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Econometer: Will the Olympics return London's investment?

Roger Showley, U-T SAN DIEGO

Friday, August 10, 2012

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Kelly Cunningham, National University System
Answer: YES

The projected revenues specifically raised by the Olympic event may be accurate, although a certain portion of economic activity would have otherwise occurred in London if the event had not been held. The question is how much additional economic activity was generated beyond normal levels, and how much was displaced or crowded out? On the other hand, economic ramifications from the event extend well beyond the two-week period. The benefits for London essentially being promoted and advertised throughout the world will undoubtedly have longer-lasting paybacks. The net profit from hosting the Olympics may not be realized for many years.