Commonwealth Games Gold Coast business downturn predicted in 2017 report to council

A SHOCK report has revealed the Gold Coast city leaders knew a year ago that local businesses would be hit by a severe downturn during the Commonwealth Games.

GOLD Coast City Council had been warned of a downturn in trade during the Commonwealth Games a year ago, as part of a detailed report into the impacts and opportunities of the event.

The Griffith University Business School report, which was released publicly in July 2017, highlighted a risk the “mega-event” would “fail to generate additional employment or income benefits” in the short to medium term, and deter locals which would have “a deleterious impact on local spending in the Gold Coast region.”

The Gold Coast business and the Commonwealth Games: Impact, legacy and opportunity report also estimated non-tourism businesses could expect a decrease in demand by up to 40 per cent.

Greg Colwill owner of Elephant Rock Cafe in Currumbin is among the business owners unhappy about the downturn in business Picture: NIGEL HALLETT

While Get Set for the Games representatives and city councillors were present at the launch and panel discussion of the report, businesses say they were not informed by the team of the findings and were instead encouraged to expect large crowds.

Angry businesses that paid for extra staff and stock have already threatened a class action to recoup the costs.

The council has confirmed it was aware of the report, but declined to answer Bulletin questions on how the revealing study was used in Games planning or communications with local businesses. Get Set for the Games is a council-run agency.

Marina Mirage restaurateur Carlo Percuoco from Fellini says the traffic scare campaign by GOLDOC has hurt his business during the 2018 Gold Coast Commonwealth Games. Picture: Jerad Williams

Instead, the City of Gold Coast directed the Bulletin back to Griffith University.

“In the lead up to GC2018, businesses were encouraged not only to plan ahead and think about how they will operate during the Games, but also how they might take best advantage of the opportunity,” a council spokesman said.

Similarly, city councillor Gary Baildon who attended the event directed the Bulletin back to the university.

“I only attended the launch and have had no involvement since,” Cr Baildon said.

Councillor Gary Baildon. Picture Glenn Hampson

Dr Joan Carlini, co-author of the report commissioned by the Friends of the Griffith Business School, said the report was shared with businesses and stakeholders to ensure potential impacts and opportunities were known.

“In the context of some of the Games messaging to businesses, I don’t know if the (report) learnings got carried across,” Dr Carlini said.

“There was not very much information on how business will be affected by the Commonwealth Games at the time, so we had a look at other major events to make a comparison in the context of the Gold Coast while speaking with experts in the area,” Dr Carlini said.

Hayley McKean and Ita Ralago from Elk Espresso, Broadbeach say they haven't experienced a lull in trade since the Commonwealth Games began. PHOTO BY AMBER MACPHERSON

“Long term we found Games investments benefit cities’ futures, but business in past Games is not always going to be what people expect it was going to be in the immediate term,” she said.

Her co-author, Professor Andrew O’Neil, said the pattern was a little more telling in Australia.

“Australians seem to be particularly optimistic around sporting events,” he said.

Mercedes Frenger, 31, assistant manager of Gringo Loco Cantina with her empty restaurant and bar, Picture: Lyndon Mechielsen

Gold Coast Central Chamber of Commerce president Martin Hall said he was not informed about the report or the findings by council.

“Get Set for the Games should have embraced more of these findings,” Mr Hall said.

After reading the report for the first time yesterday, Mr Hall said the writing was clearly on the wall for small to medium size businesses.

“It is hard, we were told to get behind the advice we were given at the time,” he said.

“There was no secret about what they told us about preparedness, to arrange earlier deliveries and get ready for a large amount of people,” he said.

The Griffith University Report was provided to the Get Set for the Games team. Picture: Jerad Williams

Destination Gold Coast executive director Dean Gould said the organisation was aware of the report. Forecasts and opportunities “were shared regularly with members in the months leading up to the Games”, he said.

“Information from that report, and several other sources, was included in industry briefings to the tourism sector in 2017 and 2018,” he said.

“Further in-depth meetings were held with individual stakeholders and operators to discuss the best response measures.”

The Business School report did however predict opportunities for the games, stating “tangible economic benefits tend to be realised over the longer term”.