Americas Cup in Valencia

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Economic Impact of America's Cup for Valencia will be 8 Times Greater than Auckland

Added: (Wed Jan 17 2007)

According to Valencia's Economic Minister, Sr. Gerardo Camps, the economic impact of the America's Cup for Valencia will be 8 times greater than it was for Auckland, New Zealand in 2003.

From 2004 to the end of 2006, the competition has been worth an estimated €2,528 billion to the Valencian economy. The competition has been directly responsible for the creation of 72,236 additional jobs which represent 3.55% of the workforce in the Valencian Community. These extra jobs represent 2.84% of Valencia's Gross Domestic Product .

The final pre America's Cup regatta will take place in Valencia from the 3rd to the 7th of April while the Louis Vuitton Cup runs from the 16th of April to the 12th of June. The winner of the Louis Vuitton Cup will go on to challenge Team Alinghi (the winner of the 2003 America's Cup) for the 2007 edition of the prestigious America's Cup.

At present 60 megayachts have confirmed their presence during the America's Cup. Megayachts are yachts of more than 75 metres in length.It is estimated that these yachts are worth on average €6,000 per day to the local economy.

The services sector will be the principal beneficiary of the extra revenues which will flow into the city during its stay in the city.It is estimated that 56.5% of these monies will go to the services sector ; principally hotels and restaurants. The services sector accounts for 63.5% of the extra jobs created thanks to the designation of Valencia as host city for the 2007 edition of the America's Cup(designated in December 2003).

The Valencian government has been the main driving force behind most infrastructural development in preparation for the America's Cup.To the end of 2006, it had spent €1.159 billion. The Metro link from the airport to the city and then on to the port being the single bigest project.

Consorcio Valencia has spent €438 million on the "Royal Juan Carlos 1st Marina of Valencia" which when finished will be the biggest marina in the mediterranean surpassing Monaco which is presently the Med's biggest marina. This week saw the launch in Valencia's "City of the Arts & Sciences" of Fernando Alonso's new McClaren Mercedes formula 1 racing car, one of the results of which has been fevered speculation regarding the possibility of having a formula 1 grand prix in Valencia somewhat similar to the Monaco one at some stage in the near future.

The twelve teams competing in the America's Cup have spent €331 million (to the end of 2006) while the national government has spent €203 million.

Who knows, if Team Alinghi wins this year's America's Cup it could well be a case of "play it again Sam" with all the economic benefits that the staging of such a prestigious event as the America's Cup brings.Given that the cup is contested between the present holder (Team Alinghi) and a sole challenger ; the possiblity of the America's Cup returning to Valencia is a very healthy 50:50.

Article by Dermot Quinn, Valencia Property Hound Ltd