Econolympics

ECONOLYMPICS THE ECONOMIC IMPACT OF HOSTING THE SUMMER OLYMPICS There is no doubt that hosting the Summer Olympic Games is a great honor for any city, but is it good business? All figures in U.S. dollars ATLANT^ 1996 $2.4 BILLION 77,000 new jobs in Georgia 11 MILLION TOURISTS TOTAL COST $500 million came from n ATLANTA RESULTS taxpayers./ More attendees than ever before. City of Atlanta reinforces its position as a global commerce hub. By 2006, number of international companies settling in the city had grown 30%, for a total of 1,600. STREETSCAPING ROAD IMPROVEMENTS CONSTRUCTION OF CENTENNIAL OLYMPIC PARK Atlanta 1996 AIRPORT EXPANSION IMPROVEMENTS IN PUBLIC TRANSPORTATION PUBLIC HOUSING SYDNEY 200 6.8 BILLIUN TOTAL COST Sydney 2002 ECONOMIC IMPACTS 6 bi+ 6,1 bi 610 mi 680 mi SYDNEY RESULTS 288mi THE GAMES TOURISM BUSINESS - Long-lasting financial rewards. Massive exposure and publicity, leading to new business opportunities. Olympic Park turned into a International Inbound tourism spending during 2001 New Business generated by the Australian business profile Technology Showcase Ticket sales Sponsorship revenues for organisers exposure for revenue for organisers of Sydney, NSW and Australia business and exhibition centre. Source: Price Waterhouse Coopers, 2001 (in Clark, 2008 Table 3.20 - see footnote 14) ATHENS 2004 TOTAL COST $15 BILLION Investment led to positive infrastructure developments in: тM @ ATHENS 2004 CONVERSION OF STREETS INTO PEDESTRIAN WALKWAYS IN THE CITY'S HISTORIC CENTER NEW TOLL MOTORWAY ENCIRCLING THE CITY LIGHT RAIL SYSTEM METRO AIRPORT SYSTEM Rehabilitation of 300 hectares of disused land, 250 hectares ATHENS RESULTS of old garbage pits, and 600 hectares of former army camps. By 2008, most venues in disrepair. Annual costs to maintain sites of $785 million. Positive impact during preparation phase and during event, but long-term legacy negligible or even negative. Establishment of 250 hectares of park, recreation and environmental education areas. BEIJING 20 TOTAL COST 3 $40 BILLION Olympic games The costliest ever organized, dwarfing the previous record of $15 billion from Athens 2004 ACCELERATED GROWTH IN: MOBILE COMMUNICATION Beijing 2008 CLEANENERGY Ø ADVERTISING * TELEVISION O INTERNET e Refurbishment of 25 historic areas, including landmarks, old streets, four-corner residences from the Imperial period, BEIJING RESULTS and the restoration of the Forbidden City. Planting of new green space in Beijing the size of 3x Central Park in NY. GDP growth of 14.5% each year between 2001 and 2007. Long-term impact not yet clear. Tourist sector benefitted, while manufacturing suffered from plant closings due to air-quality improvement policies. LONDON 2012 $18 BILLION TOTAL BUDGET REGENERATION OF THE LOWER LEA VALLEY $2.7 BILLION london VALUE ADDED TAX $1.3 BI INFRASTRUCTURE $8.3 BI CONTINGENCY SECURITY ELITE SPORT AND PARALYMPIC FUNDING: FUND $42 Bil $9 42 MI! Is6 28 MI EXPECTED ECONOMIC BENEFITS: IMMEDIATE INCRE ASE in US$ millions LONGER TERM INCREASE (UNTIL 2015) in US$ millions UK residents income Increase in economic output per year $358 Economic output $ 2,140 TOTAL STIMULUS FOR THE ECONOMY $ 1,780 Consumer spending $ 1170 HIGH STREET RETAILERS $ 289 HOTEL SECTOR $ 192 $7,967 ENTERTAINMENT, FOOD & DRINK INDUSTRY VI$ 127 SUPERMARKETS m$ 125 3.5% OVERALL EXPECTED AIRLINES, CAR HIRE & OTHER TRAVEL SECTORS $ 62 GROWTH OF THE NATIONAL ECONOMY 17,900 Additional jobs per year LONDON RESULTS [21 - In terms of GDP, the University of Nottingham estimated an 84.4% chance of the Olympics having a positive impact in the UK over the 2005-2016 period. There's a 10% chance of losing $812 million. - Only time can tell the true outcome of the 2012 London Olympics.. 462 million Additional income for UK residents per year REFERENCES www.pages.drexel.edu www.visaeurope.com/en/newsroom/news/articles/2011/visa_2012_economic_impact.aspx CREDIT SEASON www.locateinkent.com www.reuters.com/article/2008/08/05/us-olympics-cost-idUSPEK25823820080805 www.bl.uk/sportandsociety www.gao.gov/new.items/d02140.pdf www.austlii.edu.au/au/journals/UNSWLJ/1999/38.html wwW.CREDITSEASON.CO.UK