Los Angeles Set to Gain Economically from 2028 Olympics
Los Angeles, California, is projected to generate up to $40.6 billion as it prepares to host the 2028 Olympics, which will take place across five counties in Southern California during the Summer Games.
According to a recent report by the LA28 Organizing Committee, the extensive preparations and the four-week duration of the Olympic and Paralympic Games are expected to produce an economic output estimated between $20 billion and $40 billion, reflecting the total worth of goods and services generated.
However, once you consider the various goods, services, and energy required to facilitate the Games, the overall estimated economic gain for the Greater Los Angeles area—which includes Los Angeles, Orange, Riverside, San Bernardino, and Ventura—drops to a range of $15 billion to $24 billion, as indicated in the report.
“I’m really confident in the numbers,” remarked LA28 CEO Reynold Hoover. “I think [LAEDC] has confirmed what I’ve been saying since I joined in June 2024: that the Olympics and Paralympics will provide an economic boost to this region, to the city, to the county.”
Despite this enthusiasm, not all economists are in agreement. Andrew Zimbalist, a professor emeritus of economics at Smith College, points out that while this report makes more realistic assumptions than previous studies concerning the Olympics, its input-output model still has issues.
Zimbalist further states that the actual net economic effect is dependent on a crucial factor: whether the number of Olympic visitors surpasses the number of usual tourists who decide to avoid Los Angeles during the Games. Typically, the region attracts somewhere between 12 million and 15 million tourists each summer.
“If the influx of people attending the Olympics exceeds those who choose to stay away, then there could be a positive net impact,” Zimbalist noted.
The figures indicating potential economic benefit are higher than previous estimates released by the Southern California Association of Governments, which forecasted a contribution of around $13 billion to $17 billion from the games.
Additionally, the report mentioned an anticipated $2.8 billion in public funding allocated for transportation and federally supported security measures, along with visitor spending that could range from $1.6 billion to $4.3 billion just within Los Angeles County.
In the meantime, a separate analysis of the workforce estimates that approximately 124,000 jobs are currently linked or will soon be linked to the Games, with a majority of these positions being in construction, security, and transport.
The Summer Games will feature traditional sports like skateboarding, sport climbing, and surfing, as well as new events like flag football and squash making their debut. The Los Angeles Memorial Coliseum is set to host both the opening and closing ceremonies, as detailed on the LA28 website.
