On the Scene in Guadalajara: Recession Hits Pan Am Olympics Group

(ATR) While the Pan American Sports Organization may have $24 million in the bank, members of the ruling Executive Committee will start flying coach to set an example of frugality in tough economic times.

The move to the back of the plane was confirmed by the committee as it opened two days of meetings in Guadalajara, site of the 2011 Pan American Games. While President Mario Vazquez Rana says the PASO treasury may have the money to continue to pay top dollar for airfares to meetings, the difficult economic climate requires that PASO set an example.

"This will be seen as a good signal of the economic position we face," said U.S. Olympic Committee delegate Bob Ctvrtlik. At 6 feet 6 inches, Ctvrtlik is the tallest of the 20 members of the PASO committee and said even though he might need the extra room of business class, he can make do in coach.

The savings expected were not specified by Vazquez Rana who said the restrictions could end when the economy improves. The largely symbolic move was the only travel cost-cut taken by the committee.

For his part, Vazquez Rana will keep flying, at his own expense, the private jet owned by his newspaper publishing company. He allowed that trips to Europe in the plane from Mexico can cost upwards of $250,000.

The decision to cut travel came after a treasurer's report that indicated the finances of PASO, which represents the 42 national Olympic committees of the Americas, appear to be in good shape, an opinion shared by the independent auditor as well.

Richard Peterkin told the committee that as of the close of 2008, PASO held more than $24 million in reserve.

But Vazquez Rana says the economic recession will affect revenues from the biggest source of revenue for PASO, the Pan American Games.

"It will be a huge problem for the performance of the Games in Guadalajara. We will be suffering a bit," he said.

The PASO share of ticket sales revenue from the2007 Pan American Games in Rio de Janeiro hit the $1 million mark, but Vazquez Rana is concerned whether Guadalajara can deliver the $750,000 forecast for 2011. The capital city of Jalisco state in central Mexico is the country's second largest, with 1.3 million people. But that’s only about one-eighth the size of Rio de Janeiro.

More from Guadalajara is scheduled for the Friday session of the PASO executive committee meeting. The day is reserved for organizers to deliver a complete report on preparations for the Games, two-and-a-half years away.

A coordination commission from the PASO leadership already spent two days this week examining Guadalajara's plans. While some venues are complete or well under way, there appear to be worries over the Pan American Village and whether it can be complete in time.

Unlike past Pan Am Games hosts, Guadalajara is building its village in the center of the city, a decision which makes construction more difficult. As of this week, the site was still undergoing demolition of existing buildings, with the start of actual construction of the apartments for 7,500 athletes and officials still weeks away.

In a brief appearance before the PASO committee, Jalisco Governor Emilio Gonzalez promised "an intense effort" to deliver the 2011 Pan American Games.

Members of the PASO executive will also hear from the three cities seeking the 2015 Pan American Games. Bogota, Lima and Toronto will deliver short presentations on their bids. The PASO general assembly will make the decision in November.

Written by Ed Hula.