Olympics worth £1.2bn to NW, says report

THE North West will contribute £1.2bn towards the £16.5bn uplift in GVA the UK economy is set to generate from staging the Olympics, according to Lloyds Banking Group.

A new study by Lloyds, which is a sponsor of the games, argues that the region will provide the second-highest contribution in GDP terms than any area outside of the capital.

The firm’s report analyses the five-year legacy of the Olympic and Paralympic Games, which is due to take place at the end of the month.

It found that most of the GVA generated by the North West came from companies providing construction supplies and equipment, as well as spending of wages by employees within the supply chain. North West companies helped to build the Olympic Stadium, Aquatics Centre, the Basketball Arena, and the Velodrome.

A further £169 million is expected to be supported by Games-related tourism in the North West prior to the London 2012 Games, during the Games, and over the first five ‘legacy’ years.  In total, some 532,00 people are expected to attend football events at the Olympic and Paralympic Games – some 5.2% of the 10.2m people expected to visit the IK as a result of the games. They are expected to spend £50m during the games, and the city is expected to gain a further £40m in post-Games tourism spending.

Finally, £87 million of GVA in the North West is supported by the £87m spend by LOCOG in staging the games, with many of the football events taking place at Old Trafford.

In total, some 532,00 people are expected to attend football events at the Olympic and Paralympic Games – some 5.2% of the 10.2m people expected to visit the IK as a result of the games. They are expected to spend £50m during the games, and the city is expected to gain a further £40m in post-Games tourism spending.

Leigh Taylor, area director, Lloyds TSB Commercial in the North West, said: “The Games will present businesses with a number of tangible benefits – unprecedented opportunities for trade and a real competitive advantage in years to come; invaluable training and experience for employees; and an incredible contribution to economic activity across the UK.

“But it must not stop there. The challenge now is for these businesses to build on what they have gained from the Games so that they can continue to grow and so that others might follow their lead.”