The economic long term impact of hosting the 2012 London Olympics

London was given the rights to hold the Olympics by the International Olympic Committee on 6th July 2005, after defeating Paris, New York, Moscow and Madrid through a series of voting. The summer Olympic Games also known as “the XXX Olympiad Games” are scheduled to take place from; 27th of July to the 12th of August of 2012.A lot of changes have currently taken place with the city of London currently undergoing massive rehabilitation in anticipation of the Summer Olympics.
The hosting of the Olympics is a gamble between losses and profits. The planning should accommodate the present and the future. Economic losses have been reported in a lot of countries that hosted previous Olympics.  In the 1972 Olympics held in Munich, Olympics held in 1976 in Montel made 178 and 678 million Euros in losses respectively.  In 1984 the Los Angeles Olympics and in 1992 Barcelona Olympics recorded a surplus of 215 and 2 million Euros in profits.
Planning will be essential to ensure that all sectors of the economy do not lag behind after the Olympics. As most of the resources used in renovation, building of stadiums and sporting expenses are expected to be compensated by the tourism sector, planning will enable the county allocate most of resources to profitable outcome.
The United Kingdom’s tourism is expected to outdo the world’s tourism growth close to 50%, extending its growth to the next four years after the Olympics. This is attributed to London’s athletics team auxiliary performance in the Beijing Olympics, the world will be curious on its performance in the Olympics. Survey shows that China and Russia would lead in number of tourists. The increase in tourism would in turn lead to increase in needs. This will mean that transport and hotel sector will be expected to give the economy major boost as the tourists will require accommodation, transport and other essential services. The United Kingdom will market itself through the variety of services that it will offer for the clients.
Infrastructure forms the backbone of every economy.  The government is also spending a lot of funds in building and rehabilitating infrastructure. This will still be there even after the Olympics.  This will weaning that the country’s economy is expected to improve with improvement of infrastructure. The countries   
The London Olympics will facilitate foreign relations with the countries opening new business opportunities with other countries. Trade between countries will open new venture and employment opportunities.
Hosting the London Olympics will lead to long term unemployment. After the sporting event, most job opportunities that arose as a resort of the games will have to close down, leading to enormous unemployment.
The Olympics are not as easy as it seems. Hosting the Olympics is a gamble.  If the country develops political instability may in turn affect the tourism sector crashing the economy. The country should factor in the delicate nature of the tourism sector. In cases like Munich and Montel Olympics, the countries are still struggling with the losses made from the Olympics.


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