The Madrid Olympic process will generate over 168,000 full-time jobs from 2004 to 2025
Madrid, 10 June 2013
Issue 36 of the Madrid Economics Bulletin has put figures to the impact that the Olympic process will have on the city’s economy and jobs market.
The effects of the process have been felt in the city ever since the launch in 2004 of the bid to host the 2012 Games. There are two reasons behind this, the first of them being the investments that have been made from the onset in giving the city the sports and transport infrastructures it needs and in upgrading existing infrastructures. The second is the increased visibility Madrid has enjoyed as a result of the three bids, which has led to a steady growth in the number of tourists visiting the city.
The €6.4923bn investment (more than 80 percent of the total) that has already been made in transport infrastructures and sports facilities has led to an increase of €9.1517bn in the city’s economic output and of €3.7681bn in GVA. It has also created the equivalent of 75,536 full-time jobs.
Furthermore, Madrid’s three consecutive Olympic bids have amounted to a superb marketing campaign for the city. In the 2004-2012 period the city received 3.8 percent more tourist visits than the national average, a figure equating to an additional €504.1m in revenue in that time. In turn that revenue has generated an extra €743m in economic output, €353m in value added, while also creating the equivalent of 7,545 full-time jobs.
It goes without saying, however, that the most significant impact has yet to be felt.
If on 7 September Madrid is named as the host city of the 2020 Olympic Games, a goal is has never had a better chance of achieving, the effects will be felt beyond 2020, thanks to the investments of both the past and future and the huge boost such a decision would give to Madrid’s appeal as a tourism and business destination.
Though a large part of the necessary public investment has already been made, some €1.5159bn still needs to be spent on getting the city ready for the Games. This outlay would result in an increase of €3.2369bn in economic output across the 2013-2020, while also generating an extra €1.3328bn in GVA and creating the equivalent of 26,717 new full-time jobs.
This investment would also have a positive effect on the city’s tourism industry. In this respect, the most likely scenario is an increase of between 1.5 and 2 million tourists in the year the Games are staged, with an extra million visiting the city in each of the five subsequent years. Such an increase would generate additional revenue of €3.9486bn for the city in the 2020-2025 period, as well as a further €5.8221bn in economic output and €2.7647bn in GVA. In terms of the labour market, it would also create the equivalent of 59,095 full-time jobs.
Overall, the increase in economic output and GVA would be €9.059bn and €4.0075bn respectively, while the equivalent of 85,812 new full-time jobs would be created, which would translate into a substantially larger number of employment opportunities due to the different characteristics of each of these jobs and their form of provision. Though slightly higher, this estimate of the employment impact largely corresponds with the study conducted by PricewaterhouseCoopers.
As a result of the effects already created and the expected impact of preparing for and staging the 2020 Games, the effective increase in economic output would be in the region of €18.954bn, while GVA would rise by €8.2185bn and some 168,893 full-time jobs would be created.
In terms of industrial sectors, the three areas that would benefit the most are all very labour intensive. The first of them is construction, which is a major driver of the economy and which would account for 42.5 percent of the additional economic output generated and 40.9 percent of new jobs. The second is the hotel industry, with ten percent of economic output and 17 percent of jobs, followed in third place by the retail trade, which would generate €1.286bn in economic output (6.8 percent of the total) and 25,577 jobs (15.9 percent of the total).
Geographically, every area of the city would have much to gain from the Olympic process, the impact of which would be felt evenly across Madrid, with the districts of Centro, San Blas and Salamanca contributing 13, seven and seven percent respectively to total economic output and job creation.
To summarise, the awarding of the Olympic Games to Madrid would provide both the city and Spain as a whole with the economic boost they need in order to stimulate growth and open up new job opportunities.
For further inquiries, please contact:
Sandra Serrano
International Communications Department
Madrid 2020 Bid Committee
Phone: +34 91 1922020
aserrano@madrid2020.es
www.madrid.es
www.facebook.com/madrid2020
@Madrid2020ES
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