LA28 Olympic and Paralympic Games to potentially generate $40 billion


LA28 Olympic and Paralympic Games to potentially generate $40 billion

According to a new report by the Los Angeles County Economic Development Corporation’s (LAEDC) Institute for Applied Economics, the Los Angeles 2028 (LA28) Olympic and Paralympic Games could potentially generate up to $40 billion and create over 200,000 jobs across Greater LA. The study used 2 methodologies:

  • The National Income Accounting (NIA)-based framework which counts only the net injection of new, externally sourced spending into each area and uses conservative assumptions;
  • The IMPLAN regional input-output framework which treats spending occurring within each area as gross economic activity, providing another estimate along with additional industry and tax details. 

Specifically, “the LAEDC estimates that planning, preparing, and hosting the Games could generate between approximately $20.5 billion - $40.6 billion in economic output and support approximately 126,000 - 224,000 jobs across Greater LA…

LA28 has [also] set goals to direct 75% of its addressable procurement spend to businesses in Greater Los Angeles and 25% to local and small businesses."

The study focused on LA28 operational spending, Games-related transportation and security spending, capital investment, non-resident visitor spending - with 2 million visitors expected to attend, and spending by independently funded Games stakeholders.

The largest economic benefit is likely to come from infrastructure improvements. LA28 is focusing on a “no build approach,” meaning that existing venues will be utilised and investment in infrastructure will therefore largely focus on serving spectators, residents and businesses. Roughly $8.3 billion of investments in transport, airport, mobility, accessibility and updates to venues have been undertaken or prompted in relation to LA28. This also means that LA28 will become the first Games since 1948 to not build any new permanent infrastructure.

Between $5.1 and $5.9 billion in tax revenue is expected to be generated too.

Stephen Cheung, CEO of LAEDC, voiced: “The scale and breadth of the economic activity associated with the 2028 Games is significant, even when viewed through a conservative lens…

Our analysis shows the impact reaching across the regional economy, from jobs and labor income to local businesses, visitor spending, and long-term investment. Importantly, these findings reflect a range of potential outcomes, providing a transparent picture of the economic benefits the Games could generate for Greater Los Angeles.”

Reynold Hoover, CEO of LA28, expressed: “The impact of the LA28 Games will be felt far beyond the moment the last medal is awarded.”

LA28’s statement also says that the International Olympic Committee (IOC) will allocate more quota spots to women athletes than men, making LA28 the first Olympic Games in history to do so. New sports will also be introduced such as para climbing.

The statement and full report can be found here.

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