Is Hosting the London 2012 Olympics a beneficial choice for the UK Economy Essay Example

be affected and require consideration, they are less relevant when discussing the upcoming 2012 London Olympic Games as each host country experiences varying economic challenges and advantages. Preuss (2004) highlights the difficulty in comparing financial and economic data across different Olympic Games. Hence, relatively limited information exists covering all the various economic aspects involved in staging such large-scale events. Past research on the London 2012 Olympic Games has mainly focused on typical economic issues, including the potential impacts on tourism and public health awareness. Furthermore, many articles debate whether the UK has enough capital to fund this project amidst the current economic downturn.

Although many articles have been written about the Economic situations around the London 2012 Olympic Games, they tend to be more opinionated than factual. As a result, there are many normative statements regarding the issue. However, there is some positive information that will be useful for my proposal. It has been noted that there will be a significant presence of broadcasting and press in the UK during the Games.

The UK's exposure worldwide is set to increase with the Olympics, which will in turn attract more investment to the country, enhancing its reputation. Over 30,000 new jobs have been created through the building of Olympic bases, including the Olympic village, stalls, merchandising stores, security, and on-site officials, resulting in a significant economic boost. The UK's unemployment rate is expected to decrease as 9% of the 30,000 jobs filled were by unemployed UK residents. Price Water Cooper House conducted research analyzing the direct impact of purchases made by game organizers for preparation and execution of Games, indirect impact through industries that supply expenditure recipients, and

induced impact from spending by those employed directly or indirectly by the Games expenditure.

The objective of this study is to comprehend the revenue and costs associated with consumption and spending that arise from the Games. Despite some existing discourse on economic issues surrounding London 2012 Olympic Games, there remain significant knowledge gaps. Speculations and normative statements have been made without many positive statements. The project plans to address this gap by adhering to an economist's initial principle of making positive statements about the Economic issues concerning the 2012 Olympics. This will entail gathering statistical data to verify or disprove specific concerns while conducting primary research to support any claims made. In essence, this action intends to resolve whether investing in Olympic games offers benefits for the UK economy.

Although the UK has addressed the main economic issues surrounding the Games, it remains unclear whether it was a wise investment. Externalities such as congestion and noise pollution have not been fully examined. With a significant number of tourists and residents expected to attend, rush hour traffic is likely to result in emissions, road damage expenses, and environmental harm. The BBC reports that cars may be prohibited around the stadium or events relocated to minimize pollution's potential negative effects on athlete performance and address Greenhouse gas concerns.

The government is investing in the budget to enhance and subsidize public transport due to the impact of the games. The games are expected to generate considerable noise pollution which has prompted many UK residents to seek refuge abroad. Although tourism has contributed significantly to the UK economy, UK residents are opting to spend their disposable income overseas. The labor market will

experience a significant transformation during the games as more jobs are anticipated to be created in efforts to tackle unemployment. However, research suggests that the 30,000 jobs created is only a small portion of the actual figures.

The UK's hosting of the Olympics has indirectly led to the establishment of numerous businesses and jobs. One such example is the construction of Barking Westfields, which was not part of the Olympic preparations but was built to profit from the influx of business during this time. The Games will also influence the labor market as companies may grant their staff leave to experience the event, potentially causing a decline in productivity that could negatively affect the entire UK economy. A new perspective on this venture can be gained by utilizing existing PESTLE analysis, which can examine various aspects of the Games and how they may impact the economy. Graphs can also be employed to quickly and accurately compare statistics, including analyzing whether the event will generate a net profit for the UK by comparing departing and incoming visitor numbers.

The aim of this project is to assess the positive and negative economic impacts that hosting the London 2012 Olympic Games had on the UK. The study will consider both advantageous economic factors during the event as well as potential difficulties that may arise after it, offering a comprehensive perspective for decision-makers in the country.