Friday, July 19, 2013

London claims to have amortized the cost of the 2012 Olympics

London claims to have amortized the cost of the 2012 Olympics

The British government announced Friday, July 19 that the economic benefits associated with the organization of the Olympic Games in London in 2012 already exceed 9 billion pounds (10.4 billion euros) of public money spent for the occasion.

Anxious to show that the 2012 Olympics had a positive impact on the economy, the government said it had calculated that the country had benefited through the Games to boost its trade and investment estimated at 9 , 9 billion pounds (11.5 billion euros). Spending by foreign tourists also increased from 600 million pounds (695 million euros) in 2012.

The Department of Trade and Investment, which established these statistics, said that the benefits calculated included 5.9 billion pounds of sales conferences related games, the 2.5 billion domestic and 1 investment 5 billion in contracts for the Olympics to come and for the World Cup to be held in Brazil and Russia.


But if statistics show that the UK is on track to exceed the target of 13 billion pounds (15 billion euros) of benefits set by the Prime Minister, David Cameron, economists have questioned the basis of predictions of government, saying it is difficult to accurately assess the economic impact of major sporting events such as the Olympics. A report prepared by a consortium of British accounting estimates, in turn, that the Olympics would allow the UK to reap 28-41000000000 pounds by 2020. The range is so wide.

Some unknown, and not least, remain, including the size - huge - security costs. The management of this component of the Games is the subject of intense controversy, including the use of private companies have not been able to fulfill their part of the contract.

Moreover, the political motivations are obviously not absent from the London Declaration. Sebastian Coe, Chairman of the Organising Committee of the Olympic Games, and Paul Deighton, manager of the Games and is currently Secretary of the Treasury, the Conservatives are close to power up and have no interest to leave some doubt about the impact positive event. Boris Johnson, atypical mayor, has also ambitions for the coming years and hopes to build on a positive balance, which helps explain the optimism of the figures given.

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