Budget finally set for Vancouver Winter Games
VANCOUVER, British Columbia: Organizers of the 2010 Olympics in Vancouver released a business plan on Tuesday with a $1.5 billion operating budget that projects strong ticket demand but concedes that not all events will be sold out.
The long-awaited plan pegs the total cost of hosting the Winter Games at over $2 billion. It says the International Olympic Committee will contribute $364 million by sharing international broadcasting revenues and making other payments.
"It won't be a loss, and we won't be spending money that we don't have," Vancouver Organizing Committee (VANOC) Chief Executive John Furlong told reporters. "It's a balanced budget with a $100 million contingency to protect it."
Vancouver had projected a $1.2 billion operating budget when it was awarded the games in 2003, but that estimate was later revised to $1.5 billion because of rising costs and the strengthening of the Canadian dollar.
The 2006 Winter Olympics in Turin had an operating budget of about $1.58 billion, and ended with a shortfall of about $32 million, according to figures released in February.
Vancouver's operating budget is in addition to $527 million in public funding already budgeted by VANOC for venue construction, and does not include security costs that are being covered by the Canadian government and have not been disclosed.
Although officially called the Vancouver Olympics, the competitions will be held both in the Pacific coast city and in the mountain ski resort of Whistler, British Columbia, about 125 km (80 miles) away.
Organisers say money from the private sector, including the IOC, will cover 75 percent of the $1.9 billion budget, but that does not include spending for projects such an expanded highway between Vancouver and Whistler.
British Columbia's auditor general estimated last year that the actual cost to taxpayers will be $2.3 billion, but government officials critical of that report said it included projects that would have been built even without the Games.
VANOC projects it will raise nearly $211 million in ticket sales, but organizers said, based on past Winter Olympics, they are not expecting all events in the 17-day competition to be sold out.
"There is clearly a sense out there that we will be well supported," Furlong said. "We're absolutely stunned at the interest this far out."
Ticket prices will not be set until 2008, according to the plan.
VANOC said it learned from watching the 2006 Olympics in Turin, which was marred by empty seats at some early events, that they needed a system to re-allocate tickets that are sold to people who do not actually use them.
Canadian organizers expect to raise $691 million from domestic sponsorships, and share $183 million from international sponsorships.
The business plan said the International Olympic Committee will contribute about $527 million in broadcast revenues, but will then take back C$162 million to cover the cost of providing services. The IOC will also provide $32 million in unspecific revenue.
Local organisers had to renegotiate a new broadcast revenue agreement with the IOC. "I think we got a great deal," he said. The Games are expected to be viewed by 3 billion people worldwide.
Officials also defended a deal to pay the owners of GM Place stadium $16 million, saying the facility, which will host ice hockey events, will generate $64 million in revenue.
A coalition of groups acting as a watchdog on the Vancouver event issued its own report on Monday, warning that VANOC was at risk of missing some promises not to let the Games create social and environmental problems in the community.
Agencies
(China Daily 05/10/2007 page24)
