The London 2012 Olympics...A drain on public money or a boost to the UK economy?

[trousers]

http://www.huffingtonpost.co.uk/2012/07/03/london-2012-olympics-will-deliver-boost-to-economy-lloyds-banking-group-16bn_n_1645168.html

 

The Olympics will deliver a £16.5 billion boost to the UK economy by 2017 and help create the equivalent of 62,200 jobs, a new report has claimed.

 

The estimated benefits are from 2005, when the Games were awarded, to the five years after the Games finish, and will come mainly as a result of building Olympic sites and the boost to tourism, according to the study by Lloyds Banking Group.

 

Lloyds, whose Lloyds TSB is a London 2012 sponsor, said nearly a third of the gains - worth £5 billion - will come over the five years following the event, when Olympic sites are converted to other uses and tourism continues to see a boost.

 

And there will also be a "happiness effect" as the Games boost the public mood and spark a rise in consumer spending.

This was equivalent to a gift of £165 per person in England during Euro 1996 and it is expected to be at least as big this time around.

 

Lloyds chief economist Patrick Foley said: "London 2012 is the most important sporting event the UK has ever staged.

"We've witnessed a construction project on an unprecedented scale, the economic ripples of which are being felt not only in the host City, but across the UK.

 

"As this study demonstrates, London 2012 will help support employment, tourism, consumer spending and living standards, not only this year, but for many years to come.

 

"And it could not have come at a better time, given the tough conditions in the UK economy."

 

The Games are expected to attract 10 million visitors, including 1.2 million from overseas, but the country's tourism will continue to gain a knock-on effect over the next five years.

 

Games-related tourism will generate £2 billion of GDP across England, Scotland and Wales.

 

But the lion's share of the GDP gains will come from construction, which will have contributed £13.5 billion to GDP by 2017.

Some 57% of the overall boost to GDP stems from construction projects ahead of the Games, including building the Olympic Park and other sites across the UK.

 

And 24% of the total boost to GDP will come from further construction activity.

 

Building the Olympic Park has contributed £2.3 billion to the economy and building the other main venues added £1.3 billion.

But converting the Athletes' Village into housing and building retail space in the Park following the Games will contribute a further £4 billion.

 

London will get £6 billion of the overall benefits but the rest of the UK will get £10.5 billion.

 

Of the 800 construction-related contracts awarded by the Olympic Delivery Authority to UK suppliers, a quarter went to firms in London with the remainder to firms outside the capital.

 

Small and medium-sized enterprises were set to account for more than half of the overall growth.

 

John Maltby, commercial group director at Lloyds, said: "The London 2012 economic engine is being fuelled by thousands of small and medium-sized businesses, many of whom are based outside London in towns and cities that might otherwise have assumed they had nothing to gain from the Games.

 

"We know that these businesses hold the key to growth, and even if it is still uncertain whether London 2012 can help to kick start a sustained economic recovery, the benefits to businesses are clear."

[Whitey Grandad]

One of the biggest and most expensive drains you could ever buy.

[Torres]

That's all lies, the Olympics is a massive waste of money. I know this because the newspapers told me so.

[pedg]

One of the biggest and most expensive drains you could ever buy.

 

What even compared to pompey?

[alpine_saint]

If its costing less than 16.5billion, the expected revenue, surely its simple to see from the balance sheer that it was a benefit and not a drain ?

 

also 62000 jobs and the transformation of one of London's worst sh*tholes ? Sounds like a winner to me.

[Whitey Grandad]

A large proportion of those jobs have gone to non-Britons.

[Verbal]

A large proportion of those jobs have gone to non-Britons.

 

How large? Source?

[pedg]

A large proportion of those jobs have gone to non-Britons.

 

i have it on good authority that only a small minority of the athletes are British. Its an outrage!

[dune]

A complete and utter waste of money, just like foreign aid.

[hypochondriac]

It is a big waste of money and has wrecked the lives of some who have been forced to sell businesses or move out of houses. They have no say and some of the corruption is scandalous. Like volunteers being forced to wear clothing with sponsors on them and shopping centre contracts being given out to contractors related to those high up in the Olympic organisation.

