What legacy has Glasgow 2014 left for business?

Amongst the scramble for medals, with nations from across the globe fighting for top spots on the podium, it was perhaps inevitable there would be a few disputes.

The organisers would have been prepared for controversies. The strange part was that one of the biggest rows involved Glasgow’s weather and the world’s fastest man.

Even now the details are unclear – maybe he said it, maybe he didn’t.

But the news report, claiming that Jamaica sprinter Usain Bolt had described the 2014 Commonwealth Games as “a bit shit”, certainly grabbed attention.

While Bolt’s team denied it had happened, claiming he had been misquoted, some were outraged. Others pointed out that, given his dour response to the west coast drizzle, Bolt had managed to get into a Scottish mindset remarkably quickly.

Still, regardless of what Bolt thought – or whether he even said it – the reported comments were certainly not typical of the experience recorded by those visiting Scotland for the Games.

Between 23 July and 3 August, about 600,000 visitors arrived in Scotland for Games and Festival 2014 events, according to Scottish Government figures.

Of those, 73 per cent came from the rest of the UK and nine per cent from the rest of the world.

Hotel occupancy in Glasgow reached 95 per cent. During the 11 days of competition, 3.4m people passed through Glasgow Central Station.

About 250,000 people stayed at least one night in Scotland because of the Games. On average, tourists stayed for 5.8 nights, meaning they were in Scotland, on average, 6.8 days. 

Figures indicate that just under 80 per cent of all Games visitors went to one or more ticketed sporting event or the official Opening or Closing Ceremony.

And the good news is that their experience seems to have been more positive than that ascribed to Bolt, with 93 per cent describing their visit to Scotland as ‘very good’, and 87 per cent rating Glasgow as a ‘very good’ place to visit.

Presumably there was no “pure dead brilliant” option on the questionnaire.

As Glasgow 2014’s chief executive, David Grevemberg, put it: “The Glasgow 2014 Commonwealth Games set a new gold standard for the Commonwealth sports movement, new benchmarks for hosting major events in Scotland.

“It generated well-deserved accolades for Glasgow which, as host city, embraced athletes and visitors warmly during Scotland’s biggest-ever sporting and cultural festival.”

And the economic effect was huge too, with Glasgow sports facilities receiving £198m in investment from 2009 until the competition began. Over £5m was raised for UNICEF by the end of the Glasgow 2014 Closing Ceremony.

Beyond that, 700 sustainable new homes were built for the Athletes’ Village, before being sold to the public.

Meanwhile the Commonwealth Games Federation reports that four thousand people from 400 communities across Scotland took part in the Queen’s Baton’s 40-day relay trip, watched by about 570,000 people. Millions took part in the baton’s 100,000 mile trip around the Commonwealth.

Even the Games mascot, Clyde – a seven-foot tall walking thistle – proved a tourist attraction, with 1.6m people choosing to go and meet him on tour.

So it is fair to say the Games drew attention, but what did it mean for investment?

Speaking to Holyrood in the run-up, Anne MacColl, SDI chief executive, had emphasised the importance of capitalising on these sorts of opportunities.

She said: “In the grand scheme of global trade and investment, Scotland, proportionately, is quite a small player. 

“When I go to places like China and Japan, I start to understand just what the scope of things actually looks like in Scotland. It is important [to understand that] because we need to be able to punch well above our weight, proportionally, in order to gain the best possible economic growth, health, wealth and prosperity for Scotland and the people who live and work here.

“We can only do that by ensuring our international competition propositions are seen and heard on the world stage. 

“For example, if I look at our food and drink sector, it now exports something like £5.3 billion-worth of products every year. The whisky industry is a massive pull and is a global industry. There isn’t a country in the world I go to where someone’s eyes don’t light up when I talk about whisky or golf.

