2028 Olympics Expected to Deliver Billions to Southern California, New Report Claims

Southern California is projected to see a substantial economic boost from the 2028 Summer Olympic Games in Los Angeles, according to a recent analysis released Tuesday. The study forecasts an increase in economic output of up to $40.6 billion and the creation of as many as 224,000 jobs across the region.

Commissioned by LA28, the Olympics organizing committee, and conducted by the Los Angeles County Economic Development Corp., the forecast presented two scenarios for increased economic output. One scenario estimated output between $20.5 billion and $25.4 billion, while the other projected between $35.4 billion and $40.6 billion. These figures account for the period leading up to the Games over the next two years, but the report does not measure economic impact after the Olympics conclude.

Reynold Hoover, chief executive of LA28, affirmed the study shows a "tremendous opportunity" to support jobs, open doors for local businesses, and drive investments. The report indicates that 79% of the anticipated job gains will be in positions not requiring a college education, including roles such as shuttle drivers, carpenters, bus drivers, security guards, and construction laborers.

Government treasuries are also expected to benefit, with projections showing up to $5.9 billion in new tax revenue, 62% of which would go to the federal government. The comprehensive forecast spans Los Angeles, Orange, Riverside, San Bernardino, and Ventura counties.

The report categorizes the Olympics-related spending into three main areas: capital projects, direct spending by LA28, and expenditures by an estimated 2 million out-of-town visitors. Spending on improvements to Los Angeles International Airport and other transportation systems is anticipated to reach approximately $8.35 billion. LA28, a nonprofit, is expected to spend another $6.5 billion directly. Tourists are projected to contribute between $1.6 billion and $4.3 billion, primarily on lodging and food.

However, the study's authors acknowledged that projections for future economic activity can be "overly rosy," particularly when based on optimistic assumptions regarding attendance or visitor spending. This caution was underscored by the experience of the 2024 Paris Olympics. Before the Paris Games, a think tank projected up to $12.8 billion in net economic benefits, but French government auditors later concluded in 2025 that the event generated a more modest $2.3 billion, representing an almost negligible 0.07 percentage point increase in France's gross domestic product. The auditors attributed the smaller boost in part to a decline in regular tourism, as visitors avoided the Olympic crowds. Despite this, the privately funded Paris Games reportedly achieved a profit of about $87.5 million.

Organizers for the 2028 Los Angeles Games suggest a larger stimulus with lower economic risk, noting that most required facilities are already in place. They have also reported that initial ticket sales and sponsorship revenue have exceeded projections.

Locally, concerns have been voiced by Los Angeles city officials, as well as community and union activists, about whether the event will adequately benefit working-class individuals and small businesses. An association of Southern California contractors, for instance, objected to a proposed "summer-long" shutdown of major highway construction during the 2028 Olympics, citing potential job losses for workers.

Los Angeles City Council members, led by Council President Marqueece Harris-Dawson, have pressed LA28 to commit to allocating a specific percentage—as much as 40%—of its pre-Olympics contracts to businesses based in Los Angeles. This demand arises from the city's commitment to cover any debts if Olympic revenues do not meet expenses. LA28 leaders have countered that mandating contracts with L.A.-based firms could significantly increase costs, potentially jeopardizing the financial success of the Games and placing the city at risk for losses.

Despite these discussions, the report asserts that a "substantial portion" of the economic activity will benefit small businesses. It projects that the city of Los Angeles will receive the largest influx of tourist dollars, estimated between $1.2 billion and $3.3 billion in additional expenditures for hotels, restaurants, and shopping. This could generate up to $2.5 billion in new labor income for the city, along with an added $386 million in tax revenue for Los Angeles and $723 million for Los Angeles County.

Beyond financial impacts, the report’s authors also cited non-monetary benefits from the Olympics, including "community cohesion [and] health benefits," alongside skill formation and civic pride.