London Olympics 'will bring in extra £2.1bn' for UK tourism

Published on Sunday 16 September 2007 01:23

THE 2012 London Olympics could be worth an additional £2.1bn to UK tourism, according to a report out today.

As much as 1.27bn of the extra revenue could come after 2012, with a big influx of visitors expected from countries such as India, China, Indonesia, Malaysia and Mexico.

But the increased money will only come if there is good planning for the Olympics and investment in infrastructure, the report from forecasting company Oxford Economics said.

Prepared for the VisitBritain and Visit London organisations, the report said that the Olympics were likely to generate tourism gains of 2.09bn for the period 2007-17, including 1.47bn for London.

The immediate post-Olympic period (2013-17) was likely to be worth 1.27bn for the UK as a whole, with about 400m of this benefiting areas outside London.

VisitBritain said surveys conducted in May 2006 and May 2007 showed that 22% of people worldwide said they were more likely to visit the UK because of the Olympics. But for certain countries this percentage figure was much higher - India (44%), China (39%), Mexico (53%), Malaysia (43%) and Indonesia (49%).

Visit London's chief executive James Bidwell said: "London is already the number-one city destination in the world and drives the UK economy. While two-thirds of the benefits of the London 2012 Games will remain within the capital, this research highlights the crucial role London plays as the gateway to Britain, with almost one-third of the benefits of the Games to flow to the rest of the UK."

He went on: "Percentage increases in visits from our traditional markets such as the US and Europe due to the Games are likely to be outpaced by those from the rapidly emerging economies of the world.

"Outbound travel from countries such as China, India and Russia will create a new world of global tourism in the years to come. China alone is estimated to have 100 million outbound tourists by 2020.

"The London 2012 Games are a unique opportunity to make London the number-one destination of choice for these visitors too."

VisitBritain's chief executive Tom Wright said the 2012 Games were a once-in-a-lifetime opportunity to showcase Britain to the emerging giants of tourism and ensure the country remained globally competitive for the next decade and beyond.

"The research gives cause for optimism but we are all well aware that delivering these benefits will involve insightful planning and strategy, investment and commitment from the private and public sector and the continuation of our world-class marketing," he said.

The publication of the Oxford report comes before tomorrow's launch by the Department for Culture, Media and Sport of a tourism strategy for the 2012 Games and beyond.

The strategy will include a push for better-quality hotels and holiday accommodation and greater take-up of the national star-grading scheme.

Currently, just 53% of accommodation in the UK is in the star scheme and only 34% of London establishments have any kind of quality mark.

Tourism Minister Margaret Hodge said: "From the Brighton Grand to the Lowry in Manchester, the UK has some of the best hotels in the world. But only half carry a star grading.

"If the tourist industry is going to reap the potential 2.1bn from London hosting the 2012 Games, 85% of hotels must be accredited by 2012."