“There are some iconic brands, products and services which Scotland has that other countries would absolutely die for. While we’re a very small country, utilising what we do best and what we’re really great at in an internationally competitive sense, helps us trade and invest much more readily with the rest of the world. It helps us to be seen as a globally open-minded economy and I think that’s absolutely critical in today’s world.

“If you look at the way in which inward investment is shifting from west to east and these growth patterns, where is Scotland going to land in five or 10 years time? We want it to still be at the forefront of foreign direct investment, we still want to be known for the excellence of the products we deliver globally. If we don’t want to be left behind, we have to run ever faster.”

The budget was £575.6m, with organisers targeting £112.6m to be raised by Glasgow 2014 through commercial income. Over £90m alone was spent on security.

The Scottish Government and its agencies certainly had big plans, with Scottish Enterprise, along with agencies like Scottish Development International (SDI), setting out to maximise the opportunities brought by the Games.

And although the final report is yet to be published, official figures certainly suggest the Games were an economic success, bringing both tourism revenue and infrastructure investment. 

Revamping the venues used for the Games, along with the construction of the Athletes’ Village, was thought to have generated a £52m boost to Scotland’s economy and created 1000 extra jobs, every year, for six years in the run-up.

On average, each visitor spent £98 per day. In total, it generated approximately £282m from tourism.

In fact, the whole of 2014 saw a boost from overseas visitors, with tourism numbers rising by 11 per cent, and spending from overseas going up by 10 per cent. 

Reacting, VisitScotland chairman Mike Cantlay said: “With the highest ever combined spend by domestic and overseas visitors in a decade, it is clear that the engagement and high profile of major global events such as the Commonwealth Games, Ryder Cup and MTV awards had a distinct impact last year.

“Add to that a large number of new direct flight links into Edinburgh, Glasgow and Aberdeen from the Middle East, Europe, Canada and North America, as well as significant investment in tourism across Scotland, and it is clear to see what we can achieve when we all work together.

“The tourism industry rose to the occasion in every single region of the country and delivered on a remarkable scale. We are grateful to every business and individual for their part in achieving this success – they have helped to build Scotland’s reputation for its warmth of welcome, quality experience and excellent value for money.

“The distinct rise in overseas visitors is extraordinary and with the biggest number of North American visitors in over a decade, it is clear to see that our Homecoming year reached out to the diaspora stateside, alongside the other significant events of 2014.

“2014 was amazing, but it is just the beginning, not the end. We must now reposition ourselves for the second part of this decade, build on momentum and ensure the right investment is made at the right time.”

Businesses won more than £669m of the Tier 1 Games-related contracts that were awarded, with over £423m going to companies and organisations from Glasgow. More than £510m of the total worth of these contracts went to firms in Scotland.

For Scottish Enterprise, events like the Commonwealth Games are too big an opportunity to miss.

Julie Morrison, head of International Networks at Scottish Enterprise, said: “Last year, with events like the Commonwealth Games and Ryder Cup, we had an unparalleled opportunity to showcase Scotland globally. Our aim was to maximise business growth opportunities for Scottish companies by helping them make new international connections to help grow our economy.

“To give an idea of the scope of opportunity, the Commonwealth’s 71 nations and territories represent 2.3 billion people, with an average economic growth forecast of 4.1 per cent per annum between 2014 and 2025. Compare this to the European Union and USA economies, with forecasts of 1.8 per cent and 2.6 per cent growth respectively.  

“Add to this that it costs 20 per cent less to do business with members of the Commonwealth because of similarities in legal structure and language, and the opportunities to increase our trade and exports with Commonwealth neighbours are significant.

“With our partners, we held a number of events prior to 2014 to help companies understand and prepare for the business opportunities that these large-scale events offer. 

“Through the Glasgow Business Portal, 310 Scottish companies won 498 Games-related contracts. With this experience under our belt, we’re now looking at how we can help more companies connect with these large, globally mobile events to win supplier contracts.”

