The report, which was released by Visa Europe to mark the 25th anniversary of Visa's global sponsorship of the Olympic Games, predicts that this record spend will deliver a sustained stimulus worth a total of £5.1 billion ($8.11 billion) to the UK economy by 2015.

The report found that during the intense three week period between the Opening and Closing Ceremonies of the Olympic Games, the economy will receive a £621 million ($988 billion) spending boost.

This will be supplemented by a further £129 million ($205 billion) spending boost during the Paralympic Games, taking the total spend increase to £750 million ($1.2 billion) over the entire seven weeks, an uplift of 18.5 per cent above what would be expected over the same period had the Games not taken place.

The report is the first report of its kind to consider how consumer spending will be impacted by the London 2012 Games and then how this spending alone will go on to impact the wider economy, both immediately and in the longer term.

It is unique as it is based on actual consumer spending data showing four different types of spending patterns both in the UK and internationally.

The data analysed includes international visitor spending at previous Olympic Games and major sporting tournaments, domestic spending at previous Olympic Games and major sporting tournaments, typical spending of international visitors in London and spending patterns of UK consumers during big sporting events like the World Cup.

"As the report shows, the UK will benefit from an immediate positive economic impact as a result of a large increase in consumer spending during the Olympic and Paralympic Games," said Marc O'Brien, the managing director of Visa UK.

"What's so encouraging for the wider economy is the ripple effect this will cause: economic output will increase and the benefits will be felt in people's pockets as incomes increase.

"This immediate positive economic boost will translate into sustained economic stimulus and job creation, impacts which will be felt long after the Games have finished."

The positive impact to the economy will be largely generated by a major influx of foreign visitors to the UK as over the seven week Games period, international visitors are expected to spend a total of £709 million ($1.128 billion).

This significant international spending boost is higher than previous Games as international expenditure at Sydney 2000 and Athens 2004 was approximately half this figure and at Beijing 2008, international expenditure was estimated at £93 million ($150 million) for the three week period London 2012 is predicted to take £621 million ($988 million).

The higher level of spending expected at London 2012 can be attributed to the advantageous position of London with respect to Europe and other key international markets as well as the higher costs associated with visiting London.

Domestically, consumer spending is expected to increase by £41 million ($65 million) over the full Olympic and Paralympic Games period; a first for a host market as a domestic spending slump usually takes place during Games time.

The report attributes this to British residents getting into the Olympic spirit by stocking up on supermarket supplies and watching the Games at home in feel-good spending spree in line with patterns of UK domestic expenditure witnessed during previous Olympics and the 2010 FIFA World Cup.

The retail, leisure and travel sectors look set to be the biggest winners of the Games, benefiting from a combined spending injection of £508.4 million ($809 million) in seven weeks with supermarkets set to see a £79.9 million ($127 million) boost in spending, high street retailers benefiting from an extra £184.7 million ($294 million), the entertainment and food and drink industry taking an extra £81.5 million ($130 million), the hotel sector seeing a £122.6 million ($195 million) spending uplift and airlines, car hire and other travel sectors seeing an £39.7 million ($63 million) increase.

The knock-on effect of this increased consumer spending translates into a potential £229 ($364 million) million net increase for UK resident's incomes over the seven week period.

This will be generated from higher wages due to overtime and increased Games time rates, additional rent for those who are renting their homes out to visitors or charging higher Games time rental rates; and profits across all sectors.

Longer term, this Olympic-sized spending legacy is expected to increase economic output by £1.37 billion ($2.2 billion) per year to 2015 – a total £5.1 billion ($8.1 billion) stimulus for the UK economy over the four years.

Additional incomes to UK residents will be generated worth £296 million ($ 471 million) per year and an average of 17,900 jobs per annum will be sustained across the UK economy.

"I am determined that hosting the Games in 2012 will transform the wider job prospects and economic future for Londoners - this is already happening, and we can and must sustain that effect for years to come," said London Mayor Boris Johnson.

"This report shows we are on track to do just that, with the Games set to inject billions of pounds and thousands of jobs into the London economy even after the greatest show on earth has left town.

"I have no doubt that when we welcome the world to London during the summer of 2012, the capital's first class attractions, shops, pubs and hotels will all see a massive boost as a direct result of The Games."

Colin Grannell, the head of partnership marketing at Visa Europe, added: "The countdown to London 2012 has well and truly begun and as the nation gets into the Olympic Spirit, the findings of this report also signal good news for the economy.

"As a global sponsor of the Olympic and Paralympic Games, Visa provides retailers across the UK the chance to share in the Olympic Spirit.

"Visa's relationship with the Olympic Games stretches back 25 years and this long heritage sets us in good stead to make London 2012 the best Games ever."

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