It is believed that the Olympics bring immense numbers of revenue to whichever country they are held in. As of the 2012 Olympics, being held in London, the majority of the money for the games has already been spent. With the global recession taking place, will London make profit after the 2 billion pound spending limit?
. By the end of March, the London Organising Committee, (LOC) for the Olympic Games will have already spent a quarter of its 2 billion pound budget. The bank of England is worried that The Olympics will draw too much tourism to only London, while other cities are lacking tourism. In the 2000 Olympic Games, held in Sydney Australia, the total economic impact of the Games was $4.5 Billion. Along with the revenue from the Games, Sydney created 90,000 new jobs. The Economic Impacts from the London Olympics are generated from capital costs, such as spending on construction and transport upgrades, operating costs such as policing and broadcasting, plus spending by tourists, or inward investment or trade.
An estimated number of 30,000 new jobs are expected to be generated in London from the Olympics. More construction jobs were created to build new stadiums and buildings. The English government is hoping that the tourists will spend money and bring revenue to the economy. The government factors in three “during game” factors. These factors include Revenue from hosting the Games, During game visitor impacts and cost of hosting the games.
Since the creation of the new jobs, London has slowly started to creep its way out of the recession. If London can keep those jobs then the economy will be on the right track. Between July and September, Britain’s economy will be boosted. Whether this becomes a lasting legacy is based entirely on what happens to the Olympic village after the Games, and the tourists have gone.
Will London be able to maintain the jobs that were created during the Olympics?