BUSINESS - ECONOMY
| 2013-07-22Britain says Olympics have paid off with economic boost
LONDON-The economic benefits of hosting the Olympics in London already outweigh the nine billion pounds of public money spent on the Games, the British government said on Friday.
A year on, the Games remain a fond memory for most Britons who recall the triumphs of runner Mo Farah and cyclist Chris Hoy but have gone back to their daily routines in a country where the economy is showing signs of life after a long stagnation. Keen to show that the London 2012 Games had a lasting impact, the government said it calculated Britain had enjoyed a 9, 9 billion pound boost to trade and investment from staging the world’s biggest sporting event. Spending by foreign tourists also rose by 600 million pounds in 2012.
But while the figures show Britain well on the way to surpassing a target of 13 billion pounds in economic impact set by Prime Minister David Cameron ahead of the Games, economists had previously questioned the basis for government predictions. They caution that it is difficult to quantify the exact economic impact of major sporting events like the Olympics and that the sums involved tend to be relatively modest.
Britain tried to use the international attention focused on the Olympics to showcase itself as a place to do business. The government ran a series of conferences parallel to the Games to drive home its message to hundreds of executives who came to the British capital. “We are harnessing the Olympic momentum and delivering the lasting business legacy of the Games that will help make Britain a winner in the global race,” Prime Minister David Cameron said in a statement. A separate report by a consortium led by accountants Grant Thornton said the Games could generate benefits of between 28 and 41 billion pounds by 2020.
UK Trade and Investment, the department who produced the government figures said they included 5,9 billion pounds of sales from conferences around the Games, 2,5 billion pounds of additional inward investment and 1,5 billion pounds of contracts for forthcoming Olympics and World Cups with Brazil and Russia.
-Nampa-Reuters
A year on, the Games remain a fond memory for most Britons who recall the triumphs of runner Mo Farah and cyclist Chris Hoy but have gone back to their daily routines in a country where the economy is showing signs of life after a long stagnation. Keen to show that the London 2012 Games had a lasting impact, the government said it calculated Britain had enjoyed a 9, 9 billion pound boost to trade and investment from staging the world’s biggest sporting event. Spending by foreign tourists also rose by 600 million pounds in 2012.
But while the figures show Britain well on the way to surpassing a target of 13 billion pounds in economic impact set by Prime Minister David Cameron ahead of the Games, economists had previously questioned the basis for government predictions. They caution that it is difficult to quantify the exact economic impact of major sporting events like the Olympics and that the sums involved tend to be relatively modest.
Britain tried to use the international attention focused on the Olympics to showcase itself as a place to do business. The government ran a series of conferences parallel to the Games to drive home its message to hundreds of executives who came to the British capital. “We are harnessing the Olympic momentum and delivering the lasting business legacy of the Games that will help make Britain a winner in the global race,” Prime Minister David Cameron said in a statement. A separate report by a consortium led by accountants Grant Thornton said the Games could generate benefits of between 28 and 41 billion pounds by 2020.
UK Trade and Investment, the department who produced the government figures said they included 5,9 billion pounds of sales from conferences around the Games, 2,5 billion pounds of additional inward investment and 1,5 billion pounds of contracts for forthcoming Olympics and World Cups with Brazil and Russia.
-Nampa-Reuters
