LOS ANGELES—If Los Angeles gets its way and wins the bid to host the 2024 Olympics, it would boost the local economy by $11.2 billion and the national economy by $18.3 billion, according to a report from Beacon Economics and the University of California, Riverside School of Business Center for Economic Forecasting and Development. In addition to the increased economic output, the report shows that additional benefits will include additional tax revenues of between $152 and $167 million, between 74,308 and 79,307 new full-time jobs, between $6.72 and $7.07 billion in direct additional spending, and worker earnings of between $4.88 and $5.11 billion.
The city, which has hosted an Olympics in the past, already has the infrastructure in place to accommodate the games, and that is a major benefit in boosting economic output. “This will require virtually no investment in infrastructure, specifically for the Olympics itself,” Robert Kleinhenz, executive director of research at both Beacon Economics and the UC Riverside School of Business Center for Economic Forecasting and Development. “That is to say that there is no need to build new stadiums or quarters for the teams; all of that will be done by making use of existing infrastructure. That makes it a lot easier for the L.A. 2024 bid to say that it is going to be possible to do they without being a burden to local taxpayers and local governments. The dollar amounts are impressive, but they would be much more impressive if there was a whole capital program, including expenditures that we would have to go through.”
There is always much debate about the benefit and burden of hosting an Olympic games. Los Angeles has already vowed not to spend any public money on the games in the request to win the bid. “Usually when you look at the past experience of Olympic Cities, it is that stranded investment in the form of those facilities that have little or no use after the Olympics,” says Kleinhenz. “This is the good thing about this Olympic bid, and that means that ideally, they will be able to recover all of the costs and maybe more than the costs through sponsorships and ticket prices.”
While these numbers sound significant, Kleinhenz says that compared to the typical economic output produced by both Los Angeles and these cities, that it isn't a huge boost for the economy. “It is a large number until you match it up against our $16 or $17 trillion economy,” he adds. “It is compressed in the timespan of just a few weeks. So while $18 billion is a large number and $11 billion is a large number locally, they are not nearly as large when you match them up against the larger economic entities. Make no mistake about it, however, the job creation and the economic activity is significant and it is a boost to the local economy.”
LOS ANGELES—If Los Angeles gets its way and wins the bid to host the 2024 Olympics, it would boost the local economy by $11.2 billion and the national economy by $18.3 billion, according to a report from Beacon Economics and the University of California, Riverside School of Business Center for Economic Forecasting and Development. In addition to the increased economic output, the report shows that additional benefits will include additional tax revenues of between $152 and $167 million, between 74,308 and 79,307 new full-time jobs, between $6.72 and $7.07 billion in direct additional spending, and worker earnings of between $4.88 and $5.11 billion.
The city, which has hosted an Olympics in the past, already has the infrastructure in place to accommodate the games, and that is a major benefit in boosting economic output. “This will require virtually no investment in infrastructure, specifically for the Olympics itself,” Robert Kleinhenz, executive director of research at both Beacon Economics and the UC Riverside School of Business Center for Economic Forecasting and Development. “That is to say that there is no need to build new stadiums or quarters for the teams; all of that will be done by making use of existing infrastructure. That makes it a lot easier for the L.A. 2024 bid to say that it is going to be possible to do they without being a burden to local taxpayers and local governments. The dollar amounts are impressive, but they would be much more impressive if there was a whole capital program, including expenditures that we would have to go through.”
There is always much debate about the benefit and burden of hosting an Olympic games. Los Angeles has already vowed not to spend any public money on the games in the request to win the bid. “Usually when you look at the past experience of Olympic Cities, it is that stranded investment in the form of those facilities that have little or no use after the Olympics,” says Kleinhenz. “This is the good thing about this Olympic bid, and that means that ideally, they will be able to recover all of the costs and maybe more than the costs through sponsorships and ticket prices.”
While these numbers sound significant, Kleinhenz says that compared to the typical economic output produced by both Los Angeles and these cities, that it isn't a huge boost for the economy. “It is a large number until you match it up against our $16 or $17 trillion economy,” he adds. “It is compressed in the timespan of just a few weeks. So while $18 billion is a large number and $11 billion is a large number locally, they are not nearly as large when you match them up against the larger economic entities. Make no mistake about it, however, the job creation and the economic activity is significant and it is a boost to the local economy.”
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.