How the Olympics is worth billions to the UK economy

Posted in 'Credit Crunch' by Ian Carpenter

06 July 2012

Prime Minister David Cameron has placed his support behind the London Olympics by claiming that the Games will boost the UK economy over the next 4 years, to the tune of £13 billion.

Cameron has stated that the Olympics ‘should be great for our economy’, going on to explain, “We shouldn't see them as an expensive luxury in tough times - it is precisely because times are tough that we have got to get everything we can out of them to support jobs and growth in the economy. I am confident that we can derive over £13 billion benefit to the UK economy over the next four years as a result of hosting the Games. I am certain that when you add in the benefits from construction the total gain will be even greater.”

A separate study – carried out by Lloyds Banking Group – backs up the figures, predicting that the UK economy will benefit from £16.5 billion as a result of hosting the Games.

London will take an estimated £6 billion and the rest of the UK, £10.5 billion. The report also states that the equivalent of 62,200 jobs will be created.

Those living in Stratford and surrounding areas will benefit directly from the transformation of East London, including the subsequent job creation and improved housing once the Games have finished.

The impact will also be felt further afield, even where events are not being held. 10 million people are expected to visit the Games, but it is estimated that an extra 4.5 million people will visit the UK after the whole event has ended, with the additional tourism resulting in an extra $2 billion being spent – the knock-on effect of additional visitors should be felt for years.

One thing is for sure, the Olympic Games will provide a welcome distraction from the constant negative press on the economy, and what seems to be one banking crisis after the other. The Games should help to bring the feel-good factor back to our country, and alongside the predicted boost to the economy, could help to lift everyone from the doom and gloom.

For that reason, the Games can’t come soon enough.

Ian Carpenter is the Operations Manager of checkmyfile, has a degree in Business Studies and is a Graduate Member of the Institute of Credit Management