Boost to French GDP from Olympics set to be short-lived

Any financial boost to the French economy from the Paris 2024 Olympic and Paralympic Games is expected to be short-lived, according to a new report by French statistics authority Insee.

According to Insee, the sale of tickets and broadcasting rights linked to the Olympics is expected to contribute around 0.25 percentage points to growth in the third quarter of 2024, while tourism is set to contribute an additional 0.05 percentage points.

Insee made its estimation based on the impact that the London 2012 Olympics had on the UK capital – in the third quarter of 2012, the UK saw GDP growth of 1.0%, with the Olympics and Paralympics estimated to have contributed between +0.2 and +0.4 points to this growth.

Ticket sales

Ticket sales for the Games are expected to bring in almost €1.2 billion for the Organising Committee for the Olympic and Paralympic Games (OCOPG).

According to Insee, while there may be some crowding-out effects, where other cultural activities like museums and shows typically enjoyed by tourists see a decline, these effects are secondary to the ticket sales.

The Games, with around two-thirds of spectators expected to be French residents, should account for an 8% increase in quarterly consumption.

As well as Insee’s study, the Besoin de Main-d’Oeuvre (Labour Needs) survey by France Travail indicates a 4% increase in recruitment intentions in the accommodation and food services sector in the Île-de-France region, including an 8.7% increase in Paris, in 2024. This compares to a 1.3% increase for the sector as a whole.

Transport revenue is also set to rise. According to Île-de-France Mobilités, public transport services in the region should see a one-off increase of 15% during the Games.

Short-term gains

However, Insee warned that the benefit from the Games is expected to be short-term, with little in the way of lasting effects.

‘As a backlash, activity is expected to come to a standstill at the end of the year,’ it said. ‘On the demand side, the counterpart to this increase in activity is divided equally between household consumption and exports of services (including tourism).’