Valencia Sports Economy Boom

Valencia Sports Economy Boom

The coastal Mediterranean city of Valencia has truly metamorphosised since the early 90s and is now one of the world's top sporting cities with a mix of sporting and tourist infrastructure that is the envy of competing cities the world over. Up to the arrival in power of the right wing P.P. party the city was merely a way station on the way to the coastal resorts further down the Valencian coast such as Cullera, Javea and Denia for example. Although the city is situated right on the Med with a lovely beach promenade of 5 kms the city authorities had never even attempted to market the city as a coastal resort nationally let alone internationally.

The early 90s was a bleak period for the Valencian economy with industrial production down 13% and joblessness widespread. The Valencian government and Town Hall decided to develop the city's sporting and tourist infrastructure with the objective of creating jobs locally as well as increasing the regions G.D.P. The initial flagship project was “The City of the Arts and Sciences” (1996) which was designed by one of the city's favourite sons namely Santiago Calatrava who would go on to achieve global fame and fortune with his involvement in the Athen's Olympics as well as the new Metro station at Ground Zero in New York :

In 1992, 373,000 tourists visited the city which is quite small by international standards bearing in mind that Valencia is Spain 's third largest city with in the region of 1.5 million inhabitants within a 30 km radius. The numbers increased noticeably to 600,000 by 1996 and would peak at 2 million visitors in the new millennium. Presently Valencia receives up to 10% of her visitors annually via cruise ships that dock in her world class port :

The Valencian government was pivotal in the construction also of the racing track at Cheste just outside the city with the authorities financing the project 100%. The Ricardo Tormo circuit is now a permanent fixture in the Motorcycle Grand Prix Circuit with a capacity of 120,000 spectators as well as being one of the most profitable circuits on the tour. To ease traffic congestion on race days the local authorities even built a metro stop a stone's throw away from the circuit.

On the 23 rd November 2003 the city of Valencia was announced to have beaten off 64 other contestants in its battle to host sailing's Olympics namely the America 's Cup :

The Valencian government in conjunction with the Town Hall and Central government in Madrid embarked in a truly spectacular redevelopment of the city's port area converting it into the biggest marina in the Med and investing over half a billion Euros in the process in preparation for the arrival of the 32 nd edition of the America's Cup. New 5 Star Hotels shot up all over the city in anticipation of the well healed yachties that would descend in their droves upon the city.

During the four year build up to the competition it has been estimated that a media audience of over 4 billion people got to learn about the city's attractions and over 100,000 press articles were penned on the city's varied tourist offerings.

The real seal of approval for the city's Sports' Economy came with the blessing of the F1 magnate Bernie Ecclestone when he decided to set up a street circuit in the city exploiting to the full the city's new America 's Cup Marina. The local authorities negotiated a 7 year contract starting in 2008 with the possibility of a 5 year extension. The inaugural race sold out with over 112,000 heady F1 fans in attendance as well as mega yachts in the harbour and numerous other craft :

A new “F1 Neighbourhood” which will be built in and around the circuit is intended to be built shortly with navegable waterways running parallel to the circuit all the way up to the City of the Sciences as well as the construction of a new artificial beach along the waterway :

The economic impact of all this expenditure has been valued at €3.6 billion with the creation of 60,000 jobs with a knock on effect of €200 million annually estimated from 2007 to 2015.

Tourism now represents 13% of the region's G.D.P. with more than 300,000 people directly employed.

The Valencian authorities continue to land top world class sporting events such as the Tennis A.T.P. Tour as well as Equestrian's Global Champions' Tour :

The last word should be left fittingly to the Vice President of the Valencian Community Mr. Vicnete Rambla :

“The Valencian Community is fashionable right now around the world and it is a train that we don't want to stop or get off”

* Article based on one originally published by the IESE Business School , University of Navarra , Spain .