Olympic Games held in Los Angeles could increase economic output by up to $11.2 billion in Los Angeles and $18.3 billion nationwide, according to a new economic impact assessment, highlighting significant legacy benefits of LA 2024’s low-risk Games concept. To be submitted with the LA 2024 Bid Book to the IOC on February 3, 2017, the study was conducted by Beacon Economics LLC and the University of California, Riverside School of Business Center for Economic Forecasting and Development, and was commissioned by LA 2024 as required by the IOC’s candidature process.
The economic impact assessment analyzed direct expenditures by a future Los Angeles Organizing Committee for the Olympic Games and visitors to Los Angeles, along with their associated indirect (supplier) expenditures and induced (employee) expenditures. With no permanent construction required to host the Games in LA, tourism and Games operations will be the sole primary drivers of this positive economic impact. The study forecasts that Los Angeles will benefit from: ● increased gross economic output of between $10.62 billion and $11.18 billion; ● additional tax revenues of between $152 million and $167 million; ● the equivalent of between 74,308 and 79,307 new full-time jobs; ● between $6.72 billion and $7.07 billion in direct additional spending; and ● worker earnings of between $4.88 billion and $5.11 billion.
“There is little doubt that hosting the Olympics is an enormous boost for a local economy— both in the short term as driven by activity surrounding the events themselves, and in the long term given how these events raise the global profile of the region,” said Christopher Thornberg, Founding Partner of Beacon Economics and Director of the UC Riverside School of Business Center for Economic Forecasting and Development. “The worry is always that these benefits come at too high a cost but because Los Angeles already has many of the assets needed for a successful Olympic experience the upside is far greater than it would be for many other cities who would be hosting for the first time.”
“LA 2024’s fiscally responsible approach has reduced risk for the City of Los Angeles and the IOC. Now, in addition to reducing downside, we are able to quantify some really exciting upsides from LA 2024, with $11 billion in economic activity and a new Olympic job sector equivalent in size to LA’s arts and recreation industries combined. And that’s just short term spending through 2024. It doesn’t count the incredible promotional value of bringing the Games to our city. With LA 2024, we are seizing the opportunity to put forward a plan that will serve our city, our communities and the Olympic movement long after the 2024 Games are over,” says LA 2024 Chairman Casey Wasserman, with Los Angeles Mayor Eric Garcetti stating:
“In 1984, Los Angeles showed the world that a responsibly managed Olympic Games could add billions of dollars to the local economy and bring progress that could be felt for decades to come — and we’re ready to do that again in 2024. This report shows that L.A. is an ideal, low-risk host for the 2024 Games, and that we have the right plan in place to make sure that a winning bid brings a lasting Olympic legacy back to our city.”
This story first appeared in the blog, The Sport Intern. The editor is Karl-Heinz Huba of Lorsch, Germany. He can be reached at ISMG@aol.com. The article is reprinted here with permission of Huba.