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Bid Guide for the 12th & 13th editions of the Volvo Ocean Race
Contents
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3.
Volvo Ocean Race delivers
5.
Message from Knut Frostad
7.
The Volvo Ocean Race
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The bid process
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Host cities in the international spotlight
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Rights and benefits of hosting a stopover
32.
Host city commercial rights and revenue opportunities
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Economic impact
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Media reach
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Case study: Abu Dhabi
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Case study: Sanya
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Case study: Galway
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Host city requirements
Introduction Volvo Ocean Race S.L.U. (VOR), as the race organiser, is committed to developing a true partnership with each of the respective host cities in order to maximize the value that the event brings to a host city in terms of economic impact, legacy, media exposure and direct revenuegenerating opportunities. The purpose of this Bid Guide is to provide potential host cities with information about bidding for the right to host a Stopover for the 12th and 13th editions of the Volvo Ocean Race (planned for 2014-15 and 2017-18).
Volvo Ocean Race delivers Command Attention
The Volvo Ocean Race makes it possible for host cities to go beyond the benefits of being onboard the world’s premier ocean race and actually Command Attention within it. Global media exposure, high media repetition and a format that makes host cities integral to the reporting of the Race, provide benefits that comparable investments cannot match.
Welcome to Hyper-Reality
Exceptional Power
There is what we call the Hyper-Reality of the Race. In the age of reality programming, the Volvo Ocean Race goes further: merging spectacular sporting action with a 24/7 view into the intensity and spirit of sailing fast around the world. Our images and stories capture imagination. Our hyperreality makes it possible to engage audience and build incomparable value.
There is the Exceptional Power of sailing, and the Volvo Ocean Race’s unrivalled positioning within it. Combined they offer an entertainment platform that reaches beyond regular segmented sports audiences by connecting with consumers and priority clients on a global scale and over a prolonged period
Multiplied Activation
Host cities are able to exploit the unique format and appeal of the Volvo Ocean Race to execute highly effective promotional campaigns. The rhythm, geography and interconnectivity of the Race make it possible to Multiply Activation through a single relationship with an independent, business-focused rightsholder.
High Calibre
VOR delivers the Volvo Ocean Race to a best-in-class standard. It provides expert support to its stakeholders to enable them to capitalise on presentation, content delivery and event management of a world-class standard and achieve High Calibre commercial performance.
Proven Performance
The Volvo Ocean Race boasts a record of Proven Performance which has delivered success to its stakeholders for almost 40 years. Host cities have varying objectives and resources. Whatever a host city’s goals may be, we know how to help each city make the Race work best for it.
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Alicante Abu Dhabi
Sanya
4,600 nm 5,220 nm
5,430 nm 6,500 nm
Cape Town
The Volvo Ocean Race 2011-12 By combining ocean racing with an In-Port Race Series, the Volvo Ocean Race is the only event that showcases the greatest all-round sailors (and sailing teams) on the planet.
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Auckland
Message from Knut Frostad Welcome to the Volvo Ocean Race -- the supreme test of sailing and a sporting event like no other.
Galway 485 nm
Lorient
1,940 nm
Lisbon
3,590 nm
Miami 4,800 nm
It was back in 1973 that our story began, with the first fleet leaving Portsmouth on England’s south coast at the start of a great new adventure. Throughout our near 40-year history the story has been of sacrifice, risk and human drama in the pursuit of sporting glory. The sailors themselves make up the elite of the sport, professional athletes at the top of their game. They sail the world in state-of-the-art racing yachts at speeds that defy belief, and in conditions that put them at the very limit of endurance. While the passion remains the same, in other respects the race has changed beyond all recognition. Tens of thousands of people now pack the race villages, filled with free entertainment, at every stopover, with huge numbers of fans and VIP guests coming out to welcome the sailors back to land, to cheer them during our in-port races and to wave them off again as they put their lives in the hands of their crew mates on another amazing journey. The host ports are now very much at the heart of the race, with each stopover able to give a local flavour to this most global of events.
Itajai
6,705 nm
After starting from our home port of Alicante and going on to Cape Town, the 11th edition has seen us break new ground once again, with Abu Dhabi and Sanya welcoming the world to their stunning cities during the first half of the race. As I write this in Auckland, our first visit to the ‘City of Sails’ in 10 years, the teams are about to set sail for another new destination in Itajaí and another chance to make new friends. From there we head to Miami and across the Atlantic for more of the new and the old, with first stops in Lisbon and Lorient before our finish in Galway, which provided one of the highlights of the last race in 2008-09. We are in the fortunate position of having the resolute backing of Volvo Car Corporation and The Volvo Group, who reaffirmed their commitment to the race at a packed news conference before the start in Alicante last October. They share our vision of the race as a major event on the sporting calendar. For our sailors, the race is a “must do” on their personal CVs, for our ports it is a chance to take part in a unique event and show the world what they can do. Welcome on board.
Knut Frostad CEO, Volvo Ocean Race S.L.U.
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The Volvo Ocean Race
Sailing 72,000 kilometres around the world, across 4 oceans and 6 continents, the Volvo Ocean Race is one of sailing’s marquee brands and a pillar on the global sporting landscape. Continuing a legacy of authenticity built up over 40 years, the Volvo Ocean Race encapsulates the best that sailing has to offer: breathtaking imagery, deeds of heroism, feats of endurance, the joy of victory, the pain of despair, triumph over adversity, camaraderie – all brought about by relentless ocean racing. By combining ocean/off-shore racing with an in-Port Race Series, the Volvo Ocean Race can unequivocally claim to be the only event that showcases the greatest all-round sailors (and sailing teams) on the planet. Since 1973, the world’s premier ocean race has been making heroes both on and off the water; delivering compelling content to a large global audience and putting powerful platforms at the disposal of each of the host cities that form the race route. Global reach, direct market engagement and an unmistakable positioning combine to provide host cities with an exceptional opportunity to promote and market their city on an international stage. Since the final Whitbread Round the World Yacht Race in 1997-98, Volvo has had a presence in the race (first as a major sponsor, and subsequently as the owner and title sponsor). Funded equally by Volvo Group and Volvo Cars, the Volvo Ocean Race is intertwined with Volvo’s three core values – quality, safety and environmental care. Volvo Group and Volvo Cars have confirmed their commitment to the next two editions of the Volvo Ocean Race (planned for 2014-15 and 2017-18).
