Visa Europe have just published an Economic Impact Report on the likely impact of increased consumer spending generated by the London 2012 Olympic and Paralympic Games in London and the whole of the UK. The findings of this report show that London 2012 will be a once in a generation opportunity for the British public to support Team GB and ParalympicsGB on home territory, it is also a unique opportunity for British businesses to capitalise on the increase in expenditure and wider economic impact
This report projects a £750 million additional consumer spending increase during the seven week Games period. It considers the impact this consumer spending increase will have on the wider economy, including economic outputs and incomes, both during the seven week Olympic and Paralympic Games period and beyond. The report concludes that the increased consumer spending generated by the London 2012 Olympic Games will have a significant impact on the UK economy.
Over the seven week period, international visitors are expected to spend a total of £709 million in the UK, an 18% increase on what would be expected if The Games were not taking place. Domestically, a £41 million spending boost is expected from UK cardholders during the seven week period of The Games. This is a first for an Olympic Games host market, which usually experience a domestic spending slump during The Games. This will be driven by the public’s enthusiasm for The Games, demonstrated by the high demand for Olympic tickets. British residents are likely to switch from traditional patterns of summer spending to getting into the Olympic spirit by stocking up on supplies and entertaining at home. Supermarkets will be particular beneficiaries of this. Overall, the retail, leisure and travel sectors look set to be the biggest winners from The Games, benefiting from a combined spending injection of £508.4 million in seven weeks