Spectators line the Olympic Medal Plaza in downtown Salt Lake City, Utah, during the 2002 Olympics. On February 16, 2002, figurines of Olympic athletes adorn buildings and Olympic rings shine on the mountainside above the city.
AFP Photo/George Fry, via Getty Images
This story is part of CNBC’s quarterly “Cities of Success” series, which examines cities that have transformed into business hubs through an entrepreneurial spirit that attracts capital, companies and employees.
Capitalizing on the legacy of the 2002 Winter Olympics, Salt Lake City has grown in just 20 years from a winter sports destination to a vibrant technology hub and one of America’s fastest-growing business destinations. It has transformed into one.
Known as part of Utah’s “Silicon Slope,” the city is a magnet for entrepreneurship, venture capital, and a thriving workforce. Over the past decade, wages have increased by 51% and the population has grown by 10%, according to the Census Bureau.
Former Utah Governor Michael Leavitt believes the Olympics spurred major infrastructure projects in Salt Lake City, attracted technology talent and established an economic legacy that continues to shape the region’s identity.
“The Olympics were a great catalyst. We need catalysts like that for great economic growth,” Leavitt told CNBC on the upcoming “Successful City: Salt Lake City” special, airing Tuesday at 10 p.m. ET. spoke.
catalyst for economic growth
In 2002, the world watched as Salt Lake City welcomed athletes and spectators to the Winter Olympics. But for Levitt, who served as governor from 1993 to 2003, the Olympics meant more than 17 days of sports excitement.
“The 17 days of the tournament are very important,” Levitt said. “But ultimately what will make the Olympics a worthwhile experience both economically and culturally is what happens seven or eight years ago and what happens 10 years from now.”
The 2002 Olympics utilized 10 facilities, all of which continue to serve the local community and host major events, including the Olympic Oval, which remains the premier speed skating venue used by aspiring Olympians today. I am.
Olympic Oval Speed Skating Facility in Kearns, Utah, near Salt Lake City. This facility is home to world-class speed skating events.
CNBC
This multi-million dollar facility is said to have the “fastest ice on Earth” with athletes breaking records.
Experts say the altitude, more than 4,600 feet above sea level, reduces air resistance and could give skaters a speed advantage.
Levitt said in preparation for the Olympics, Utah has invested in infrastructure improvements such as light rail and major highways that will have lasting benefits for residents and visitors alike.
“It’s a lot like having a party at home. A lot of things get done on time,” Levitt told CNBC. “We realized we could compete with the world and win.”
The 2002 Olympics in Salt Lake City cost about $2 billion and turned a profit. The Kem C. Gardner Institute for Policy Studies at the University of Utah reports that the state’s allocation for the convention resulted in a $164 million surplus, with $59 million returned to taxpayers.
According to the Gardner Institute, in the 15 years following the Olympics, the number of skiers visiting Utah increased by 43%, hotel and lodging revenues increased by 70%, and visitor spending soared by 66%.
From Olympic host to thriving technology hub
Todd Lodwick of the United States climbs the hill in front of the Olympic rings during the start of the men’s Nordic combined team relay at Soldier Hollow, near Salt Lake City, Utah, on February 17, 2002.
Photo by Anacleto Rapp/Los Angeles Times, via Getty Images
”[The early 90s] “It was a time when technology was just starting to emerge,” Levitt said. “Up until that point, Utah had been both an agricultural and defense hub, but we had ambitions on our side to become a technology hub.” ” he said.
In preparation for the Olympics, Levitt met with Adobe co-founder and Salt Lake City native John Warnock in Silicon Valley to discuss building a tech community in Utah.
Leavitt recalled a comment Warnock made to him: [me] We need engineers to come to Utah. ”
Following Warnock’s advice, Leavitt and Utah launched an engineering and computer science initiative in 2001. The program aims to improve higher education in these fields by expanding faculty and programs, ultimately increasing the number of engineering and computer science graduates by 2 over 20 years with a cumulative investment of $40.1 million. I doubled it.
With state funding, the university rose to the challenge, tailoring its programs to student interests and industry demands. Since then, public and private investment has continued to increase due to the growing demand for high-tech talent in the region.
A few years later, Adobe acquired Utah-based Omniture for $1.8 billion, which Levitt said shows Utah has the ability to build competitive technology companies. Ta.
“It was a combination of a clear vision, dramatically increasing the number of engineers we educate, and getting them the Olympics and a place they want to live,” Levitt said. “All of this has come together to create one of the most robust economies in the country, centered around technology.”
Looking to 2034
The 2034 Winter Games will once again be held in Salt Lake City, and Utah aims to spend an estimated $31 million in renovations to build on its existing infrastructure, which is the same as in 2002. That’s a modest cost compared to $286.7 million.
The state estimates the upcoming Olympics will generate $6.6 billion in economic activity, create 42,000 job-years (equivalent to 4,200 full-time jobs over 10 years) and add nearly $3.9 billion to Utah’s economy. and is expected to strengthen the role of the Olympics in Utah. A thriving technology environment.
“We now have an advantage that we didn’t have before,” Levitt said. “We have all the infrastructure, we have the reputation. The Olympics will be successfully held in 2034. There is no doubt about that.”
Disclosure: CNBC’s parent company, NBCUniversal, owns NBC Sports and NBC Olympics. NBC Olympics is the U.S. broadcast rights holder for all Summer and Winter Olympics through 2032.
