Study: LA28 Could Generate Up To $40 Billion in Economic Output

The Olympic Summer Games are less than two years away, but it the economic impact is starting to come into view. According to a study from the Los Angeles County Economic Development Corporation, the Games could generate approximately $20.5 billion to $40.6 billion and support 126,000 to 224,000 jobs in the L.A. area.

The study, which was commissioned by LA28, was conducted by LAEDC’s Institute for Applied Economics, which used independently-developed modeling to determine its figures.

“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.”
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“The impact of the LA28 Games will be felt far beyond the moment the last medal is awarded,” said Reynold Hoover, CEO of LA28. “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.”

Follow the Money

The study examined five major sources of economic activity associated with the Games: LA28 operational spending; capital investment; non-resident visitor spending; spending by independently funded Games stakeholders; and Games-related transportation and security spending.
The last of those is the largest source of estimated economic impact. There are more than $8 billion of investments being made in accessibility, airport, transportation and venue updates. No new venues are being constructed for these Games.

At least $5 billion is expected to be generated by combined federal, state and local tax revenues. Another $1.6 billion to $4.3 billion is attributed to anticipated direct visitor spending, as the Games are expected to bring roughly 2 million visitors to the area. Four million tickets were sold in the opening window to purchase tickets to the Games.

According to LA 28, “The analysis relies on two complementary methodologies, as well as on OECD guidance for measuring the impacts of major events, that collectively provide a range of potential impacts. The first methodology is the National Income Accounting (NIA)-based framework recommended by the International Academy of Sport Science and Technology (AISTS), which counts only the net injection of new, externally sourced spending into each area and uses conservative assumptions. The second methodology is the IMPLAN regional input-output framework, which is widely used across the United States and which treats spending occurring within each area as gross economic activity, providing another estimate along with additional industry and tax details.”