The Los Angeles 2028 Olympic and Paralympic Games could generate between $20.5 billion and $40.6 billion in economic output and support between 126,000 and 224,000 jobs during their preparation and delivery. The estimate comes from a study by the Institute for Applied Economics at the Los Angeles County Economic Development Corporation -LAEDC-, which assesses the impact across Los Angeles, Orange, Riverside, San Bernardino and Ventura counties. The calculation includes the organising committee’s activity, infrastructure investment, transport and security, visitor spending and expenditure by other Games-related organisations.
The report was commissioned by LA28, although LAEDC developed its economic models independently. All figures are expressed in 2025 dollars and cover the planning period through to the conclusion of the Games. The lower estimate uses a national income accounting method recommended by the International Academy of Sport Science and Technology -AISTS-, which counts only the net injection of externally sourced spending. The IMPLAN model includes all economic activity occurring within the region and produces the higher figure. The report itself warns that presenting only the $40.6 billion maximum would provide an incomplete picture.
Output, GDP and infrastructure
Economic output does not represent LA28’s revenue, the city’s profit or the cost of staging the Games. It measures the accumulated value of the direct and indirect transactions generated by the activities included in the analysis. The estimated contribution to regional gross domestic product ranges from $15.4 billion to $24 billion, while labour income — wages and other compensation — could reach between $8.9 billion and $15.6 billion.
Games-related capital investment is the largest individual source of impact. The report identifies approximately $8.35 billion in transport, airport, mobility, accessibility and venue improvement projects that have been accelerated or undertaken in connection with LA28. Under the more conservative methodology, this channel would generate around $7 billion in output and support approximately 31,300 jobs. The use of existing or temporary venues is intended to concentrate resources on infrastructure that can remain in use after the Games, instead of constructing new permanent sports facilities.
What the 224,000 jobs represent
The employment range does not represent the number of people who will secure new permanent jobs. The study counts full-time, part-time, permanent and seasonal positions occupied during the different years of preparation and during the Games themselves. One worker may hold more than one of these positions. Construction, transport, security, accommodation, hospitality and administrative support are among the sectors expected to experience the greatest activity. Within the occupational analysis, 79% of the positions are in roles that typically require no more than a high-school education, although some also require licences, technical training, background checks or specific experience.
LA28 aims to direct 75% of its addressable procurement spending to businesses across Greater Los Angeles and to allocate 25% to local and small businesses. Event production, professional services, mobility, entertainment, communications, technology, construction and hospitality are among the areas positioned to secure contracts. LA28 chief executive Reynold Hoover described the Games as an opportunity to “support jobs, open doors for local businesses, and drive investments that strengthen communities across Los Angeles”.
Visitors and public revenue
That activity would be complemented by the arrival of around two million visitors. LAEDC estimates that non-resident visitors could spend between $1.6 billion and $4.3 billion directly in Los Angeles County alone. Hotels, restaurants, retailers, transport providers and entertainment businesses would be among the main beneficiaries, although the outcome will depend on final visitor numbers, the length of their stays and how much spending displaces residents’ usual economic activity.
Games-related activity is also projected to generate between $5.1 billion and $5.9 billion in combined federal, state and local tax revenue. The federal government would receive the largest share and the State of California the second largest, while counties and cities would collect smaller amounts through taxes linked to labour income, sales and property. LAEDC president and chief executive Stephen Cheung said the impact would extend “from jobs and labor income to local businesses, visitor spending, and long-term investment”.
LA28’s financial model
The organising committee’s operating budget stands at around $7 billion and is primarily funded through sponsorship, ticketing, hospitality, licensing and contributions from the International Olympic Committee -IOC-. LA28, established as a privately funded non-profit organisation, had exceeded $2 billion in domestic sponsorship revenue by the end of 2025. Commercial activity and the use of existing facilities form part of its strategy to balance the budget without financing new permanent Olympic venues.
The private nature of that budget does not mean that the entire Games-related operation is free from public expenditure. Transport, security, airports, mobility and other projects delivered by public authorities or independently funded organisations are treated as separate channels in the study. This distinction explains how the projected economic impact can reach $40.6 billion despite LA28’s much smaller operating budget. The report provides a forecast produced before the event; the contracts eventually awarded, positions filled, visitor spending recorded and infrastructure used after the Games will show how much of that projected impact remains within the regional economy beyond 2028.
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