[hypochondriac]

BTW I love the olympics, I just don't see why they have to move it around every four years and leave every city in a ton of debt with a load of white elephants. I understand the positives of having it move around but IMO it is outweighed by the negatives. My solution would be to make a permenant top class olympic site in Athens.

[Whitey Grandad]

How large? Source?

 

It was in the paper a few days ago, maybe the Daily Mail, and I think that less than half were British. I'm in hospital at the moment so it's a bit difficult to check on this slow link. If I find it I'll stick it here.

[Whitey Grandad]

i have it on good authority that only a small minority of the athletes are British. Its an outrage!

 

What???? And we're paying for it!

[Whitey Grandad]

How large? Source?

 

Found it. I was wrong, just over half.

 

http://www.dailymail.co.uk/news/article-2167471/London-2012-Foreign-workers-nearly-half-Olympic-Park-jobs.html

[trousers]

BTW I love the olympics, I just don't see why they have to move it around every four years and leave every city in a ton of debt

 

Incorrect. Allow me to correct you if I may... :-) http://en.m.wikipedia.org/wiki/Cost_of_the_Olympic_Games#section_1

[Verbal]

Found it. I was wrong, just over half.

 

http://www.dailymail.co.uk/news/article-2167471/London-2012-Foreign-workers-nearly-half-Olympic-Park-jobs.html

 

That link doesn't say 'just over half'. You're overstating even the Daily Mail and Migration Watch, who only claim 18,000 - and that it's some considerable way below half of the 46,000 jobs in creating the park itself, let alone the 65,000 referred to as spin-off jobs in the HP article.

 

Good luck with the op, by the way.

[Sheaf Saint]

And there will also be a "happiness effect" as the Games boost the public mood and spark a rise in consumer spending.

 

This has to be the biggest load of old tosh I've ever read. Does anyone honestly think that British people are going to go out and spend money they don't have on sh*t they don't need just because London is hosting the olympics? Seriously????

[Thedelldays]

This has to be the biggest load of old tosh I've ever read. Does anyone honestly think that British people are going to go out and spend money they don't have on sh*t they don't need just because London is hosting the olympics? Seriously????

yeah...

[buctootim]

I wonder if the people *****ing about Britain hosting the Olympics are the same ones who *****ed about England not getting the world cup.

[View From The Top]

I'm really looking forward to them.

 

My nipper & I are going to an evening athletics session & can't wait.

[hypochondriac]

Incorrect. Allow me to correct you if I may... :-) http://en.m.wikipedia.org/wiki/Cost_of_the_Olympic_Games#section_1

 

Until you realise where any profit goes (the majority goes to the BOA rather than the host city. )

[dubai_phil]

Well, Emirates Airline are clearly loving the Olympics.

 

Ticket prices from here to UK while it is on are around 40% higher than either side (apart from Eid Holidays).

 

So obviously they have a lot of "bodies" on their planes passing through here from Asia & Africa, and cannot blame our School Hols as most families left here a week ago.

 

Enjoy the queues peeps.

[pedg]

Until you realise where any profit goes (the majority goes to the BOA rather than the host city. )

 

But the point is that most do not make a loss which was the original moan.

[Frank's cousin]

..waste of money, drain or not, who really knows the figures, but I bet some of you would have been the first to have a go at the bid team had Paris won, and blighty lost out again?

[Frank's cousin]

... on the lss point, yep most host 'cities' make a 'loss', but this is normally due to massive infrastructure development costs, improved transport links etc and the general redevelopment of the site/area... money that would have been spent eveentually and probably over a longer period of time, but definietley benefits the city as a whole. Yes, there is always some folk for whom personally, it is not good, but on the whole teh legacy is not a bad one, provided the locals make use of it.

