Hosting the Olympics has become financially untenable, economists say
Hosting the Olympics is becoming financially unfeasible due to rising costs and negative impacts. The IOC aims for a sustainable approach in Paris, reducing expenses and addressing long-term financial burdens.
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Hosting the Olympics has increasingly become financially unfeasible, according to economists. The costs associated with the Games have ballooned in recent decades, leading to budget overruns, long-term debts, and negative social and environmental impacts. The International Olympic Committee (IOC) aims to address these issues with the upcoming Paris Games, which are projected to cost under $10 billion, a significant reduction compared to previous events. This shift is partly due to a dwindling number of cities willing to host the Games, as past experiences have shown them to be financially disastrous.
Historically, cities have faced cost overruns exceeding 100% for recent Olympics, with extravagant spending on infrastructure and facilities. For instance, the 2008 Beijing Games cost over $40 billion, while the 2014 Sochi Games exceeded $50 billion. Despite claims of economic benefits, many cities experience long-term financial burdens, including maintenance costs for underused facilities and displacement of lower-income residents.
The IOC's Agenda 2020 aims to make future Games more sustainable, with Paris focusing on minimal permanent infrastructure and environmental initiatives. However, experts caution that the economic impact of hosting the Olympics is often overstated, with many potential visitors deterred by the event. The long-term viability of the Olympics may depend on a fundamental rethinking of how these events are organized and financed to ensure they do not become a financial burden for host cities.
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14 commentsHave these people been living under a rock? Literally ever megaproject—even much smaller ones—I’ve heard of in the past 10 years has had overruns much higher than 100%
Focus on having good venues for the competition (that doesn't necessarily mean you have to build new ones) that's what it's about.
This headline made me think, "So you're just now discovering this?" Montreal was a disaster; LA 1984 ran a surplus. Cities that already have the sports venues can do all right; other cities have learned by now that building a whole bunch of new stuff is foolhardy.
> To ensure true long-term viability of the Olympics, Matheson, Zimbalist and Phalin said it may come down to designating a single city or rotating through a couple of cities to serve as permanent hosts for the games.
Right: LA, London / Paris, Sydney. All of these could farm out some events to other places, like surfing in French Polynesia. Done.
And the costs are 5 billion less than the Tokyo Olympics, so I guess it'll be OK.
Maybe the underlying paper discusses this. Hopefully it does as it’s an important question.
https://www.nbcboston.com/news/local/boston-2024-olympic-bid...
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