“Of course there are many reasons for being the owner of the Race, but at the end of the day it all comes down to team spirit, the extreme challenge, the respect for nature and the constant pursuit for perfection. It is actually rather simple – the spirit of the Volvo Ocean Race equals the spirit of the Volvo Group” Olof Persson President and CEO of the Volvo Group.
“Volvo Ocean Race is an important tool in our marketing strategy, aiming to build our brand attraction and consideration to buy. The global reach of the Volvo Ocean Race makes it a fantastic commercial platform to build close customer relations. The race gives us extremely good return on investment in terms of media exposure, increased brand awareness and incremental sales.” Stefan Jacoby President and CEO of Volvo Cars.
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The bid process
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An Overview The bid process is being run to secure up to eight cities to host a maximum of seven Stopovers and the Finish of the Volvo Ocean Races (planned for 2014-15 and 2017-18); with Alicante already chosen as the Start of the next two editions of the Race (and Lorient as a Stopover for the 12th edition). The bid process will be managed on VOR’s behalf by The Sports Consultancy, who successfully managed the process for the 11th Volvo Ocean Race in 2011-12. The Sports Consultancy will have authority to act on VOR’s behalf and undertake all discussions/ negotiations (on the basis that VOR will not be bound until a Host City Agreement is signed by VOR and the respective Candidate).
APPLICANT PHASE From 25 Jan 2012
The bid process will be conducted in three phases which have been designed to allow VOR and potential host cities to exchange increasing levels of detail about the requirements and benefits of hosting the event (the Applicant Phase, Candidate Phase and Decision Phase).
Request for Expressions of Interest sent. Bid Application & Questionnaire sent to Applicants upon receipt of Expression of Interest
14 Mar 2012
Final date for return of Expressions of Interest by Applicants.
From 16 Mar 2012
VOR expects to receive a significant number of expressions of interest from cities who will be accepted as Applicants in the Applicant Phase. All Applicants will be sent a Bid Application & Questionnaire for completion and return to The Sports Consultancy.
Bid Guide sent to Applicants expressing an interest
11 May 2012
Deadline for submission by Applicants of Bid Application & Questionnaire
11 – 16 May 2012
VOR evaluation of Bid Application & Questionnaire
Following the announcement of the Candidates, VOR will provide each successful Candidate with a Host City Agreement (and technical annex) which will set out (amongst other things): APPLICATION PHASE »» full details of VOR’s minimum requirements to host a Stopover;
CANDIDATE PHASE 16 May 2012
Announcement of Candidates. Host City Agreement sent out to Candidates
»» standard legal terms.
12 - 13 Jun 2012
Host cities will also have access to a microsite where detailed information (including economic impact assessments and media data) will be made available.
Symposium for all new Candidates held in Alicante, Spain
8 Jun – 6 Dec 2012
Site visits, surveys, workshops discussions and contract negotiations with all Candidates
7 Dec 2012
Deadline for submission of Host City Agreement
»» the rights and benefits provided by VOR to host cities; and
During the Candidate Phase, representatives from The Sports Consultancy (and VOR) will visit selected Candidates in order to carry out a site visit. By the end of the Candidate Phase, each Candidate is required to present a signed Host City Agreement which also includes all aspects of the Candidate’s bid (including a public sector guarantee of all the hosting requirements and the payment of the hosting rights fee).
DECISION PHASE 17th – 21st Dec 2012 or Jan 2013
Announcement of Host Cities and race route for 12th and 13th editions (planned for 2014-15 and 2017-18)
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Host cities in the Volvo Ocean Race are more than just venues for the event – they are also part of the race course. It is therefore very important that a number of assessment and evaluation criteria are taken into account by VOR when selecting host cities. Every bid will be assessed and evaluated on its individual merits (taking into account qualitative and quantitative issues and all relevant aspects). Factors on which selection will be made will include, but are not limited to (not necessarily in order of priority): (i) Sport considerations: The extent to which a host city geographically (and climatically) fits within the context of the overall race route. (ii) Ability to fulfill VOR’s minimum physical requirements: Are VOR’s physical requirements able to be fully met? If not, then has an acceptable alternative been proposed? (iii) Venue/facilities: Is the Venue (and are the facilities) of a standard that is considered acceptable for hosting an international sports event like the Volvo Ocean Race? If a proposed Venue is planned or under construction, then what fulfillment/completion guarantees can be provided? (iv) Candidate’s experience in staging events: What is the Candidate’s demonstrated capacity and ability to stage international sporting and/or other events? (v) Growth & development of the Volvo Ocean Race brand and the sport of sailing: Does the Candidate’s bid provide opportunities to grow and develop the Volvo Ocean Race brand and the sport of sailing in the Candidate’s country? (vi) Popularity of the sport in the city, region or country: How popular is sailing in the Candidate’s city, region and country? (vii) Legacy: Does the bid have legacy benefits for the city, region and/ or country (to the extent not already covered in point (iv) above)? (viii) Commercial factors: What commercial benefits arise from VOR staging the Volvo Ocean Race in a Candidate’s city, region and/or country (sponsorship and TV broadcast/media opportunities etc)? (ix) Operational factors: To what extent is the city integrated into international air freight/shipping routes to facilitate the cost effective movement of race and team equipment between Stopovers? (x) Financial stability: Will a local, regional or central government entity be a contracting party? Will such entities provide the required performance and financial guarantees? Is the economy in the region and country considered stable as compared to other bidders? (xi) Event Budget/Business Plan: Is the Candidate’s indicative event budget sufficient to deliver a Volvo Ocean Race Stopover/Finish as a world class international sporting event? (xii) Financial offer: What is the Candidate’s financial offer by way of hosting fee and/or other potential financial proposals?
