Friday, March 30, 2007

Los Angeles 2016 Predicts $7 Billion Economic Impact

The potential economic impact of a 2016 Summer Olympic and Paralympic Games in Los Angeles would top $7 billion according to a study commissioned by the Southern California Committee for the Olympic Games (SCCOG) released today. The results, which would mark a record impact for a U.S. Games, were calculated in 2007 dollars and based on projected attendance, sponsorship programs, transportation and tourism, among other things.

The internationally renowned firm Economics Research Associates (ERA), which conducted the study, stated that the predictions are conservative and accounted only for the Los Angeles region. A Los Angeles 2016 Games would have additional impacts throughout the state and in Nevada.

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socog said...

LOS ANGELES, March 30 /PRNewswire/ -- The potential economic impact of a 2016 Summer Olympic and Paralympic Games in Los Angeles would top $7 billion according to a study commissioned by the Southern California Committee for the Olympic Games (SCCOG) released today. The results, which would mark a record impact for a U.S. Games, were calculated in 2007 dollars and based on projected attendance, sponsorship programs, transportation and tourism, among other things.

The internationally renowned firm Economics Research Associates (ERA), which conducted the study, stated that the predictions are conservative and accounted only for the Los Angeles region. A Los Angeles 2016 Games would have additional impacts throughout the state and in Nevada.

ERA included in its results the economic impact of a total of 67,825 full- time equivalent jobs through a combination of both positions directly related to the Games and additional staffing needs in related industries such as hospitality.

"We all believe in the potential of Los Angeles as the great global city of the 21st century, and we all hope to have the opportunity to show the world the beauty and depth of our City," said Mayor Antonio Villaraigosa. "The results of this study speak to the potential transformative impact of the 2016 Olympic Games on the lives and futures of all Angelenos."

The bulk of the direct economic impact would benefit the hotel, restaurant, retail, and local transportation industries. The ripple effect would spread more broadly throughout the economy, according to David A. Wilcox, author of the study and financial advisor to several Olympic Games both in the United States and abroad.

"A Los Angeles 2016 Olympic and Paralympic Games would provide a tremendous boost to an already dynamic economy," said Barry Sanders, chairman of the SCCOG. "This financial benefit integrates very well with our Los Angeles bid that brings together so many elements of our community. Ultimately, the combination translates to a spirit and pride that will be fostered during the Games and beyond for many years to come."

Los Angeles and Chicago are the two American cities in competition to be the United States Olympic Committee's (USOC) candidate to the International Olympic Committee (IOC) to host the 2016 Games. The USOC will select Los Angeles or Chicago as their candidate on April 14. The IOC will select one city from the international field in October 2009.

Mayor Villaraigosa noted that economic activity spurred by the 2016 Olympic and Paralympic Games would also benefit local, state and federal governments through increased hotel occupancy and resulting hotel occupancy taxes, sales taxes, transportation and utility taxes, and ultimately income taxes from increased wages. Those taxes are not included in the economic study and would add substantially to the already positive financial impact of the 2016 Games in Los Angeles.

The study estimates that the Games would attract about 877,000 visitors from outside the area, staying an average of about six days each. About half, 52 percent, are expected to stay in hotels or other commercial accommodations with the remainder staying with friends or relatives in the Southern California area.

"The estimates are preliminary, conservative and do not presume huge multiplier ratios for induced economic impacts," said Wilcox. The figures, for instance, do not include the expected surge in purchases of consumer electronics prior to the Games' broadcast, or airfares of visitors traveling to Los Angeles.

A survey conducted by Harris Interactive(R) last year revealed that 89 percent of Angelenos favor a bid to host the 2016 Olympic Games in Los Angeles. Those polled favored having the Olympic Games in Los Angeles for a variety of reasons, including economic benefits to local communities, pride in being the host city, a chance to meet favorite athletes in person, and an opportunity to repeat the success of the 1984 Olympics. The poll also found that 65 percent would want to attend an event or ceremony if the Games returned to Los Angeles. The survey of adults aged 18 and over living in Los Angeles County, California was conducted online by Harris Interactive on behalf of the Southern California Committee for the Olympic Games (SCCOG) in 2006.