Queensland will reap vast economic gains if the Gold Coast wins the right to host the 2018 Commonwealth Games, Premier Anna Bligh says.
Ms Bligh on Monday said the state government would spend up to $11 million on a formal bid to host the Games, and if successful, would invest up to $1 billion in infrastructure over the next eight years.
She said up to 30,000 jobs would be created in the lead-up to and during the event, with tourism and construction the big winners.
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The Gold Coast will be competing against Abuja, the capital of Nigeria. Auckland is also considering making a bid.
Ms Bligh said the millions earmarked for the bid would be money well spent.
"Much of this funding would involve things like transport infrastructure that, in a growing place like the Gold Coast, would have been needed anyway," she said.
Ms Bligh said her government would now work closely with the Australian Commonwealth Games Association (ACGA), which is responsible for lodging the formal bid before May 2011.
ACGA CEO Perry Crosswhite told AAP that while receipts from sponsorship and tickets would not be a money spinner for the state, there would be real economic benefits for tourism, employment, taxes, restaurants and hotels.
"It also means governments tend to build a lot of infrastructure earlier than they would have, which means a lot in savings," he said.
However, Mr Crosswhite warned the bid may be hindered by Melbourne hosting the games in 2006.
"That would be something that people will ask questions about," he said.
"It's not going to be easy because Nigeria, and Africa for that matter, have never had the games before.
"Every country seems to take their turn ... It's a little bit early. Maybe one Games early."
However, Ms Bligh said she had spoken directly to the executive of the International Commonwealth Games Federation in India late last year regarding Melbourne recently hosting the Games.
"There is no limit on how often a country can host the Commonwealth Games," she said.
"Obviously, that will be one factor that might be taken into account by the judges, but there are many other factors."
Ms Bligh said the government decided to support a formal bid after a positive assessment by the group responsible for reviewing potential sites for the Commonwealth Games Federation.
Event Knowledge Services found the Gold Coast could provide a compact Games venue with a number of excellent existing facilities, and the potential to develop new facilities.
Its transport and accommodation facilities were also given the nod.
If the Gold Coast is successful, it will host all core sporting events, with a handful of additional events held in Brisbane, Cairns and Townsville.
As part of the bid, the government will consider an athletes' village at Gold Coast Parklands at Southport, a new velodrome, an upgrade of the Gold Coast Aquatic Centre, and work at the new Carrara stadium to accommodate track and field events.
