The 2012 Olympic Games is providing a net positive impact to large businesses in London, although not to the extent many had anticipated, according to a survey of 100 large companies by Deloitte.
Deloitte, which serves as the official professional services provider to London 2012, said 42% of companies have reported an increase in demand since the start of the Games, compared with 27% who reported a decrease. However, when surveyed in January, 80% of respondents anticipated an increase, whilst just 4% expected a decrease.
The study found that consumer businesses have received the most positive results, with 68% of respondents in the travel, hospitality and leisure (THL) industries and 59% of retailers reporting an increase in demand, compared with 18% and 32% respectively reporting a decrease. These figures are also below expectations from January however, when 80% of THL businesses and 84% of retailers were hopeful of an Olympic boost.
“This research demonstrates that many companies have benefited from London 2012, although the boost in demand hasn’t met the expectations of all,” said Heather Hancock, lead London 2012 partner at Deloitte. “The biggest beneficiaries have been those companies who planned ahead and targeted Olympic visitors. Seventy-seven-per-cent of retailers reported an increase in demand from new customers for example, compared with just 27% reporting an increase from existing customers.”
Hancock added: “As the heart of London moved east, location has clearly been important, especially for smaller businesses with fewer locations. But for large chains with stores, hotels and restaurants across the capital, opportunities have been there to exploit and it appears sharp, nimble businesses have responded by changing trading hours and moving staff to service their busiest locations.”
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Olympics fails to meet expectations for London businesses – report