Weektwohighlights

WEEK TWO HIGHLIGHTS
Jon Kemp, Research Coordinator, Utah Travel Council
Wednesday, February 20, 2002

Advertising Gold

Following the disappointing results of the 2000 Summer Olympics in Sydney, NBC made several adjustments for its coverage of the 2002 Winter Games in Salt Lake City. After a week and a half of better-than-expected ratings, NBC is pleased with its adjustments. The network reduced its primetime coverage from five hours to three and a half, placed more emphasis on live competition, and appealed to the younger demographic by placing X-like events like snowboarding and ski aerials on taped coverage early in the broadcast. Indeed, the appeal to younger viewers has worked. NBC's coverage so far has generated a 17% increase in viewers in the 18 to 24 demographic. The focused coverage, combined with increased interest from a domestic Olympics, the success of American athletes, and the skating controversy, has spurred NBC's coverage to an eleven-day 18.2 average primetime rating, 11% above the eleven-day average in Nagano and slightly better than the 17.9 rating guaranteed some advertisers. Each rating point equals 1.06 million television households. Through the first eleven days, NBC estimates that 171 million Americans have tuned in to the Salt Lake City Games and estimates more than 180 million viewers before the Games end. Households on average are spending between 90 minutes and two hours watching Olympic coverage, an increase of 6% over Nagano in 1998. The MSNBC and CNBC cable operations are also enjoying a noticeable increase in viewers. Despite being on tape-delay, ratings on the West Coast are consistently running 8 percent higher than they are in the rest of the country.

Olympic Branding

From a Washington Post story that appeared February 14, 2002: "Strike up the Brand" by Hank Stuever.

"Under the watchful eye of 'the crystal snowflake' (Salt Lake 2002's ubiquitous logo), Olympic attendees pay for and eat McDonald's, drink Coke and Bud, get cash from Visa ATMs, develop pictures at Kodak, [watch NBC's coverage, and] contemplate scores and data tabulated by SchlumbergerSema (taking IBM's place as a ' Top V' sponsor), which uses Gateway computers and Seiko clocks for the job. VIPs are shuttled around in GMC and Chevrolet trucks and cars - just one of many 'value in kind' trade-offs between corporations and organizers.

"The financial interdependence of the Games and its sponsors goes all the way back: Kodak bought ads in the 1896 results book in Athens; Coca-Cola signed on as a sponsor in 1928 at Amsterdam. Hitler's Games in Berlin saw the first TV coverage (no rights were sold), but there wasn't a live broadcast agreement until the 1956 Winter Games in Cortina, Italy, when the torch runner tripped over a television cable and snuffed out the flame. (It was relit.) With TV came the powerful notion that the Olympics sell. It's a remarkable and vaguely unsettling thing to watch, up close and in person, without television to guide you: all this free stuff, all the value-in-kind that orbits this distinct universe; people equating the ideals of sportsmanship, global unity and achievement with licensing agreements, mind-boggling accounting practices, and, in a capitalist nation, a strangely restricted market."

A Different Security Force

Behind the scenes, corporate sponsors such as McDonald's, AT&T, Visa, Coca-Cola, Anheuser-Busch and Samsung are employing their own army of security personnel. Comprised mostly of former elite military personnel, FBI agents, and Secret Service people, they are in town to protect the people and facilities connected to the corporations who employ them. They work closely with SLOC and the Secret Service to coordinate security and combat possible incidents. They have provided metal detectors at venues such as the Bud World complex, bodyguards for top executives and key VIPs, hired muscle to patrol hospitality centers, and key technological features ensuring no security glitches such as background checks, personalized local cell phones, individual photo credentials for guests and employees, and an army of engineers and technicians to prevent hackers from jeopardizing key elements of the Games.

Gold, Silver, Plastic, and Lead

Hot selling items such as fast-food, Olympic pins, anything bearing the Olympic symbols, "roots" apparel, and warm-weather gear have boosted local retailers. However, most of the activity has been limited to a few blocks downtown and Main Street in Park City. Many other area merchants are disappointed that the Olympic festivities have left them out in the cold. Traffic concerns and reports of high prices are reportedly keeping locals away from area shops and restaurants. However, a spokesperson for the Salt Lake Area Chamber of Commerce is not surprised by the pattern of Olympic spectators, "If you look at what happened in Atlanta and Sydney, it was the same. Many businesses saw business drop off during the Olympics. The Olympics are really just kind of icing. The major benefit of the Games is pre-Games and post-Games." At times, police say the crowds downtown have topped 100,000, mostly congregating at Olympic Square, Bud World, Main Street and Gateway.

