The 6th of July marked a very important achievement for the city of London. The IOC (International Olympic Committee) awarded the city of London the right to stage the 2012 summer Olympics after fighting off fierce competition (Adam, 2005). The bid for the games has always had loud political undertones that were obvious during the bidding process. Some of the arguments raised included the benefits and negative effects hosting the games could bring. This paper examines the economic benefits and costs of hosting the Olympics. The net benefits are found to be positive and large relative to the investment in the bidding process. Hosting the 2012 Olympics will be a massive economic boost for the United Kingdom. Currently, the funding of the 2012 London Olympics project is delivered by two key organizations; the private and the public (London 2012, 2005). Some of the numerous benefits of hosting the 2012 Olympics will be discussed below
One of the economic benefits of the 2012 Olympics is the generation of revenue. The generated revenue will emanate from various sources in the market. The LOCOG receives grants from the international Olympic body which is the IOC and also internally generates revenue from ticket sales, merchandising and a host of other sources. The most important and constant source of income is the domestic sponsorship programme which is managed by the body itself. This revenue generation will come from the organizing committee of the Olympics and Paralympics games which is the London Organizing Committee (LOCOG) this is the private sector faced with the responsibility of successfully staging and hosting the 2012 Olympic Games. It currently has a 2billion pounds budget with almost all of it gotten from the private sector.
Another key benefit of the Olympic Games is the creation of infrastructure .The Olympic Delivery Authority (ODA) is faced with the main responsibility of adequately delivering new infrastructure needed for the London...
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