Tourism impacts
London 2012 provides a once-in-a-lifetime opportunity for the UK’s tourism industry.
But there are also 2 major impacts that businesses should consider:
-Displacement: the Games has the potential to create displacement – a challenge common to host countries of major sporting events. It occurs when regular leisure visitors stay away or and/or are displaced to other areas due to concerns over pricing and crowding. These perceptions may extend out to the months well before and after Games-time when, in reality, conditions are no different. The collective challenge for the industry is to limit the impact of displacement.
–Games-time business operations: the impact of the Games on day-to-day operations like staffing and transport during the unusual period of Games-time, particular those based in London and near to other venues. The challenge for business is to ensure plans are in place to cope with an unusual period of operations.
More background information on both these areas is below. To understand how you can deal with these challenges, go to Manage the impacts in the Getting involved section.
Displacement or the "stay-away effect"
The "stay-away factor" or "displacement" is common to many host countries and cities of major sporting events and occurs when concerns around pricing, overcrowding, safety and general disruption keep normal, leisure visitors away and/or displace them to other areas. This displacement is often based on misperceptions and the impact may be felt throughout the whole year if left unaddressed. Whilst the long term economic and tourism legacy benefits of the Games far outweigh this short-term loss, VisitBritain, London & Partners, ETOA and UK Inbound are working to collectively tackle this issue.
The Facts fromOxford Economics
The Games are forecast to generate tourism gains totalling £2.34bn for the UK as a whole and £1.85bn for London according to the Oxford Economics report. The displacement effects linked to the Games are estimated at £375mn for London and £258mn for the rest of the UK.
For information on how you can contribute to industry efforts to address displacement and for tools to help your operational planning for Games-time, go to Manage the impacts in the Getting involved section.
Games-time business operations
The period of the Games will present an unusual and potentially challenging operational environment for businesses, especially those based in and around London or close to any of the other UK venues.
Businesses should start to thinking about these potential challenges now and consider what impact the Games may have on areas such as demand, supply chains, transport disruptions and staffing.
For information on how you can contribute to industry efforts to address displacement and advice on managing business operations, go to Manage the impacts in the Getting involved section.