The Ripple Effect
Assessing the Impact of the Cancellation of the 2026 Commonwealth Games on the Events Industry
Last week's news out of Victoria announcing the cancellation of the 2026 Commonwealth Games took us by surprise. Not only is it shocking that such a large-scale event can be abruptly cancelled, but it’s heartbreaking to delve further into the consequences that will be felt far and wide (particularly by the events industry). There are now many challenges that will be faced by stakeholders and many potential implications for future events.
The principal reason given for pulling out of the games was financial. The Victorian government has said that based on its projections, the costs had ballooned from the initial projection of A$2.6 billion to more than A$6 billion. Such an investment could no longer be justified. We wonder whether they have thought about the ripple effect that is now subsequently unfolding?
Let’s consider the financial implications. How much money has already been spent by the Victorian government on an event that is never going to come to fruition? Not to mention the money and time invested by small businesses who were hoping to play a number of roles in the rollout of the event. Many of our AMPSEA members fall in to this category. Some had been working on playing a part in the organisation of the games for events including the marathon, triathlon, road cycling and race walks. Others had invested their time and money into pitching for brand and sponsorship activations. These major events aren’t just critical for our athletes to aim for, but our industry professionals who deliver mass participation events also use events such as the Commonwealth Games as professional development opportunities.
For athletes, the Commonwealth Games are an opportunity to showcase their talents on a global stage and earn accolades for their countries. The cancellation will be a huge blow for them, not only as it will disrupt their preparation and training schedules, but it’s just hugely disappointing to see the goals they’ve been working towards become unachievable.
Aside from the athletes, there are many other factors to consider:
Time, resources and money spent by brands and event sponsors has essentially been for nothing
Less jobs will be created for people who were counting in temporary work during the games from other industries including construction and hospitality
The event industry workforce, including event planners, marketers, and production crews will suffer from reduced demand
Revenue opportunities for small businesses in Victoria will be lost
Fans who love sport and large scale events will miss out on the opportunity to be a part of an amazing event experience.
The list goes on.
Overall, we know that mass participation events are the glue that holds the events industry together. Our members events are generally annual and provide enormous tourism revenue across the country and encourage a healthy and active lifestyle.
AMPSEA is strongly encouraging the Victorian Government to increase the funding of Mass Participation Events, especially across the regional markets that have been directly impacted from the Comm Games fallout. We encourage Event Operators and suppliers to be proactive in approaching these regional areas in Victoria and bringing our expertise to the fore to fill the void and any shortfall.