London’s successful bid to host the 2012 Olympics will bring an estimated £2bn to the capital’s visitor economy with an expected additional 500,000 overseas visitors and a boost to economic output for the UK of more than £9bn.

On 6 July at 12.46pm GMT, International Olympic Committee (IOC) president, Jacques Rogge, thanked the five remaining bid cities for showing “great competitive spirit in this long race” before announcing that London would host the 2012 Olympic Games.

London secured the majority of IOC votes in the fourth and final round of voting in Singapore, beating the favourite Paris, along with Madrid, New York and Moscow.

The outside candidate, Moscow, was the first to fall after the first round of voting. New York was the second city to be dismissed, followed by Madrid – which was voted out in the third round – leaving Paris and London to go head to head.

Upon winning, London 2012 chair, Lord Coe, said: “This is just the most fantastic opportunity to do everything we ever dreamed of in British sport.”

Huge crowds gathered in London’s Trafalgar Square and all over the UK people greeted the announcement with jubilation.

Brigid Simmonds, chief executive of Business In Sport and Leisure (BISL) claimed that London’s bid success represented a “red-letter day for sport and leisure in the UK”.

Recent BISL research revealed that a typical UK sporting event raises approximately £500,000 a day, while, Australia, which hosted the Olympics in Sydney in 2000, benefitted from an extra 1.6 million visitors and £2.5bn between 1997 and 2001.

VisitBritain also drew parallels with the Sydney Olympics, saying figures showed that that up to 75 per cent of the net benefit of staging the Games could accrue to tourism. Chief executive Tom Wright said: “The IOC’s decision is as much a vote of confidence for Britain’s tourism and leisure facilities as it is for our sporting venues and events.”

According to the British Hospitality Association, more than 17,000 new London hotel rooms are planned by 2012. Chief executive Bob Cotton said: “We look forward to welcoming 500,000 additional visitors during 2012.”

However, sector skills council People 1st has warned that more than a million new employees will be required by 2012 to fill vacancies and accommodate growth even without the added pressure of the Games, which now added a greater need for more investment in both recruitment and training.

Meanwhile, Paul Dales of independent economics consultancy Capital Economics has claimed that the overall effect of hosting the Games could boost the British economy by around £9bn. However, he said that this must be kept in perspective given that this figure represents just under 1 per cent of the UK’s annual Gross Domestic Product (GDP).

Following the announcement in Singapore, the UK government has said that culture minister Tessa Jowell will now become the new Olympic Minister. Details: www.london2012.org