New LA Olympics report projects at least $20B in economic gains for region

A new report commissioned by Olympics organizers estimates that the 2028 Games will generate at least $20 billion in economic output across Greater Los Angeles.

The analysis, prepared for LA28 by the nonprofit Los Angeles County Economic Development Corporation’s Institute for Applied Economics, looked at the economic effects of L.A. hosting the Olympics and Paralympics. It includes organizing committee spending, capital investments, publicly funded transportation and security investments, and tourism. 

In total, the report projects that new economic activity across Los Angeles, Orange, Riverside, San Bernardino and Ventura counties could total somewhere between $20.5 billion and $25.4 billion and add around 126,000 and 152,000 jobs to the economy.

A second less conservative methodology employed by the researchers estimates the overall economic output could be even higher, between $35.4 and $40.6 billion and up to 224,000 new jobs.

“ Together, they provide a responsible range, not an exaggerated promise,” Stephen Cheung, CEO of the Los Angeles County Economic Development Corporation, said at a news conference announcing the report on Tuesday. “ If we work together with intention, the Games can leave Los Angeles with more than unforgettable memories. They can leave us with stronger businesses, greater opportunities, and a more connected regional economy.”

Despite the 2028 Games being advertised as a "no-build" Olympics, the biggest chunk of spending laid out in the report is on capital projects, including the $2.6 billion L.A. Convention Center renovation, billions in LAX improvements, major transit projects like Metro ExpressLanes on the 105 Freeway, and venue renovations, such as upgrades to Rose Bowl Stadium.

The report also estimates that around $5.7 billion of LA28’s spending will be in the five county region. LA28 has a $7.1 billion budget and has pledged to keep 75% of its spending in the Greater L.A. area, and put 25% toward small businesses.

“ That economic impact is going to be felt far and wide and across Los Angeles, as well as the Southern California region,” LA28 CEO Reynold Hoover said Tuesday.

The report is the second economic analysis forecasting the effects of the 2028 Games to come out this month. A separate report submitted to the L.A. County Board of Supervisors in early September estimated that the Games would produce more than $13 billion in direct spending and a total economic output of $19.2 billion in Los Angeles County alone.

The same report also laid out the potential uneven distribution of economic benefits to the region, including limited benefits for Olympic venue sites that are not tourist destinations and parts of Los Angeles being excluded from the Games altogether.

HR&A Advisors, the consultant group that put the report together, identified Carson, Pomona, the City of Industry and Exposition Park as locations that are hosting Olympic events, but that could end up being “passthrough areas.”

“Although these areas may be active during the day, they may struggle to capture spending from visitors who pass through but do not spend money outside the venue,” the report states.

The county report also questioned what economic benefits will flow to parts of L.A. County that will be disconnected from Olympic and Paralympic activities, like Antelope Valley and Southeast Los Angeles.

Meanwhile, the analysis found that L.A.’s typical tourist destinations — including downtown L.A., Old Town Pasadena, downtown Long Beach and the Venice Boardwalk — can expect to be active areas for economic activity during summer 2028.