Economic impact of G8 Summit
Scotland took full advantage of the opportunities afforded by hosting the G8 Summit, an independent report confirmed today.
The key findings were:
- additional spending directly associated with the G8 Summit was worth £65 million to the Scottish economy, while the net cost to the Scottish Executive was £60 million
- the value of the worldwide media coverage immediately around the time of the Summit has been calculated at over £66 million
- using this figure, the independent consultants estimate the longer-term pattern of coverage to total £618 million. This covers the period of six months up to and including the Summit
- the most important impacts will occur over the next few years as the increased profile that Scotland generated takes effect and is used to create new economic opportunities
Minister for Finance and Public Service Reform Tom McCabe said:
"It was great for Scotland to be chosen to host the G8 Summit, a decision that gave us the opportunity to promote Scotland across the globe. This report shows we grabbed that opportunity with both hands.
"Not only did the additional spending in Scotland outstrip the net costs of organising the Summit, but the report also concludes that Scotland enjoyed at least as much, if not more, exposure as the previous G8 Summit, despite the inevitable impact of the London terror bombings on its first full day.
"This provides an excellent platform for us to secure further benefits for Scotland from tourism and enables us to strengthen our position on the international stage.
"The first-class policing and security operation underlined once again that Scotland is a great location for world-class events and I believe we are well placed to capitalise on this in the future.
"There were, of course, costs to the Executive associated with hosting a high-profile event of this magnitude and these are published in detail in this report. But the Summit delivered immediate economic benefits which were far greater than these costs - with the potential for further longer-term benefits."
Mr McCabe also confirmed that the eligible additional costs incurred by Scotland's local authorities would be met in full. He said:
"I am also pleased to confirm that our local authorities and police forces will not be out of pocket as a result of Scotland hosting G8. That is only right as they played an absolutely crucial role in ensuring the overall success of the Summit."
An independent report was commissioned by the Executive and carried out by SQW Economic Development Consultants. Its objectives were:
- To measure the economic impact of the G8 Summit and its supporting events on Scotland
- To identify the value of the media coverage of the Summit
- To provide sound analysis which identifies the impact of the Summit on Scotland's image as a tourism destination; events venue; source of desirable products; and place to live, work and do business