European travel association ETOA has thrown new light on the legacy of the 2012 London Olympics, suggesting countries hosting such mega events should “be careful what they wish for”.
ETOA tourism statistician David Edwards suggested the 2012 Olympic Games brought few medium or long-term benefits to London.
Speaking on an ETOA webinar during the recent Paris Olympics, Edwards said: “Hosting an event at a peak time [for international tourism] is counter intuitive.”
More: Analysis: Are the Olympics a boost or a bane for tourism?
He stressed the difference between events which bring in visitors throughout the year and mega events such as the Olympics which have “a broader and diverse set of impacts which are often misrepresented, in particular prior to an event”.
Edwards said: “We hear mega events attract a lot of visitors. But those attending may crowd out regular visitors who don’t often do the things regular visitors do.”
He noted the claimed benefits include boosting destination awareness and the creation of new stadia and venues. But Edwards suggested Olympics viewing figures are frequently inflated by publicising the potential audience via media channels, while local demand for venue space “once the bandwagon rolls on” may be limited.
Edwards noted hospitality data analyst STR (since rebranded CoStar) recorded average daily room rates at London hotels during the 2012 Olympics 86% up on the prior year.
However, he said: “Room occupancy during the full period of the Games was four percentage points lower than a year earlier.”
He added: “The British Hospitality Association [now UKHospitality] reported demand at central London restaurants fell 40% year on year during the 2012 Games.
“The Association of Leading Visitor Attractions reported London’s tourism sights saw a 35% drop in visitors year on year during the period of the Games.”
Edwards went on: “Inbound holiday visitors to London in July to September 2012 were 12% down on the second quarter of that year – the only time second-quarter visitor numbers have exceeded third-quarter numbers in 40 years.”
Heathrow passenger volumes were also 4% down year on year in July 2012, he noted, adding that there was “no discernible uptick in how the UK was perceived around the world” over the course of 2010-14.
Edwards noted Air France-KLM recently warned that its third-quarter results this year would “be negatively impacted by €150 million to €170 million” due to the Paris Olympics and said: “The best advice for destinations hosting big events is to be careful what you wish for.”
ETOA chief executive Tom Jenkins suggested Edwards’ analysis was “borne out by the experience of Barcelona” which he described as “the poster boy for the tourism benefits of hosting the Olympic Games”.
Jenkins noted: “Barcelona saw a sharp decline in tourists the year after the Games when everyone was anticipating a rise and it took time to rebuild the momentum.”
He added: “London had a good Games. But the point about London and Paris is that their appeal is universal and does not rely on the Olympic Games.”
Los Angeles is due to host the 2028 summer Olympics and Brisbane the Games in 2032.
More: Analysis: Are the Olympics a boost or a bane for tourism?