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Games to breathe life into London economy
(Agencies)
Updated: 2005-07-07 09:49

A study by Arup that was commissioned by the Mayor's office a few years ago estimated that the games would cost 1.8 billion pounds and leave a 494 million pound deficit. But it estimated non-financial benefits of between 350 and 680 million pounds.

That compared with estimates of 3.2 billion pounds generated in additional tourism in Atlanta and 2.4 billion pounds in tourism to Sydney -- cities which did not already figure high on destination lists.

For London, where tourists already flock all year round, more visitors will come just to see the facilities as they did in Barcelona after 1992.

Hosting the games will also by definition create in London a whole sector of expertise on sports facilities and construction which will be worth a fortune in consulting business in the years after 2012.

"There is always a big economic legacy after the games," said Holger Preuss, professor of sport economics at Johannes Gutenberg University, Mainz and author of "The Economics of Staging the Olympics".

"One year after the Sydney games (in 2000) ... all of the organising committee costs were coming back through expert knowledge."

RISKS FROM BIG PROJECTS

But there are also risks to building Olympic infrastructure. Greece is now left with colossal venues that have fallen into neglect and a purpose-built tram for the games is now carrying half as many passengers a day as planners had expected it would.
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