London 2012 to deliver £800 million consumer spending boost to UK economy, claims Visa report
Sunday, 24 June 2012
June 24 - London 2012 will deliver a consumer spending injection of more than £800 million ($1.23 billion/€992 million) for the United Kingdom this summer, according to a new report by Visa, the payment card group that is a longstanding International Olympic Committee (IOC) sponsor.
Based on an econometric model that uses Visa cardholder data accounting for £1 ($1.56/€1.24) in £3 ($4.46/€3.72) spent in the UK, the report assesses the increase in international spending during the seven-week Olympic and Paralympic Games period – which runs from July 27 to September 9 – at £749.3 million ($1.17 billion/€928.8).
Adding extra domestic spending of £54.3 million ($84.6 million/€67.3 million), the document – entitled 'Realising a Golden Opportunity: Visa Europe's London 2012 Olympic and Paralympic Games Expenditure and Economic Impact Report' (pictured below) – arrives at an overall figure for increased consumer spend of £803.6 million ($1.25 billion/€996.1 million).
Visa says that since the exercise does not quantify additional benefits such as the long-term impact of improved infrastructure or any construction-sector stimulus, the report provides a "unique insight" into how consumer spending alone will impact the economy.
The report assesses the "principal winners" by sector as: high street retailers – £210 million ($327 million/€260 million); hotels – £138 million ($215 million/€171 million); supermarkets – £88 million (£137 million/€109 million); entertainment, food and drink industries – £46 million ($72 million/€57 million); and travel – £46 million ($72 million/€57 million).
It also predicts that the Games will deliver an economic legacy worth more than £5 billion ($7.8 billion/€6.2 billion) by 2015 and says that 79 per cent of the economic output generated from 2013-15 will be outside London.
Steve Perry, Visa Europe's commercial director, said that businesses serving international visitors would "capitalise on the presence of Olympics and Paralympics fans looking to make the most of their visit to the UK."
He added: "Retailers will also feel the impact as UK residents celebrate their nation's time in the spotlight with Games parties and gatherings to support the British team as they aim for gold on home turf."
Perry concluded: "Visitor spending and associated economic output will rise on the back of the nation's higher profile as a desirable destination in coming years.
"This economic legacy will be distributed across the country."
To read the full report click here.