In Park City, an estimated 200,000 have visited the city in the first eleven days of the Olympics, topping out at more than 45,000 on Saturday the 16th. Despite the Olympic success of area merchants, they are expecting to just break even for the entire month due to the lulls in skier visits prior to and following the Games.

Statistics from Visa illustrates that business is booming for some in Salt Lake. Between February 1st and February 18th, purchases totaling $129 million were made with Visa cards, up 31% from the same period last year ($99 million) and up 23% from the $105 million charged by Visa users during the first half of January. At specialty and apparel merchants, Visa's $31 million sales volume was up 71% over last February and 55% from January for the same dates. At restaurants, February Visa charges totaled $11 million, up 50% from last February's $7.3 million and up 40% over the $7.8 million in January. The Visa statistics also indicate that average daily spending at Olympics venues in Salt Lake City is about 89% of the daily spending average at Olympic venues in Sydney's 2000 Summer Games. The company described that as "remarkable" considering the smaller group of athletes and competitions at a winter event.

Top Visitor Attraction

The state's top tourist attraction, Historic Temple Square, is accommodating between 10,000 and 20,000 visitors per day. Olympic spectators have pushed the number of visitors on Temple Square to double or triple the usual number expected for this time of the year. The Church estimates that around 200,000 will likely visit the Square during the course of the Olympics. Similarly, performances to the theatrical production, "Light of the World," the Church's contribution to the Cultural Olympiad, have been sold out with nightly audiences of around 20,000. The Church also has made available a media center for visiting journalists. Through the first week, the media center had accommodated over 1,100 journalists from 39 countries. The majority has been from the U.S., although a sizeable number of journalists also arrived from Japan, Canada and Germany.

Paralympic Games

As the Olympics continue, interest has begun to increase for the Paraolympics. Ticket sales recently passed the 100,000 mark and at least two events (men's downhill and ice hockey) are nearly sold out. Approximately 235,000 tickets were made available last November and as expected, early sales were slow. The number of visitors to the official website www.paralympics2002.com has tripled since the first week of the Salt Lake Games. Tickets appeal to many people because they are affordable for nearly everyone, with most selling for around $10.

Tickets (and not just to events)

Officials from SLOC announced that they have already passed their $180 million goal for ticket revenue, selling 94% of 1.6 million tickets. On the street, brokers and scalpers are beginning to charge between 10 and 20 percent above face value for most items and double or even triple for high-profile events like figure skating and hockey. This is a complete reverse from a few days ago, when so many tickets were available and demand was so low that spectators often found themselves paying face value or less for nearly every competition. Brokers without the city-mandated $750 business license were beginning to receive tickets from Salt Lake law enforcement officers. According to Salt Lake City Olympic planner John Sittner, around 70 tickets have been issued to those selling merchandise on the street without a license. At least a dozen ticket scalpers are facing class B misdemeanor charges in 3rd District Court and more charges are expected.

Squeaky Clean and Staying that Way

Salt Lake has a reputation for its clean streets and is working hard to ensure that the influx of visitors does not generate an overflow of trash on city streets. To collect the 5 million pounds of trash at Olympic venue sites during the 17 days of competition and the estimated 44 times the normal amount of trash downtown, the city has employed several squads of workers to roam the streets and drive golf-cart sized trash collectors in the wee hours of the morning. The city hopes to recycle up to 85% of the waste.

Off the Beaten Track

Although most areas outside the Wasatch Front have reported few Olympic visitors, one city continues to attract higher-than-usual crowds. Reports from businesses and attractions in St. George indicate that the area is consistently busy. Local officials attribute the increased interest to Salt Lake residents who wanted to get away from the commotion and hassle of the Olympics. Also boosting local business were several events slated for the Olympic time period, including the St. George Area Parade of Homes, a 90-team Little League baseball tournament and the Utah High School Athletic Association's Class 3-A Wrestling Tournament, usually held in Orem or Ogden. Warm weather has also spurred business at local golf courses. Sunbrook Golf Course reported a 19% increase in golfers over the same week last year and Southgate Golf Course increased 26%. Local hoteliers reported 100% occupancies through the President's Day holiday weekend.

Olympic Notes - Week One Highlights
Olympic Notes - Final Highlights

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