Rising Costs for 2012 London Olympics
As the occasion of 2012 London Olympics is nearing, many more hidden expenses relating to hosting the Olympic Games are now slowly surfacing.
Londoner’s are right now discovering that the 2012 London Olympic and Paralympic Games will definitely cost more money as opposed to what was planned, adding an excess £2.7 billion to the initial money estimate which was £9.3 billion. As per a study conducted, it has been revealed that the Olympic expenses have far exceeded the prediction by Olympic Delivery Authority and that the Games will now be completed in the £9.3 billion spending budget.
London Olympics Cost Overuns
Sky News which researched the expense of the 2012 London Olympic Games discovered that the true expense of the Games for the UK measures over £12 billion which is £2.7 billion above the 9.3 billion budgets.
The Sky investigation discovered that the expense for the Olympic and Paralympic Games is around half a dozen multiples of the £2.37 billion pounds which was initially quoted when London quote for the 2012 Olympic Games in 2005.
The additional costs have already been included with the initial £9.3 billion to pay for as per the Sky News investigation, cash to the local councils which conduct the Olympic Torch Relay Programs, money expended on legacy schemes, numerous more anti-doping control officers, governmental operational costs, paying the tube workers so that they don’t strike, the expense of Olympic Park Legacy Company, legal bills related to stadium tenancy decision and added cash to UK Sport.
The operational security budget has escalated to £757 million from the initial £600million budget in 2007. Contributing to this amount is £286 million for security and safety costs in the course of venue construction; the entire bill has now got to a £1 billion and might set to increase. With police expenses prone to push the entire security expenses to around £2 billion.
Cost of staging London Olympics rising
In spite of adding these additional expenses, there are some expenses which have not yet been considered. These include the expenses for actually staging the London Olympics 2012. An additional £1.1 billion has been allocated as counter-terrorism funding to the police while the Olympic Games are going on. An additional £4.4 billion budgets fixed for the intelligence and security services.
What’s more, it doesn’t consider the opportunity expense of keeping the most of the UK police officers working on the Olympic and Paralympic Games, increasing to 12,000 on peak days rather than fighting crime somewhere else.
Furthermore, the recalculated sum of £12 billion overlooks £6.5 billion allocated to transport enhancements that have been introduced as a result of Olympics and might have been terminated as part of UK government spending reductions had it not been for the occasion.
In case all these statistics had been considered, the Olympic spend might have added up to more than £24 billion, which is almost twice the present budget and ten times the initial calculation.
The statistics also don’t look at the £2.1 billion expense dealt by the LOCOG (London Organizing Committee) required for truly staging the Olympics. LOCOG basically raises revenue mainly via merchandising, sponsorship and sale of tickets. Basically, staging the London Olympics 2012 is going to be a far more expensive affair exceeding all the budgets and plans made so far.