[GB] Liberals’ management of Olympic economy a total mess

Guest blogger: Gabriel Yiu, former BC NDP candidate for Vancouver Fraserview

To clearly stand out a guest blogger entry, all such headlines will begin with [GB].

The BC Liberals often claimed that economic development and management are their strengths but this bubble is bursting right in front of our eyes.

BC’s economic performance record was second last in Canada last year and the number of jobs we are losing also leads the rest of the country. Well, the Liberals might try to shed the blame on the financial tsunami but the question is, why do other provinces which also suffer from the global economic downturn do better than us?

The bigger question is, why is it that after spending $7 billion to host the Olympics with all the big tag constructions, our GDP was negative and trailed behind other provinces?

PriceWaterhouseCooper has recently released their report commissioned by the federal and provincial governments with the brief to find out the economic benefits brought about by hosting the Olympics. Boy, it’s quite a contrast to what the Liberal government was telling us. Before the election, Gordon Campbell said the Olympics’ economic benefit would be $10 billion. The finding of the PwC is that in the 6 years between 2003 and 2008, being host to the Olympics generated $680 million to $880 million of economic benefit. The report said the Olympic economic benefit is insignificant. It only added 0.1% to BC’s GDP, i.e. one-thousandth of our GDP! The report also found that the effect of job creation was an increase of a mere 0.1%.

So the huge economic benefits of the Olympics claimed by Premier Campbell and Finance Minister Hansen year after year are either all bluff or a colossal mismanagement of the economy of the Olympics. They have simply screwed up the once-in-a-life-time Olympic opportunity.

The Liberal government said the tourism industry would be greatly benefited by the Olympics before, during and after the games. It would attract a great many tourists and bring in $500 million of revenue. The conclusion of the PwC report is that the Winter Games gave no help to tourism. What the government boasted simply “did not materialize.” “The 2010 Winter Games have not had a measurable impact on tourism’s gross domestic product and share of the economy.” The report stated that during that period, the total number of international inbound travelers to Canada declined by 22%.

And what about the Liberal government’s claim that hosting the Olympics would promote our convention and exhibition business?

The PwC report states: “The number of attendees to conventions actually declined 40 per cent in the period… More facilities to host meetings, more upgrades to existing infrastructure, increased industry capacity…” have “no impacts.”

The government spent almost $900 million to expand the Vancouver Convention and Exhibition Centre three times its old capacity, while our convention business is dropping.

And what about the claim that hosting the Olympics would help diversify BC’s economic development? Again, the report concluded that there is no impact.

The PwC report is yet another reflection on whether Gordon Campbell is trustworthy (especially when you compare what he and his government said before and after the election). It has also shown the Liberals’ capability in terms of management and economic development. The actual economic benefit is merely one-tenth of Mr. Campbell’s $10 billion claim. The $500 million tourism benefit ended up between $1 to $5 million; that is 0.2% to 1% of the Liberals’ original target. This kind of management capability is truly amazing. If Gordon Campbell and his team work in a private company, they will either get fired or the company goes bankrupt.

The more stunning part is this: the period of time that PwC looked into was a time when the global economy was rosy and the US economy red hot. Not only have the BC Liberals not made good use of the Olympics to diversify our economy or boost our tourism, but our tourism and convention businesses have gone downhill instead. Spending $7 billion to host the Olympics but our GDP still falling behind other provinces’ — what can it be if not bad management and lousy economic development?

While we are talking about tourism, Guangzhou is currently running the huge Guangdong Cultural and Tourism Festival. Although our sister province has eagerly invited BC to participate, the Liberal government has declined the great promotion opportunity. No wonder BC’s tourism has been struggling, and the Liberals are responsible.

If BC implements HST next year, our tourism industry will receive an even bigger hit. According to the latest report of the Council of Tourism Associations, the HST could mean the loss of 10,000 jobs and $540 million revenue.

BC’s tourism industry hasn’t been doing well since the Liberal got into power. The $500 million Olympic benefits promised by the Liberals have never materialized. Recently, several cruise ships have left Vancouver out from their ports of call. Next year, the HST would cost the tourism industry a reduction in revenue of half a billion. The government is truly reckless. Is this how it should treat this province’s fourth biggest industry?

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Disclaimer: Views expressed by guest bloggers are theirs and may not represent those of CIV.

By inviting guest bloggers to write here, I’d like to see us grow together with more diverse ideas and perspectives. If anyone believe the idea is cool, please don’t hesitate to submit your stuff to me. We use real names and identities here. Thank you.

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