In this sense, the Games were an opportunity for the whole of Scotland. But for Glasgow specifically, Glasgow Welcomes – the city’s Tourism Service Initiative – stands as an example of the Games’ tourism legacy.

A partnership between the public and private sector, it aims to improve customer service experience for both leisure and business visitors, and bring tourism-related employment, up to 40,000 jobs in Glasgow alone.

The scheme was specifically tailored for the Games, giving businesses and leisure facilities practical advice on how to give information about Glasgow’s top attractions, so that frontline service staff were confident in giving up-to-date advice on what to see and do in the city, and facts and figures on Games events, venues and dates.

And the uptake was impressive, with thousands of tourism and hospitality staff working in hotels, pubs, restaurants, retail outlets, visitor attractions, and transport committing to Glasgow Welcomes.

The Games also saw the launch of Greener Glasgow, which aims to capitalise on greater public awareness of sustainability – 84 per cent of UK visitors say it is very or quite important to them when making holiday choices – while helping business increase profits.

In 2009, accessible tourism was worth £325m to Scotland. By 2013, the figure had grown to £370m – leading the Games to prioritise promoting accessibility as a legacy goal. 

As such, a Scotland-wide online training course was launched last June, part funded by VisitScotland, designed to help businesses cater for the accessible tourism visitor.

In truth, there are too many different programmes to do them all justice.

Morrison says: “Just prior to the Games, over 320 CEOs and political leaders from around the Commonwealth attended the Commonwealth Games Business Conference. This two-day conference, hosted in partnership with Scottish Government and UKTI, was also live-streamed and watched in over 80 countries.

“We also created a three-day event with Scotland Food and Drink, called ‘Showcasing Scotland’ which aimed to connect over 100 Scottish food and drink producers with over 80 national and international buyers. As a direct result, Scottish companies are forecasting almost £20 million of additional sales over the next three years. 

“During the Games, we delivered the business event programme for Scotland House, a hub designed to celebrate Scotland’s sporting, culture and business potential. We attracted over 1000 delegates to events that showcased some of Scotland’s world-class sectors, such as life and chemical sciences, energy and creative industries. 

“We delivered an incredible business programme last year that really took advantage of the global spotlight and warmth towards Scotland. Companies have won contracts, made new international connections and have increased their ambition and confidence at the same time.” 

And so, given the efforts that have been put into creating a strong economic legacy from the weeks of sport, even the official report may not be able to capture an accurate picture of how successful the event really was. It may take years to know. 

For VisitScotland, the key was using the Games as a launch pad for future tourism. In this sense, the Games were a step in a journey, rather than an end in itself.

As Cantlay, put it: “Scotland’s tourism industry has a vision to bring £1 billion extra tourism spend to Scotland by 2020. The Commonwealth Games, as one of the major events of 2014 alongside the Ryder Cup and the Year of Homecoming, provided us with the momentum to achieve this. Never before have we been able to promote Scotland’s culture, landscapes, architecture, food and welcoming hospitality to so many people at once. 

“With the highest ever combined spend by domestic and overseas visitors in a decade, it is clear that the engagement and high profile of major global events such as the Commonwealth Games had a distinct impact last year.

“In fact, the effect of the Games was clear to see, with many Glasgow restaurants enjoying their busiest days on record, while some of the country’s most cherished cultural and historical attractions, particularly those in the host city, saw a considerable increase in visitors. It was also encouraging to hear reports of visitors extending their trip beyond Glasgow to explore other parts of the country.

“Attracting more visitors to Scotland boosts the economy, creates jobs and sustains communities.

“For every £50,000 visitors spend, one new job is created. In 2015, Scotland’s tourism industry is building on the energy and excitement of last year, using strengths, such as our food and drink and quality visitor experiences, to take Scotland to the world and enhance our reputation as a must visit, must return destination.”

So it may be too early to know for sure what the legacy of the Games will be.

Still, if Usain Bolt comes back to Glasgow as a return destination, it will be interesting to get his thoughts on how things have changed.