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Assessment & evaluation criteria
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The table sets out the indicative route timings by region. As the route is decided throughout the Candidate Phase, the dates will be refined. REGION
Europe (Start in Alicante)
SECOND HALF/RETURN
October/November
South America
November/December
Southern Africa
November/December
Middle East
December/January
Asia
January/February
Australasia
February/March
South America
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FIRST HALF/OUTBOUND
March/April
Central America/ North America
April/May
Europe
May/June
How decisions will be made Decisions will be made by VOR’s senior management and Board of Directors (the Board is made up of representatives from Volvo Group, Volvo Cars and one or more independent directors).
Route considerations The Volvo Ocean Race is a circumnavigation of the world that starts and finishes in Europe and travels in an easterly direction around the world, following the northern and southern hemispheric summers. The boats are driven entirely by the wind and, when planning the route, VOR tries to ensure that it does not take the teams into large areas of little or no wind or, conversely, potentially lifethreatening conditions. In addition, there are limits on the duration of a Stopover, during which the teams have to restock with food and repair damage sustained while racing. Host cities must be placed on the race route in a certain sequence to ensure that the boats arrive within the right season. All of the above restrictions influence the route of the Volvo Ocean Race.
Region A route will be selected from some, or all, of the following regions:
Europe Africa Middle East Asia Australasia South America Central America North America
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Stopovers and the Finish The bid process is designed to ensure that all Candidates are capable of satisfying the minimum requirements for a Stopover in the Volvo Ocean Race. VOR will discuss the hosting of a Finish with European cities during the Candidate Phase. All Candidates are considered to be bidding for a Stopover (and, in the case of European Candidates, potentially the Finish).
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Applicant Phase During this phase, Applicants will have the opportunity to discuss their application via a conference call with the Volvo Ocean Race Bid Team (managed by Angus Buchanan and Robert Datnow at The Sports Consultancy). There is also a dedicated microsite where relevant information will be posted. At the end of the Applicant Phase the Volvo Ocean Race Bid Team will assess the applications based on the information provided by Applicants in the Bid Application & Questionnaire, VOR (and The Sports Consultancy’s) own research and the route considerations set out in this Bid Guide. Cities that have previously hosted a Race Stopover will automatically be selected as Candidates.
Candidate Phase Successful Candidates will be sent further bid documentation (comprising a Host City Agreement), with new Candidates (i.e. those that have not previously hosted a Volvo Ocean Race Stopover) being invited to attend a Symposium in Alicante, Spain on the 12th and 13th of June 2012. Representatives of the Volvo Ocean Race Bid Team will carry out site visits following the Symposium with a view to assessing the proposed venue location, verifying the information provided in the Applicant’s Questionnaire, meeting relevant city officials and representatives of the Candidate, discussing VOR’s requirements, answering any further questions from Candidates about the Host City Agreement.
By 5 October 2012, Candidates shall inform VOR that they are ready to meet all of the requirements set out in the Host City Agreement (or have presented an alternative proposal which has been approved by VOR). The signed Host City Agreement must be submitted no later than 7 December 2012.
Decision Phase VOR will review and evaluate the bids submitted by each of the Candidates, select the successful Candidates and sign the Host Venue Agreement (at which point the Host Venue Agreement becomes legally binding). VOR will notify each of the successful Candidates and establish a procedure for the timing and announcement of the race route for the 12th and 13th Volvo Ocean Races.
Pre-Race Prologue / Qualification Event VOR is currently looking at creating further events between editions of the Volvo Ocean Race (e.g. a pre-race prologue and/or a qualification event). All Candidates will automatically be considered for these events in addition to future editions of the Volvo Ocean Race.
Legal As specified in the Terms of Reference set out in the Bid Application & Questionnaire, the invitation from VOR to submit information during the Applicant and Candidate Phases is not intended to create legal relations between any of the parties.
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Host cities in the international spotlight
The Stopover is a world-class festival of events and entertainment built around a Race Village that buzzes with activity and engages hundreds of thousands of national and international spectators. In addition to spectators, thousands of highly influential VIPs and corporate hospitality guests attend and participate in the event. Activity at the host city starts well before the boats hit town, with the arrival of hundreds of race operations, media, shore crews, support teams and administrative personnel. From a wider perspective, VOR will be orchestrating a global marketing and promotional campaign across its entire media platform. That campaign regularly features publicity about Race Stopovers. As soon as the boats depart the Start and each Stopover, the focus switches to the race action and the next Stopover/Finish. With news of the imminent arrival of the first boat, spectators flock to the Race Village for the arrival – even in the early hours of the morning! The Stopover also provides a platform for trade and business activity organised by VOR working in partnership with the Stopover management team. Each host city’s infrastructure and expertise in staging high-class sports events like the Volvo Ocean Race, is showcased to the world via the travelling global media and across the Race’s extensive media platforms.
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Away from all the entertainment, the public is drawn out of curiosity to see these amazing yachts and their crews working hard to prepare them for in-port racing and the next leg of the race. The programme of events for a Stopover is focused around the Leg Arrivals, Leg and Finish Prize-Giving, In-Port and Pro-Am Race Series, and the Leg Departure (or Finish in the case of the last host city).
An indicative stopover timeline Race Village set-up
Leg Arrivals
Race Village opens to the general public
Leg Departure
Race Village breakdown
Race Village entertainment programme begins, including: »» »» »» »» »» »» »» »» »» »» »» »»
Volvo Ocean Race Experience Volvo Ocean Race Academy Try Sailing Environmental programme and workshops Tours by school children Civic reception Corporate sailing events Community visits by teams Leg Prize Giving Ceremony Pro-Am Race Day Practice Day for the In-Port Race Series In-Port Race Series
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Leg Arrivals After up to 11,000 kilometres at sea and weeks of closely-fought racing, there is a real sense of anticipation not only among the sailors onboard, but the public waiting to see the leaders cross the finish line sometimes only a matter of minutes apart. This is the first real opportunity for substantial global coverage as the world’s media descends on the host port to capture the drama of the arrivals. As each boat arrives in port, it is led to an arrivals pontoon, which is provided for the media, sponsors and families whilst being fully accessible to the watching public. Here the crews are reunited with their families, conduct media interviews and are then led to a champagne podium ceremony. It is customary for a port-appointed dignitary to hand out the trophies. From this point on, the boats and their crews become a focal point for the Race Village with the public eager to get a close look at these extreme racing machines and befriend the sailors who risk their lives sailing them in treacherous conditions across vast oceans. The sportsmen and women are much more accessible than in most other top tier sports, and can be found mingling with the public in the Race Village bars and cafÊs as they enjoy their first taste of relaxation after weeks of hard labour at sea. After the Leg Arrivals, the teams begin the service and repair of their boats in the Team Area (see Host City Requirements, Page 50). The work of the shore crews also becomes a focal point for inquisitive spectators.
