some factors that have to be considered for example the effect the Games will cause on spending for example by organisations and individuals as well. These may include the amount spent on infrastructure in the pre-games period and the spending in the period of the games. Individuals mostly spend on transport, accommodation, food and entertainment. These people include spectators, athletes, officials and media representatives from all over the world. Although some of these groups of people are provided with most of these expenses there is a difference between residents spending and non resident spending. The other factor to consider is that expenditure should be categorized according to products spent on for example in goods and services. A model must also be used to show how this spending is translated to a country’s income and increased employment opportunity. The input-output model has been used for the past years in translating the effects of spending. These have been able to show the effects caused. The input tables will be used in accounting for the products used in each industry which are referred as intermediate inputs such as agricultural products that will be used in the processing industry, the rubber products used in car manufacturing industry and consultancy services used in services sector. The value added matrix will also be used to measure the labour inputs, payments of production taxes and receipts of subsidies, and the operating surplus of the economy. According to the Price Waterhouse Coopers, the GDP is estimated to contribute about 3.7 billion Euros. The GDP will be measured using the expenditure approach which shows the total demand expenditure minus the imports. Barton (18-25) shows more than 50,000 jobs have been created over the last 3 years of preparation for the Games and especially to the young people in the minority community. The plan for the 2012 Olympic Games is estimated to cover 30 years after the Games. The other economic impact of the 2012 Games is improved housing for example 40,000 houses are to be built in order to cater for the tourists visiting the country during and after the Games. Supply chain management is to be improved and about 75000 businesses have been contacted to supply goods and services to the UK during and after the Olympics. 42 percent of migrant workers are to work in the country for that period in various sectors such as in health and hospitality industry. Transportation will improve since massive roads have been constructed including railway and more airstrips have been developed. Social forces The atmosphere of Bedford will be festive within the local community therefore providing a good climate to all. Persons will also be persuaded to take up preventive measures for them to stay healthy during the period and to improve their well being. People involved in the British sport are hopeful of 2012 legacy for example in the increased commitment to sport in UK. For example special programs for the disabled; Autism Awareness Campaign in UK are confident that more people will be encouraged to take up sports regardless of their status. Barton (2004) describes that the Olympic Village Polyclinic will also be transformed to a learning centre for the community around East London. There will also be improved infrastructure for example nursery, primary, secondary and creative industries will emerge therefore improving the living standards of most individuals. Cultural effects have not been a significant part that influences the Olympic Games but still it should not be ignored. The government is advised to put extra efforts in publicizing and coordinating culture. This will be achieved by drawing ideas together and sharing the good practices to increase awareness of practical cultural activities. Young people will be given an chance to familiarize and participate in a variety of cultural activities. Some of the elements that will be used in the youth culture will be to stag along waterways, bridges and streets. Exhibitions of world art and artefacts will be set up in London museums to display the culture of the communities living there. Technological forces Technology has been improved for example in the development of the modernized stadium and the water part. The world media has also improved technology in the country since it will be using live broadcasting technology. Transport technology has also been utilized in building massive roads and railways. The security technology is also present for example the use of CCTV and the scanning devices installed in every entry of the stadium. Improved technology will also be provided for example in giving tickets, scanning ID cards and biometric scanning. Environmental forces The environmental impact caused by the 2012 Olympic Games includes concern over protecting and restoring a favorable place for everyone. This involves recognising the link between social and economic goals. The environmental sustainability programs have been setup to eliminate pollution around the Bedford community. The ecosystem has been preserved for example through the provision of livable climate and water cycling to avoid suffocation. The soil formation has also been improved as well as the natural landscapes that attract tourists. A mega event such as the 2012 Olympic Games ordinarily will produce carbon emissions for example from the presence of many vehicles and from the processing industries. Large carbon emissions should therefore be provided to reduce these emissions. Renewable energy should therefore be provided to reduce carbon emissions from the Olympic park. Legal forces The mega event has also to consider some legal factors for example the brand licensing should be maintained which is Bedford 2012. Legal procedures should also be followed while selling sponsorships for example to the stakeholders like world TV, online services and print media. The intellectual property rights are to be maintained by the use of Bedford 2012 logo. Organisations that will want to temporary open showrooms and showcasing items in the