The financial impact of the Paris 2024 Olympic and Paralympic Games on the French economy is expected to be only temporary, according to a report by French statistics authority Insee.
The Olympic Games get under way this evening (26 July), with the opening ceremony set to take place on the River Seine, in the heart of the French capital.
In its assessment, Insee predicts that ticket sales and broadcasting rights for the Olympics will contribute around 0.25 percentage points to economic growth in the third quarter of 2024, with tourism adding an additional 0.05 percentage points.
Legacy Effects
'The period when the Games are actually held is marked by the income generated by tourism,' Insee said in its report on the 'Paris Olympics Effect'. 'The impact of the Games after they have been staged is reflected by the legacy effects (long-term use of infrastructure) and the long-term enhancement of tourist appeal.
'The enduring impact of the economic effects depends mainly on the use of the resources generated after the Games, even though many of the benefits are temporary.'
Insee based its forecast on the effects of the London 2012 Olympics, which saw the UK’s GDP grow by 1.0% in the third quarter of 2012, with the Olympics contributing between 0.2 and 0.4 percentage points to this growth.
Ticket sales for the Games are expected to generate nearly €1.2 billion for the Organising Committee for the Olympic and Paralympic Games (OCOPG).
With around two-thirds of spectators expected to be French residents, the Games should lead to an 8% increase in quarterly consumption, Insee suggests.
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Food Industry, Transport Boost
Separately, a study by France Travail, the Besoin de Main-d’Oeuvre (Labour Needs) survey, indicates a 4% increase in recruitment intentions in the accommodation and food services sector in the Île-de-France region, including an 8.7% increase in Paris, in 2024. This compares to a 1.3% increase for the sector overall.
Transport revenue is also expected to rise, with Île-de-France Mobilités forecasting a one-time 15% increase in public transport usage during the Games.
However, Insee cautions that the economic benefits of the Games will be short-term, with activity likely to slow down by the end of the year.
‘As a backlash, activity is expected to come to a standstill at the end of the year,’ it said. ‘On the demand side, the counterpart to this increase in activity is divided equally between household consumption and exports of services (including tourism).’
