Reuters - Video

EDITION: U.S. | U.K. | IN

Finance Videos

Olympic glory - but was it worth it?

Thursday, 27 Dec, 2012 - 02:46

Dec.27 - The London 2012 Games got underway when Britain was in the midst of recession and with the official cost to the taxpayer of around 9bn pounds, its coalition government wanted the London Olympics to provide more than world records, were they rewarded? Hayley Platt reports

▲ Hide Transcript

View Transcript

From a sporting point of view it was Britain's most successful Olympics for a century. Team GB won 65 medals and a life time of cherished memories. But at a time of tough austerity was it worth it financially?. London 2012 cost UK tax payers £9bln pounds - that's 360 pounds each. The venues cost the best part of 7 billion pounds to build. And the security alone was more than 550 million. ` Theatres, tourist venues and even hotels also lost money as visitors focussed on the event at the expense of London's other attractions. At a time when the UK is trying to eliminate its structural deficit some say we shouldn't expect too much. David Jones from IG Markets. SOUNDBITE: David Jones, Markets Analyst, IG Markets, saying (English): "There was a study done by the University of Michigan looking at various Olympic events over the decade and none of them has really delivered a significant financial boost. Even the Bank of England came out just a couple of months ago and said we're not factoring in any Olympic effect into our figures looking forward." But the Games did make significant amounts of cash. More than 10,000 athletes visited from 204 countries - along with their support teams, families and friends. And almost 11 million tickets were sold - far more than expected - raising around 660m pounds. 750m came from sponsorship - deals were made with more than 40 companies. And combined with ticket sales that meant London organisers hit their target of raising 2.4bln - the core cost of putting on the world's largest sporting event. The UK government believes the economy will benefit to the tune of 13 billion pounds from the sale of constructions and increased tourism . Justin Urquhart Stewart from Seven Investment Management agrees there were big benefits. SOUNDBITE: Justin Urquhart Stewart, Managing Director, saying (English): "You only have to look back at the gross domestic product figures and it looked as though there was boost there to actually drag it out of its double dip. Then of course there was a slightly softer issues in terms of actual peoples attitudes and tourism and in terms of how some trade improved as well but that was very difficult to try and measure." And then there's the factors you can't put a price on. SOUNDBITE: Justin Urquhart Stewart, Justin, saying (English): "What was fascinating was to evaluate the British attitude before hand which was one of undying cynicism that it's bound to go wrong at some stage and to one afterwards, to 'well we're quite good at doing this' so I think it was a very positive attitude." The full extent of the economic impact from London 2012 may not be known for a decade. But those preparing for Rio can take comfort from the fact that staging an Olympics can create a feel-good-factor no amount of money can buy.

Olympic glory - but was it worth it?

Thursday, 27 Dec, 2012 - 02:46

Editors' Picks »

The Exchange »

The Exchange: Hot commodity The Exchange: Hot commodity

Wed, 16 Jul, 2014 - (9:25)

The Exchange: Constitutional crusade The Exchange: Constitutional crusade

Wed, 25 Jun, 2014 - (11:35)

The Exchange: The value of money The Exchange: The value of money

Mon, 02 Jun, 2014 - (9:53)

The Exchange: China’s Second Continent The Exchange: China’s Second Continent

Tue, 27 May, 2014 - (9:35)

The Exchange: A master of business arts The Exchange: A master of business arts

Thu, 08 May, 2014 - (8:24)

The Exchange: America's bankrupt cities The Exchange: America's bankrupt cities

Mon, 05 May, 2014 - (8:52)

The Exchange: Let the rocking commence The Exchange: Let the rocking commence

Tue, 08 Apr, 2014 - (8:13)

The Exchange: The Moneyball fallacies The Exchange: The Moneyball fallacies

Mon, 24 Mar, 2014 - (9:54)

Is doing good a good business? Is doing good a good business?

Mon, 17 Mar, 2014 - (7:38)

Oddly Enough »

Masked hero sweeps clean Masked hero sweeps clean

Tue, 26 Aug, 2014 - (1:10)

Right muddy mess at World Bog Snorkeling Championships Right muddy mess at World Bog Snorkeling...

Tue, 26 Aug, 2014 - (1:11)

Hello Kitty conquers space Hello Kitty conquers space

Mon, 25 Aug, 2014 - (1:11)

Japanese zoo welcomes red panda cub Japanese zoo welcomes red panda cub

Mon, 25 Aug, 2014 - (0:42)

Is it a plane? No, it's a hoverbike Is it a plane? No, it's a hoverbike

Fri, 22 Aug, 2014 - (2:40)

Fox kicks off "Simpsons" mega marathon Fox kicks off "Simpsons" mega marathon

Thu, 21 Aug, 2014 - (0:56)

Six-story tall duck floats into L.A. port Six-story tall duck floats into L.A. port

Thu, 21 Aug, 2014 - (1:02)

Young artist paints surreal illusions on bodies Young artist paints surreal illusions on...

Thu, 21 Aug, 2014 - (1:30)

Snow leopard cubs make Bronx Zoo debut Snow leopard cubs make Bronx Zoo debut

Wed, 20 Aug, 2014 - (0:41)

Eco-friendly bench keeps your tech fully charged Eco-friendly bench keeps your tech fully...

Tue, 19 Aug, 2014 - (1:55)

A cheetah cub and a puppy make friends A cheetah cub and a puppy make friends

Tue, 19 Aug, 2014 - (0:48)

Reuters Investigates »

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, 19 Feb, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, 10 Jan, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, 29 Aug, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, 29 Aug, 2013 - (13:21)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, 05 Aug, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, 17 Dec, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sun, 09 Dec, 2012 - (10:01)

Jihad Jane: The order to kill - Reuters Investigates Jihad Jane: The order to kill - Reuters...

Mon, 10 Dec, 2012 - (10:39)

Moving Pictures »

Mending dolls, teddies and hearts Mending dolls, teddies and hearts

Fri, 22 Aug, 2014 - (3:12)

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, 11 Aug, 2014 - (2:27)

Burned memories Burned memories

Fri, 08 Aug, 2014 - (3:02)

Images of July Images of July

Fri, 01 Aug, 2014 - (1:20)

World Cup: passion on the pitch World Cup: passion on the pitch

Fri, 11 Jul, 2014 - (1:00)

A refugee in America gives back A refugee in America gives back

Thu, 03 Jul, 2014 - (3:25)

A long search for refuge A long search for refuge

Fri, 20 Jun, 2014 - (3:04)

World Cup: Around the globe in 50 goals World Cup: Around the globe in 50 goals

Fri, 06 Jun, 2014 - (1:08)

VIVID – Sydney’s spectacle of light VIVID – Sydney’s spectacle of light

Fri, 30 May, 2014 - (1:37)