£14.2bn boost to UK trade and industry following London 2012 Olympic and Paralympic Games
Olympics Legacy Report shows growth in contract wins, sales, and foreign investments
The UK’s economy has seen a boost to its trade and industry in excess of £14.2bn following the London 2012 Olympic and Paralympic Games, beating the government’s target of £11bn.
Revealed in the second annual Olympics Legacy Report, the 14.2bn is said to have come from an increase in businesses securing contract wins, additional sales and new foreign investments.
The report, released to coincide with the launch of the Commonwealth Games which opened in Glasgow yesterday, looks to “highlight how hosting major sports event can bring about benefits that […] help sell the best of Britain to the world”.
In the two years since the Games, the report argues that UK firms have won several contracts to help stage major sporting events with £150m worth of business secured by 40 companies for the Brazil 2014 World Cup and Rio 2016 Olympics.
An increase in international tourism has boosted the country’s trading, up by 6% in 2013 to 33 million visitors, with a 13% rise in visitor spend to £21bn.
Overseas trade is also said to have received a boost with several UK companies, including skin care company Bulldog and engineering firm Trueform Engineering Limited, securing multi-million agreements and expanding to new markets.
Likewise, inward investments from foreign companies has increased with several major deals over the last two years; one example is Japanese IT company KDDI which is funding £135m into the Telehouse data centre at London Docklands.
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Vince Cable, business secretary, discussed the report: “The delivery of London 2012 on time and on budget led to hosting nations turning to the UK to help deliver their own events with supply opportunities running into the billions.
“UK Trade & Investment (UKTI) has played a key role in helping British companies maximise these opportunities and the result is a £14 billion boost to the UK economy from the Games.
“The UK’s future prosperity will not come from relying on domestic markets alone and during the Commonwealth Games we are giving another major push to encourage firms across the UK to sell overseas and foreign businesses to invest here.”
Mayor of London, Boris Johnson, added:
“London wowed the world when it staged the 2012 Olympic and Paralympic Games. 2 years on from that golden summer we are accelerating the transformation of Stratford and beyond.
“Queen Elizabeth Olympic Park is now reopened and ambitious plans are in place to develop a constellation of educational, artistic, technology and cultural institutions on the site to strengthen our lead as a global force in these sectors and deliver tens of thousands of jobs.
“This is a living legacy that is reaping economic and social dividends not just here in London but across the UK.”