Greater Los Angeles may experience a $20.5 billion boost in economic output as the 2028 Olympic and Paralympic Games approach – and that’s a conservative estimate, according to the latest report from Los Angeles County Economic Development Corp.
The downtown-based nonprofit organization estimated that the upcoming Olympics, with 14 million tickets on sale, will attract approximately 2 million visitors from outside the region and about 5 billion who will track the Games from around the world. The influx of visitors will draw capital investment, infrastructure spending, tourism purchases and stakeholder expenditure, besides the Games’ organizing committee’s own spending budget.
The Games would bring a lasting legacy beyond the numbers, said Stephen Cheung, LAEDC president and chief executive, during a Sept. 15 press conference. That includes growth in youth sports investment, better transportation, environmental resilience, cultural activities and “pathways into future careers.”
“Those are big numbers, but behind every number is a worker, a business, or a community that can benefit,” Cheung said. “If we work together with intention, the games can leave Los Angeles with more than unforgettable memories. They can leave us with stronger businesses, greater opportunities, and a more connected regional economy.”
To fully understand the projected economic impact of the Games, LAEDC used a bifurcated approach to examine the five channels of spending. It then looked at the fiscal impacts, regional supply chains, workforce capacity and social benefits – providing mostly ranges rather than precise numbers.
Focusing on L.A., Orange, Riverside, San Bernardino and Ventura counties, the organization used the International Academy of Sports Science and Technology model to estimate conservative net impact data and the Implan economic model to provide a gross contribution estimate. The former measures direct effects of new local income, while the latter measures it more broadly by the initial industry output or spending.
“These impacts accumulated across a multiple-year period of planning, construction and also game operations,” Cheung said in a Sept. 11 webinar with the Business Journal. “There are more than one valid way to define economic impact for a major event, and the methods answer related but different questions. Presenting both of these methodologies makes that distinction visible.”
Under the two models, LAEDC found that the Games are poised to bring at least $15.4 billion in value-added gross domestic product to the region, upwards to $24 billion. The economic output ranged from $20.5 billion to $40.6 billion. At least 126,030 new jobs would come to the region, generating labor income upwards of $8.9 billion. The Implan model further estimated $5.1 billion to $5.9 billion in federal, state and local tax revenue associated with game-related activities in Greater L.A.
That growth is significant compared to the 2024 Paris Olympics, which generated around $2.2 billion, or 0.07% of France’s GDP that year – a “modest” set of benefits, according to the country’s court of auditors in a 2025 report.
Transportation leads the way
The LAEDC report further delved into the specific economic impacts under each spending category.
Secondary only to the leading category of the organizing committee’s own budget, capital investment in transit, airport and venues is estimated to inject $7 billion into the regional economy. It would create 31,300 jobs, whereas transport and security spending would bring 41,960 positions. Most fluctuations would come from visitor spending and stakeholder spending, which would reach at least $2.6 billion and $700 million, respectively, and generate at least 13,590 and 3,640 jobs.
The data comes as the city of Los Angeles ramped up transportation options ahead of the major sporting events. The Automated People Mover train is under development – although beleaguered and repeatedly delayed – for the Los Angeles International Airport, and the Metro D line will connect Westwood’s Olympics Village at UCLA to downtown once its extensions are completed next year.
The report pointed out that while the region employs a “no build” model to avoid breaking ground on new permanent sports venues, it has invested $8.35 billion in transportation, airport, mobility and venue in connection to the Games.
Regional capacity
The Olympics will bring both opportunity and concerns about whether the region can fully absorb all that the Games offer. The report finds that 54% of intermediate purchases would be sourced within Los Angeles County, while the broader region takes on 68%.
Cheung said that while the region has a strong capacity in services, event operations, transportation, hospitality and professional support, it might need to source its manufacturing needs in connection to the Games elsewhere. Major areas of leakage include apparel, computers, electronics, sporting equipment, telecommunication equipment and specialized technology – “the largest single opportunity for local supplier development ahead of 2028,” said the report.
Cheung further pointed out that the region has about 146,000 “procurement-relevant establishments,” including about 130,000 micro-businesses. About 34,000 of these businesses are within L.A. city limits – small ones that have a median employee count of three. The data would support market sizing and procurement planning, he noted, not as certified determinations by the Small Business Administration.
“That means that local presence alone doesn’t guarantee access to all the contracts,” he said. “Participation may depend on the right size scopes, simpler pathways, subcontracting or vendor pools, working capital support, and administrative assistance as well.”
Local feedback
The local community is already preparing. Small businesses are taking advantage of grants and networking events to get themselves in the best shape ahead of the Games.
Local organizations, such as the L.A. Area Chamber of Commerce, already put together programs to keep business leaders informed. One of them is Rally L.A., an initiative that connects corporate, nonprofit and public sectors to support small businesses ahead of major sports events in the region.
“We have a particular focus in downtown L.A. right now as it relates to the small businesses that are operating in those corridors, especially those that are consumer-facing,” Maria Salinas, president of the chamber, told the Business Journal last month. “As we get close to the Olympics within the next two years, (our focus) is to really cultivate the downtown L.A. small business ecosystem, so that they’re informed and they’re aware of what is happening and how they could participate in the benefits that will come from having tourists visit downtown Los Angeles.”
Excitement is in the air. Cristina Ward, co-owner of downtown’s boutique brewery Audio Graph Beer Co., said she could feel that “everybody wants this to work.”
She already named one of her hazy India pale ales after the Olympics – “Opening Ceremony.”
“Everybody is going to try their best to make these Olympics a fantastic experience for everybody, neighbors, businesses, tourists, athletes, everything,” she said.
