Introduction
Edinburgh Olympic stadium can be a very suitable place for hosting Olympic Games and Paralympic Games and prove to be very valuable on the national level. Edinburgh Olympic Stadium will host a range of events including Football, Baseball, Swimming, Atheletics etc. It will encompass space capacity of one hundred thousand guests.
Conducting successful Games is the main goal to achieve the problems that emerge are about the cost of staging the Games and that whether can this achieve a lasting benefit. To accomplish the goal significant progress has to be made. The ODC (Olympics Developmental committee) is highly developed in arrangements for construction in advance of the game in comparison to other Host Cities. Organizing Committee for the Olympic Games has identified benefits across the country.
“Organisers believe that they can save £193 million elsewhere and have said that they have already made £63 million in savings. Overall, this means that only an extra £3 million would be spent and organisers say that this could easily be absorbed by the £2 billion contingency fund. Ministers claim that savings are being made to help offset the increases and that project will not bust its overall budget. On the stadium, the report says that £22 million more could be needed because of contract price negotiations “reflecting the development of the design and the lack of competition tension in the procurement”. (Timesonline)
Transport
The location of the Edinburgh Olympic Stadium serves as a the “gateway” to European countries since the headquarters of transport.
Sustainability
The impact of the building on the environment is being reduced by the use of renewable energy, sustainable sourced building materials and the reuse of pool water to flush the toilets.
After The Game
After the Olympics, it will be converted into a multinational-functional facility for sports, Athletics, culture and recreation. It will be a venue for memorable sporting moments during 2012 but it will continue to add value to the local community for years to come.
- Options
- Benefits Expected
- Server as tourist attraction
- Generate income for both the government and individual
- Create job for the jobless
- Lift up the image of the London city
- Use of renewable energy
- Long life constructing materials
- Easy stadium maintenance
- Use of latest technology
- Reduce of noise pollution
- Reuse of water
- Server as tourist attraction
- Generate income for both the government and individual
- Create job for the jobless
- Lift up the image of the London city
- Risks
- Project-related risks
- Shortage of labor
- Inadequate funds
- Project delay(suppliers)
- quality issues – materials poor
- security
Identifying the subject to which the given risk is ascribed (that is public partner, private partner, mixed partner)
Identifying mitigation instruments
Most of the risk can be reduced by hedging.
Timescales
The timescale of the construction work in and around the Olympic Park site may require 3 years. As the ODC stated, the Olympic ground consists of land crisscrossed by major infrastructure, including sewers, power lines, railways and roads. Efforts to set up the scope of development of the project and to remove all obstacles in way are already under consideration. One goal is to avoid its contamination is scheduled but is still not complete. The Secretary of State viewed the Olympic Games project as “the largest public building project in Europe. The ODC has assumed an overall schedule for the Olympic stadium Games project based upon the recommendations of all the officials involved in designing the project. This timetable has planned 2 two years for development strategies and planning, while 4 years to organize the land, build venues, design infrastructure, and 1 year for commissioning and testing events.
- Costs
A number of different cost areas specific to the Games.
- Costs of staging the Games
- Cost of providing Venues
- Security Costs
- VAT
- Contingency allowance
Staging the games
Staging the games is the liability of the Organizing Committee of the Games (OCOG). The finances for staging the Olympic Games were drawn in the Candidature file equals to approx £1.5 billion; this figure does not include inflation. The budget is said to be £2 billion –
“The original estimate made in 2004 – when London was bidding for the Games – was £282 million. By November 2007 this figure had risen to £496 million and by September last year £525 million. The latest rise has been blamed on the credit crunch and structural changes to the stadium roof. The Government report says that there are “emerging pressures” on venues for the 2012 Games. The cost of building the Olympic Park venues as a whole is predicted to rise by £196 million.” (Timesonline”
Security
The total security cost recognized is £213 million: approximately £23 million for Olympic Games security and approximately £190 million in site security costs, to be provided by the ODC from the municipal sector funding package. Furthermore expenditure will occur in relation to wider security in Edinburgh. These costs will be funded by the Metropolitan Police and Home Office and the and still under consideration.
