Olympics to deliver £16.5bn to UK economy

Tuesday, 03 July 2012 09:01

By Kay Carson

The London 2012 Olympics will give the UK economy a £16.5 billion boost by 2017, according to a new report.

Lloyds Banking Group said the Games will also have helped to create the equivalent of 62,200 jobs during the period from 2005, when the capital was named host, to five years from now, mainly through tourism and construction projects.

As much as £5 billion of the total estimated gain could be generated in the five years after the Olympics, the bank said.

Around 10 million people are expected to visit the sporting spectacle, with approximately 1.2 million of these visitors coming from overseas.

Hotels and restaurants will experience the biggest impact from tourists, followed by retail and transport.

Patrick Foley, the group’s chief economist, said: “London 2012 is the most important sporting event the UK has ever staged. However it is also impacting our economy in a way that cannot be ignored.

“We’ve witnessed a construction project on an unprecedented scale, the economic ripples of which are being felt not only in the host city, but across the UK.

“As this study demonstrates, London 2012 will help support employment, tourism, consumer spending and living standards, not only this year, but for many years to come. And it could not have come at a better time, given the tough conditions in the UK economy.”

In addition, the Games will leave a legacy of six new neighbourhoods, with 11,000 homes, five schools, six community centres, and 250 acres of parkland, according to the research.

A ‘happiness effect’ is also expected as the Olympics lift the public mood and encourage consumer spending.

In the case of Euro 1996, this was equivalent to a gift of £165 to each man, woman, and child in England and it is anticipated that the effect will be at least as significant this time, the report said.

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