Trends & Features

London Olympic and Paralympic Games boost UK economy by £9.9 billion

The UK economy has seen a £9.9 billion trade and investment boost from the London Olympic and Paralympic Games, one year into a four year programme of activity and events, according to a government report.

The boost comes from businesses securing contract wins, additional sales and new foreign investment in the last year.

Further reports published by the government and Mayor of London show progress against all the legacy commitments including:

• An increase in volunteering.

• 1.4 million more people playing sport at least once a week than in 2005 when the bid was won.

• The legacy of all the permanent venues on the Olympic Park secured within a year of the Games – the park has started to reopen this summer with major sports, music and cultural events.

• An independent report projects that the total benefit to the UK from hosting London 2012 could reach up to £41 billion by 2020.

• £4 billion of investment into London.

• 70,000 Londoners helped into Games related employment.

The cost to put on the London Olympics has been estimated at just under £9 billion.

UKTI’s target is to deliver £11 billion of economic benefit from London 2012 by July 2016 from additional exports, investment into the UK and successful bids for high value international contracts.

The headline figure of £9.9 billion has been broken down in the report as follows:

• £5.9 billion of additional sales from Olympic related activity.

• £2.5 billion of additional inward investment into the UK since the Games, generating more than 31,000 new jobs, with 58 per cent of the value invested outside London.

• £1.5 billion of Olympic related high value opportunities won overseas.

These figures include £120 million of contracts already won by UK companies for the Brazil 2014 World Cup and Rio 2016 Olympic and Paralympic Games, plus more than 60 contracts won by UK companies for the Sochi 2014 Winter Olympics and 2018 Russia World Cup.

Figures published by the Mayor of London show that major projects secured in the last year such as the investment in the Royal Albert Docks and Battersea Power Station have brought £4 billion of new investment to the capital.

According to independent research from a consortium led by Grant Thornton, published by the Department for Culture, Media & Sport, up to £41 billion could be realised by 2020.

The report predicts continued benefits from tourism, trade and inward investment as the Games helped improve the world’s view of Britain.

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