Saturday, July 01, 2000
Study: Games worth $5.2B
Research gauges Olympics' impact
By Dan Klepal
The Cincinnati Enquirer
How much are those five Olympics rings worth to the area if the Queen City plays host to the 2012 games?
About $1 billion per ring.
An economic impact study conducted by the University of Cincinnati concluded that $5.2 billion would come into Ohio and Kentucky as a result of the Olympic Torch burning over Cincinnati for 17 days.
That figure is an estimate in 2000 dollars — meaning if the figure is correct today, the bottom line actually would be much more after 12 years of inflation.
The information will be incorporated into a bid to the United States Olympic Committee (USOC), which will be submitted Dec. 15. In fall 2002, the USOC will pick one U.S. city to compete internationally for the games.
“This won't be a deciding factor in the bid,” said Beth Snyder, director of bid development for Cincinnati 2012, the group putting together Cincinnati's proposal. “But you've got to have an understanding of the impact to each unique region.”
And you've also got to have local support, and that's what this study is really aimed at.
Nick Vehr, president of Cincinnati 2012, said the numbers in the study confirm what he has been saying for years: The Olympics would change the face of the city and leave a legacy.
“This is staggering,” Mr. Vehr said. “The numbers confirm that there is a real, measurable and, I would add, an unmatched economic value to a region hosting the Olympics.”
The $5 billion is all money that would not otherwise come into the area but for the games. Of that, $2.8 billion relates directly to the games for things such as new construction, hotel rentals and tourism.
That spending will generate an additional $2.65 billion in indirect revenue — such as exposure of the games causing businesses to move into the region or an increase in purchases from businesses and consumers outside the region as a result of the direct spending.
George Vredeveld, president of UC's Economic Research Group, said about $1.97 billion would need to be spent by Cincinnati 2012 (which would later be renamed to the Olympic Games Organizing Committee) on venue construction, transportation, cere monies, security, medical services, advertising, staging events and more.
“We're talking about incredibly large numbers,” Mr. Vredeveld said. “When we're talking about economic impact, the Olympics are equal to about 35 Major League Baseball franchises or about 70 National Football League franchises.”
Among the other points made in the study:
• About 67,000 jobs would be created for the games over more than seven years. There might actually be more jobs created, but the number reflects how many year-round, full-time positions would be associated with the games.
• Tax revenues would increase dramatically — $99 million in general sales tax, $52 million in selective sales tax and $142 million in income tax.
The study did not calculate how much governments would have to spend for additional police, ambulance service or other basic services, and none of the money being spent on the city's riverfront is included.
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