America’s Cup: ‘Game-changer’ for RI Economy
Tuesday, December 21, 2010
If America’s Cup decides to come to Newport in 2013, it could be a tremendous boon to the state economy, helping to lift it out of the recession, according to Keith Stokes, executive director of the Rhode Island Economic Development Corporation.
America’s Cup—which claims to be the world’s third largest sporting event after the Olympics and the World Cup—would create thousands of jobs and bring an estimated 90,000 visitors to the Ocean State, according to the Economic Development Corporation. “An event of this size and a state of this scale—you can see what the impact would be,” Stokes said. “It would impact most if not all of the companies in this state and many of its citizens.”
“It becomes a game-changer,” Stokes said.
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A study of the economic impact that the Cup would have in San Francisco—a leading contender to host the regatta, found that it could generate $1.4 billion in economic activity and create 8,000 jobs. “A fraction of $1.4 billion—let’s say a quarter of that—would be significant,” Stokes said. “Let’s say a quarter of the 8,000 jobs in San Francisco comes to Rhode Island. That’s significant.”
‘Serious’ interest in Rhode Island
Up until last week, Rhode Island’s bid to host its first America’s Cup in 30 years seemed a long shot. But last night, the Golden Gate Yacht Club, one of the organizers of the 2013 event, presented a letter to the Economic Development Corporation saying it was seriously considering Rhode Island as an alternative to San Francisco. That came after race organizers visited Newport last week and met with several economic development leaders and other key state officials.
“We are very serious in our intent to move forward with Rhode Island,” wrote Stephen Barclay, a board member of the Golden Gate Yacht Club. “There is much to do to meet the timeframes we have set.”
Read said Rhode Island’s chances of becoming the host have dramatically improved. “From everything I know, it’s gone from approximately a 0 percent chance to, I’d say, 50/50, in just a few days,” Read said.
The Golden Gate Yacht Club letter seemed to the turn the tables on San Francisco, which had been considered a shoe-in as the host city since the summer. “So much for the idea that America’s Cup race organizers were just courting Newport R.I. to get San Francisco to sweeten its bid for the 2013 races,” remarked a writer for the San Francisco Chronicle yesterday.
One big advantage for Rhode Island: race organizers would have to invest about $55 million to fix up San Francisco’s piers, while it would take only $10 million to make the necessary improvements to Fort Adams Park in Newport, according to the San Francisco Chronicle.
Industry leader: World Cup revived Newport in 1980s
Tom Rich, president of the Rhode Island Marine Trades Association and an owner of New England Boats Works, said the sporting event would have a widespread impact in his industry—and beyond. He said the event could bring new business to local yacht-builders. Besides actually making new race-ready boats, he said the yachts participating in America’s Cup will have to be docked and maintained—providing another opportunity for Rhode Island companies to get some extra business.
Rich knows firsthand how much of an impact the Cup could have on Newport—he was there when the event was last held in the city. Rich moved to Rhode Island in 1979 to race in the 1980 America’s Cup and again in 1983. He credited the event with helping to revive Newport at a time when the U.S. Navy was pulling out of the city and its economy was in decline. “By 1983, the Cup had established Newport as the yachting capital of the world,” Rich said. “It shepherded Newport to where it is today.”
