POSTED: January 9th 2017
NewsUpdate

Olympics: LA 2024 reveals lucrative study that projects $11 billion in local economic impact

LA Mayor, Eric Garcetti, at the press conference © LA 2024
LA Mayor, Eric Garcetti, at the press conference © LA 2024

LA 2024 Chairman, Casey Wasserman speaks during the press conference © LA 2024
LA 2024 Chairman, Casey Wasserman speaks during the press conference © LA 2024

MARISSA FLANDERS and LAURA WALDEN in LA / Sports Features Communications

(SFC) Los Angeles (LA) Mayor Eric Garcetti and the Olympic bid team were especially proud today to reveal extremely promising figures should LA nail the IOC's vote in September to host the Summer Games.  

Los Angeles is bidding against Paris and Budapest to host the event and the IOC is set to vote September 13th in Lima, Peru to decide who will be the final Olympic city.

A press conference was held in the vibrant Grand Central Market by Los Angeles (LA) 2024 to release an economic study of the proposed LA 2024 Olympic and Paralympic Games. Beacon Economics LLC and the University of California, Riverside School of Business Center for Economic Forecasting and Development conducted the study, which was commissioned by the LA 2024 Bid Committee as part of the candidature process.

The study analyzed the future LA Organizing Committee for the 2024 Games and visitors of LA's direct expenditures, along with the induced (employee) expenditures and LA 2024's associated indirect (supplier) expenditures.

It was forecasted that LA will benefit from the following:

·         A gross economic output increase of between $10.62 billion (bn) and $11.18bn.

·         Additional tax revenues that fall between $152 million (m) and $167m.

·         Approximately 74,308-79,307 full-time jobs.

·         Direct additional spending between $6.72bn and $7.07bn.

·         Between $4.88bn and $5.11bn of worker earnings.

Furthermore, it was found that between $17.4bn (lower end) and $18.3bn (upper end) of gross economic output is projected for the entire United States. 

Also, visitors to the LA 2024 Games are expected to spend about double the amount of typical tourist that visit the city. This will offset the expected 3% reduction in total visitor numbers.

Founding Partner of Beacon Economics and Director of the UC Riverside School of Business Center for Economic Forecasting and Development, Christopher Thornberg stated, "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."

He added, "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 tourism and Games operations will be the sole drivers of this positive economic impact as no permanent construction are required. This allows for a greater focus on other areas that have been pushed aside in previous Games.

LA 2024 Chairman Casey Wasserman concluded, "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."

** MARISSA FLANDERS is a graduate of Saint Leo University with a Bachelor's Degree in Sport Business. She has over four years of writing experience and has a real passion for ice hockey following the Pittsburgh Penguins on her blog www.thepenshockeyshow.com.


Keywords · LA 2024 · USA · Olympics · Paralympics · Olympic bidding · Los Angeles


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