Uncategorized

The economic impact of hosting the Olympic

What may seem to be a positive outcome of hosting the Olympics, in reality, is not. The Impact is less positive than what was perceived. Because many cities have been in debt after hosting the prestigious game. Cities without the right infrastructure and facilities are better of without bidding for the game.

Commonly the number of bids received by the International Olympic Committee IOC to host the Olympics costs millions of dollars. Cities typically spend $50 million to $100 million in fees for consultants, event organizers, and travel-related to hosting duties. For example, Tokyo lost approximately $150 million on its bid for the 2016 Olympics and spent approximately $75 million on its successful 2020 bid.

Benefits of hosting the Olympics

While this may seem to open up several job opportunities for the locals, this is how it’s supposed to be right?

Cities hosting the Olympics gain temporary jobs due to infrastructure improvements that continue benefiting the cities into the future. For example, Rio constructed 15,000 new hotel rooms to accommodate tourists. Sochi invested approximately $42.5 billion in constructing nonsports infrastructure for the 2014 Olympics.

Beijing spent over $22.5 billion constructing roads, airports, subways, rail lines, and almost $11.25 billion on environmental cleanup. Additionally, thousands of sponsors, media, athletes and spectators typically visit a host city for six months before and six months after the Olympics which brings in additional revenue.

Drawbacks of hosting Olympics

The boost in job creation for cities hosting the Olympics is not always as beneficial as initially perceived. For example, Salt Lake City added only 7,000 jobs, about 10% of the number that officials had mentioned, when the city hosted the 2002 Olympics. Also, most jobs went to workers who were already employed, which did not help the number of unemployed workers. Furthermore, many of the profits realized by construction companies, hotels, and restaurants go to international companies rather than to the host city’s economy.

Also, income from the games often covers only a portion of expenses. For example, London brought in $5.2 billion and spent $18 billion on the 2012 Summer Olympics. Vancouver brought in $2.8 billion, after spending $7.6 billion on the Winter Games in 2010. Beijing generated $3.6 billion and spent more than $40 billion for the Summer Olympics in 2008. As of 2016, Los Angeles is the only host city that realized a profit from the games, mostly because the required infrastructure already existed.

Hosting the Olympics tends to result in severe economic deficiencies for cities. Unless a city already has the existing infrastructure to support the excess crowds pouring in, not hosting the Olympics may be the best option. Based on these trends, we have yet to the numbers generated by Tokyo for hosting the Olympics.

Related posts

Saudi police held Indian for insulting Kaaba

Brands Magazine

SBP launches SMS service to ensure fresh currency notes on Eid

Isra Shams

Whatsapp will soon let you “unsend” messages

Isra Shams

Leave a Comment