“Other costs arise from “structural amendments to the roof to meet loading requirements for the opening and closing ceremonies, and provision for an external stadium wrap following detailed analysis of the most functionally beneficial and cost-effective finishing for the stadium”. The Government last month put in an extra £461 million from contingency fund to pay for construction. Olympics Minister , Tessa Jowell, said: “This shows that we are on course to remain on budget despite the current economic downturn. It will not be exceeded. While forecasts have risen on some venues, these increases have been offset by savings in infrastructure and around the venues and work to clean up the park.” (Timesonline)
Investment Appraisal
Project Funding
Ownership structure
Partnership with other company. That is 30% will be owned by us and 50% with company A and company 20% with B.
Determine the SPV structure
In determining the SPV structure, our equity is 30% and debit is 70%.
Financing models
Choose one of financial models in order to generate fund to settle our debt.
Financial options
30% source of equity will be from our own confess and 70% source of debit will be from an individual companies.
Revenue streams
Ticket sales, Advertising, events, sponsors (much revenue from other broadcasting companies such as BBC for telecasting games.
Sources of Funding
In addition, the main purpose for opening doors to world tourists is to bring in ample of investment and economical health to the local inhabitants. This investment of wealth at these places is to provide support and conservation of the natural environment. Touring agencies take special measures for preserving the wildlife and wild areas to retain their natural beauty and ecology.
There are special ways to collect funds to protect the environment beauty and habitat. Tourists are provided with the facilities of skiing, hiking, campaign tent to provide them with adventurous visit.
Skiing, hiking, water sports, and campaign tent etc are very popular among tourists.
In travel industry, Edinburgh is the place where special measures have been taken to provide a responsible tour to the place, in order, not only to provide tourists with enjoyment of nature’s beauty and love of natural greenery and attraction, but also to have conscientious attitude and enough investment to maintain the natural environment and to fetch advantages for people’s welfare. Any tour to rainforests in Edinburgh should bring special benefits to those places. If tourists plan to visit natural ecological environment it must be for the benefit of the environment and for the benefits of the people living there. Any trip raising the awareness and directing funds to help maintain the environment, including, forests, herbs & shrubs, watershed etc is welcomed with enthusiasms. Tourism to the Edinburgh must be therefore conservative and improve the places.
Edinburgh gives an unusual experience in the tourism to travelers who have been a first time visitors. Most tourists are very happy about its natural beauty. Though there are a lot of risks involved in any kind of tourism. It also provides with unconventional meanings of transport. A dugout to the places brings adventurous journey.
Edinburgh has places where journey can be regarded as flexible and tough. There is now and then a difference between flexible and tough adventures. Flexible adventures encompass a minor level of risk, better experience and comfort with calming reassuring environment. In addition, the lodging places are physically less rigorous. Tough side of adventure habitually comprise exceptionally indispensable conveniences, though the risk factors are not very high and greater substantial confront for example, river voyage, mountain hiking, and backpacking.
For touring in Edinburgh special measures are taken to avoid any form of reduction in the accessibility of resources and to incorporate better future investment and tourism. There are also special ways to avoid any negative effect on the natural environment. The campaign is made so that the natural environment is not disturbed. No traces of dirt are left. When people visit the site they are not allowed to throw garbage.
At Edinburgh there are combined variety of ideas jointly constructed to make a sole type of journey. Edinburgh has a far above the facts main concerns on protecting the areas of visit to enhance it culturally and environmentally. Edinburgh takes pleasure in offering lively outdoor tracking down and, therefore, numerous of visits have these sporting as a feature except by no means to destroy the natural world or to make its populace upset. However, Edinburgh doesn’t provide something that tourist can’t endure. Therefore, it has been in process of always evaluating the tours intended for traditions to recover and progress their biological and artistic adventures. All of the voyages made to Edinburgh hold essentials of an exploration journey, eco-tourism, multi-sport and civilizing voyage. Edinburgh drives in a hub accountable for delayed stays and for all time have enjoyable trips.
Edinburgh survives over and over again for its landmasses and the most part is valuable reserve for its inhabitants. The valuable reserves at present are fascinating and still brining to awareness the need for caring of island’s additional cherished reserves. Edinburgh seashores and the adjacent coastlines are preserved. Recognized and meant for sickly sand and clean, aqua waters, Edinburgh is a visitor’s glory and its coral reefs are a wonderful enlightenment.
The natural artistic features of this settlement of the southern Caribbean are a genius hospitality industry vision, ensuing in a visitor’s attraction in support of the island’s long survival period of thirty years. But it is needed that natural environment and ecological reserves be conserved for the future visitors. This adventurous tourism, modest and frequently unobserved, en route for the amateur creates an interesting ecological reserve that generates the preferred place of visiting and develop interests for future tour expansion. Edinburgh is taking measures to enhance sightsee places without upsetting future journeys and its support to the local economical wealth is the current confronts of many Caribbean islands.
