Olympics and their economic impact: Updated research roundup By John Wihbey The Olympics are about competition and heroics and national pride. But they are also about big business. Long after the crowds vanish, it turns out that some host cities and countries ended up taking large net losses on their investments.
By Jennifer Wills September 24, — Because most cities have ended up falling massively in debt after hosting the games, cities without the necessary infrastructure may be better off not submitting bids. Hosting the games is even more costly than the bidding process. Once a city wins a bid for hosting the Olympics, cities commonly add roads, build or enhance airports, and construct rail lines to accommodate the large influx of people.
Housing for the athletes in the Olympic village, as well as at least 40, available hotel rooms, and specific facilities for the events must be created or updated, as well.
Benefits of Hosting the Olympics Cities hosting the Olympics gain temporary jobs due to infrastructure improvements that continue benefiting the cities into the future. For example, Rio constructed 15, new hotel rooms to accommodate tourists. 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 the Olympics The boost in job creation for cities hosting the Olympics is not always as beneficial as initially perceived.
Also, most jobs went to workers who were already employed, which did not help the number of unemployed workers. Also, income from the games often covers only a portion of expenses. As ofLos Angeles is the only host city that realized a profit from the games, mostly because the required infrastructure already existed.
Additionally, it is difficult ascertaining exactly which benefits come from hosting the Olympics. For example, Vancouver had planned many infrastructure projects before winning the bid for hosting the games.
Debt Resulting From Creating Olympic Arenas Many of the arenas constructed for the Olympics remain expensive due to their size or specific nature. The Olympics in Rio de Janeiro Health concerns over the Zika virus that has been spreading in Brazil caused many athletes to withdraw from the games and spectators to not enter the country.
Additionally, scientists determined that the water being used for boating and swimming events is contaminated with raw sewage and superbacteria, adding to health concerns.
The Bottom Line 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.
Trading Center Want to learn how to invest? Get a free 10 week email series that will teach you how to start investing. Delivered twice a week, straight to your inbox.The social and economic impact of hosting the Olympic Games: A guide to online resources Hiromi Kubo While there is little doubt that the Olympic Games is the premier sporting venue for amateur athletes from around the world, they, like other mega-scale sporting events, are also significant to the hosting city and country.
Potential Economic Impact on Chicago from Olympics The Chicago Olympic committee estimates spending $3 billion to operate the Games. Approximate expenditures include: $ million for information systems and.
In light of the Olympics in Rio de Janeiro, we update our review of studies relating to earlier games and their local and national economic impacts.
Aug 10, · In a study of the impact of the Olympics in Sydney, Australian researchers interviewed people in four countries — Hong Kong, Malaysia, South .
In this paper, we reconcile these positions by examining the economic impact of hosting mega-events like the Olympics; we focus on trade.
Using a variety of trade models, we show that hosting a mega-event like the Olympics has a positive impact on national exports. The Olympics' Effect on the Host Country's Economy. When countries and cities bid on the Olympic Games, one of the main reasons they do it is for the chance to boost the economy in that city.
The Olympic Games attract thousands of visitors and media attention.
The Economic Impact of the Olympic Games;.