[Whitey Grandad]

That link doesn't say 'just over half'. You're overstating even the Daily Mail and Migration Watch, who only claim 18,000 - and that it's some considerable way below half of the 46,000 jobs in creating the park itself, let alone the 65,000 referred to as spin-off jobs in the HP article.

 

Good luck with the op, by the way.

 

Thanks.

 

I was referring to my earlier post when I said that more than 50% were non-Brits, when it was in fact fewer than that. In my view they're not real jobs in that they are not necessarily producing anything that anybody wants long term.

 

Maybe I'm biased because I'm not bothered about the games.

[TopGun]

As an employee at the Manchester 2002 Commonwealth Games I know that the beneficial legacy to the city goes on and on. Admittedly far smaller than the Olympics, Manchester 2002 delivered world class sporting facilities to the city that are still being built on in many ways.

 

For example, the stadium is now Man City's ground and they, the council and other private funders continue to develop the previously deprived surrounding areas with new sporting facilities, known as Sportcity.

 

Sportcity includes various sporting facilities such as top athletics, squash and badminton centres as well as the velodrome. The velodrome is the single reason that British track cycling has been such a success, sweeping the medals at Beijing in 2008.

 

As well as those sporting facilities, Manchester 2002 facilitated the knock down of a huge area of old slum housing which has been replaced by new affordable housing built under the New East Manchester project that has re-invigorated an area that was pretty desperate beforehand.

 

On a wider scale, M2002 was the catalyst for total overhaul of Manchester Piccadilly railway station (a gateway to the city from London), and a prime mover for upgrading of the West Coast Main Line infrastructure from Euston as well as enabling the introduction of Pendolinos that allow people to travel in relative good standard class comfort between Manchester and London in just over 2 hours, rather than the 3 hours plus that was the previous case. That is huge for business and internal investment into Manchester.

 

M2002 was the spur for the expansion of the fledgling metrolink tram system which is now in the process of tripling its original reach and size enabling easy, comfortable and safe commuting into the city centre from suburbs such as Bury and Rochdale in the north and Chorlton and Sale in the south. The expansion is ongoing - the Oldham link has just opened and a line to Manchester Airport is under construction. The BBC's new and bespoke HQ at Salford Quays is served by a brand new metrolink extension.

 

M2002 gave investors the confidence to build a second runway at Manchester Airport which has enabled far more passengers and businessmen easy access to the city boosting the local economy.

 

Hotels were built for the occasion that still thrive and many companies have relocated or set up Manchester offices also. Big employing incomers include Siemens and RBS for example. Marquee retailers such as Harvey Nicholls and Selfridges have opened up successful stores as a direct result also.

 

The derelict canals and warehousing that pervaded the city centre from WWII to 2000 have been transformed into chic retail centres with social hubs and desirable city living accommodation. The number of people who live in the city centre has risen from less than 5,000 in 1995 to over 30,000 in 2010.

 

The numbers of students studying at Manchester's now combined university has soared with a huge influx of intelligent and well-heeled young people from China, the Middle East and elsewhere opting to choose Manchester University as their choice of education. In itself, that has enabled the university to expand and offer further unique and cutting edge facilities to new students as well as to business, industry and governmental interests from BP to NASA.

 

The legacy that M2002 gave to Manchester is gigantic.

 

I would expect the same to occur for East London from London 2012.

 

There is no price that can be put on the ongoing and lasting gains that London will get from the Olympics.

Edited 6 July, 2012 by TopGun

[trousers]

As an employee at the Manchester 2002 Commonwealth Games I know that the beneficial legacy to the city goes on and on. Admittedly far smaller than the Olympics, Manchester 2002 delivered world class sporting facilities to the city that are still being built on in many ways.

 

For example, the stadium is now Man City's ground and they, the council and other private funders continue to develop the previously deprived surrounding areas with new sporting facilities, known as Sportcity.

 

Sportcity includes various sporting facilities such as top athletics, squash and badminton centres as well as the velodrome. The velodrome is the single reason that British track cycling has been such a success, sweeping the medals at Beijing in 2008.

