A new Los Angeles County Economic Development Corporation analysis estimates the LA28 Olympic and Paralympic Games could generate $20.5 billion to $40.6 billion in economic output across Greater Los Angeles. The study examines potential effects on jobs, infrastructure, visitor spending, businesses and tax revenue as the region prepares for the 2028 Games.
Key Takeaways
- LAEDC estimates the LA28 economic impact at $20.5 billion to $40.6 billion across Greater Los Angeles.
- The study projects that Games-related economic activity could support approximately 126,000 to 224,000 jobs.
- About $8.35 billion in transportation, airport, mobility, accessibility and venue investments have been accelerated or undertaken in connection with the Games.
- LAEDC estimates around 2 million visitors could generate $1.6 billion to $4.3 billion in direct spending in Los Angeles County.
- Games-related activity is projected to generate approximately $5.1 billion to $5.9 billion in combined federal, state and local tax revenue.
LA28 Economic Impact Could Reach $40.6 Billion
Planning, preparing for and hosting the 2028 Olympic and Paralympic Games could generate between $20.5 billion and $40.6 billion in economic output across Greater Los Angeles, according to a new analysis by the Los Angeles County Economic Development Corporation.
The study, conducted by LAEDC’s Institute for Applied Economics and commissioned by LA28, examines economic and fiscal activity over the multiyear period leading up to and including the Games. LAEDC said it independently developed the economic modeling used in the analysis.
The projected impact extends beyond spending directly tied to Olympic and Paralympic competitions. LAEDC examined five major sources of activity: LA28 operational spending, transportation and security spending, capital investment, spending by visitors from outside the region and spending by independently funded Games stakeholders.
“Our analysis shows the impact reaching across the regional economy, from jobs and labor income to local businesses, visitor spending, and long-term investment,” LAEDC President and CEO Stephen Cheung said.
The projections are presented as ranges rather than a single expected result. LAEDC used two complementary methodologies, including a National Income Accounting framework focused on net new outside spending and the IMPLAN regional input-output model, which measures broader gross economic activity.
LA28 Economic Impact Spans Five Southern California Counties
The economic analysis covers Los Angeles, Orange, Riverside, San Bernardino and Ventura counties, creating a five-county definition of Greater Los Angeles for the study.
That regional approach captures economic activity that may occur beyond competition venues. Transportation projects, airport improvements, hotel stays, suppliers and other services can involve workers and businesses across county boundaries.
Los Angeles County remains at the center of preparations, but the regional assessment recognizes that the economic effects associated with a major event can extend into neighboring counties.
Infrastructure spending is one example. California has also been directing billions of dollars toward state transportation projects, including transit, road, safety and infrastructure improvements in different parts of the state.
For LA28, the regional economic model combines those broader infrastructure and service channels with organizing expenses, visitor activity and other Games-related spending.
LA28 Could Support Up to 224,000 Jobs
LAEDC estimates that economic activity associated with the Games could support approximately 126,000 to 224,000 jobs across Greater Los Angeles.
The projected employment spans construction, transportation, administrative support, hospitality, accommodation, security and other industries involved in preparations and operations.
The figures cover the multiyear period leading to 2028 as well as the Games themselves. They therefore represent employment supported by the economic activity included in the analysis rather than a count limited to jobs at Olympic and Paralympic venues.
Construction employment is linked partly to transportation, airport and venue improvements. Transportation and security workers will also be needed to support event operations, while hotels, restaurants and other visitor-serving businesses are expected to experience additional demand.
The wide employment range reflects the different levels of economic activity produced by the study’s modeling approaches. As with the economic-output estimate, the upper figure represents a projected scenario rather than a guaranteed result.
Capital Investment Represents the Largest Impact Source
Games-related capital investment represents the largest single source of estimated economic impact identified by LAEDC.
Approximately $8.35 billion in transportation, airport, mobility, accessibility and venue investments have been accelerated or undertaken in connection with the 2028 Games.
The spending is broader than construction at competition sites. LA28 has emphasized the use of existing and temporary venues rather than building new permanent competition infrastructure, shifting much of the investment emphasis toward systems and facilities expected to serve the region before and after the Games.
Transportation is particularly significant because millions of residents, workers, athletes and visitors will need to move throughout Southern California during the event period.
Airport, mobility and accessibility projects also form part of the investment identified in the analysis. These expenditures contribute to the overall LA28 economic impact through construction activity, professional services, supplier spending and related employment.
