LA28 could generate up to $40.6 billion for region, study says

LOS ANGELES, Sept 15 - The 2028 Los Angeles Olympic and Paralympic Games could generate as much as $40.6 billion in economic output and support up to 224,000 jobs across the Greater Los Angeles region, according to a study released on Tuesday.

The analysis by the Los Angeles County Economic Development Corporation, commissioned by LA28, estimated a range of $20.5 billion to $40.6 billion in economic activity during the years of preparation for the Games and through their conclusion in 2028.

"The scale and breadth of the economic activity associated with the 2028 Games is significant, even when viewed through a conservative lens," said Stephen Cheung, President & CEO of LAEDC.

"Our analysis shows the impact reaching across the regional economy, from jobs and labor income to local businesses, visitor spending, and long-term investment. 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 estimates cover Los Angeles, Orange, Riverside, San Bernardino and Ventura counties, and include spending on Games operations, transportation and security, capital projects, visitor activity and expenditures by independently funded organizations involved in staging the event.

Games-related infrastructure investment, including transportation, airport, mobility, accessibility and venue upgrades, would be the largest source of economic impact, the report said.

It estimated that about $8.35 billion in such investment has been accelerated or undertaken in connection with the event.

NO-BUILD GAMES

LA28 has promoted a "no-build" strategy that relies largely on existing venues and temporary facilities, rather than construction of new permanent Olympic sites.

The study projected that the Games could bring about 2 million visitors to the region. Direct spending by non-resident visitors in Los Angeles County was estimated at between $1.6 billion and $4.3 billion, potentially benefiting hotels, restaurants, retailers and entertainment businesses.

The report also forecast $5.1 billion to $5.9 billion in combined federal, state and local tax revenue associated with Games-related economic activity.

The job estimates include positions in construction, transportation, hospitality, accommodation, security and administrative services, among other industries.

LA28 said it aims to direct 75% of its addressable procurement spending to Greater Los Angeles businesses, with 25% targeted toward local and small businesses.

The LAEDC said it used two methodologies to develop the estimates: a more conservative framework focused on new outside spending entering the region, and an IMPLAN input-output model that measures broader gross economic activity.

Los Angeles will host the Summer Olympics for the third time, after 1932 and 1984, and the Paralympic Games for the first time. REUTERS