'Olympics will generate a £5.33bn economic legacy'
By 2015, the 2012 Olympic and Paralympic Games will have generated an economic legacy worth £5.33bn, according to a new report.
The UK economy will see an immediate economic benefit from The Games this summer, as an influx of overseas visitors and increased domestic spending deliver a consumer spending injection of £804m.
'Realising a Golden Opportunity: Visa Europe's London 2012 Olympic and Paralympic Games Expenditure and Economic Impact Report', is based on unique insight into consumer spending in the UK as well as spending data from previous Games and major sporting events.
It is not just London that will benefit from The Games; over two-thirds of economic activity from 2013-2015 will be generated outside of London.
The main sources of additional spending will be the expected surge in overseas visitors, who over a seven week period are calculated to spend a total of
£749 millionin the UK. This is an 18 per cent increase on the level of spending, if The Games were not taking place in 2012.
It is not just the spending of overseas visitors that will lead to an increase. An overwhelming interest in The Games by the domestic consumer, demonstrated by the high level of demand for tickets, will also see a net £54 million spending increase.
Commercial director at Visa Europe, Dr Steve Perry called the London 2012 Olympic and Paralympic Games "a fantastic opportunity for the whole country".
Speaking about the economic benefit that The Games will bring to the entire country he said:
"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 spending and economic output will be driven by the raised international profile of the host city and country, by concentrated international media exposure and the benefit of 'word of mouth' recommendations from Olympic visitors returning home.
"Areas such as the South West and Scotland, already popular with tourists, should experience a significant uplift in spending and economic output in the years following The Games."
Industries closely associated with tourism will feel the most benefit from The Games, with High Street retailers expected to see an £210 million increase in consumer spending.
Visa Europe first released an economic impact report in June 2011. This second report uses updated spending figures and looks at the regional impact of The Games.