Next to Ilekytė. How much does it cost to host the Olympics? | Business

Every Olympic Games is accompanied by questions: how much will it cost the country? Will the investment pay off? This year’s Olympic Games in Paris, in which almost 11 thousand participants, are no exception. athletes from more than 200 countries. The desire to be as prepared as possible has led to huge investments in the infrastructure of the city of Paris, such as the renewal of the metro network, and the cleaning of the Seine river alone has cost the city almost 1.5 billion. euros. So what is the cost of the Olympics and why do countries want to host them?

The costs of the Olympic Games reach tens of billions of euros

There have been several attempts to “determine” the economic benefits of the Olympic Games for the city and the country. For the most part, research shows that the economic benefits in both the short and long term are small. Ten of the 13 Summer Games until 2016. generated losses, in addition, the organization of all the games exceeded the planned budget.

Often, cities have to not only update the existing infrastructure, but also build new stadiums, courts or swimming pools. Not only that, the costs of organizing the Games are getting higher every time. It is estimated that organizing the 1924 Olympic Games in Paris, in which only slightly more than 3 thousand participated. athletes, cost approximately 9 million euros. At that time this year, they will cost, according to preliminary estimates, about 9 billion. euros. It is estimated that the Games should generate 6.5-11 billion. euro income.

What is special about the Paris Olympics?

The Paris Olympics are somewhat different from previous ones in terms of costs, with the amount allocated to organizing the Games being the lowest in 15 years. The Rio de Janeiro Games cost more than 20 billion, London more than 15 billion, and Tokyo about 13 billion. euros (at 2022 prices).

The problem is that often after world-class sporting events, be it the Olympics or football championships, the newly built infrastructure is little used. Sometimes, after the event ends, newly constructed buildings or stadiums are not used at all. We also saw this after the Summer Olympics in China, after the World Football Championship in Qatar, it was especially evident after the Summer Olympics in Rio de Janeiro. This raises not only obvious economic but also sustainability issues.

Understanding this, the International Olympic Committee tries to reduce the growing costs not only by limiting the number of athletes in the competition, but also by requiring the countries organizing the Olympic Games to build as little new infrastructure as possible. Another requirement is that the host country should generate as few carbon dioxide emissions as possible, for example by using renewable energy or other planet-friendly solutions.

Why do countries want to host the Games?

The data shows that most of the Olympics generated losses. So why do countries want to host the Games? First of all, large investments contribute to economic growth and create temporary or permanent jobs. For example, the London Games revitalized a poor part of the city, and preparations for the Rio de Janeiro Games created more than 10,000 jobs. temporary jobs.

Second of all, this is soft power – the Beijing Olympics were a great opportunity for China to demonstrate its organizational skills and position itself as a rich country. The same aspiration can be seen during the Sochi Winter Olympics, when culture and values ​​were used to shape people’s opinion and achieve political change on an international scale.

We also have to keep in mind less economically measurable things, such as how much awareness the Games generate for a country or city. These benefits can only be felt in the long term and are difficult to measure.

Finally, one must not forget the emotional benefits such an event brings to the country’s residents themselves. This is especially true in France, whose politics are currently shrouded in chaos and uncertainty. Three-quarters of the French population say they are happy with the fact that the 2024 Summer Olympics are being held in France.