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1984 OLYMPICS TO PUMP MORE THAN $3.3 BILLION INTO ECONOMY

Games to Create Thousands of Jobs in Southern California

Los Angeles (October 28) - Southern California economic benefits generated by the staging of the 1984 Olympic Games will total more than $3.3 billion, according to a report released today by the Los Angeles Olympic Organizing Committee (LAOOC).

The study was conducted by Economics Research Associates (ERA), an independent Los Angeles-based research and consulting firm that has assessed the economic impact of a number of World's Fairs, major international exhibitions and state fairs.

The Games of the XXIIIrd Olympiad will trigger the creation of tens of thousands of jobs and increase state and local government revenues by more than $175 million, the report concluded.

"We measured Olympic-related economic activity that has occurred since the Los Angeles Olympic Organizing Committee began operating in early 1979, activity that will be created through the Games themselves in the summer of 1984 and long-range benefits to Southern California following the Games," said David A. Wilcox, vice president of ERA.

"The analysis," Wilcox said, "addresses only tangible and quantifiable components of economic impact in terms of spending, employment created and revenues that will benefit local and state government - which underscores the conservative nature of the study."

The $3.3 billion figure reflects two levels of expenditures in constant 1982 dollars:  primary expenditures and induced spending. Primary impact refers to first-round spending associated with the 1984 Olympics; induced impact - also called the multiplier effect - results from subsequent re-spending of the primary impact income.

Total primary economic impact is estimated at $949 million, with payroll earnings of $425 million for 22,700 person-years. The Olympic Games will lead to creation of the equivalent of 68,000 jobs of four months duration, split evenly between 34,000 new jobs and increased utilization of existing jobs.

Induced economic impact is projected at $2.37 billion, with payroll earnings of $1.2 billion for 79,870 person-years.

States and local government revenues from transient occupancy taxes, sales taxes, ticket taxes, individual and corporate income taces and business license fees will total $68.81 million, with an additional $110.3 million revenues expected by state and local government in multiplier-effect income, according to the report.

"The study by Economics Research Associates illustrates the immense scope of benefits that the Olympics will bring to the people of California." said Peter V. Ueberroth, president of the LAOCC, the independent, nonprofit corporation that is organizing the Games of the XXIIIrd Olympiad.

"The economic impact is far greater than the $472 million that the Olympic Organizing Committee will spend to stage the Games of 1984," Ueberroth said. "At the same time, this investment will yield other benefits that aren't measured in the economic impact study - enrichment of the human spirit through exposure to sports, arts, and cultures of the world, expansion of opportunities through international media coverage and recognition, and the nurturing of youth through sports, educational and cultural programs."

The LAOOC is financing Olympic preparations and operations with revenues from sponsors, licensees, suppliers, and sale of worldwide television rights, tickets and commemorative coins and stamps.

The ERA report was announced immediately after the signing of a contract guaranteeing that the costs of services provided by the City of Los Angeles for the Olympic Games will not be borne by general taxpayer funds. Under the contract, services provided by the City of Los Angeles for the Olympic Games will not be borne by general taxpayer funds. Under the contract, services provided by City of Los Angeles government agencies will be covered by a special hotel room tax, Olympic ticket taxes and LAOOC funds.

Los Angeles Mayro Tom Bradley and LAOOC Board Chairman Paul Ziffren, both instrumental in bringing the Olympic Games to Southern California, joined Ueberroth, and Harry L. Usher, LAOOC executive vice president and general manager, in making the announcement at LAOOC headquarters.

"When we secured the 1984 Olympic Games for Los Angeles, we made an important promies to the people of this city. We promised that the taxpayers of this city would not carry the financial burden of the Games. The economic report issued today makes it clear that the Games will have a very positive fiscal impact on this city, region, and state, and the contract signed today fully protects our citizens from footing the Olympic bill," said Bradley. 

Ziffren said, "These are conservative estimates. Still, they demonstrate the far-reaching effects of the Olympics. The Games of the XXIIIrd Olympiad are serving as a catalyst for progress. With the cooperation of a wide variety of groups and individuals, the Games are creating jobs and other benefits for our communities in Southern California, for the State of California and for people throughout the United States and the world."

The total primary economic impact of $948.6 million for Southern California includes, in constant 1982 dollars:

-Olympic Games operations: $372 million
-Village operations: $65 million
-Out-of-town visitor expenditures: $316.03 million
-Communications, electronic media and other related capital spending: $80 million
-Pre-Olympic visitation and business activities: $4.1 million
-Cultural activities: $11 million
-Related pre-Olympic sporting events: $2.84 million
-Local resident expenditures: $29.12 million
-Local souvenirs and merchandise: $20 million
-Non-local souvenirs and merchandise: $10 million
-Sponsorship advertising: $4 million
-Village resident expenditures: $1.12 million
-Long-range benefits: $8.4 million
-Local government revenues: $25 million

In addition, $148.65 million will be spent outside of Southern California for Olympic-related activities.

The Southern California area covered in the economic impact report includes Los Angeles, Orange, San Diego, Ventura, Santa Barbara, San Bernardino, and Riverside counties.

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