The 2010 Olympics have officially kicked off, and all eyes are on Vancouver, Canada. Will the influx of tourism and international publicity reap rewards for Canada’s exchange traded fund (ETF)?
Plenty of money has been invested in the Winter Games for the 2010 Olympics. Gregor Robertson for The Vancouver Times says that with three billion TV viewers, 250,000 visitors, every aspect of the city will be under the microscope over the course of the 17-day event. Robertson is Vancouver’s mayor. [Opportunities for Canada’s ETF.]
Roberson plans to promote local businesses, entrepreneurs and go after new jobs and investment in the region. Among the steps Vancouver is taking to leverage the games into an opportunity for the economy is to showcase the city’s top entrepreneurs and team up with local municipalities to find regional investors. In fact, 100 executives from foreign companies have been invited to attend.
The question now is, can this opportunity for Vancouver be spun into an opportunity for Canada? The Financial Times points out that Canada has hosted two other Olympics with different results: the 1976 Montreal Games ended with a $1 billion debt that took 30 years to pay back; the 1988 Calgary games, however, went smoothly, thanks to a reserve fund that has preserved some of the facilities.
For these games, there have been spending cutbacks and lower revenue, but the organizers expect to end with a balanced budget.
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- iShares MSCI Canada Index (NYSEArca: EWC)