As well as a large temporary increase in employment opportunities, London is expected to experience a significant increase in tourism during Olympics year, with up to one million extra holidaymakers visiting the British capital during the staging of the games. It's expected the sporting event could generate an extra £700m of spending by overseas visitors.

According to the report, titled 'Regeneration for the Long Run: London's Olympic Opportunity', there is also substantial scope for more enduring economic benefits.

Beyond the marketing and promotional boost the Olympics can be expected to bring, these stem mainly from the siting of most venues in the Lower Lea Valley area of the city.

The area contains a number of economically disadvantaged locations and is a priority focus for major redevelopment and regeneration programmes. The economic importance of the games to these areas is therefore far greater than it is in relation to the totality of London's economy.

The strength of the linkages between the Olympics project and the broader regeneration goals for the Thames Gateway will be key to maximising the legacy benefits of the games, the report states.

The legacy plans for the Olympic Park venues themselves suggest a long-term boost to the provision of publicly accessible sports and leisure facilities, and small business premises.

The CB Richard Ellis document states that the relocation of up to 400 businesses currently located in the Olympics zone will generate demand totalling around 3.5 million sq ft of industrial and business premises within the Thames Gateway.

Some sites directly connected to the games, including the athletes' village, will contribute to the upward revision in house building targets for the eastern part of the city. The environmental and accessibility improvements will add to the area's appeal to prospective residents. The transport schemes due to be delivered to support the games will have beneficial impacts on the area's image.

The capital investment required for London to host the Olympics totals around £9.9bn.

Investment in the Olympic facilities themselves is estimated at about £2.7bn, principally on the Olympic Park venues and athletes' accommodation.

This is equivalent to about 4% of total UK construction output in 2004. By way of comparison, Heathrow Terminal Five is costing £4.2bn and the new Wembley stadium £757m.