By Ron Taylor
A cost-benefit study done for the 1995 America's Cup held in San Diego was over-optimistic by about 40 per cent, according to the economist who did it.
Professor Alan Gin, of the University of San Diego, says he and his researchers estimated the cup defence and the contenders' elimination
rounds would generate about $US900 million ($1.7 billion) in extra business for ships' chandlers, yards and provisioners.
"We based this on 16 teams coming, as told us by the organisers," says Gin.
"In fact, finally, only seven lined up to compete. That cut the return to somewhere between $US500 and $600 million - still nice but not as much as some hoped."
Gin says no attempt was made to assess the spending spin-off for hotels, bars, restaurants, airlines, tourism and other services.
"We were only interested in the yachts, their crews and immediate supporters and the luxury cruisers that turn up."
He says that San Diego spent little or nothing on facilities for the event - it was all there, including deep-water docking. The city is home to much of the American Navy's nuclear-powered Pacific fleet, with an armada of ships coming and going weekly plus marina facilities for thousands of sailboats and pleasure cruisers.
"So it was pretty much a matter of an extra and certainly not like the $100 million or so that you're spending. But then again you seem assured of at least 12 contenders when it comes down to the line, if not more, so good luck," said Gin.
