EP Magazine

A whole new market

What will be the legacy of the Vancouver 2010 Winter Olympics? And will tourism reap the benefits? Heather Gibson reports, featuring comments from Jean-Luc  arone, General Manager of the Westin Bayshore – the hotel used as the International Olympic Committee’s headquarters for the Games

As the dust settles on the Winter Olympics, the general consensus appears to be that Vancouver succeeded in hosting a memorable event, notable for its atmosphere and patriotic enthusiasm alongside its lack of snow. This is in contrast to the Games buildup, and the proliferation of media speculation on the host city. From the financial impact on Vancouver’s local economy, to the social plight of the homeless population, the host city faced some challenging questions from  the international arena. Throw in the tragedy of Georgian luger Nodar Kumaritashvili, killed whilst in pre-training, and it’s possible that some of the initial observations regarding the Winter Olympics were filled with mixed emotions. But fresh from witnessing the ten day event, and asked to provide his summary of the lessons learnt for London in 2012, LOCOG’s chairman Lord Sebastian Coe offered his own insight,

“You borrow the best you experience in the Games. If Beijing was about sport and venues, Vancouver has been about city operations. But we also want to create a Games that has the forensic eye for delivery in the way that Beijing did. I want the party atmosphere that Sydney injected. I want the heart and the spirit of Barcelona. And I think we can sensibly add the city engagement that I've now witnessed here.”

So what can the hospitality industry learn from the Vancouver experience?

External scrutiny is part of the build up to hosting any major sporting event. The Vancouver Games timing in relation to the global financial crisis has been a major  discussion point. The underlying question has been Vancouver’s recovery period following the Games, and the ongoing impact on the local community. Data  available varies greatly, however, it has been estimated that the final bill for hosting Vancouver 2010 will reach C$6 billion, including C$900 million spent on security alone. Further, a recent report suggested that the Vancouver and British Columbian governments had cut 800 teachers, recommended the closure of 14 schools
and cancelled 2,400 surgeries – whilst these budget restrictions are not exclusively driven by the Olympics, they do high-light some of the political challenges faced within the electorate. From a tourism perspective, questions were raised around the availability of accommodation in Vancouver and Whistler, all of which have been
refuted. These issues point to the intensity of key focal points in the build-up to the Games. I spoke with Jean-Luc the day after the closing ceremony of the Games. Having played host to 1,000 members of the Olympic family, he is exuberant in his answers and believes that the Games have been a tremendous success, with the investment made into local infrastructure one of the key benefits for local hospitality and tourism. When asked about some of the negative media stories and scrutiny of Vancouver’s logistical operations, he comments,

“I don’t think there were hiccups of any significance. We were not worried about meeting expectations from an accommodation perspective. Yes, it has been tight and full, but that is absolutely as it should be. “The IOC were based in our hotel, so we benefited from a lot of communication and involvement from the organising committee and I have only positive comments – they were well prepared and a lot of international knowledge was transferred to the hotel community.

“The infrastructure has been built with a lot of cash and it’s now up to us to ensure that the venues, one year from now, are benefiting from hosting other events. Of course it has as been an intensely pressurised process, but there was no doubt that it would get done.”

It’s interesting to speak with Jean-Luc regarding the legacy of the Winter Olympics. In past debates around London 2012, questions have been raised about the additional benefit that could be provided if the capital had a dedicated conference centre. Vancouver invested C$883 million in building an extension to its convention centre, and the new West Wing tripled capacity at the venue (it was used as the media centre for the duration of Vancouver 2010). Jean-Luc believes
that such a move will have a dramatic impact on the local tourism economy; “The convention centre has opened up a whole new market for our industry in terms of hosting conferences and events. We are talking to a very different kind of customer – it is a very exciting, unique opportunity.”

Jean-Luc’s comments are sure to raise questions amongst UK based hospitality leaders. Proposals for such a venue in London have been considered, but at present there are no plans to build one and this is perhaps inevitably thwarted by the long-term recovery the country faces from economic downturn. At a wider level, Jean-Luc believes the unique marketing prospects presented from the Winter Olympics and improved infrastructure are significant opportunities for tourism; “We are thrilled by the benefit from the media attention and I think this will go a long way to spreading the legacy –Vancouver has been in the news every day.

“In terms of infrastructure, we have had the opportunity to build or improve both venues and transport facilities, such as road and rail links, which will only increase our accessibility as a destination, especially on routes like Vancouver to Whistler. These have not been built in a vacuum – they have been built to last.

“However, the real opportunity is in now leveraging the legacy of the Games. We are looking to gain exposure and are looking for changes to booking patterns. Tourists don’t come to stay in a hotel alone, they come for the whole experience, and I believe that we can offer this, now to a much bigger audience.

“In terms of marketing, Vancouver did not benefit from the same level of exposure and knowledge prior to the games that London already enjoys. Whilst Vancouver was known to a lot of people, the Games bought us to a new community.”

With London 2012 next in line for an Olympic experience, it would appear that one of the key lessons from Vancouver is the legacy of infrastructure. The long-term potential gained from huge investment in local transport and the building or upgrade of existing venues is a significant opportunity for the local industry. Whether  these increased facilities prove enough to provide a true boost for hospitality and tourism remains to be seen. Lord Coe’s comments point to an intention to deliver a high level of engagement with the host city, promising an exciting opportunity during London 2012. Ultimately, Vancouver 2010 will be remembered for some of the terrific sporting achievements; as Jean-Luc concludes; “An Olympic Games has always been about athletes and sport first and foremost. Canada came top of the medal table, and this is a huge accomplishment. This will provide tremendous inspiration for the sporting community and young people for future generations.”

Given that Jean-Luc’s comments relate mainly to infrastructure and international marketing, it will be interesting to contrast the experience for UK hospitality operators in 2012 as London is already well developed in these areas. The real question may be whether it is realistic to expect the same kind of legacy objectives from 2012?