"It is calculated that an unprecedented nine out of ten individuals on the planet with access to a television watched some part of the (Sydney) Olympics." 1 This report is designed to inform and assist individuals or organisations hosting or planning to host major events in their city or community. It will also be of great interest to Olympic sponsors, companies interested in Olympic contracts, or any organisation that has, or may find itself operating in a city where a major international event is being held. It examines and showcases the unique inclusion of the local business community in the planning and preparation for the Sydney 2000 Olympic Games. This involvement was made possible by the unprecedented culture of consultation and access that existed between the State Chamber of Commerce New South Wales [the Chamber], the Sydney Organising Committee for the Olympic Games [SOCOG] and the New South Wales Government and its Olympic agencies. The Australian business community made the most of the Sydney 2000 Olympic Games and avoided many of the pitfalls that plagued previous host countries, through regular access to reliable information and detailed planning assistance. The Olympic Games is the world`s largest peacetime event, its size and impact is magnified for a country like Australia with its comparatively small population and economic base. As a result, no business no matter what its size or location, could escape unaffected. This report details the economic climate in which business operated before, during and after the Games. The State Chamber of Commerce began to plan for the impact of the Games in 1996. It established the Olympic Commerce Centre [OCC] three years out from the Games to undertake research, conduct a business education and information program and act as a liaison point between business and the various Federal and State Government Olympic agencies. Ultimately, one of the highlights of the Games` success was this preparation of business. The report includes an industry-specific analysis of how well each sector prepared for the event and how those preparations suited their specific operations during the Games period. To varying degrees, businesses in each sector changed the way they operated for the Games period. These changes generally impacted upon deliveries, staffing, training, hours of trading, client/customer relations, budget planning, advertising patterns or attraction of Olympic related business. Understandably, demand for products and services varied across the industry sectors, with demand not meeting expectations in some sectors. Most anticipated and registered a higher pre-Games demand than normal owing to clients and customers planning well, stockpiling or bringing forward certain purchases. During the Games, sales of consumable items were up and most companies met their Olympic period performance expectations. Many companies sought advice from the Chamber and the OCC and consequently recognised that consumer behaviour would change during the Games. They adapted their communication and marketing strategies accordingly. In the post-Games period, all categories reported similar positive outcomes and `learnings` from the Games process. These included improved staff, customer and client relations; the ongoing benefits of Games-initiated staff incentives; experience in setting realistic expectations about demand for product and services for a big event; risk management practices and a wealth of new contacts and problem solving skills. Some businesses have also now incorporated strategies developed for the Games period into their daily operations eg stock management efficiencies, refined security practices and performance measures. Of the major industry sectors studied, tourism, retailing, security and the services industry fared well and accurately predicted consumer demand, while other industries such as restaurants and catering, and some rural industries experienced a downturn. The growth of the tourism and convention market will be an ongoing and major boost for the Australian economy. The escalation and provision of new sport, urban development, transport and telecommunications infrastructure was also a critical legacy for Sydney. For business they will also have the long-term benefits of new system and problem solving efficiencies, exposure on a world stage and new prospects and contacts. Through post-Games research the Chamber has identified the wind down phase from the `big event` as a major issue for business. Future host cities and event managers need to ensure that this stage is included in the overall planning process. There is a very real need for the development of a recovery plan for individual companies and government, to ensure a quick response to a potential post-event downturn. An analysis of the economic impact of the Olympics reveals a modest - macro - effect, while the actual and less tangible long-term benefits of the Olympics are still being measured. The Games` impact on the Australian and State economies has to be considered within the context of the simultaneous introduction of the 10% Goods and Services Tax (GST) in July 2000, a slowdown in consumer spending and a drop in housing expenditure. The Sydney Olympic Games were a major undertaking for Sydney and Australia as a whole. The business community of Sydney and New South Wales provided a critical infrastructure base for the Games and must be congratulated for its efficient and proactive approach to ensuring the success of the Games through their participation in the planning phase.
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