The 2028 Los Angeles Olympic and Paralympic Games could generate a massive windfall in economic and jobs impact, according to a study released on Tuesday.
In a report by the Los Angeles County Economic Development Corporation that was commissioned by LA28 organizers, around $20.5 billion to $40.6 billion in economic activity in the time leading up to and during the Games is set to be generated for the five-county Greater Los Angeles regions that will support the Olympics.
The period roughly covers the two years leading up to the Games through August 27, 2028 when the Paralympics end.
“Our analysis shows the impact reaching across the regional economy, from jobs and labor income to local businesses, visitor spending, and long-term investment,” Stephen Cheung, president and CEO of the LAEDC said about the study. “Importantly, these findings reflect a range of potential outcomes, providing a transparent picture of the economic benefits the Games could generate for Greater Los Angeles.”
The study by LAEDC focused on five distinct economic drivers and how Los Angeles, Orange, Riverside, San Bernardino and Ventura counties will be affected, with operational spending, transportation, capital investment, non-resident visitor spending and the spending of independently-funded Games stakeholders.
Athletes, spectators and support staff from around 200 countries and federations are expected to visit Los Angeles during the Games and LAEDC believes that a surplus in spending could be the driving factor that could see a boost for businesses and communities in each of the nearby counties serving the Olympics.
“The impact of the LA28 Games will be felt far beyond the moment the last medal is awarded,” Reynold Hoover, CEO of LA28 said. “This study shows the tremendous opportunity we have to support jobs, open doors for local businesses, and drive investments that strengthen communities across Los Angeles. We’re focused on making the most of this moment and building a legacy that benefits Angelenos for generations to come.”
Outside of the $20.5 billion to $40.6 billion in economic output the Games are expected to generate, the LAEDC forecasts approximately 126,000 to 224,000 jobs created across the Greater Los Angeles area in roles that include construction, transportation, administrative support, hospitality, accommodation, security and other sectors.
The bulk of the jobs will also give local communities direct access to these new employment opportunities, but the study did not reveal the estimated length of roles.
Meanwhile, around $8.35 billion in investment in transportation, airport, mobility, accessibility and the updating of venues has either been fast-tracked or is underway specifically for the Games. Organizers have chosen a no-build approach for the Games that will use existing venues that require minimal alterations or upgrades specific to the Olympics.
According to the study, the region will see around $5.1 billion to $5.9 billion in combined federal, state and local tax revenue and following input from the L.A. City Council, organizers will direct 75 percent of its addressable procurement spend to businesses in Greater Los Angeles with 25 percent dedicated to local and small businesses as part of a dedicated vendor program that was unveiled last week.
Around 2 million visitors are expected to come to the region specifically for the Games and generate between $1.6 billion to $4.3 billion in direct spending on hotels, restaurants, retailers and other local businesses.