Together, the administration, management of Edinburgh, the commerce industry, the community and all stakeholders are putting efforts for the future environmental development and in target to make the Perrier Reef Care Project (the Edinburgh Reef Care Project). The yearly and weekly occasions includes an intense endeavor to eradicate garbage from the island’s coast and coral reefs.
Local authority and ecologists have almost recognized and are very keen on Edinburgh’s tourism expansion, and for avoiding further changes in the bionetwork of the island and adjoining reefs. Many measures are now in progress to correct the irreparable damage occurred. Though ecological protection and preservation is a very complicated and comprehensive mission necessitating a diversity of resolutions, the reef care motivation appear an understandable place to launch the vocation.
In spite of the fact that it is very small country it has great imaginable delights of Caribbean including water sports, serene white-sand beaches all best suited for ecotourism (Herliczek, 1996). It has very warm climate with chilled breezes and no rains, an ideal place of charms and delight. Edinburgh has vast number of palm trees, gentle warm weather and coolness of turquoise sea. Its interior part of Island is a desert like. There are many different varieties of lizards and geckoes are present and hundreds of different species of birds reside. However, there is not any big variety of other types of mammal population.
Most of the migrated birds dwell near the beachside palm trees. Beach is very well organized for tourists with friendly and kind people and a sunny climate. It has been estimated that Edinburgh has the maximum number of frequent visitors from Caribbean. English and Spanish is spoken widely but Dutch is an official language. Its temperature is around 82oF. Different types of activities give it an ideal place for ecotourism for example, hiking, sport-fishing, horseback riding, trekking, kayaking, bird-watching, windsurfing, water-sports, and walking etc.
Edinburgh’s beauty and natural environment is marked by the island’s natural vegetation. Its climate and flora are classified as desert with landscape and sparkling water of turquoise seas with beautiful natural vegetation. It has beautiful Arikok National Park, where walking places are present with view of wildlife gives it a unique look.
Edinburgh is a perfect place for an Ecotourism. However, the need is to take approaches to conserve biodiversity and to avoid its ruin at the hands of outside visitors. Ecotourism at Edinburgh is a promising means of recreational and educational activities based on attractions of the nature. It also opens the doors for economical investment from tourists, which is a definite capital for growth of environmental, social, economical progress (Krutch, 1997). Edinburgh has opened gates for investment from small enterprises and businessman in order to protect ecological environment. Edinburgh has taken special endeavors for creating constructive environment and positive economical growth by implementing policies to enhance Ecotoursim. Ecotourism at Edinburgh will foster conservation of biological heritage, will enhance economical and environment wealth.
In Edinburgh, special policies prohibit destruction of forests and marine life and to protect wildlife. In addition, it provides adequate lodging, agriculture and fishing. Sufficient funds are needed to protect the nature reserve and biological resources (Ponson, 1995).
Ecotourism in Edinburgh will enhance potential positive contributions towards the ecological system of the environment. However, it is necessary to educate and inform residents and tourists of the necessity of biodiversity to increase their awareness about the protection of wild life. This may generate tremendous revenues of protection of nature ecological system. Hunting of wildlife is prohibited and destruction of forests trees is not allowed to preserve nature’s environment.
Many ecotourists flock for hiking and water sports. These biologically rich areas have to be protected from damage to wildlife. Edinburgh has been becoming popular attraction for tourism from worldwide. Ecotourists spend enough money to create jobs and income for various individuals. Lodging places, private industries, agencies, transportation and food services generate huge income. However, the ecological environment has to be protected to reserve nature biological system. Edinburgh’s natural beauty makes it a perfect place for ecotourism.
Evaluation
The fastest growing sector of global economy is tourism. Billions of dollars of investment has been made to expand this industry for increasing the foreign investment and economic funds.
Edinburgh has an emerging opportunity for investment from foreign traders. Tourism in Edinburgh not only supports multiple intercultural links but also enhances modern world trade. Tourism has developed stronger links between Edinburgh and the world. It has been researched that tourists from around the world anxiously visit Edinburgh for investment into their business and trade. Visitors from China, Japan, France, Italy, Greece, Spain, Africa and Asia tour Edinburgh. Tourists from different racial, ethnic, cultural, and national background have boosted the trade between Edinburgh and these countries. According to one estimate number of a second time visitors has increased showing their deep interest in the countryside and investment opportunities.