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Leg & Finish Prize-Giving The Leg Prize-Giving is the gala occasion on the events calendar. It is attended by all teams and sponsors, port organisers and commercial partners and local dignitaries. With thousands of guests in attendance, the event is widely covered by local media and gossip columnists who view it as one of the hot tickets on the local social circuit. The evening event is usually held at a local arts or entertainment complex, historic landmark or hotel function suite. It is a celebration of the performances of the crews during the preceding leg of the race. The Finish Prize-Giving is a similar occasion with the presentation of the Volvo Ocean Race Trophy to the winning team.
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Pro-am Few sports provide the opportunity to get up close and personal with the athletes. With a Volvo Open 70, the world’s fastest racing yacht, you can on Pro-am day. Those people lucky enough to ride on board include VIPs, host city selected guests, corporate guests, local and international media. The rules of the Pro-am Series also decree that at least six crew members must be aboard on each boat. The boats compete on a race track loosely modeled on the actual course for in-port racing. It is often no less competitive than the In-Port race! The series is usually run over a full day and, depending on conditions, can feature as many as three races.
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In-Port Race Series The In-Port Race Series, has been one of the most significant changes to the format of the Volvo Ocean Race in its 40-year history. Currently, accounting for around 20% of the overall points available, the in-port racing tests the sailors in another discipline – fleet racing. By adding the In-Port Race Series, the Volvo Ocean Race is unique in providing a platform to determine who are the greatest all-round sailors (and sailing teams) on the planet. It is also a chance for the local public to witness the boats/teams race each other at close quarters. Each race takes approximately 60 minutes. The In-Port Race Series has enabled race organisers to bring the staggering performance of these ocean-going thoroughbred racing yachts to the watching public and global media in the immediate vicinity of the host city.
host city, the racing is produced for live broadcast by VOR’s media partners (as well as streaming on the official race website). In-port racing also provides an excellent opportunity to engage local media. The action includes footage from the boats’ on-board cameras so every angle and every move is covered. This unique feature of the race is enjoyed by hundreds of thousands of spectators around the world. It also draws thousands of corporate hospitality guests and the general public to the Race Village and on the water to enjoy a day of high-class race action. Unique in top level sport, selected VIPs, corporate guests, media and international celebrities are able to enjoy the racing on board a Volvo Open 70 as media and guest places are made available. Following the In-Port Race Series there is a podium ceremony in the Race Village, open to the public, where prizes are given to the winning teams.
The media coverage from the in-port racing has been substantial. In each
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Leg Start The climax of the activity and entertainment in the host city Race Village is the Leg Start for the next stage of the voyage around the world. Having repaired and restocked their boats with food and equipment, the teams fight it out on the start line as if they were commencing a four-hour race rather than a 7,000 kilometre leg to the next port. The close nature of the ocean racing has elevated the importance of the Leg Start, with time difference and final Leg positions often linked to the advantage gained at the start of the Leg. The departure from the dock traditionally starts with a blessing of the fleet and is followed by an MC conducting the live build-up. The boats depart the docks one at a time to their team songs. They are surrounded by throngs of media and spectator boats who will follow them all the way out to the start line and beyond. It’s hard not to get swept up in the emotion of the farewells from the dock which represent one of the truly iconic moments in sport. Due to the significance of the moment and the public’s awe at the epic nature of ocean racing, the re-starts attract some of the largest crowds of the Stopover.
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The Race Village: Our Stadium The Volvo Ocean Race host cities provide much more than departure/destination locations for the race fleet. As well as being vital waypoints in the media reporting of the race, they play host to the Race Village, where the spirit of the Volvo Ocean Race ignites local populations and draws travelling fans. The Race Village is a place of colour and atmosphere, where transoceanic sailing brings cities alive with its openness, inclusiveness and rich blend of international characters and cultures. Nearly 4 million Race Village visitors celebrated the Volvo Ocean Race 200809. 24
The festive atmosphere of a Race Village and bespoke hospitality programmes provide environments for interaction between athletes, boats and target audience. The ability to place business guests or promotion winners on board a Volvo Open 70 during the In-Port Race makes the Volvo Ocean Race one of the few sports that can put race fans and the public at the heart of the action.
What the Volvo Ocean Race brings….. Volvo Ocean Race Experience VOR has invested nearly €2 million on developing Race Village entertainment content including the “Volvo Ocean Race Experience” (3-D Cinema, Simulator, Grinding Challenge and a range of other interactive activities). In addition, the teams and event sponsors bring Exhibition Area elements with pavilions and display areas. Sports stars, international celebrities and royalty take their place on the Race Village’s centre stage. In addition to managing on-site food/beverage/retail concessions, and establishing its own institutional/corporate hospitality programme, host cities are able to organize and stage pay-ticket events (e.g. music concerts, trade fair/expo, conferences and the like). VOR has developed an international communications strategy that is most in evidence in the Race Village by the presence of visiting international press, photographers and broadcast partners. In addition, VOR has an experienced group of media professionals that are on the ground in each Stopover helping to bring the stories to life, to capture the drama, excitement and intensity, and to produce/distribute high quality content around those stories.
