Olympics in England

[agua642]

it's good to know that the Olympics are being held in England 2012 maybe it will boost economy and confidence, what do you think?

[gus-lopez]

Obviously not a lot by the replies you've had !

[agua642]

agree! no comments:-(

[Joppa]

Originally Posted by agua642

it's good to know that the Olympics are being held in England 2012 maybe it will boost economy and confidence, what do you think?

When the Olympics were awarded to London in 2005, exaggerated forecast was made about the games' possible benefit to London and UK running into hundreds of million or billions of pounds for years afterwards, but they didn't calculate the effects of the global recession and economic downturn since. Now it's obvious the games will take place while the UK, and most of the rest of the world, will be mired in the deepest recession since 1930s. While the organising committee has more of less stuck to its budget for the infrastructure and hosting of the event, the economic benefit will be a lot less than anticipated, even if they can avoid going into the red. For example, hotel prices have been jacked up in London and surrounding areas for the Games, but it's possible a lot of rooms which have been set aside may be released nearer the event if people decide not to travel or corporate entertaining proves less boyant. We don't know as yet what will happen, as stakeholders keep hoping for a last-minute surge in interest and obviously don't want to talk down the market, but we'll have to wait and see.

As for spin-offs for the UK as a whole, I think the effect will be minimum. The economic woes afflicting UK at the moment, such as high public debt, rising inflation and subdued demand, aren't going to be substantally influenced by the Games and will keep UK under economic gloom for several more years (some forecast no real growth until 2015). Should Team GB do extraordinarily well, the feel-good factor may temporarily loosen people's pursestrings to splash out, but the effect will be short-lived.

[gus-lopez]

Plus the people of London & the surrounding counties will still be paying for it , via their council tax, until 2016. Although Boris has said that until 2014 the yearly increases will be held down to 58p !
Lets just hope it's not like Chancellor Kohls "1 year ,1% additional tax to pay for reunification . " Still in place 22 years later !