Tourism Authorities Expect 2012 Olympics Might Bring a Windfall to the U.K., but Analysts Estimate it Will Only Be a Drop in a Bucket

Tourism and business chiefs hailed London´s 2012 winning bid, saying the Olympic Games would generate £2 billion for the local tourism industry.

But others said the potential benefits to the economy had been overstated, saying the Games are unlikely to generate much economic benefit beyond the direct impact of regeneration in east London.

Tourist industry leaders said the games would attract more foreign visitors. "The IOC´s decision confirms London´s and Britain´s places among the world´s leading visitor destinations," said Tom Wright, chief executive of VisitBritain, the tourism promotion body.

The games would provide a "great platform to boost the international marketing of London and Britain as leisure, business and sporting destinations, particularly in new and emerging markets such as China, Greece, Korea, Poland and Thailand".

Hoteliers were similarly upbeat. David Michels, chief executive of Hilton Group, one of the UK´s largest hotel operators, said London´s acknowledged strengths as a tourism destination will surely rise by several notches following a successful games.

One advantage of London over other recent games´ hosts such as Athens, Sydney and Barcelona, said Jonathan Langston, managing director of TRI Hospitality Consulting, was that it already had 100,000 hotel rooms, meaning Olympic visitors "can be accommodated within the existing stock".

However, Expotel, a travel management company, said it expected the Olympics to attract one million visitors to the UK, and more hotel rooms would be needed by 2012.

Capital Economics, a consultancy, said: "We estimate that the direct net overall boost to UK output from the extra capital investment, an increase in employment, an influx of tourists and a boost to domestic spending will be around £9 billion."

When set against the £1,200bn UK economy this boost was "trivially small". Moreover, said the consultancy, any increase would be diluted because the positive effects would be spread over the years to 2012.