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The long established commitment to youth sailing worldwide by the Volvo Ocean Race has continued with the introduction of the Volvo Ocean Race Academy. It incorporates two initiatives: to improve the sailing skills of youth sailors, and to introduce new people, young and old to the sport of sailing. The first initiative involves a team racing regatta (utilizing the popular Optimist dinghy) with youngsters coming from local sailing clubs who already know how to sail and race. For these sailors, clinics are held where team racing skills are honed and new techniques and tactics taught over a three-day period. The sailors then have the chance on the final day to compete in a team racing regatta in front of thousands of spectators. Each team, comprising girls and boys and sporting the colours of the current Volvo Ocean Race teams race close enough to the shore to provide entertainment and inspiration for the visitors to the Race Village. Expert race commentary broadcasts via the public sound system, with a prize-giving held in the Volvo Pavilion for the sailors, families, coaches and special guests. The Academy’s team racing regatta is designed to inspire, coach and entertain the thousands of local youngsters that attend, as well as leave a legacy of youth sailing in each of the countries visited by the Race. The Academy also runs International Sailing Federation umpiring clinics with the aim of increasing the numbers of national or international umpires in the sport. Another initiative enables the non-sailing community, both young and old, to get out on the water with an experienced and qualified instructor. Local learn-to-sail programmes are integrated so that newly enthusiastic sailors can continue their education and take part in local sailing events long after the Volvo Ocean Race has departed. The Academy programme welcomed over 6,000 new sailors across the first four Volvo Ocean Race 2011-12 Stopovers in Alicante, Cape Town, Abu Dhabi and Sanya. In years to come, its VOR’s goal to have sailors racing around the world who were first inspired by a hands-on experience with the Volvo Ocean Race Academy.
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Volvo Ocean Race Academy
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Corporate Social Responsibility: Keep The Oceans Clean campaign The Volvo Ocean Race has launched a global campaign to help raise awareness of the increasing volume of pollution that is swirling in our oceans and threatening sealife across the globe. Together with environment crusaders Skeleton Sea, the Volvo Ocean Race is voicing a call to arms for everyone to reduce pollution and share in a simple conservation message through the Keep the Oceans Clean campaign. Central to the Keep the Oceans Clean campaign is the Skeleton Sea’s latest creation, “Albatross Exhibitionist” – a sculpture and short film installation that is set up within a dome located in the Exhibition Area of each Race Village. The short film tells the compelling story of the thousands of Albatross that are killed every year because they fatally mistake floating rubbish for food. Visitors to the Race Village also have the opportunity to be part of the solution by taking part in beach clean-ups at each host city. The rubbish collected is used in interactive workshops with the Skeleton Sea artists, school children and the general public to create compelling illustrative sculptures. www.skeletonsea.com
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Rights & Benefits of hosting a Stopover
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The rights and benefits of hosting a Volvo Ocean Race Stopover are many and varied. Significant economic impact benefits Revenue opportunities through the exploitation of commercial rights Brand marketing benefits (i.e. associating with the Volvo Ocean Race’s brand and values) Political and social benefits Sport development Global media exposure showcasing the host city (pre-, during and post-Race) Opportunity for host city to showcase its marine leisure facilities Catalyst for infrastructural development and investment Legacy benefits Event tourism and destination marketing Business networking opportunities (B2B and B2C) Staging of VOR events Volvo Ocean Race expertise and experience Public/social benefits (e.g. youth engagement through sport) Development of local operational and hosting capabilities
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Host City commercial rights and revenue opportunities
Host cities will receive a comprehensive package of commercial rights for exploitation: Presenting Sponsor Port Sponsors Option to appoint an In-Port Race Sponsor Institutional/corporate hospitality Event rights Food and beverage concessions Merchandising Staging of host city events (e.g. concerts) Tradeshow/expo/conferences/sailing festival Provision of services to VOR and teams
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Economic Impact
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Since 2005, the Volvo Ocean Race Organisers have commissioned independent economic impact studies of the race by two of the world’s largest professional services firms with track records as the market leaders in economic benchmarking studies: Deloitte and Pricewaterhouse Coopers (PwC). For the 2011-12 Volvo Ocean Race, the economic impact study is being carried out by PwC. The clear trend to emerge from the studies to date is that the Volvo Ocean Race is a consistent driver of economic activity in the countries and cities that host the Race. In respect of the current Race, PwC’s study for the Race Start in Alicante, Spain (November 2011) has produced encouraging results. Overall economic impact has increased to €110.7 million as a result of the Stopover (a 14% increase in the figure reported for the 2008-09 edition of the Race). This led PwC to conclude that the Volvo Ocean Race has had a significant positive economic impact on Alicante, and it has also contributed to the economy in the rest of Spain. In addition, hosting the Race has helped to improve the perception of the region by potential visitors. Deloitte’s Partner in Charge of the Sports Business Group, Dan Jones, previously commented
“The Volvo Ocean Race is an epic sports competition which attracts the interest of people worldwide. With hundreds of international media accreditations, the global projection of the Stopover city is ensured, which has a clear and non-transitory impact on the tourist activity” Manuel Martín Espada, Partner in charge, Media and Entertainment Group at PwC.
that the Volvo Ocean Race generates sufficient economic impact for the Race Stopovers to be regarded “amongst the sports world’s highest impact, short duration major sports events”, on a par with football’s UEFA Cup Final and the Open Golf Championship.
