As the 2018 FIFA World Cup in Russia came to a culmination last week, we can’t help but get excited for the 2026 FIFA World Cup as Canada, Mexico, and the United States was recently chosen to be the next host continent. So far, we know that there will be 10 soccer matches in Mexico, 10 in Canada, and 60 spread across various American cities. Los Angeles is anticipated to become one of the potential host cities—and, given the fact that we’ll be gearing up to host the Olympics two years later, seems like a no-brainer. All in all, Los Angeles is more than ready for the economic achievements that the MLB All-Star Game in 2020, Super Bowl LVI in 2022, the College Football Playoff National Championship in 2023, the FIFA World Cup in 2026 and the Summer Olympics in 2028 will bring to the city! Take a look at how these sporting events will help boost the various retail, restaurant, and hotel developments in the coming years.
1) Economic Boost
To begin with, a study on the potential economic impact of Los Angeles hosting the Olympics estimated the Olympic Games to generate more than $11 billion for the city. When Los Angeles was the host of the 1984 summer Olympics, the city saw a significant economic gain of $2.3 billion and since this economic boom was revealed, the number of cities that have proposed bids to host the Olympics has increased dramatically. The overall effects of hosting the Olympics have helped several cities improve in urban renewal, increased employment, and tourism generation.
2) Impact of Tourism
Moreover, tourism has always played an important role in the economic development of Los Angeles as it always helps drive the attraction of the city. In 2017, Los Angeles saw a record-breaking number of tourists as we received a total of 48.5 million total visitors, with 41.2 million being domestic visitors and 7.3 million being from other countries. With that record-breaking number of visitors, Los Angeles received a total of $22.7 billion as that is the total number of money spent from those who traveled to our wonderful city.
3) Thousands of Jobs Added in L.A.
In 2017 alone, there were a total of 523,800 jobs added in the leisure and hospitality industry which is one of the city’s largest and strongest economic sectors. Also, the tourism industry contributed to the second largest addition of new jobs last year across the rest of the industry sectors with a total of 13,900 jobs. With these significant numbers, we can’t help but wonder how much more significant these numbers will increase when the dates come close to the NFL’s Superbowl, soccer’s FIFA World Cup, and the Olympics.
By the year 2040, downtown L.A. will have added approximately +125,000 people, +70,000 housing units, and +55,000 jobs.
4) Increased demand for hotels, restaurants, retailers in the city of L.A.
As Los Angeles is one of the world’s most dynamic and diverse travel destinations, its more than 48 million annual visitors have helped increase the demand for hotels, restaurants, and retailers. In 2017, the county of L.A. saw an all-time high demand for hotel rooms as there was a total of 29.4 million rooms booked with an average daily rate of $175.98.
5) Improvements on Transportation
Also, the city of L.A. knows how bad our roads and highways can become very congested during certain events, but they have already begun investing in other methods of transportation to reduce the congestion. LAX has unveiled their plans of building an automated people mover which is an electric train system on a 2.25-mile elevated guideway. The people mover will consist of a shuttle that will transport passengers between terminals, rental car centers, and the undergrown Crenshaw/LAX Line to help passengers reduce their time spent arriving at the drop-off and arrival platforms. The $4.5 billion project is set to be completed by 2023 right in time for the summer Olympics.
All in all, here at DDC Group, Inc., we’re excited to see these amazing sporting events arrive in our city and help contribute to the growth of the retail, restaurant, hospitality industry.