 

As well as those sporting facilities, Manchester 2002 facilitated the knock down of a huge area of old slum housing which has been replaced by new affordable housing built under the New East Manchester project that has re-invigorated an area that was pretty desperate beforehand.

 

On a wider scale, M2002 was the catalyst for total overhaul of Manchester Piccadilly railway station (a gateway to the city from London), and a prime mover for upgrading of the West Coast Main Line infrastructure from Euston as well as enabling the introduction of Pendolinos that allow people to travel in relative good standard class comfort between Manchester and London in just over 2 hours, rather than the 3 hours plus that was the previous case. That is huge for business and internal investment into Manchester.

 

M2002 was the spur for the expansion of the fledgling metrolink tram system which is now in the process of tripling its original reach and size enabling easy, comfortable and safe commuting into the city centre from suburbs such as Bury and Rochdale in the north and Chorlton and Sale in the south. The expansion is ongoing - the Oldham link has just opened and a line to Manchester Airport is under construction. The BBC's new and bespoke HQ at Salford Quays is served by a brand new metrolink extension.

 

M2002 gave investors the confidence to build a second runway at Manchester Airport which has enabled far more passengers and businessmen easy access to the city boosting the local economy.

 

Hotels were built for the occasion that still thrive and many companies have relocated or set up Manchester offices also. Big employing incomers include Siemens and RBS for example. Marquee retailers such as Harvey Nicholls and Selfridges have opened up successful stores as a direct result also.

 

The derelict canals and warehousing that pervaded the city centre from WWII to 2000 have been transformed into chic retail centres with social hubs and desirable city living accommodation. The number of people who live in the city centre has risen from less than 5,000 in 1995 to over 30,000 in 2010.

 

The numbers of students studying at Manchester's now combined university has soared with a huge influx of intelligent and well-heeled young people from China, the Middle East and elsewhere opting to choose Manchester University as their choice of education. In itself, that has enabled the university to expand and offer further unique and cutting edge facilities to new students as well as to business, industry and governmental interests from BP to NASA.

 

The legacy that M2002 gave to Manchester is gigantic.

 

I would expect the same to occur for East London from London 2012.

 

There is no price that can be put on the ongoing and lasting gains that London will get from the Olympics.

 

A post that is clearly not cynical enough for the Saints Web Forum. Must try harder next time to sound less positive and not so upbeat.

 

FFS!

 

;-))

[alpine_saint]

As an employee at the Manchester 2002 Commonwealth Games I know that the beneficial legacy to the city goes on and on. Admittedly far smaller than the Olympics, Manchester 2002 delivered world class sporting facilities to the city that are still being built on in many ways.

 

For example, the stadium is now Man City's ground and they, the council and other private funders continue to develop the previously deprived surrounding areas with new sporting facilities, known as Sportcity.

 

Sportcity includes various sporting facilities such as top athletics, squash and badminton centres as well as the velodrome. The velodrome is the single reason that British track cycling has been such a success, sweeping the medals at Beijing in 2008.

 

As well as those sporting facilities, Manchester 2002 facilitated the knock down of a huge area of old slum housing which has been replaced by new affordable housing built under the New East Manchester project that has re-invigorated an area that was pretty desperate beforehand.

 

On a wider scale, M2002 was the catalyst for total overhaul of Manchester Piccadilly railway station (a gateway to the city from London), and a prime mover for upgrading of the West Coast Main Line infrastructure from Euston as well as enabling the introduction of Pendolinos that allow people to travel in relative good standard class comfort between Manchester and London in just over 2 hours, rather than the 3 hours plus that was the previous case. That is huge for business and internal investment into Manchester.

 

M2002 was the spur for the expansion of the fledgling metrolink tram system which is now in the process of tripling its original reach and size enabling easy, comfortable and safe commuting into the city centre from suburbs such as Bury and Rochdale in the north and Chorlton and Sale in the south. The expansion is ongoing - the Oldham link has just opened and a line to Manchester Airport is under construction. The BBC's new and bespoke HQ at Salford Quays is served by a brand new metrolink extension.

