Economic downturn won't affect economic boost from Olympics: finance minister

VANCOUVER — Money is tight now but the global recession won't reduce the much-touted $10-billion economic impact of the 2010 Olympic Games, Finance Minister Colin Hansen insisted Wednesday.

He said the severe downturn might affect who comes to B.C. for the Games but doubts it will change the anticipated economic boost.

"The recession will have an impact but I still think the net economic benefit to the province will be in excess of $10 billion," Hansen said in an interview.

A 2002 study from InterVISTAS Consulting estimated hosting the Games and expanding the Vancouver convention centre would generate more than $10 billion in economic activity and create more than 200,000 jobs over 20 years.

Hansen said the government has commissioned a new study to update those figures in the current economy but doesn't expect major changes.

He noted the Vancouver Olympic organizing committee will still spend its operating budget of $1.7 billion while venue construction adds another $600 million to that total.

Hansen also added items like the $110 million Richmond spent on the Olympic Oval, the $600-million Sea-to-Sky Highway project that some people feel should be included and estimated Olympic sponsor spending of hundreds of millions of dollars.

"Then you look at the economic impact of 250,000 visitors coming for the Games and the multiplier effects of that and the benefits quickly add up," he said.

Hansen said different people may buy tickets for Games events now but demand remains very strong.

"Maybe some people can't afford to come now but there's no shortage of people coming behind them to fill their spot," he said. "Every ticket that's available for sale will get sold."

Hansen said the recession might cause fewer media to visit B.C. to cover the Games next year but doesn't expect that would have a significant negative economic impact.

Business Council of B.C. executive vice-president Jock Finlayson said the recession could reduce visitation to B.C. during the Games but doubts it will be a big drop from previous expectations.

"It's probably a fairly affluent audience [that would come] so they may be in a better position to keep to their plans in this economy," he said.

bconstantineau@vancouversun.com

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