Prime Minister predicts £13bn in economic benefit from London 2012

The Olympic and Paralympic Games could bring in £13 billion in economic benefit over the next four years.  In a speech on the legacy of the Olympic and Paralympic Games, British Prime Minister David Cameron called the games a “unique chance” to drum up business for Britain.

“I am confident that we can derive over £13 billion of benefit to the UK economy over the next four years as a result of hosting the Games,” he said. “In fact, I am certain that when you add in the benefits from construction, the total gain will be even greater. For instance, a study by Lloyds Bank found that the Games will contribute £16.5 billion to the economy up to 2017.

“Put another way: more than the cost of holding the Games in the first place.”

It is estimated that hosting the Olympic and Paralympic Games will have cost £9 billion by the time the Paralympic Games end in September.

The £13 billion figure highlighted by Cameron was calculated by UK Trade and Investment, and is based on an examination of the impact of earlier Olympic and Paralympic Games with “similar business legacy plans”, such as the Sydney Games in 2000.

Throughout London 2012, Cameron and other top officials expect to welcome around 4,000 business leaders and global figures in total at 12 Global Business Summits as part of an 18-day programme, which runs into September. This will help encourage investment in Britain.

The news comes as P&MM announces a boost in business, which it attributes to the Olympics. London 2012 spurred an increase in enquiries for P&MM’s Events & Communications division to handle London focused events for European clients, part aided by the exposure of the Capital’s leading venues used by the national Olympic houses.

P&MM, which handled a number of Olympic client events for FMCG and financial sector companies for around 200 delegates (comprising Olympic events, restaurants, transfers and London excursions), has, during the games received a number of enquiries despite booking Olympic related client events more than two years ago.