Why Would You Host The Olympics?
The Olympic games are hosted every other year by the country who is willing to spend the most money on the games, this money is often seen as an investment and a small cost compared to the potential profit for the country. Usually, the budget of the games is well below the amount of money a country can afford and the predicted profit makes the games seem like a no-brainer when it comes to investments. With the games, comes a massive expectation to out-do the last host of the Olympics which in turn means more money needs to be spent. The budget can be quickly diminished before the games even start as the countries don’t take into account setbacks and problems while creating the games.
Almost every Games for the last few decades have gone over budget at least a little bit. In 2014, Sochi held the Olympic games and the final cost was 289% of their budget and 51 billion dollars. To put the 51 billion dollars in perspective, The Dallas Cowboys stadium is regarded as one of the best stadiums in the United States and that stadium costed 1.3 Billion dollars to build, which is only a tiny fraction of how much money was spent in Sochi. Although the budget of the Olympics includes: building infrastructure, travel costs, payroll of employees, and other expenses. This is still a lot of money and is more than any other by almost 10 billion dollars.
Isn’t the money spent on the Olympics only an investment for the huge profits that will come in the end? The profits, in the end, are anything but guaranteed. Over the years there have been many games that came out ahead such as The Vancouver Winter Olympics which raked in almost 2 billion dollars for the country and The Beijing Olympics which earned about a billion dollars. But these countries are outliers compared to other Olympics such as the Sydney Olympics which lost over 2 billion dollars and even the Athens Olympics which lost a whopping 14.5 billion dollars in their investments.
Why would a country host an Olympic Games if it is such a bad investment? The Olympic Games is unlike any other world event. 3.6 billion people are expected to watch the 2018 Olympics this year which is nearly half of the world’s population. The Host country is definitely put on the world’s stage during the weeks of the Olympics which can make or break how other people feel about the country for years to come. A good Olympics will boost tourism for years to come and in turn increase economic growth. But a bad showing of the Olympics can ruin the future of the country in terms of tourism, which is why countries are willing to spend so much money for the Olympics and lose money. The money lost in the Olympics can and will be made up in the end if the country spends the money to make the Olympics great which is why the investment in the Olympics isn’t as bad as it seems.
“Cost of the Olympic Games.” Wikipedia, Wikimedia Foundation, 11 Feb. 2018, en.wikipedia.org/wiki/Cost_of_the_Olympic_Games.
Goldblatt, David. “Cost of Hosting the Olympics: How It Got So Expensive.” Time, Time, 26 July 2016, time.com/4421865/olympics-cost-history/.
McCarthy, Niall. “The Massive Cost Of Hosting The Olympic Games [Infographic].”Forbes, Forbes Magazine, 4 Aug. 2016, www.forbes.com/sites/niallmccarthy/2016/08/04/the-massive-cost-of-hosting-the-olympic-games-infographic/#6b2b6f772e38.