Item - 2014.ED28.5

The Economic Development Committee recommends that:

1.         City Council receive the report (January 6, 2014) from the City Manager and the General Manager, Economic Development and Culture for information.

This report provides a high level feasibility review of considerations with respect to the City of Toronto hosting the 2025 World Expo.  As directed by Council, the issues examined in this report include the following:

•           procedures for selecting host cities;

•           competitive position of Toronto compared to other potential bid cities;

•           impact of past Council decisions and their bearing on any future bid;

•           potential revenue to the City as a result of hosting the 2025 World Expo;

•           potential number of jobs that would be created within the City as a result of hosting the 2025 World Expo;

•           City lands that may be useful in hosting this major international event;

•           potential legacy projects;

•           potential trade and investment opportunities;

•           land use, transportation and infrastructure issues;

•           an estimate of time, cost and resources required to prepare formal bid documents; and a

•           summary of the pros, cons and risks involved in bidding for and hosting the 2025 World Expo.

As part of this review, Ernst & Young (EY) were commissioned to prepare the attached, Feasibility Study in Respect of Hosting the 2025 World Expo, November 2013, (Appendix A).

There are significant positive impacts to hosting a World Expo.  On a global scale a World Expo provides a unique forum for nations and people from around the world to come together, focus attention on issues of global importance, and offer innovative ideas, products and services to address anticipated challenges and take advantage of opportunities.  World Expos can also catalyze investment in infrastructure, development and renewal of urban areas such as the Port Lands.

The EY report notes that hosting a World Expo would increase Toronto's global visibility and name recognition, enhance exports, and increase opportunities to attract investment and jobs, significantly more conventions and conferences, and reinforce its reputation as a major arts and culture hub both in Canada and around the world.  

There is also a strong regional context (in Toronto's case for the northeast and central parts of the United States and eastern Canada) since the vast majority of visitors are from a day's travel. Hosting a world's fair would strongly enhance Toronto's competitive position in the Great Lakes super-region.

However, there are also significant costs and risks associated with a bid to host a World Expo.  Canada's membership in the Bureau International des Expositions (BIE), the governing body responsible for organizing World Expos, expired in December 2013 as directed by the federal government.  Since federal government support is essential for a successful bid, there would have to be a reversal of the decision to exit the BIE and the federal government would have to become a strong supporter and use its international offices to promote Toronto's bid.  The support of the government of Ontario is also essential.

The next stage in pursuing a bid to host the 2025 World Expo would be to undertake a more detailed Pre-Bid Phase analysis at an estimated cost for consultant services and staff of about $1 million.  If Council then decided to submit a formal bid, the estimated cost to prepare the necessary supporting documents and promote the bid is in the range of $10 million to $15 million.  If Toronto's bid was successful, a high level estimate of the net cost to host the 2025 World Expo based on the illustrative scenarios in the EY report is in the range of $1 billion to $3 billion which would need to be borne by one or more of the three orders of government.

Time is also of the essence.  Allowing for a total time period of 24 months to complete the Pre-Bid and Official Bid phases, including decisions by City Council, Government of Ontario, and Government of Canada, the Pre-Bid analysis must be initiated by May 2014.  Meeting this timeline will be complicated by the prospect of all three orders of government having elections over the next two years and the running of the Pan/Para Pan Am Games in 2015.