A few days ago we published Cricket World Cup Organiser Says “A Decade Until CWC Benefits Are Seen”. Now our old friend Adrian Loveridge takes this one step further and compares projected CWC revenues with standard rates of inflation.
If I were starting a new business, I would want Adrian on side as a reality check. A pity the government doesn’t hire him as one of their consultants. God knows he would only be one of dozens on the payroll – but he would actually add value.
Take it away, Adrian…
I was intrigued by a sentence quoted in an article that was published on 18th February 2007, under a banner head ‘Huge CWC benefits in 10 years’.
It said ‘the numbers have indicated that the economic benefits are more than one billion dollars, he (Vancourt Rouse) said’.
Currently we are told our annual total earnings from tourism is around $1.7 billion.
Depending on which report you read, the current level of inflation is 8%, so unless you increase your revenue earnings over and above this figure, then you are effectively falling behind.
An increase in spending over a ten year period of $1 billion would only relate to an annual growth in tourism earnings of a little more than 5% per year.
And that figure is almost meaningless unless inflation is kept below that level.
From a marketing point of point, the level of media coverage should hopefully raise the destination profile of Barbados, worldwide.
But unless this is converted into actual bookings or first time visitors are transformed into repeat long stay visitors, the legacy benefit and justification for the vast amounts spent are speculative at best.
With the vast majority of cricket fans being accommodated on cruise ships, it is vital that a plan is put in place to entice these people back for a longer and more profitable stay.
22 February 2007