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The Volvo Ocean Race is a great opportunity to attract visitors and boost the economic activity of the hosting region. Economic Impact Study Alicante 2011. PwC
Key findings from the Alicante Race Start The economic sectors that benefited most in the 2011-12 edition of the race were business activities, construction, restaurants and hotels Teams and event management spending grew strongly; largely as a result of increased team operations in Alicante prior to the race, and an increase in corporate hospitality activity Around 800,000 visits to the Race Village generated by 294,000 visitors during the Race Start period Hotel occupancy rates (based on year on year growth rates) was 23.3% the 2nd largest since January 2006 Average length of stay in the Comunidad Valenciana by non-local spectators was 3.5 days for Spanish residents and 8.7 days for international visitors. The latter also stayed, on average, 2.3 additional days in other regions of Spain 68% of spectators during the main event days came from outside the Alicante province, 54% came from outside the Comunidad Valenciana and 29% came from abroad Event covered by 678 accredited journalists, out of which 454 belonged to foreign media Creation of 1,591 full time equivalent employees in the Comunidad Valenciana and 213 in the rest of Spain The attitude of local residents was overwhelmingly positive with 98% of spectators believing that hosting the VOR was good for the Comunidad Valenciana (mainly because of the event’s positive impact on tourism, economic activity and perceived image of the region)
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Spectators’ net expenditure made in Spain Average expenditure (€/day-person)
Average stay length (days)
Communidad Valenciana
Rest of Spain
Communidad Valenciana
Rest of Spain
Residents in Spain (outside the C. Valenciana)
105
-56
3.5
3.5
Residents abroad
137
110
8.7
TOTAL
129
15
6.3
Number of people
Net expendituremade in (€M) Communidad Valenciana
Rest of Spain
Total Spain
9,827
3.64
-1.92
1.72
2.3
11,450
13.54
2.83
16.37
2.8
21,277
17.18
0.91
18.08
Source: PwC analysis based on GfK Erner survey
Number of VIP guests in Alicante Inviter
No. of VIP guests
Volvo Companies
1549
Regional Authorities
250
Teams and sponsors
2280
TOTAL
4079
Source: PwC analysis based on GfK Erner survey
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Media Reach
From the middle of the ocean to practically everywhere on the planet, the Volvo Ocean Race uses the best of modern technology to connect with a global audience
Delivering to the limit: Volvo Ocean Race 2008–09 1.3 BILLION CUMULATIVE TV AUDIENCE
1.6 BILLION CUMULATIVE READERSHIP
1.1 BILLION CUMULATIVE RADIO AUDIENCE
3.8 MILLION VISITORS TO RACE VILLAGES
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2011-12 Race to Date More than 2,000 television broadcasts generating a cumulative audience of over 600 million up to 14 January 2012 (an increase of 78% over the 2008-09 Race). [Source: IFM/SMS] More than 25,000 online news items published on major websites up to 19 February 2012. [Source: Meltwater News]
More than 6 million YouTube views up until 19 February 2012. [Source: YouTube Analytics] More than 3,000 print articles published in leading newspapers (such as The New York Times, The Washington Post and The Times) up until 14 January 2012, with a cumulative readership of 2.1 billion. [Source: IFM/SMS] 980 million cumulative radio audience up to the end of December 2011 from more than 400 stations. [Source: USP Content/Kantar Media] More than 16 million visits and 50 million page views to the homepage (www.volvooceanrace.com). [Source: Google Analytics]
2,500,000 streams of In-Port Race and Leg Starts on Livestream from its launch in October 2011 until the Leg 3 Start [Source: Livestream Analytics] Official website visitors have come from more than 170 countries. [Source: Google Analytics] More than 130,000 downloads of the Volvo Ocean Race App for iOs and Android devices. [Source: App Statistics]
More than 120,000 players (with 180,000 boats) in the game, with more than 10 million visits to the game website. [Source: United Games] 100,000 fans on Facebook up to 9 March 2012 (more than double the number of fans than America’s Cup) [Source: Simply Measured]
The number of Twitter followers has doubled since the start of monitoring in October 2011 [Source: Simply Measured]
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“The event has taken Abu Dhabi’s marine leisure proposition to the world and enabled us to demonstrate, first hand, our powerful credentials to a highly influential professional yachting audience.” His Highness Sheikh Sultan Bin Tahnoon Al Nahyan, Chairman, Abu Dhabi Tourism & Culture Authority
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Case Study: Abu Dhabi Abu Dhabi broke new ground with its successful hosting of the Volvo Ocean Race in 2011-12, with the United Arab Emirates capital becoming the first Middle Eastern city to welcome the race. If anyone was sceptical about how Abu Dhabi would manage hosting a major international sailing event for the first time, the doubts were quickly dispelled as the Emirate delivered a Stopover experience worthy of its deep-rooted maritime history. The Race Village opened on New Year’s Eve to a fantastic concert from multi-Grammy award winners Coldplay and the Stopover never looked back. Other highlights included a major air display and a spectacular dhow race in the turquoise waters of the Gulf. His Highness Sheikh Sultan Bin Tahnoon Al Nahyan, Chairman, Abu Dhabi Tourism & Culture Authority, which was behind the Stopover, said: “The event has taken Abu Dhabi’s marine leisure proposition to the world and enabled us to demonstrate, first hand, our powerful credentials to a highly influential professional yachting audience.” Central to the Abu Dhabi strategy was to have a team in the race as well as a Stopover and things could scarcely have worked out better, as thousands of fans thronged the Corniche breakwater to cheer on Abu Dhabi Ocean Racing to victory in their home In-Port Race. The team included the 23-year-old Adil Khlaid, who beat over 120 other hopefuls to become the first Emirati sailor to compete in the race. Tens of thousands of supporters lined the city’s sweeping Corniche breakwater as the Volvo Ocean Race fleet stormed into Abu Dhabi, with thousands more fans flocking to the Race Village which had its own unique flavour; from a traditional Arabian souk market greeting visitors at the entrance to the skippers riding camels to their boats at the Leg Start. It all added up to a Stopover that will live long in the memory of all who experienced it.
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The world is beginning to open its eyes to what most Chinese have known for years - Sanya is one of China’s hottest tourist destinations. Located on the same line of latitude as Hawaii, and enjoying the same year-round sunshine, Sanya is among the first-choice vacation destinations for the country’s 1.3 billion people. In 2010 the local government decided it would take Sanya’s domestic success and promote the island as a major international tourist destination.
