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From the Gold Rush to Silicon Valley, the San Francisco Bay Area has long been known for its economic innovation, and potential. BASOC's bid reflects the region's pioneering spirit, and builds upon existing resources. The result is a fiscally responsible proposal that will benefit the Bay Area far beyond the Olympic arena.
A recent study estimates that hosting the Olympic Games in 2012 will bring approximately $7.5 billion to the local economy.* Anticipated direct revenue impact is $2.3 billion, which would generate an additional $5.3 billion worth of indirect spending throughout California.
It is projected that approximately $2 billion to $2.8 billion in revenues will be generated from the sale of broadcast rights, tickets, sponsorships, Olympic-related merchandise and other items. Broadcast contracts are expected to amount to approximately $750 million to $1.1 billion. Financial assurances from state and local government will be a major factor in attracting the 2012 Olympic Games. BASOC is confident that private funding will be sufficient to cover expenses.
The San Francisco Bay Area has a number of existing athletic facilities; hosting the Olympic Games would require minimal investment for the construction of new venues. The Bay Area also has a variety of local colleges and universities to house Olympic officials and staff. Furthermore, the Bay Area is currently the number one tourist destination in the United States, with efficient public transportation and an impressive tourism infrastructure appropriate to host the Olympic Games. Construction costs are estimated at no more than $186 million in capital investments. Non-construction costs will be approximately equal to Atlanta's $1.25 billion.
The San Francisco Bay Area will experience a significant increase in visitor spending due to the 2012 Olympic Games. Approximately 250,000 visitors will be present on any given day during the Olympic Games, with 50 percent of those visitors staying in hotels.
According to the U.S. Department of Commerce, for every $1 in direct spending, an estimated $2.25 will be generated. Consequently, the anticipated $2.3 billion of direct spending should stimulate an additional $5.2 billion in spending. Total economic activity in California should increase by approximately $7.5 billion, with the majority of the benefits accruing to the Bay Area economy. The impact of the Olympic Games on the California economy will be felt over an extended period. Showcasing the San Francisco Bay Area during the worldwide broadcast will be worth millions of dollars, increasing tourism long after the Games.
*Economic impact research and analysis prepared by Econ One Research, Inc., 1998.
All facts used are from this research.
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