IS HOSTING THE OLYMPICS A GOOD INVESTMENT? Is Hosting the Olympics a good Investment? The Olympics form an event that attracts a large number of people from across the globe for a period of 17 days in every four years…
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The host city becomes the centre of world attention as hosting Olympics is a serious event and requires great responsibility. Not only this, it is a highly expensive event and the host city’s economy bears the entire burden. Hosting the Olympics is debatable and many analysts argue that it provides a great boost to the city’s economy. For example, it has been estimated that London has acquired a magnanimous economic boost with the total benefit reaching up to ?41 billion by 2020 (The Huffington Post, 2013). The city hosting the event gets a chance of promoting its tourism, promotes sports and as a result the economic conditions improve over the long-term basis. Although, being a part of the Olympics’ legacy is desired by many countries but with the benefits of hosting there are certain points which are debatable and questionable. Olympic events are considered to be beneficial to the host country but experts have highlighted that there are many drawbacks associated with the hosting of these events which should be considered. Cities go to extreme lengths to earn the privilege of hosting the Games. One of the main reasons is that the host city wants to gain a sense of popularity amongst the masses. And most of the times, Olympic Games are hosted with internal agendas. For example, the London games were hosted with the intention of bringing back to life a relatively poor existence of the capital. The Beijing Games wanted to represent the China’s improving and flourishing organisational power and spending capacity. The Tokyo 2020 games intend to boost up Japan’s monotonous economic state. However, the cities have to realise that hosting Olympics is not the same as before. The London 1948 Olympics cost ?732,268 which is equivalent to ?20 million in today’s currency rate. The Beijing Games in current times have cost an approximate of $40 billion (T. W. 2013). Hence, it should be considered by the cities which are volunteering to host Olympics, quite enthusiastically, that the trends of Olympic business has changed now. It is considered that hosting Olympics will bring a turbo-charge to the city’s economy. However an in-depth analysis reveals that this is not entirely true. Researchers have not been able to find a positive correlation between the Games and economic improvement. The city’s developers and local construction companies might benefit because of the new improvements made in the infrastructure. Moreover, the cost usually turns out to be more than it was actually bid in the first place. London bid $4-6 billion and the Games turned out to cost three times more than that amount. Recent studies also revealed that every Olympic Games between the time periods of 1960 to 2012 turned out to be more costly than planned (Fenno, 2013). The estimate of $1.6 billion made by Athens was overrun by an actual price of $16 billion. Beijing spent $40 billion. Many cities are also left in debt rather than achieving an improvement in their economies (Fenno, 2013). Olympics Games are supported by the construction of many new infrastructures which become useless or lose their worth after the Games. Many venues which were constructed in Athens and Beijing for the purpose of Olympic adventures are now propped up without any public use or support. Various specialized venues have to be built such as for mountain biking, Slalom kayaking, beach volleyball and shooting ranges (Fenno, 2013). Twenty one out of the 33 stadiums, sport halls, arenas and
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Urban Regeneration & Mega Event Case Study Olympics 2012
The UK has exerted a huge effort in order to win the bid to host the Olympics for this year, and there is little doubt that its selection was greeted with much celebration. Two benefits are expected to be derived from the mega-sporting event: the economic windfall profit, and the legacy that is left after the event, in the form of the constructed stadiums, housing, transportation networks and infrastructure.
My first objective is to mirror my own employment aspiration to the concurrent employment opportunities available. It helps me while making research based on any particular organization while considering various aspects and sectors of that particular organization.
This comes at a peculiar time given that the Soviet Union hosted the 1980 Summer Games in Moscow (Hofstetter 78). The games will take place in the city of Sochi situated at Krasnodar, the third largest zone, which has already a population of 400,000 people.
This is the large number of an audience from all around the world that is a target for the businesses which are in need to market their product on an international scale. These are the businesses that tend to market their products by using the strategy of reaching the maximum number of an audience by making sure that the products are marketed in the best way by using the best awaited event in the world and this event is the Olympics (Shilbury 12).
Such was the case in Montreal for the Olympics held there, where the building construction outweighed the influx of investment capital, thus making them the most costly games on record.
If planning is properly tuned, the games can prove a substantial economic boon to the host country and the surety that the costs will be recouped and continue to ensure businesses thrive years after hosting the games.
Massive sports arenas often remain either unused or underused and Olympic villages remain vacant and difficult to maintain.
According to The European Economic Outlook, interest in macroeconomic effects of hosting Olympic Games was evinced after Montreal hosted the 1976 Olympic Games and faced a financial deficit.
These investments will be done within the City that hosts the event and many other surrounding areas in the respective country. (Carros et al, 2001)
Long term economic benefits of hosting the Olympics fall in three major categories. The first is the creation of infrastructure that reaches worldwide standards.
At its core, the Olympics are a way to bring athletes together from around the world to share ideas and culture in the spirit of friendly competition. Today the Olympics have often taken on greater dimensions as people
reasing in terms of budgets and scale of plans for the site and program to ensure that the Olympics site would accommodate the size of expected attendees, as well as their security, personal and professional needs.
It is in this regard that this essay aims to closely examine