What impacts will hosting the Olympics have on long-term tourism and job creation?

Share On Facebook
share on Linkedin
Print

As the afterglow of the 2012 London Olympics begins to fade, the UK capital is hoping to take advantage of the recent exposure to radically boost tourism.  Despite rumours that the Olympics turned people off from the idea of visiting London, Culture Secretary Jeremy Hunt claims the long-term tourism trends will be much more telling than the last two weeks.  He understands that overcrowding during the Games is off-putting to potential tourists, but says it is something every Olympic host city must deal with.  However, he hopes that these Games painted London in a positive light and will encourage future tourism to the capital, inevitable resulting in increased spending and job creation in the UK.

Mr. Hunt cites the opening and closing ceremonies as portraying London as “one of the most desirable places to visit on the planet”, which could be solely responsible for inspiring as many as 4.5 million tourists to visit London in the coming years.  Mr. Hunt’s focus is on investing significant money in marketing in China, which could bring more than £500 million into the UK and create more than 14,000 jobs.  Overall, tourism industry experts estimate the Olympics could generate more than £2 billion and 60,000 jobs in the course of the next few years.

The government is also planning to simplify and accelerate the visa application process to make travel to the UK more attractive.  Currently, the Schengen visa system, which allows tourists to travel to various European countries with one visa, does not include the UK.

Even before the full effects of tourism can be felt, the UK is boasting its lowest unemployment rates in almost a year.  Part of this improvement is expected due to the massive number of people needed to prepare for and execute hosting the Olympics, but it may also be a sign that the UK is trending out of its current recession.  Some economists estimate UK employment has increased by more than 400,000 since last summer, an indication that the Olympics played a much larger role in creating jobs.  The employment numbers over the next few months will be critical in this assessment as any temporary Olympic employees will either find work or bring the unemployment rates back up to its previous 2012 levels.

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

 
Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20210515 04:41:44