Case Study: Sanya
Sanya Deputy Mayor Wu Yanjun said the government realised that in order to gain the international exposure they desired, Sanya needed an international event with the ability to put them on the map. “If we wanted to have more tourists outside of China visiting the island, we needed an international platform to promote the place,’’ he said. “The Volvo Ocean Race travels around the world and it connects different nations and cultures, which greatly serves our objectives.” The government’s partnership with the Volvo Ocean Race surpassed expectations when the race visited China for the second time in the 2011-12 edition, having stopped at Quingdao in 2008-09. During the two weeks that the Sanya Race Village’s gates were open to the public in February 2012 the Stopover attracted more than 270,000 visitors. It also created a platform for more than 6,000 VIP guests, the largest programme of its kind in the 39-year history of the race. Of those, a significant number were invited guests of organisers, teams, partners and sponsors, many of them coming from Asia and all taking advantage of the unique environment offered by the race. Volvo Ocean Race CEO Knut Frostad said the number of guests at the Stopover illustrated the high regard with which stakeholders held the city. “China makes the perfect Stopover base for the Volvo Ocean Race on so many fronts,” Frostad said. “The chance for businesses to develop personal relationships with clients in an environment like this, out on the water, in a relaxed atmosphere over several hours, is very valuable.” However, the international exposure began well before the Volvo Open 70s docked at Sanya Bay in February, Mr Wu said. “Team Sanya started to attract media attention in Alicante,” he said. “The media coverage of our team and our city intensified when the fleet arrived in Sanya. “The biggest benefit Sanya can reap as a Stopover host is to enlarge the city’s fame and promote our image worldwide via media exposure, as Sanya is making a lot of effort in developing its tourism sector.” Following the success, the Deputy Mayor had some sage advice for other cities considering hosting the race. “Putting a good team together is of paramount importance for a successful Stopover,’’ he said. “Like any major sports event, the Volvo Ocean Race presents challenges in terms of its preparation, operations and logistics. A Stopover’s success relies on a good team that can work together closely and communicate to the race headquarters effectively.”
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“The Volvo Ocean Race travels around the world and it connects different nations and cultures, which greatly serves our objectives.” Sanya Deputy Mayor Wu Yanjun
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Case Study: Galway Galway was a resounding success story in the 2008-09 Race with more than 650,000 people flocking to what was the penultimate Stopover. At 3am on May 24 2009, more than 10,000 people lined the docks to welcome the fleet into Ireland. Such was the success that Galway is back for the 2011-12 event as the Finish Port – and it is set to be bigger and better than before. The event has the backing of the Irish Government as well as small businesses in and around Galway. So highly regarded is the event that Ireland’s Prime Minister, Enda Kenny has been directly involved. The grand finale of the Volvo Ocean Race will be an eight-day festival of sport, culture, arts, entertainment and food. Alongside the Race Village will be the Global Village, a business-tobusiness initiative with a networking, exhibition and conference area. The Galway Global Village will feature shows, exhibitions, entertainment and an unprecedented climax to the Volvo Ocean Race 2011-2012. The In-Port race is on July 7, after which the winner of the Volvo Ocean Race 2011-12 will be officially declared. John Killeen, president of Galway organisers Let’s Do It Global, said the 2011-12 edition would “blow the 2009 event out of the water” while bringing an injection of up to €80 million to the economy. “The Galway 2011-12 Stopover is going to be bigger and better in every sense,” Killeen said. “There’s going to be plenty of entertainment for everyone, young and old, in what will be a glorious celebration of the Volvo Ocean Race and of Galway itself. We can’t wait to welcome the fleet into Ireland and once again show to the world what Galway has to offer.”
“We can’t wait to welcome the fleet into Ireland and once again show to the world what Galway has to offer.””
A vibrant city with a labyrinth of winding medieval streets and waterways, Galway has a maritime history and culture dating back centuries. Situated on the west coast of Ireland along the shores of Galway Bay and the Atlantic Ocean, Galway has long been considered a centre of cultural excellence and is already looking forward to extending a céad míle fáilte (a hundred thousand welcomes) when the Volvo Ocean Race returns in July 2012.
John Killeen, President, Let’s Do It Global
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Host City Requirements
In order to host a Stopover in the Volvo Ocean Race, Candidates will have to demonstrate that they can provide the required minimum level of service and infrastructure to the Volvo Ocean Race. This section summarises these requirements, which will be set out in greater detail in the Host City Agreement.
1. Race Village Requirements The Race Village is the focal point for the Stopover during the Event Period and comprises three main areas: (i) the On-water Area (for the specified sailing events); (ii) an Exhibition Area (onland); and (iii) the Team Area (on-land). The Event Period typically means the period of time from the estimated arrival of the boats, up to and including the day of departure, but shall be defined by mutual agreement according to each host city’s actual Stopover format and programme of events.
