44% of hospitality industry sceptical of 2012 Olympics

12th June 2008, 11:37am

Just 44% of hotels, restaurants and retailers are expected to benefit from the London 2012 Olympic Games, according to the latest CBI/KPMG survey.

This figure is down on last December's survey when 58% of firms felt they would get a direct boost.

The lack of expectation of a direct Olympic dividend rises to 60% among firms with fewer than 100 staff, with just 24% optimistic about the benefits for their company.

The Games are expected to generate £10 billion for business and add £21 billion to the economy, yet firms outside transport and construction, particularly small ones, still feel excluded.

However the CBI explained: "The Games' organisers have already worked with London business organisations to set up effective ways for firms to get involved in the event and win contracts."

CBI director-general Richard Lambert, is today urging the leaders of the Olympics to ensure full business engagement in delivering a positive legacy for the UK.

He said: "I urge those who are sceptical to look at how they can get involved, commercially and in the community, in the Games. And the Olympic organisers should build on their efforts to ensure the opportunities are relayed clearly to all businesses, regardless of their size or sector."

Richard Reid, chairman of KPMG London LLP, continued: "A key area of benefit to business and the community will be the upskilling of young people in the capital for the 70,000 volunteering posts that are needed for the games."

"Whilst opportunities to contribute to the 2012 Games are open to all UK companies, London's businesses in particular have to play their part in working with the Olympic organisers and the government to ensure that a valuable legacy is left behind once the athletes have gone home."

He concluded: "If businesses don't take steps to ensure that they have some input now, they run the risk of being hit by the consequences years after the Games have gone."

Several key legacy issues the CBI has identified include getting businesses involved in community project and volunteering programmes, promoting London internationally as a tourist and business destination, and helping regenerate East London in terms of housing and transport links.

KPMG is the global network of professional services firms who provides audit, tax and advisory services.

Related Articles:

• 26 Jul 2010 - Opportunity for UK food suppliers to present to London 2012

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