| Games Construction and RMI
Expenditure
 |
On the 9th November 2007, the
Commonwealth Games Federation announced that Scotland would host
the 20th Commonwealth Games in 2014. Scotland’s largest
city of Glasgow successfully won the right to host the ‘friendly
games’, following in Edinburgh’s footsteps which hosted the Games
in 1986 and Manchester in 2002.
The Games are set to
take place for 12 days between July 23rd and August 4th
2014, hosting 17 different sports. The venues for these programmes
are primarily located in Glasgow City Centre, with two notable
exceptions of Shooting and Diving, located just outside Glasgow and
in Edinburgh respectively. |
The Games are set to take place for 12 days between
July 23rd and August 4th 2014, hosting 17 different sports. The venues
for these programmes are primarily located in Glasgow City Centre, with
two notable exceptions of Shooting and Diving, located just outside
Glasgow and in Edinburgh respectively.
Glasgow currently has a population of around 1.8
million, with an estimated 4 million additional visitors each year. As
such, the city already has a relatively robust tourism infrastructure,
though there are a number of key areas which will require additional
capital expenditure, financed by either private or public sources. In
total, an estimated £3 billion will be spent on new build and
refurbishment on venues, transport and hotels which are either directly
or indirectly linked to the Commonwealth Games in Glasgow.
Indications are that the market is set to experience
rapid growth in the short term, reaching around £525 million by 2010,
with peak construction and RMI activity occurring between 2009 and 2011.
Following this, activity levels will slow to some extent as new build
projects are completed. However, work on temporary venues and facilities
should ensure that construction and RMI activity will remain reasonably
strong until the Games in mid 2014.
Spending on transport infrastructure which will impact
on the Commonwealth Games, represents a substantial proportion of the
market over the period under review, with a total of more than £2 billion
budgeted for this sector.
The second largest sector is that of the new build and
RMI of venues which will be used for the Games, with peak construction
likely to take place during 2010, before slowing to some extent in 2009.
In total, around £500 million is forecast to be spent on this sector in
the next 6-7 years.
The hotels sector, both in terms of new build and RMI
activity is also likely to be a key driver of construction activity in
the Glasgow region in the medium to longer term, with more than £420
million likely to be spent on building and refurbishing hotels. Peak
activity is likely to be around 2010, though substantial ongoing
investments by a number of private companies are likely to smooth out the
peaks which are likely to be experienced in other sectors,
As well as investment brought about as a direct result
of the Games, additional public spending which is already planned in the
region will be linked more closely with the Games, bringing total capital
expenditure on infrastructure and Games venues to around £3 billion by
2014.
The report “Commonwealth Games Construction and
Refurbishment - UK 2007-2014” is available in hard copy or electronic
format for £625 and can be ordered online at www.amaresearch.co.uk or by
calling 0871 3103450. | 
