We are just days from the opening ceremony of the 2012 London Summer Olympic Games, and as we lead up to the Games there has been a great deal of discussion about the economic impact of the games. Over at NPR, they have blogged about the economic impact of the games, with Goldman Sachs noting that a large number of Olympic Games have made a profit. They do have a footnote which says:
“In accounting for the cost of hosting an Olympics, most countries (including the UK) have treated the cost of constructing facilities and infrastructure, together with security and other ancillary costs, as being separate from the cost of running the Games themselves. The London Games are expected to make a profit (in the sense that revenues will exceed the cost of running the Games) but this will still leave the government with a significant (£8-9bn) bill from construction, security and other costs.”
Yeah, so if we don’t include costs, there is a profit. I’m sure there are a lot of companies which wish they could get away with such a spin. Others have been getting into the debate, I may be one of the few Americans who watches C-SPAN where they play the Prime Minister’s questions from the UK on television every week (which I encourage everyone to watch, if you love spirited debates), but many have known current Prime Minister David Cameron for his focus on trying to cut costs in the UK government. Yet, he has come out and said the Olympic Games:
They should be great for our economy. We shouldn’t see them as some sort of expensive luxury in tough times.
The PM is noting that i may bring a $20 billion boost the UK economy. Many disagree, with some analysts noting that the construction phase has been completed, and that sector of the economy doesn’t seem to be doing too well with the games about to begin. Not to mention the cost will be approximately about $200 per person just to host the Olympic Games in London this year.
The back and forth about the economic impact of the London Games has begun, my guess would be from past research and what we are seeing in terms of costs, that this will be another games that will not be bringing positive economic impact to London or the UK.