Spectators file into Olympic Medal Plaza in downtown Salt Lake City, Utah, during the 2002 Olympics. On February 16, 2002, buildings were adorned with Olympians and the Olympic rings shimmered on the hillsides above the city.
AFP Photo/George Frey, Getty Images
This story is part of CNBC’s quarterly Cities That Succeed series, which explores cities that have transformed into business hubs that are entrepreneurial and attract capital, companies and employees.
Salt Lake City has grown from a winter sports venue to a vibrant technology hub in just two decades, leveraging the legacy of the 2002 Winter Olympics to transform into one of the fastest-growing business destinations in the United States.
Known as part of Utah’s “Silicon Slope,” the city has become a magnet for entrepreneurship, venture capital and a booming workforce. Over the past decade, wages have risen 51% and the population has grown 10%, according to the Census Bureau.
Former Utah Gov. Michael Leavitt credits the Olympics with spurring major infrastructure projects in Salt Lake City, attracting technical talent and establishing an economic legacy that continues to shape the region’s image.
“The Olympics are a huge catalyst,” Levitt told CNBC in an upcoming “Successful City: Salt Lake City” special that will premiere Tuesday at 10 p.m. ET.
catalyst for economic growth
In 2002, the world watched as Salt Lake City welcomed athletes and spectators to the Winter Olympics. But for Leavitt, who served as governor from 1993 to 2003, the Games meant more than just 17 days of sporting excitement.
“The 17 days of the Olympics are very important,” Levitt said. “But it’s what happens seven or eight years in advance and what happens ten years after that that ultimately makes the Olympics a worthwhile experience both economically and culturally.”
Ten facilities were used for the 2002 Olympics, all of which continue to serve the community and attract major events, including the Olympic Speed Skating Oval, the premier speed skating surface still used by today’s aspiring Olympians.
The Olympic Speed Skating Arena is located near Salt Lake City in Kearns, Utah. The facility is home to world-class speed skating events.
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The multi-million dollar facility is said to have the “fastest ice on earth” and athletes have broken records at the facility.
Experts say the high altitude of more than 4,600 feet reduces air resistance, which may help give skaters a speed advantage.
Leavitt said in preparation for the Games, Utah invested in improving infrastructure, including light rail and major highways, creating lasting benefits for residents and visitors.
“It’s a lot like having a party at home – a lot of things get done before the deadline,” Levitt told CNBC. “We compete with the world and realize we can win.”
The cost of the 2002 Olympic Games in Salt Lake City was approx. $2 billion and turned a profit. The University of Utah’s Kem C. Gardner Policy Institute reported that the state’s appropriation for the Olympics generated a $164 million surplus, of which $59 million was returned to taxpayers.
exist 15th anniversary of the end of the Olympic GamesAccording to the Gardner Institute, Utah has seen a 43% increase in ski visits, a 70% increase in restaurant and lodging revenue, and a 66% surge in visitor spending.
From Olympic host to booming tech hub
On February 17, 2002, American runner Todd Lodwick climbed the hill in front of the Olympic rings during the men’s Nordic mixed team relay race in Soldier Valley near Salt Lake City, Utah.
Photograph: Anacleto Rapping/Los Angeles Times, Getty Images
“(The early 1990s) was when technology was just beginning to emerge,” Levitt said. “Until then, Utah had been based on agriculture and defense, but we had big ambitions to become a tech capital.”
In the run-up to the Olympics, Levitt met with Adobe co-founder John Warnock, a Salt Lake City native, in Silicon Valley to discuss building a tech community in Utah.
Levitt recalled Warnock telling him: “If you want (me) to come to Utah, I need engineers.”
At Warnock’s suggestion, Levitt and Utah State launched the engineering and computer science program in 2001. The plan aims to improve higher education in these fields by expanding faculty and programs, ultimately doubling the number of engineering and computer science graduates over two decades. Cumulative investment is US$40.1 million.
With state funding, colleges and universities rise to the challenge of tailoring courses to student interests and industry needs. Since then, public and private investment has continued to grow, driven by the region’s growing demand for skilled workers.
Acquired by Adobe a few years later Utah-based Omniture spends $1.8 billionLevitt said this shows Utah has the ability to build competitive technology businesses.
“It’s a combination of a clear vision, dramatically increasing the number of engineers we’re educating, hosting the Olympics and a place where they want to live,” Levitt said. “It all comes together to make this the most technologically robust country in the country. one of the economies.”
Looking to 2034
Utah plans to build on existing infrastructure as 2034 Winter Olympics return to Salt Lake City The upgrade is expected to cost $31 million — The cost is modest compared with the $286.7 million spent in 2002.
The state expects the upcoming Olympics to generate $6.6 billion in economic activity, create 42,000 work-year jobs (equivalent to 4,200 full-time jobs over 10 years), and add nearly $3.9 billion to Utah’s economy, solidifying the Olympics’ role in Utah state status.
“We have an advantage now that we didn’t have before,” Levitt said. “We have all the infrastructure there and the reputation. The 2034 Olympics will go ahead. There’s no doubt about it.”
Revealed: CNBC parent company NBCUniversal owns NBC Sports and NBC Olympics. NBC Olympics is the U.S. rights holder for all summer and winter Olympics through 2032.
