This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Toronto's Strong Economy To Score Big From 2015 Pan Am/Parapan Am Games: CIBC

Stocks in this article: CM

Affordable housing and tourism growth seen as an important economic legacies from the Games

TORONTO, Sept. 11, 2013 /CNW/ - Toronto's economy, already the strongest among Canada's major cities, is likely to get a significant boost from the 2015 Pan Am/Parapan Am Games both from increased tourism and capital spending on sports venues and infrastructure projects, finds a new report from CIBC World Markets.

"The combination of the scale and brief duration of the Games suggests that the economic benefits to the city of Toronto will be significant," says CIBC Deputy Chief Economist Benjamin Tal, who co-authored the report with CIBC economist, Andrew Grantham. "Those will be enhanced by the city's already strong economic momentum."

The Toronto Pan Am Games will be Canada's largest multi-sports Games ever hosted in terms of the number of athletes participating. An estimated 7,500 athletes are expected to take part in the Toronto Pan Am Games, three times more than the number of competitors in the Vancouver 2010 Winter Olympic Games.

While a big sporting event can lift a city that's in decline, that stimulus tends to be limited and temporary in the absence of strong organic economic fundamentals. "Fortunately, that's not the case for Toronto," says Mr. Tal.

"In fact, the GTA's economy has been on a prolonged upswing. During the year ending June 2013, population growth in the GTA was twice as fast as in the rest of the country, while employment advanced even faster."

As a result of these strong fundamentals, Toronto's economy once again takes the top spot among the country's major urban centres in the CIBC World Markets' latest Canadian Metropolitan Economic Activity Index rankings. The city has ranked number one since the summer of 2011.

The Pan Am/Parapan Am Games' has given Ontario's economy an added boost from capital spending that primarily involves the building or upgrading of more than twenty venues for the Games, and the redevelopment of the West Don Lands, a 32-hectare former industrial site, the report says. Overall, the Games are expected to generate about 26,000 new jobs.

Mr. Tal notes that the construction of the athletes' village, which will be converted to affordable housing after the games, is an important part of the game's potential legacy. But like any other infrastructure project, he says there are no shortage of risks, including unsuccessful integration with the rest of the city and unforeseen financial and environmental issues.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,677.90 +216.58 1.32%
S&P 500 1,950.82 +23.71 1.23%
NASDAQ 4,452.7920 +69.9450 1.60%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs