The Olympic Games 2012 in London have failed to fulfill general business expectations, according to a survey published today by Deloitte.
In January, 80% of large businesses in London indicated that they expected a rise in demand for services and products. Following the closing of the Olympic Games, Deloitte asked the respondents to indicate to what extent expectations were met. 42% reported an increase in demand, 31% indicated little change in activity and 27% even reported a decrease in economic activity.
“This research demonstrates that many companies have benefited from London 2012, although the boost in demand hasn't met the expectations of all” says Heather Hancock from Deloitte. The report highlights that the biggest beneficiaries were “firms that planned well ahead and targeted Olympic visitors”. Despite the slightly disappointing figures, the Deloitte advisor is convinced that the long-term results will be positive: “In the longer term, there is no doubt that London 2012 has been a fantastic showcase for London and for the United Kingdom”.
Tourism and retailers benefited most
Travel, hospitality and leisure industries performed best, with 68 % of companies in these areas saying they have seen a boost. In retail, there was increase in demand of 59%, although this again was not as high as originally hoped.
Shift of business activity to east London
The survey reveals that several firms complained that business activity basically shifted from the traditional tourist areas of central London and the West End to East London, where the Olympic Games were hosted.
Transport problems en higher absenteeism
For the survey Deloitte also asked businesses in London to indicate the two main issues they encountered as a result of the Olympic Games. Most important issue was the delay in staff arriving at work, as a result of transport problems, followed by staff taking excessive holidays and a high - perhaps even improbable - level of absenteeism.