Newport still craving the America’s Cup. However have just announced that they are not ready to meet the deadline of December 31, 2010
What are the REAL numbers for economic impact of the America’s Cup on a city? Valencia built a waterfront/America’s Cup venue that should be the envy of the sailing world. Where are they now?
America’s Cup campaigns have exhibited a feeling that nothing can ever be good enough. I can remember a time when a crew shirt was about all you got when sailing on an America’s Cup boat.
San Francisco presented a very thorough study and Alameda has indicated that the city is ready willing and able to help San Francisco in it’s effort to secure the races.
ECONOMIC DEVELOPMENT
Newport estimates impact of hosting 2013 America’s Cup at $1.1 billion
By William Hamilton
PBN Staff Writer
Twitter: @waham
?(Updated, 3:30 p.m.)
NEWPORT – A new study estimates the impact of hosting the 2013 America’s Cup finals to be $1.1 billion for Rhode Island, with the international event spurring the creation of 7,867 jobs.
The study, commissioned by the Newport County Chamber of Commerce and released Wednesday, paints a picture of an America’s Cup event that could have far-reaching effects on the region, with racing syndicates, super yachts and wealthy tourists descending on the Ocean State.
The 17-page report, assembled by Providence-based accounting firm Kahn, Litwin, Renza & Co. Ltd, projects that every hotel room within a 50-mile radius of Newport would be rented leading up to the finals.
Sailing spectators would visit other local tourist destinations during the down times between races, the report said.
“It is not unreasonable to expect visitors to drive over to Point Judith or Narragansett, visit the vineyards, or even run into the Providence Place mall for some shopping and finish with dinner on Atwells Avenue,” it said.
The 7,867 new jobs would be distributed among several sectors, including lodging, restaurant, retail, transportation and entertainment, the study said.
America’s Cup organizers are considering holding the 2013 races in Newport as negotiations with the San Francisco leaders have sputtered. Race officials have said they want to announce the race site by Friday.
Following the release of the report Wednesday, Gov.-elect Lincoln D. Chafee said in a statement that the America’s Cup would a “tremendous shot in the arm” and that he had been communicating with race officials and the R.I. Economic Development Corporation through the holiday weekend.
But he added that he wanted to see cost estimates and “other appropriate diligence” before developing a position and course of action.
Meanwhile, the San Francisco Chronicle reported Wednesday officials in that city feel more confident that San Francisco is back in serious contention as the race site.
Sailing’s most prestigious race was last contested in Newport in 1983 when the New York Yacht Club lost the Cup to an Australian syndicate, ending a streak of victories dating back to 1851.
In developing its economic estimates, Kahn, Litwin, Renza & Co. said it only considered the three-month period surrounding the race finals, not the series of regattas that will be held ahead of the main event.
The report estimated the economic impact from direct race participants – the teams, sponsors, super yachts and race management – to be $499.7 million and $849.3 million factoring in a “multiplier effect.”
The impact from tourism is projected to be $122.1 million and $225.1 million when considering a multiplier effect.
The races would boost Rhode Island’s tax revenues by an estimated $18.9 million.
But the event would also require improvements at Fort Adams State Park, which organizers would like to use as a hub for race activities. The historic fort overlooks the East Passage of Narragansett Bay and Newport Harbor.
The study said the work would cost the state $33.2 million – $23.2 million for renovations in the fort and another $10 million for work along the waterfront outside the fort, including dock installation.
“These are improvements that have a long-term benefit, as an improved state park will likely attract other events in the future,” the report said. “However, the dollars need to be spent now.”
The EDC has hired a design and engineering team that includes the Louis Berger Group, Newport Collaborative Architects Inc. and Gates, Leighton & Associates to develop plans and cost estimates.
EDC Executive Director Keith Stokes has acknowledged that complete cost estimates and identification of funding sources won’t be ready before the Friday deadline, but he hoped race organizers would give Newport a conditional approval.
Related Stories
Newport to release study on economic impact of hosting America’s Cup (Dec. 29, 2010)
America’s Cup says renewed R.I. talks not to force San Francisco to sweeten bid
Stokes to present letter to EDC board from America’s Cup organizers (Dec. 20, 2010)