park should have a selling right. Factors that could affect success The factors that could affect success of the Olympics include doping controversies for example use of performance enhancing drugs by athletes. The organisers should ensure that all the athletes have been tested to avoid positive athletes for example is it was in the Athens 2004 where many participants had been tested positive. Terror attacks in the country could also affect the success of the event as it was in Munich 1972. Therefore, it is vital for the people responsible for security to ensure that this is effectively maintained. Critics received from many Londoners could also affect the success of the planned costs of Olympics for example citizen have been forced to pay an increase of 20 Euro per year in terms of council tax. Barton (2004) describes that there are also concerns that unions will strike near of during the Games advocating for bonuses. The construction deadlines might not be met. The success of the proceedings has not been welcomed for example by individuals outside London who feel that the event will divert international funding therefore posing difficult in funding from the rest of the UK citizens. The local businesses that have been working in some areas for over 100 years have been displaced are concerned of where to find new sites for their business. The event has received less government support unlike the Manchester one and there are concerns that transport cost might be high which will out price tourists leaving many businesses and events unattended t resulting to losses. The above study also evaluates the economic importance of the Olympic to the host country, its value and the benefits achieved in hosting these games. These evaluations are necessary to know as they are to be used in the early stages of the Olympic bidding process. The organizers should also be aware of the scale of the economic benefits brought about by hosting the games. These aspects allow developed promotions in the local context and it also brings about significant benefits to the local economy. The organizing committee is also provided with necessary information on the scale of benefits to have a critical understanding of the cost of bidding. According to Airola and Steven (2000) hosting the Olympic Games does not always bring about a financial reward for example in 1972 Munich Olympics and those of 1976 in Montreal made huge losses of about 178 million Euros and 692 million Euros respectively. Other Olympics for example in 1984 in Los Angeles and 1992 in Barcelona made significant amount of money that led to surpluses of about 215 million Euros and 2 million Euros respectively. This increased economic impact is as a result of a large market for example the television rights to the Games. The higher costs of these Games and higher expectations of quality venues justify these costs and have therefore been used to increase a country’s revenue and the economic impact. Displacements have been common in host countries and solve problems of pricing, overcrowding and safety. The impact of the displacements however, yields economic and tourism legacy benefits which outweighs the short-term losses of the displaced which are estimated to be 375 and 258 million for London and UK respectively. Tourism gains are estimated to be about 2.4 billion Euros for UK and about 1.9 billion for London (House of Commons, 2007). Conclusion The planning and preparations of the 2012 Games have already generated significant activities and necessary information. To achieve legacy impacts, economical and infrastructure impacts, the organising committee should be capable of demonstrating and understanding the long- term impacts on peoples, community, the economy and the environment. Currently, there are many organisations undertaking significant work of leading up to the success of the 2012 Games. The set goals and objectives have already generated a large amount of data necessary for the assessment of the overall impacts caused to various organisations. Sensitivity analysis have shown that the overall impact of the Olympic is likely to give positive change in various aspects such as in increased GDP though there are larger risks estimated to occur during and after the Games as a result of high levels of uncertainty about the legacy effect. It should also be understood that the London model is built on estimated data. This information will be important for the analysis of the coming years of Olympic Games for example the estimated may be important to many host countries. It is therefore necessary to effectively manage and understand the provided which will form a significant challenge forming a structure of organising the current and future findings. The Evaluation Framework provides a means for managing and developing both the existing and the new information in a more structured and comprehensive manner. References Adams, P. & Parmenter, B. An Applied General Equilibrium Analysis of the Economic Effects of Tourism in a Quite Small. 2.7 (1995): 85-99. Airola, Jim. & Steven, Craig. The Projected Economic Impact on Houston Hosting the 2012 Summer Olympic Games. Department of Economics, University of Houston, 2000. Balfousia-Savva, S. Athanassiou, L. & Milonas, A. The Economic Effect of the Athens Olympic Games. Athens: Kasimati, 2003. Barton, L. The Economic Impact of the Olympic Games. Coopers European Economic Outlook 3rd ed. (2004):18-25. Blake, A. The Economic Impact of the London 2012 Olympics. Christel DeHaan, Tourism and Travel Research Institute, Nottingham University Business School, 2005. Hodgkinson, Mark. London 2012 must learn from the £1bn Sydney hangover, 2007. Louth, Nick. How Britain will benefit from the games, 2005. House of Commons. 2007. London 2012 Olympic Games and Paralympics Games: funding and legacy, viewed 13 April 2011 < http: //www.publications.parliament.uk/pa/cm200607/cmselect/cmcumeds/69/69i.>. London Assembly Environment Committee. The Environmental Sustainability of the London 2012 Olympic and Paralympic Games, 2010. Read More