Global opportunities for sports marketing, infrastructure and consultancy services to 2022
Author: Ardi Kolah Published by IMR Publications
This report identifies all the one-off events that need new services – e.g. sports marketing, architecture, construction, design etc - over the next 8 years. The position they currently are at in terms of supply varies – obviously some are nearly complete and don't need much – but even in these cases temporary venues/seating, lighting, event management, logistics et al is very relevant.
The report shows that there is a demand for such services internationally and in many cases developing countries are hosting events but don't have the resources/expertise to provide the services domestically. It is, therefore, necessary to buy in services. Similarly, the biggest market, Qatar, again does not have the domestic resources to fulfill its huge demand over the next 10 years and a wide variety of agencies and suppliers will be sourced internationally. The report was written with an eye for the UK sports business sector but it applies almost in toto to opportunities for Australian companies.
Key features of market opportunities in the Asia Region for 2013-22
·China , Japan and South Korea in particular all offer attractive opportunities for the sportsbusiness sector seeking procurement opportunities at major events.
·Meanwhile, both Malaysia and Singapore are also developing major events strategies and also require external support. In March 2013, the Singapore government announced it will boost its spending on sports programming and infrastructure by more than GBP133m over the next five years to build a strong sporting culture among Singaporeans.
·After a lull in major events hosting after the 2008 Beijing Summer Olympic Games, China has been busy in securing a raft of events over the next few years including the 2014 Youth Summer Olympic Games, the 2014 FIG Artistic Gymnastics World Championships, the 2015 ISU World Figure Skating Championships, the 2015 ITTF World Table Tennis Championships and the 2015 IAAF World Championships in Athletics (Outdoor). Whilst none of these events will require any major infrastructure development, there are opportunities to work with local organising committees and host cities of the events.
·Chinese city Zhangjiakou has confirmed plans for a joint bid with Beijing for the 2022 Winter Olympic Games.
·Over the next few years, Japan will host the 2014 ISU World Figure Skating Championships, the 2014 World Table Tennis Championships, the 2017 Asian Winter Games and the 2019 IRB Rugby World Cup.
·Japan made history by being the first Asian country to be awarded hosting rights for an IRB Rugby World Cup. Hosting the tournament in 2019 is expected to increase the popularity of the sport in the country. The event is estimated to cost GBP145.1m to stage. With rugby being a developing sport in Japan and Asia as a whole, this presents an excellent opportunity for the Australian and UK sports marketing and consultancy sectors which have strong credentials in the sport.
·Tokyo is currently bidding for both the 2019 FINA World Swimming Championships and the 2020 Summer Olympic Games, both of which would offer opportunities for the UK sector if these bids are successful.
·In Korea, it is expected there will be contracts available ahead of the 2014 Asian Games in Incheon, [although time is slipping away for this], the 2015 Summer Universiade in Gwangju and the 2018 Winter Olympics in PyeongChang.
·The total budget for the 2014 Asian Games in Incheon will be GBP1.07bn of which GBP920m will be spent on venue construction, GBP66.1m on road projects, GBP35.7m on private venue construction, GBP7.2m on training venues and other costs accounting for GBP39m in expenditure.
·The infrastructure development of PyeongChang 2018 will be around GBP4.1bn and GBP330.7m is estimated to be invested up to 2018 in the ‘Drive the Dream’ legacy programme.
·India remains an opportunity but the recent issues surrounding India’s delivery of the 2010 Delhi Commonwealth Games has dented what aspirations it may have had in hosting a Summer Olympic Games in the Region.
·India does however continue to attract cricket events. The 2011 ICC Cricket World Cup was co-hosted by Bangladesh, India, and Sri Lanka and India also recently hosted the 2013 ICC Women’s World Cup. India will also host the 2016 ICC World Twenty20, which will also be a big opportunity for sports marketing and consultancy firms with credentials in the sport.
·The outlook for the sector in sourcing work around major events in Asia is strong in China, Japan and South Korea with opportunities also available in Malaysia and Singapore.
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