According to an economic study released by the Rome 2020 Olympic bid committee Thursday, the cost to organize the Games would reach 9.8 billion euros (USD $12.5 billion) – but the total impact on Italy’s GDP would be 17.7 billion euros (USD $22.7 billion) or a 1.4% increase, with the creation of 29,000 jobs.
8.2 billion euros would be alloted to required capital infrastructure projects such as transport and venues while 1.6 billion euros would be spent on Games costs and expenses. Direct revenues to the organizing committee is expected to be 2.3 billion euros and with added real estate revenue, the total would be closer to 3.5 billion euros coming back into the public purse.
Once it’s all calculated the net public cost will be 4.6 billion euros but most of this will be recouped with an estimated 4.6 billion euros in increased tax revenue.
Yesterday, a report indicated that Moody’s recently published credit ratings gave Italy a “negative outlook”.
Meanwhile, an ISPO poll revealed that 74% of Italians are in favour of the Olympic bid and 77% in Rome support the idea. 70% of those behind the Games cite economic development and job creation as their prime motivation.
Rome is competing against Baku, Doha, Istanbul, Madrid and Tokyo but the list will be cut shorter at an International Olympic Committee meeting in May.