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The economic impact of the 2012 London Olympics

The ECONOMIC IMPACT OF THE 2012 LONDON OLYMPICS

EVERY FOUR YEARS ANOTHER CITY PLAYS HOST TO THE SUMMER OLYMPICS.
TO PREPARE FOR THE SPORTING EVENTS. THE MULTITUDE OF INTERNATIONAL GUESTS AND COUNTLESS TELEVISION VIEWERS,THE HOST CITY MUST SPEND A LARGE SUM OF MONEY ON FACILITIES,TRANSPORT INFRASTRUCTURE,HOUSING AND MAINTENANCE.HISTORICALLY,MOST CITIES MAKE A LOSS ON THEIR INVESTMENT IN THE GAMES,BUT SOME HAVE COME OUT ON TOP.SO,AS LONDON PREPARES TO HOST THE 2012 OLYMPICS.WE ARE WONDERING HOW THE CITY WILL FARE.LET'S SEE HOW THE CASH IS BEING SPLASHED AND WHETHER OR NOT WE'LL SEE ANY OF IT IN RETURNS.

OLYMPICS BUDGET
WHO IS PAYING FOR THE 2012 OLYMPICS?
£5.975 BILLION
THE CENTRAL GOVERNMENT

£2.175 BILLION
NATIONAL LOTTERY

£925 MILLION
GREATER LONDON AUTHORITY

£250 MILLION
LONDON DEVELOPMENT AGENCY

£9.325 BILLION
TOTAL ESTIMATED BUDGET


WHAT THE MONEY'S BEING SPENT ON

CORE OLYMPIC COSTS .... £3.081 billion

INFRASTRUCTURE AND REGENERATION .... £1.673 billion

CONTINGENCY .... £500 million

OTHER (NON-ODA**) OLYMPIC .... £388 million

POLICING AND WIDER SECURITY .... £600 million

TAX*** (NOTE) .... £836 million

+PROGRAMME CONTINGENCY .... £2.247 billion


That's £2.906 billion more than the projected budget
When London made the bid to host the games in November 2004.

*VENUES, TRANSPORT INFRASTRUCTURE,SITE SECURITY AND PROGRAMME MANAGEMENT
**OLYMPIC DELIVERY AUTHORITY: THE ORGANIZATION RESPONSIBLE FOR ENSURING THAT ALL VENUES AND INFRASTRUCTURE ARE DELIVERED FOR THE 2012 OLYMPICS
***FOLLOWING HM TREASURY CONFIRMATION THAT THE OLYMPIC DELIVERY AUTHORITY WOULD BE UNABLE TO RECLAIM VAT. TAX LIABILITIES OF £1.173MILLION WERE
INCLUDED IN THE MARCH 2007 BUDGET (£836 MILLION INCLUDED IN FIGURE 1 ABOVE.PLUS £337 MILLION WITHIN THE PROGRAMME CONTINGENCY).*
COMMONS COMMITTEE OF PUBLIC ACCOUNTS
+CHANGES IN STATUTORY REQUIREMENTS (ENVIRONMENTAL PROTECTION AND HEALTH AND SAFETY). UNFORESEEN GROUND CONDITIONS AND POTENTIAL INCREASES
IN THE COST OF SECURITY AND CONSTRUCTION.

POSITIVE ECONOMIC IMPACT

ALTHOUGH SPENDING IS HIGHER THAN ORIGINALLY ANTICIPATED. THERE IS GOOD NEWS: THE 2012 OLYMPICS ARE EXPECTED TO GIVE A NICE BOOST TO THE BRITISH ECONOMY.

IMMEDIATE ECONOMIC IMPACT DURING
THE SEVEN-WEEK GAMES PERIOD IN LONDON

£750 million
INCREASE IN CONSUMER SPENDING

£1.14 billion
INCREASE IN ECONOMIC OUTPUT

£229 million
INCREASE IN UK RESIDENTS' INCOMES
(from increased wages,profits from home rentals, and increases demand for output and services)


LONG-TERM ECONOMIC IMPACT OF
THE LONDON OLYMPICS FROM 2012 TO 2015

TOTAL STIMULUS FOR THE ECONOMY
£5.1 BILLION

INCREASE IN ECONOMIC OUTPUT PER YEAR
£1.37 BILLION

ADDITIONAL INCOME FOR UK RESIDENTS PER YEAR
£296 MILLION

PERCENT OF OVERALL EXPECTED GROWTH OF THE NATIONAL ECONOMY
3.5%

ADDITIONAL JOBS PER YEAR
17,900

During the seven weeks of games,international visitors will spend an estimated £709 million in the UK that's 18 percent more than if the games were not taking place.

After the Games are over, the Olympics Park will be redeveloped to provide 8,000 homes and 2,800 flats.

Lloyds TSB predicts that the London Olympics, will generate £10 billion in revenue for the British economy as a whole.


CONSUMER SPENDING BREAKDOWN

BREAKDOWN OF THE £750m INCREASE IN CONSUMER SPENDING


£7.7M
PETROL

£79.9m
SUPERMARKETS

£8.7m
TRAVEL

£16.3m
AIRLINES

£14.7m
CAR HIRE

£199m
CASH

£77.5m
ENTERTAINMENT

£4.0m
FOOD AND DRINK

£4.8m
HEALTH

£184.8m
HIGH STREET RETAILERS

£122.6m
HOTELS

£2.7m
INSURANCE

£24.1m
MISCELLANEOUS

£3.3m
MOTORING

TOTAL
£750M

The economic impact of the 2012 London Olympics

shared by rmmojado on Jan 24, 2012 in Olympics

The economic impact of the 2012 London Olympics

shared by rmmojado on Jan 24, 2012 in Olympics

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Every four years another city plays host to the summer Olympics. To prepare for the sporting events, the multitude of interational guests and countless television viewers, the host city must spend a l...
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