Australia have withdrawn as the hosts of the Commonwealth Games 2026. This has come as a huge blow as the Games were set to happen in Victoria but the state government has pulled out with only three years to go for the event. The reason for the same has been clarified by the Victoria Premier Dan Andrews stating the cost to host the 12-day sporting event is too high.
Andrews took to Twitter to confirm the decision noting that the cost is more than twice the estimated benefit the CWG event would bring to the state. He also added that Victoria agreed to step up as the host city at the last minute as they thought that it would boost the tourism and sporting infrastructure will be upgraded. Andrews also explained in detail that what the government will be doing after pulling out as the CWG hosts.
He said his government had initially budgeted 2.6 billion Australian dollars ($1.8 billion) to stage the Games in five regional cities but recent estimates put the potential cost as high as 7 billion Australian dollars ($4.8 billion).
"Bit of a long one this morning. You might have heard the news this morning that Victoria will no longer be hosting the 2026 Commonwealth Games. And I wanted to tell you about the decision. When the Commonwealth Games needed a host city to step in at the last minute, we were willing to help – but not at any price. And not without a big lasting benefit for regional Victoria.
"It’s now clear: more than $6 billion for a 12-day sporting event is just too high. It’s more than twice the estimated economic benefit the Games would bring our state. The main reason we agreed to host the Games was to create a big lasting benefit for our regions – with more housing, boosts to tourism and sporting infrastructure upgrades," Dan Andrews wrote in a series of tweets.
Meanwhile, Commonwealth Games Australia CEO Craig Phillips has reacted strongly to Victoria Government's decision and has lashed out at them for their withdrawal. He also called the estimates given by them as 'gross exaggeration' and also called the decision to scrap the Games as 'absolutely embarrassing'.
"The stated cost overruns in our opinion are a gross exaggeration and not reflective of the operation costs presented to the Victorian 2026 Organising Committee as recently as June this year. The Victorian Government wilfully ignored recommendations to move events purpose built stadia in Melbourne and in fact remained wedded to expensive temporary venues in regional Victoria.
"CGA welcomed the opportunity to review the financial analysis prepared independently of those involved at the coal face of planning and delivering. Even the most recent figures on a survey that's done globally about sporting cities, if you like, Melbourne had already slipped from 10th to 23. I can't see it going north after today's announcement and I would be very careful if I was an international sporting body coming in and doing business in this state in the future," he said.