Using the legacy of the 2002 Winter Olympics, Salt Lake City has transformed from a winter sports venue to a thriving technology hub in just 20 years, making it one of America’s fastest-growing commercial destinations.
Known as one of Utah’s Silicon Slopes, the community has drawn startup capital, a thriving workforce, and an entrepreneurial culture. According to the Census Bureau, the population has grown by 10% and salaries have surged by 51% over the last ten years.
The Olympics, according to former Utah Governor Michael Leavitt, sparked significant infrastructural investments in Salt Lake City, brought in tech expertise, and left an economic legacy that still influences the identity of the area.
The Games served as a powerful stimulant. For the forthcoming Cities of Success: Salt Lake City special, which premieres Tuesday at 10 p.m. ET, Leavitt told CNBC that such a trigger is necessary for significant economic growth.
A catalyst for economic growth
The globe watched as Salt Lake City hosted the Winter Olympics in 2002, welcoming both competitors and fans. Leavitt, the governor from 1993 to 2003, however, saw the Games as much more than just 17 days of athletic spectacle.
“The Games’ 17 days are crucial,” Leavitt stated. But what really makes the Games a valuable event, both culturally and economically, is what transpires in the ten years following the Games and in the seven or eight years leading up to them.
The Olympic Oval, a top speed skating surface still frequented by would-be Olympians, is one of ten facilities used during the 2002 Games that still benefit the community and host important events.
Athletes who have set records on the multimillion-dollar facility claim that it has the fastest ice on the planet.
More than 4,600 feet above sea level, according to experts, lowers air resistance, which could provide skaters a speed advantage.
According to Leavitt, Utah made investments in key roadways and light rail as part of its preparation for the Games, which will benefit locals and tourists for years to come.
Leavitt told CNBC that meeting that deadline is like to hosting a party at your house because a lot gets done. After competing against the globe, we discovered that we could prevail.
The 2002 Olympics in Salt Lake City were profitable despite costing roughly $2 billion. The state’s allocation for the Games produced a $164 million surplus, with $59 million going back to taxpayers, according to the Kem C. Gardner Policy Institute at the University of Utah.
According to the Gardner Institute, skier visits to Utah rose 43%, hotel and accommodation revenue surged 70%, and visitor spending skyrocketed 66% in the 15 years after the Games.
From Olympic host to thriving tech hub
According to Leavitt, technology was only starting to develop in the early 1990s. Utah had been mostly a defense and agricultural state until that time, but we had aspirations to become a digital hub.
Leavitt met with John Warnock, a Salt Lake City native and co-founder of Adobe, in Silicon Valley during Olympic preparations to talk about creating a tech community in Utah.
Leavitt remembered Warnock telling him, “I need engineers if you want [me] to come to Utah.”
Leavitt and the state of Utah started the Engineering and Computer Science Initiative in 2001 in response to Warnock’s recommendations. With a combined expenditure of $40.1 million, the program sought to enhance higher education in these subjects by growing its staff and programs, eventually tripling the number of graduates in computer science and engineering over a 20-year period.
Colleges and universities stepped up to the plate with state support, matching programs to industry demands and student interests. Since then, the region’s growing demand for tech personnel has spurred an increase in both public and private investments.
Years later, Adobe paid $1.8 billion to acquire Utah-based Omniture, demonstrating the state’s ability to develop competitive digital companies, according to Leavitt.
According to Leavitt, it was a mix of having a clear vision, significantly increasing the amount of engineers we were training, and having the Olympics and a location they desired. All of these combined to create one of the nation’s most thriving technology-based economies.
Looking ahead to 2034
Utah plans to upgrade its current infrastructure with an estimated $31 million, which is a minor expense compared to the $286.7 million spent in 2002, in anticipation of the 2034 Winter Games returning to Salt Lake City.
According to the state, the 2018 Games will contribute roughly $3.9 billion to Utah’s economy, generate $6.6 billion in economic activity, and create 42,000 job-years of employment, or 4,200 full-time jobs over a ten-year period. These figures will confirm the Olympics’ role in Utah’s thriving tech sector.
Leavitt stated, “We now have advantages we didn’t have.” We have a reputation and all of the necessary infrastructure. 2034 will be a great year for the Games. There is simply no doubt about that.
Disclosure: NBC Sports and NBC Olympics are owned by NBCUniversal, a division of CNBC. Through 2032, all Summer and Winter Games will be televised in the United States by NBC Olympics.
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