The 2028 Olympic and Paralympic Games could generate between $20.5 billion and $40.6 billion in economic activity and support 126,000 to 224,000 jobs across the greater Los Angeles region, according to an economic analysis released Tuesday.
The study was conducted by the Los Angeles County Economic Development Corporation’s Institute for Applied Economics and commissioned by LA28, the private nonprofit organization responsible for organizing the Games. LAEDC independently developed the economic modeling used in the analysis.
“The scale and breadth of the economic activity associated with the 2028 Games is significant, even when viewed through a conservative lens,” LAEDC President and CEO Stephen Cheung said. “Our analysis shows the impact reaching across the regional economy, from jobs and labor income to local businesses, visitor spending, and long-term investment.”
The analysis examined economic activity across the five-county greater Los Angeles region associated with planning, preparing for and hosting the Games.
The study estimates the Games could support between 126,000 and 224,000 jobs in industries including construction, transportation, administrative support, hospitality, lodging and security.
Capital investment accounts for the largest share of the estimated economic impact, according to the study. About $8.35 billion in investments in transportation, airports, mobility, accessibility and venues has been accelerated or undertaken in connection with the Games.
Economic activity associated with the Games is also projected to generate between $5.1 billion and $5.9 billion in combined federal, state and local tax revenue, according to the analysis.
The Games are expected to attract about 2 million visitors to the region, generating an estimated $1.6 billion to $4.3 billion in direct visitor spending in Los Angeles County.
“The impact of the LA28 Games will be felt far beyond the moment the last medal is awarded,” LA28 CEO Reynold Hoover said. “This study shows the tremendous opportunity we have to support jobs, open doors for local businesses, and drive investments that strengthen communities across Los Angeles.”
LA28 has set a goal of directing 75% of its addressable procurement spending to businesses in greater Los Angeles and 25% to local and small businesses.
The study examined five sources of economic activity: LA28 operational spending, Games-related transportation and security spending, capital investment, spending by visitors from outside the region and spending by independently funded Games stakeholders.
Researchers used two economic modeling approaches to produce a range of estimates. One counts the net injection of new, externally sourced spending into the region, while the other measures broader economic activity associated with spending occurring within the region.
Los Angeles will host the Olympic Games for the third time in 2028, following the 1932 and 1984 Games, and will host the Paralympic Games for the first time.
LA28 plans to use existing or temporary venues rather than build new permanent venues for the Games.