Visitor Spending Could Reach $4.3 Billion in Los Angeles County
The Games are expected to attract around 2 million visitors to Greater Los Angeles, according to the LAEDC analysis.
Direct visitor spending in Los Angeles County alone is estimated at approximately $1.6 billion to $4.3 billion. Lodging and food are expected to account for significant portions of that activity, with additional spending reaching retailers, transportation providers and other visitor-serving businesses.
The projection illustrates why tourism is a major component of the regional economic assessment. Similar studies of event economic impact have examined how spending associated with large gatherings reaches hotels, restaurants, transportation providers and local workers beyond the event venue itself.
For LA28, visitor spending is one of five distinct sources of activity analyzed by LAEDC. It is measured separately from Games operations, capital investment, transportation and security expenses, and spending by independently funded Games stakeholders.
That distinction matters because the headline $20.5 billion to $40.6 billion projection represents a combination of multiple economic channels rather than tourism spending alone.
Local Businesses Are Part of LA28’s Procurement Strategy
LA28 has also established procurement targets intended to direct part of its organizing expenditure toward businesses in the region.
The organizing committee says its goal is to direct 75% of addressable procurement spending to businesses in Greater Los Angeles and 25% to small businesses.
Those targets apply specifically to addressable LA28 procurement spending. They should not be interpreted as percentages of the overall $20.5 billion to $40.6 billion regional economic-impact estimate.
Supplier opportunities identified in the economic analysis span industries such as event production, professional services, transportation, hospitality, entertainment, marketing, creative services, technology and construction.
The procurement goals provide one mechanism through which Games-related organizational spending could reach regional companies. The actual distribution of spending will depend on contracts awarded and purchases made as preparations continue.
Games-Related Activity Could Generate Up to $5.9 Billion in Taxes
LAEDC estimates that economic activity associated with the Games could generate approximately $5.1 billion to $5.9 billion in combined federal, state and local tax revenue.
The tax estimate is separate from the study’s economic-output projection. It represents government revenue associated with the modeled economic activity rather than additional economic output on top of the $40.6 billion upper estimate.
Taken together, LAEDC’s analysis measures several different effects, including economic output, employment, labor income, infrastructure investment, visitor spending and tax revenue.
The distinctions are important when interpreting the size of the forecast. Economic output, investment, visitor expenditures and tax collections measure different aspects of Games-related activity and should not be added together as though they were separate components of a single total.
The Projection Remains a Range, Not a Guaranteed Result
The LA28 economic impact analysis provides estimates of what preparation for and hosting the Games could generate under different economic modeling approaches.
As with economic-impact studies of other major events, actual results will depend on factors such as visitor numbers, spending levels, project costs, procurement activity and broader economic conditions through 2028.
The study’s use of a range, from $20.5 billion to $40.6 billion in output and 126,000 to 224,000 jobs supported, reflects that uncertainty.
It also offers a clearer view of where the anticipated activity could occur. Infrastructure accounts for the largest single source of estimated impact, while visitor spending, Games operations, transportation and security, and independently funded stakeholders contribute through separate channels.
For Greater Los Angeles, the figures establish a benchmark against which the eventual LA28 economic impact can be assessed as preparations advance and actual spending becomes clearer.
Frequently Asked Questions
How much economic output could LA28 generate?
LAEDC estimates that planning, preparing for and hosting the 2028 Olympic and Paralympic Games could generate approximately $20.5 billion to $40.6 billion in economic output across Greater Los Angeles. The LA28 economic impact is presented as a range because the analysis uses different economic modeling approaches.
How many jobs could the LA28 Games support?
The analysis estimates that Games-related economic activity could support approximately 126,000 to 224,000 jobs. The projected employment spans construction, transportation, hospitality, administrative support, accommodation, security and other industries.
How much infrastructure investment is connected to LA28?
LAEDC identifies approximately $8.35 billion in transportation, airport, mobility, accessibility and venue investments that have been accelerated or undertaken in connection with the Games. Capital investment represents the largest single source of estimated economic impact in the study.
How much could visitors spend during the Games?
LAEDC expects around 2 million visitors to Greater Los Angeles. The analysis estimates direct visitor spending in Los Angeles County at approximately $1.6 billion to $4.3 billion.
Which counties are included in the economic analysis?
The Greater Los Angeles region used in the study includes Los Angeles, Orange, Riverside, San Bernardino and Ventura counties. The five-county scope captures economic activity associated with businesses, workers, infrastructure and visitor services beyond individual competition venues.
