BiggnightsWhat it Takes to Host the Olympics
April 20th 2011 21:09
With the International Olympic Committee currently in the process of selecting the host city for the 2018 and 2020 Summer Olympic Games, I thought it would be a good time to analyze what it takes to host the Olympics.
As deep-rooted as the Olympics are in athletics and tradition, it's really still a business. No city is going to host the games if they can't demonstrate the economic impact or the financial backing that are required to host an event this big.
The Olympics require investments, sponsorships, government support and taxpayer money just to fund the games. Infrastructure needs to be built and improved, accomodations need to be made, and money has to be spent. Just for a two week period.
But really, the impact of the Olympics goes far beyond a two week period. In some cases, it lasts an infinite amount of time. The city constantly feels the fallout from being a host. The point of the games is to make a profit for the city and use it to stimulate their economy and help improve their infrastructure and quality of living.
In reality, Olympic revenues are small. Ticket sales, sponsors, tax money and not much else. Costs are huge. Building venues, redeveloping infrastructure and security all need a lot of money to satisfy the qualifications needed to host the Olympics,
However, the long-term economic impact is almost immeasurably large. That doesn't mean that all cities make their money back (Beijing spent over $40 billion), but usually the host region will realize huge benefits to their economy for years.
This comes from increased pride, increased trade, tourism, economic stimulation and countless other economic indicators. So really, hosting the Olympics probably takes a lot more effort than you think, but it also creates a much larger benefit than most people realize.
As deep-rooted as the Olympics are in athletics and tradition, it's really still a business. No city is going to host the games if they can't demonstrate the economic impact or the financial backing that are required to host an event this big.
The Olympics require investments, sponsorships, government support and taxpayer money just to fund the games. Infrastructure needs to be built and improved, accomodations need to be made, and money has to be spent. Just for a two week period.
But really, the impact of the Olympics goes far beyond a two week period. In some cases, it lasts an infinite amount of time. The city constantly feels the fallout from being a host. The point of the games is to make a profit for the city and use it to stimulate their economy and help improve their infrastructure and quality of living.
In reality, Olympic revenues are small. Ticket sales, sponsors, tax money and not much else. Costs are huge. Building venues, redeveloping infrastructure and security all need a lot of money to satisfy the qualifications needed to host the Olympics,
However, the long-term economic impact is almost immeasurably large. That doesn't mean that all cities make their money back (Beijing spent over $40 billion), but usually the host region will realize huge benefits to their economy for years.
This comes from increased pride, increased trade, tourism, economic stimulation and countless other economic indicators. So really, hosting the Olympics probably takes a lot more effort than you think, but it also creates a much larger benefit than most people realize.
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