The best-case scenario estimated a return of 60¢ for every $1 spent.
Marion Terrill, the transport and cities program director at the Grattan Institute think tank, said on Monday that given the business case, she was surprised the government forged ahead. RMIT Emeritus Professor David Hayward said the analysis also appeared to downplay the pricetag by counting government funding streams as revenue rather than as a cost.
The analysis also relied on $228 million to $352 million worth of benefits for “avoided health costs and reduced productivity costs from increased physical activity”, and between $46 million and $97 million for “consumer surplus”: when the cost of a product is lower than the consumer is willing to pay. The business case also assumed the Games would bring an extra 1 million tourists to regional Victoria between 2022 and 2030.
Andrews on Saturday said the original analysis represented “strong value for money, more benefits than costs”.
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