Los Angeles is poised to gain significantly from the 2028 Olympic Games, potentially injecting tens of billions of dollars into its economy, all without the need for new permanent venues, according to a recent report.
The upcoming Olympic and Paralympic Games are expected to generate over $40 billion in economic activity in the Greater Los Angeles region, while also creating up to 224,000 jobs, as highlighted in an analysis conducted for the LA28 Organizing Committee.
The Los Angeles County Economic Development Corporation shared these insights recently, pointing out that LA will be the first host city since 1948 that won’t need to construct new facilities for the Games.
Instead, the plan involves utilizing existing stadiums and arenas. Investment will primarily focus on enhancing infrastructure, such as transportation, airports, transit centers, and connectivity networks, as outlined in the report.
The analysis estimates that the Olympic Games could generate between $20.5 billion and $40.6 billion in economic output. Additionally, it suggests a labor income boost of approximately $8.9 billion to $15.6 billion and an increase in GDP ranging from $15.4 billion to $24 billion.
The report also indicates that the Games will support between 126,000 and 224,000 jobs. Interestingly, the predictions are based on two distinct models, though a significant portion of this economic boost is anticipated to come from infrastructure developments.
An estimated $8.35 billion will go towards transportation and venue projects related to the Games, according to the report.
This includes initiatives like Metro’s “28 by 28,” improvements at Los Angeles World Airports, Long Beach’s Elevate28 program, and upgrades involving transit centers and the Los Angeles Convention Center.
About 2 million visitors from other regions are projected to come to the area, with their spending potentially contributing between $1.6 billion and $4.3 billion directly to LA County.
Activity related to the Games is expected to create around 124,430 jobs, mainly in sectors like construction, transportation, and hospitality, among others.
Interestingly, nearly 80% of these jobs may not require more than a high school diploma.
Local small businesses are also likely to see significant benefits.
LA28’s procurement goals emphasize directing 75% of addressable spending within the Greater Los Angeles Area, with 25% allocated to small businesses.
Industries such as construction, event operations, and hospitality frequently source over 80% of their demand locally.