Graphical representation of annual tourists against investment shows direct proportionality of tourism against investment. As tourism has increased gateway to tourists from around the world it has increased tremendous business opportunities and foreign investment. Many foreign investors are attracted by the ample opportunity of trade in food industry, transportation, vehicles, household utensils, clothes, shoes etc. As tourism is increasing, investment prospects are also increasing. Tourism in Edinburgh has vastly affected the events, activities, business, trade, politics, economics, and decision-making in different health and business sectors. Tourism has enhanced Edinburgh trading with the rest of the world, weakened autonomous economic policy, improved technological implementation, and economic growth.
Tourism has increased market opportunities for Edinburgh and its links with the other world. It has caused Edinburgh relations with the rest world stronger and bonds between distant countries and Edinburgh are now deeper with increased tourism.
Tourism has made possible strong contacts in telecommunication, transportation and information technology that led to globalization. It has also made traveling from around the world possible for every social class of people, which was initially exclusive for the rich. Cultural differences are now decreasing in Edinburgh with increased tourism over the past few years.
Tourism has offered an edge to attract foreign investors to strengthen infrastructure, boost economy, labor force and enhance technology to gain huge profits. However, tourism to Edinburgh occurs seasonally and yearly, which are the two seasons for boosting business from foreign investors. Because this is a niche market its profits are only seasonal and annual. It does not guarantee long-term monthly or yearly business that is regular in all seasons. Investment in tourism business depends on the trend of this industry, if these trends change business also fluctuates. Because of the uncertainty of this business it has some flaws in investment, as tourism market is very volatile.
In Edinburgh, tourism is expanding from travelers of local and foreign regions. Edinburgh, where actively participating tourists visit frequently is expected to develop tourism significantly. Edinburgh tourism industry has benefited and changed profoundly within the past decade.
A report study of 2001 has shown that tourism is highest in Edinburgh and other Caribbean countries (HRD, 2001). Tourism not only increased labor market from direct and indirect employment, it also increased trade and business in exports, transportation, hospitality services, food services, entertainment services and travel agencies. Such active boost in business has immense influence in developing employment opportunities in this country. Tourism has caused millions of people employed on yearly basis and created direct or indirect jobs. It has been estimated that tourism created jobs for around 3.1 million people and accounts for 13.4 percent of total jobs. It also generated approximately 18.5% revenues through export market and expenditures of US$17 million. A country is regarded as tourism country when its GDP from tourism is more than 5% or export revenues generated to 10% as depicted by World Trade Organization Tourism (WTTC, 1999).
Edinburgh and other Caribbean region tourism expenditures reached to US$22.7 million and had GDP of 17.8% and Growth of 6.4% in the study of 1999 (Human Resource, 2001). Tourism affects all aspects of life services from consumption of food to the goods for hiking, skiing, clothing etc. There are few industries that benefit directly from tourism, while few have an indirect growth rate. There is need to estimate direct impact and an estimation of indirect impact and name of industrial sectors belonging to it. Edinburgh tourism ratio is very high but the product and services for example hotels and hospitality services and transport infrastructures need to be improved which calls for further investment into this tourism industry (Seifert-Granzin & Jesupatham, 1999).
Tourism has increased employment, work, emergence of hotels, catering, and travel agency sectors. The employment and labor industry has boosted with tourism.
Edinburgh has implemented computer technologies and web-enabled services in their tourism industry to conform their business to the current standard model of delivering information and entertaining programs. Today’s standard model of conducting business is the implementation of the web services at the front-end to have a virtual presence. Edinburgh has acquired IT services to provide clarity to users, easy to access information, and for faster marketing time.
References
Human Resources Development, Employment and Globalization in the hotel, catering and tourism sector. (2001) Geneva. International Labor Organization.
Seifert-Granzin, J & Jesupatham, D.S. (2001) Tourism at the crossroads: Challenges to developing countries by the New World Trade Order, epd-Entwicklungspolitik, Equations, Tourism Watch (ZEB), Frankfurt am Main, 1999, p. 35.
World Tourism Organization (WTO): Tourism 2020 vision, A new forecast, Executive Summary, Madrid, 1999, p. 3.
World Travel and Tourism Council (WTTC): Tourism Satellite Accounting Research, Estimates and Forecasts for Governments and Industry, op. cit.
London Olympics. Web.