The benefits of sponsoring the Special Olympics far outweigh the costs, the City of Launceston council say.
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On Monday, the council voted to give the organisers $130,000 over about five years to ensure the event could happen in the city.
More than 7300 participants, their support teams and spectators are anticipated to be in the state for the 2020 Junior Games, and Trans Tasman Games in 2022.
The event was last held in Melbourne in 2014 and estimates show the economic return was $9.4 million in direct and indirect methods.
Alderman Janie Finlay said the fact Launceston was in a position to be able to agree to host the games was fantastic.
“It will benefit the whole community,” she said.
However, both Alderman Finlay and Alderman Hugh McKenzie both agreed they felt the decision to fund this event had already been made, considering the announcements were made last month.
“The announcement has been made … it’s not at all appropriate sitting here today being asked to fund it,” Alderman McKenzie said.
“It’s a financially sensible thing for us to do … but it’s not fair on the 12 people around the table to have to make a decision on something that has already been made.”
However, council staff clarified that the announcement was on the condition the council approved the funding.
“But, there is no doubt that this financial contribution will be returned,” Alderman Finlay said.
Alderman Robin McKendrick said the “opportunity was too good to miss”.
“There is no doubt that once we hold events in Launceston like this that they’ll return or come and live here,” he said.
Alderman Rob Soward said having the “enormous” amount of athletes here would be a huge economic benefit to the community.
The council said it would review its funding policy to avoid the issue occurring again. The two events will be held in the winter months, where tourism in the state is at its lowest.