Who doesn’t love a good international sporting event on home turf, such as the Commonwealth Games? We swell with nationalistic pride, and cheer on athletes in sports which wouldn’t normally feature on our radar, like squash and table tennis.

And it’s an opportune time to review our sporting infrastructure, and consider what may need upgrading or rebuilding over the next decade as our stadia age.

A recent Queensland Economic Advocacy Solutions study on the Gold Coast games – despite the event not yet being completed and benefits realised – estimated the event would cost $2bn to run. In terms of economic growth, the games have been estimated to boost Queensland’s gross state product by $2bn, generating more than 16,000 full time jobs, and involving more than 30,000 workers since construction began in 2011. The games were expected to attract 1.1 million additional visitors to the state, spending $870 million between them.

There is inherent risk in hosting an event like the Commonwealth Games and while the games in Manchester generated 6,300 full time jobs, have attracted 300,000 annual visitors since and delivered a $100m profit, other host cities have had significant cost over-runs. Delhi, which hosted the Commonwealth Games in 2010 over-ran their budget by $3.8bn as have most cities that have hosted the Olympics, including Sydney in 2000.

There is obviously a vital need for proper pre- and post- games legacy plans to be developed and robustly pressure tested to justify the infrastructure investment in new venues or refurbishment of existing ones as they come on-line in the lead up to the games and for the decades after everybody has left.

But before we embark on holding a $2 billion event, there are a few factors to consider, including future economic benefits, impact to tourism, non-sporting infrastructure such as light rail, accommodation, and non-sporting opportunities. Are there other international events that may provide longer-term, more sustainable benefits?

The state has a commitment to attract international conventions to Adelaide, and we know they generate millions of dollars, particularly when dozens can be held over a 12-month period in world-class facilities. The return on investment can be measured and is very clear.

Arts events can attract thousands of visitors. The current Colours of Impressionism exhibition at the Art Gallery of South Australia will run for four months and is expected to attract more than 100,000 local and interstate visitors.

If we built a National Indigenous Art Gallery we could also attract thousands of people annually, as would events held in a dedicated concert hall built on the Le Cornu site in North Adelaide.

Reports have shown major events such as an Olympic or Commonwealth Games in smaller cities, such as Manchester in the UK or perhaps Adelaide, with venues close to city centres and access to public transport and accommodation work more efficiently, more effectively and are more profitable.

We get so excited about these events that we even consider hosting them ourselves and sending the new sports minister to the Gold Coast to check out the venues and speak to organisers, athletes and volunteers is a valuable investment. Hosting the Commonwealth Games could be a good option, but we need to consider all our options before we’re blinded by gold and book Kyle Chalmers to carry the flag at the Opening Ceremony in 2026 or 2030. 

This article was originally published in the South Australian Business Journal on Tuesday 10 April 2018.

File photo of the Preliminary Basketball round match between Australia and England on day five of the Gold Coast 2018 Commonwealth Games. (Photo by Ian Hitchcock/Getty Images).