(i) On-water Area The On-water Area shall be available during the Event Period to enable the various sailing events to take place during the Stopover. These events include the Leg Finish, In-Port Race and Leg Start, Pro-Am races and practice sails. The On-water Area may also be used for the Volvo Ocean Race Academy. The actual area will be determined by agreement between VOR and each host city. Additionally, both press and hospitality boats will access the On-water Area on key event days. The key requirements for the On-water Area are: »» Boats: race management, press and TV boats (with English speaking drivers) to be provided in accordance with VOR specifications. »» Personnel: various personnel who are experienced in running world class sailing regattas
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(ii) Exhibition Area Exhibition Area availability shall typically be from 10 days before the Event Period until 7 days after the Event Period (and should be open to the public during the Event Period until the boats depart). The Exhibition Area is where: (i) all of the on-shore public activities take place; (ii) where VOR will establish the Volvo Ocean Race Experience; (iii) and where VOR, the host city and all of the sponsors will base their hospitality and other activities. The boats are berthed in the Exhibition Area when they are not racing or being worked on in the Team Area. The Volvo Ocean Race Academy is based in the Exhibition Area and requires the following: (i) Boat park of approximately 400m2; (ii) boat launch/retrieval facilities; (iii) changing, shower and toilet facilities; (iv) boats and personnel (as specified by VOR); and (v) classroom with capacity for minimum 15 adults/32 children seated at tables) VOR’s corporate social responsibility programme (“Keep the Oceans Clean” in the 2011-12 Race) should also be located in the Exhibition Area and will require approximately 50m2 of space (with basic utilities). The Exhibition Area should be a clean and dust-free area within an existing or planned port or marina area; with a minimum area of 10,000m2. VOR will work with the host cities from the signing of the Host City Agreement through to event delivery to plan the space, the operations and the event in accordance with a timetable set out in the Agreement. In addition to providing the minimum space, the Exhibition Area requirements include: »» Berthing: secure berthing for up to 12 yachts (as well as berthing for press/TV and hospitality boats) »» Car and bus parking »» Catering: ensure suitable commercial catering facilities for the public
Team Area availability shall typically be from 7 days before the Event Period until 5 days after the Event Period. The Team Area will ideally be part of (or immediately adjoining) the Race Village and is where the teams can construct their shore bases and carry out work on their race boats, rigging and sails for the period from the Leg Arrival to the Leg Departure. Ideally, the Team Area should be a flat and clean area, providing 1,200m2 of space for each team entry, and combined together up to a maximum of 15,000m2. In addition to the space requirements, an overview of the team requirements are: »» Bases: each team requires an 18m x 18m site for a shore base (as well as space for two 20ft shipping containers). »» Fueling facilities »» Forklift: one 3 tonne forklift and one five tonne forklift »» RIB berthing
»» Licences: for all relevant activities in the Race Village
»» Sail loft and sail measurement area: a tented/covered space (well lit with a wood-floor) This area can be located away from the Race Village by agreement with VOR (subject to the provision of any necessary logistical support)
»» Public amenities: such as parking, first aid and toilet facilities
»» Security
»» Security
»» Utilities (power and water), toilets, waste and cleaning
»» Stage: For entertainment programme, prize-giving ceremonies and team introductions etc (capable of accommodating 50 people at any one time)
»» Yacht haul and crane: a haul out area large enough to accommodate up to 12 yachts and their masts and a crane capable of lifting a 17 tonne yacht
»» Entertainment: the organisation of entertainment and provision of outdoor screens and sound/PA systems.
»» Temporary building permissions/licences »» Utilities (power and water) »» Waste and cleaning
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(iii) Team Area
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2. Operational Infrastructure and Service Requirements VOR’s operational infrastructure needs require approximately 800m2 of permanent or temporary good quality office space that is inside, or immediately adjoining, the Race Village. An overview of the principal operational infrastructure and service requirements are: Accommodation: hotel or apartment accommodation for 40 VOR race operational staff »» Key Suppliers: sourcing of key suppliers (for example charter vessels and hospitality tents), car parking and the provision of directional signage to promote the Race Village »» Media Centre: Media Centre and operational offices of approximately 400m2 »» Race school: a suitable building for team and VOR staff’s children of 120m2 »» Technology: (i) Telephone lines and high speed Internet connectivity around the Race Village (including the VOR Offices, Media Centre and TV Compound) as specified by VOR; and (ii) Radio frequency approvals (as specified by VOR). »» VOR Offices: a number of individual offices totaling approximately 250m2
3. Television Requirements (for live production)
TV Compound & Offices
Portacabins or an existing building (subject to suitability and VOR approval) Adjacent parking for satellite uplink truck(s)
Tower, rooftop or crane/hoist
Tower, rooftop or crane/hoist location with unobstructed view of whole race course for RF equipment, cameraman and fixed camera
Power
Domestic and technical power required
Helicopter
1 Helicopter (as approved by VOR) with English speaking pilot and minimum of 20 hours flying time
Security
TV compound to be lit at night and fully fenced with 24 hour security
4. Event Requirements VOR will work with each host city from their announcement as a Stopover in order to assist the port in the planning of suitable events during the Stopover. These events are aimed at providing entertainment and activities for visitors outside of the sports events and prize-giving organised by VOR.
5. Resourcing/staffing requirements The host city must appoint fulltime project management staff with sufficient skill sets and experience to be able to plan and manage a highly successful Stopover in conjunction with VOR. VOR will require that core staff are appointed in accordance with the requirements and timetable set out in the Host City Agreement.
6. Operational Budget Requirement Candidates will be required to develop an initial operational budget during the bid process (outlining the Candidate’s anticipated costs and funding for delivering a Stopover). If necessary, VOR will provide information to enable each Candidate to develop such an operational budget. The Candidates, if appointed as a host city, shall be required to prepare a final operational budget for VOR’s approval. Following VOR approval, the host city shall be required to adhere to the approved operational budget (unless the parties mutually agree to any changes being made),
7. Hosting Rights Fee The bidding process is competitive. Therefore, in return for bringing a prestigious international sporting event such as the Volvo Ocean Race to a city (with the associated rights and benefits, global media exposure and economic benefit), VOR expects a hosting rights fee to be paid by host cities. The amount of the hosting rights fee will be discussed with Candidates on a case-by-case basis during the Candidate Phase of the bidding process and assessed in accordance with: »» the route considerations set out in The Bid Process on Page 13 »» the level of support, if any, the host city is able to provide to a team (or all of the teams) in the Volvo Ocean Race »» the size and strategic importance of a Candidate’s country for VOR commercial partners »» other factors such as additional commitments to market and promote the Volvo Ocean Race and the sport of sailing more generally
Each host city will be required to supplement the Volvo Ocean Race Experience with its own programme of entertainment activities to include a stage for concerts/prize-givings etc, as well as a venue for the gala dinner.
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Photo credits: Marc Bow/Volvo Ocean Race Nick Dana/Abu Dhabi Ocean Racing/Volvo Ocean Race Diego Fructuoso/Team Telefonica/Volvo Ocean Race Hamish Hooper/CAMPER with ETNZ/Volvo Ocean Race Yann Riou/Groupama Sailing Team/Volvo Ocean Race Ian Roman/Volvo Ocean Race Amory Ross/PUMA Ocean Racing/Volvo Ocean Race Ainhoa Sanchez/Abu Dhabi Ocean Racing Paul Todd/Volvo Ocean Race Rick Tomlinson/Volvo Ocean Race all images copyright Volvo Ocean Race
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For further information please contact: Angus Buchanan or Robert Datnow at The Sports Consultancy: vor@thesportsconsultancy.com T. +44 (0) 20 7 7323 0007