Fear of Games backflip leaving reputation in tatters

Rachael Ward | July 18, 2023

Business is concerned the sudden cancellation of the Commonwealth Games has jeopardised Victoria’s reputation as a major events destination.

Industry groups have welcomed efforts to rein in the state’s debt, which is forecast to top $171 billion by 2027, but fear they could inflict long-term damage on the economy.

The decision was an “international embarrassment” and reinforced a perception Victoria was an increasingly difficult place to do business, employer association Ai Group said.

“Pulling the pin on the Commonwealth Games at this relatively late stage reflects poorly on Victoria’s approach to major events,” the group’s Victorian head Tim Piper said.

It is arguably the right decision from a cost perspective but raises questions on whether there were better options than scrapping the event entirely, such as moving it to Melbourne.

“It’s the long term damage that concerns us, including the cost to break the contract,” Mr Piper said.

The Victorian Chamber of Commerce and Industry said its regional members would be disappointed but welcomed the state government’s pledge to pump $2 billion into housing, infrastructure and tourism in country areas.

The chamber’s acting chief executive Scott Veenker said businesses in Shepparton and Geelong, which were meant to be two of the hub cities, had previously expressed concerns about a lack of planning and foresight.

He also would have preferred the event was moved to Melbourne.

“The Victorian Chamber’s biggest concern is the damage to our global reputation as both a sporting mecca and major event capital and we are already seeing the reverberations of that across the globe,” Mr Veenker said.

“It would have been preferable to have used our existing world-class sporting infrastructure and accommodation and hospitality offerings to propose a re-imagined Games.”

Victoria Tourism Industry Council chief executive Felicia Mariani said she was disappointed but not surprised, adding that organisers faced hurdles including transporting people across the state and housing both spectators and athletes.

“It became clear that building infrastructure in five regional locations was a monumental challenge that would cost far more than initially predicted,” she said.

“The host regions will suffer, not just from the visitors they expected to welcome in this period, but also the global exposure they expected to receive.”

Monash University sport and Australian studies lecturer Tom Heenan said Melbourne has lost its self-proclaimed title as a sporting capital to both Sydney and Brisbane, which were both playing a greater role in the upcoming soccer Women’s World Cup.

“Melbourne is no longer the sporting capital of the world,” Dr Heenan said.

“It may not even be the nation’s sporting capital any more.”