Firms win �3.5bn of Olympics work

An artist's impression of the Olympic Stadium in Stratford, east London

The Olympic site will include an 80,000-seat Olympic Stadium

More than 800 firms have won �3.5bn of work in preparation for the London 2012 Olympics, it has been revealed.

The Olympic Delivery Authority (ODA) said the majority are small and medium-sized businesses and 98% are UK-based.

The firms are building the venues and infrastructure for the Games, to take place in Stratford, east London.

Olympics minister Tessa Jowell said: "These figures are yet more proof that London 2012 is a golden opportunity at a time of economic need."

The Olympic site will include an 80,000-seat stadium, a 17,500-seat aquatics centre and 3,000-home Olympic Village.

'Increase competitiveness'

The ODA said 54% of the 801 firms working on contracts awarded so far were based in London.

It added that 12% of the work was being carried out by firms based in the Olympics host boroughs of Tower Hamlets, Greenwich, Hackney, Newham and Waltham Forest.

Mrs Jowell said the Games would generate contracts worth a total of �6bn for UK businesses and generate an estimated �2bn for the tourist industry.

She added: "But this is not all - constructing and hosting the world's biggest sporting event will inevitably increase the expertise, efficiency and competitiveness of British business, leaving a legacy which will benefit the UK economy for decades to come."

ODA figures also showed 42,671 companies have registered an interest in a contract that is part of the Olympic supply chain.

'Tremendous opportunity'

Lord Coe, chair of the London Organising Committee of the Olympic Games (Locog), said: "As of next year, Locog is poised to release hundreds of opportunities for the best UK companies of all sizes to compete for work to supply our Games-time goods and services, so there is all to play for."

The government's original budget for the 2012 Olympics was �3.4bn but this was increased to �9.3bn last year.

Tourist agencies VisitBritain and the Tourism Alliance said the industry needs extra government support to fully benefit from the "tremendous opportunity" provided by the 2012 Olympics.

VisitBritain chairman Christopher Rodrigues said: "There needs to be wide-ranging backing from the highest levels of government for the visitor economy to achieve its potential."

He called for the establishment of a fund and public-private partnership to promote British tourism.