Calgarians should expect a multimillion-dollar windfall from the G-8 summit, according to a newly released economic impact study.
It's a study, however, that relies heavily on "estimates" and "assumptions," offering only an educated guess of the real value of the summit, says a University of Calgary economic expert.
The study, commissioned by Tourism Calgary and the G-8 summit management office, suggests the Calgary region could see an influx of more than $193.1 million, with the overall benefit to Alberta pegged at $243.5 million.
Joe Fardell, spokesman for Tourism Calgary, said he is both surprised and buoyed by the results of the study.
"I expected a big number, but not that big," Fardell said Thursday. "I was pleasantly surprised."
However, James Chrisman, professor of entrepreneurship with the U of C, cautioned: "The main thing is, people should understand this is an estimate.
"Until everything is said and done, it is going to be very hard to assess (the economic impact) with accuracy."
The $37,000 study was paid for by the G-8 summit management office, with data compiled by PricewaterhouseCoopers.
It predicts great economic benefits from the influx of thousands of delegates, G-8 officials and visiting journalists into the region during the June 26 and 27 summit. However, it doesn't take into account the millions of dollars being spent on security.
Adam Legge, a spokesman for PricewaterhouseCoopers, said researchers relied heavily on data supplied by the G-8 management office. However, that data mostly consisted of generalized cost estimates, not specific expenditures.
As well, G-8 officials on several occasions withheld information that was either deemed security-sensitive or simply unavailable at the time of the study.
PricewaterhouseCoopers compensated for this void by making assumptions on what these various costs would be. Despite the lack of specific numbers, Legge said the study provides an good picture of the potential impact of the summit.
According to the study:
- Total G-8 related spending will reach at least $115.9 million.
- This amount, once pumped into the local economy, will generate a spinoff economic impact of at least $193.1 million in Calgary and $243.5 million in Alberta.
- The G-8 will create the equivalent of 1,500 "full-year" jobs in the Calgary region and a total of 1,800 jobs in Alberta, worth more than $99.5 million in wages and salaries for the province.
- Tax revenue from G-8-related spending will exceed $50 million, with $29.7 million going to Ottawa, $15.5 million to Alberta and $5.1 million to Calgary and other local municipalities.
The study reveals G-8 officials are spending millions of dollars on a wide range of summit-related services and activities.
Included in this spending spree are the costs for hotels and meals for delegates and G-8 staff, free return flights for G-8 staff who moved to Calgary in April to prepare for the summit, car rentals, public relations materials, beautification and refurbishing projects at Kananaskis Village, and the installation of an array of telecommunications equipment.
Chrisman, the economic expert, said world summits generally do provide economic spinoffs for host cities.
However, the benefits of hosting summits can be negated quickly by violent protests.
Local activists say the G-8 protests will be peaceful.
But other world summits in recent years have been marred by violent demonstrations, resulting in hundreds of millions of dollars in damage.
"(What) we don't want is the individuals who are going to come up and protest (violently). That's . . . the downside," Chrisman said.
The G-8 office intends to conduct a second impact assessment following the summit to determine the actual economic benefit.
Mike O'Shaughnessy, a G-8 spokesman, said summit officials are pleased by the results of the study.
Fardell, a Tourism Calgary spokesman, acknowledged that taxpayers are footing the lion's share of costs of the G-8 summit.
However, he also said the summit brings many other benefits, including priceless tourism exposure for Calgary and Alberta that will pay dividends for years to come.
Mayor Dave Bronconnier said the study is "very positive for Calgary" and shows the value in "showcasing Calgary" during the summit.
FAIR USE NOTICE: This page contains copyrighted material the use of which has not been specifically authorized by the copyright owner. NoNonsense English offers this material non-commercially for research and educational purposes. I believe this constitutes a fair use of any such copyrighted material as provided for in 17 U.S.C § 107. If you wish to use copyrighted material from this site for purposes of your own that go beyond fair use, you must obtain permission from the copyright owner, i.e. the media service or newspaper which first published the article online and which is indicated at the top of the article unless otherwise specified.