 

M2002 gave investors the confidence to build a second runway at Manchester Airport which has enabled far more passengers and businessmen easy access to the city boosting the local economy.

 

Hotels were built for the occasion that still thrive and many companies have relocated or set up Manchester offices also. Big employing incomers include Siemens and RBS for example. Marquee retailers such as Harvey Nicholls and Selfridges have opened up successful stores as a direct result also.

 

The derelict canals and warehousing that pervaded the city centre from WWII to 2000 have been transformed into chic retail centres with social hubs and desirable city living accommodation. The number of people who live in the city centre has risen from less than 5,000 in 1995 to over 30,000 in 2010.

 

The numbers of students studying at Manchester's now combined university has soared with a huge influx of intelligent and well-heeled young people from China, the Middle East and elsewhere opting to choose Manchester University as their choice of education. In itself, that has enabled the university to expand and offer further unique and cutting edge facilities to new students as well as to business, industry and governmental interests from BP to NASA.

 

The legacy that M2002 gave to Manchester is gigantic.

 

I would expect the same to occur for East London from London 2012.

 

There is no price that can be put on the ongoing and lasting gains that London will get from the Olympics.

 

Good post, TG.

 

I studied at Manchester Uni in the late80s/early 90s, and have been scared to go back on a visit since the mid-90s because I know that because Manchester was so rejuvenated by the Commonwealth Games (in conjunction with the rebuild of the Arndale following the IRA bomb attack), that the place simply wont be the same to me.

[Patrick Bateman]

Who cares if it's a success or a drain, it's all bullsh*t and conjecture. Why can't people just bloody well enjoy something without over-analysing every minute detail - I do wonder about most of you lot on here, far too much time on your hands. Maybe the economy would be in a better shape if everyone worked harder and got off the internet offering their opinions.

[trousers]

Who cares if it's a success or a drain, it's all bullsh*t and conjecture. Why can't people just bloody well enjoy something without over-analysing every minute detail - I do wonder about most of you lot on here, far too much time on your hands. Maybe the economy would be in a better shape if everyone worked harder and got off the internet offering their opinions.

 

There you go Top Gun. This is the level of optimism you should be aspiring to... :-)

[dubai_phil]

Don't think there is any doubt whatsoever that Manchester got it right with the Commonwealth Games.

 

But (and you guys will know this much better) comparing some of the excellent points made with what has happened (legacy wise) in London..

 

2nd runway at MCR vs Queues at Heathrow

Metro Expansion vs (White Painted Express Lanes & Traffic chaos?)

 

How many new hotels vs Euro 2012 style price hikes on the large quantity of poor quality London "Tourist" Hotels around Paddington Area.

 

Manchester gained immensely from the "change of image" that they received globally and the boost to tourism has been tangible. London on the other hand never really needed a huge boost to tourist numbers from "Publicity" it tended to need simply "an improvement in the experience of those who visited".

 

Daughter lives out Essex way and commutes, while the Stratford area is now an alternative venue for shopping et al, it is still really only accessible by Underground (the overall road infrastructure has not been improved outside the immediate vicinity) and so as she says "who the hell wants to do their weekly shopping & cart it all home on the Tube"

 

The games have brought benefits but mixing them into the melting pot of History & Politics that is London instead of a City with Vision that Manchester was appears to have limited the impact.

 

Still, my mate owns a business down here in Dubai. He's doing very nicely out of a lot of the construction contracts and actually chartered some planes to fly staff & equipment in........

 

(Which is I guess kind of the point others made)

 

Westfields vs Chic Malls

[Doctoroncall]

Who cares if it's a success or a drain, it's all bullsh*t and conjecture. Why can't people just bloody well enjoy something without over-analysing every minute detail - I do wonder about most of you lot on here, far too much time on your hands. Maybe the economy would be in a better shape if everyone worked harder and got off the internet offering their opinions.

 

I'm not sure that is the case, more of generalisations and miss information. You are right though in enjoying the games, which I will!