Retailers may see their sales temporarily boosted by China or Turkey-manufactured Olympics-related tat, but that’s unlikely to make up for months of subdued activity.
The real hopes for the British economy following the games lie in increased tourism, and the schmooze effect. The Prime Minister has predicted a 13 billion pound ($20.4 billion) boost to the economy from tourism and deals begun in corporate boxes throughout the Games.
If you look at the effort poured into an event like last week’s China Entrepreneur Club get-together , where FTSE 100 chief executives pressed the flesh with business leaders from the leader of the faster-growing markets, or the series of events planned in Somerset House, which has been taken over by the Brazilian delegation, you can see how keen the government is to make this part of the Games succeed. It’s also an illustration of how the power balance has shifted between the low-growth Western economies and more dynamic, faster-growing economies.
This makes the empty seats seen at some weekend events, blamed on corporates not filling their ticket allocations, even more worrying for British business. If these companies aren’t sending their executive over to press the flesh, a big chance could be missed.Page 2 of 3 | Prev Page | Next Page