Answer the following questions:

1. After reading the paper, what are your thoughts regarding the economic impact of the
Olympic Games?

Answer:

Olympic is considered as one of the biggest and mega events in Sports all around
the world. It has thousands of participants who take parts in it when this event occurs, billions of
viewers and followers. Olympic always takes gigantic cost to be put in for its execution. As it is
one the biggest event in the world so any country who comes in the bidding and wanted to
represent Olympics in their respective country they have to think about all perspectives before
stepping into that meeting. A country wouldn't fall apart after bearing the inaugural, executions
and all other expenses including its closing and post-closing maintenance and repairing
expenses, if they have better and stable economy as well as strong infrastructures. We have seen
a lot of countries who host the Olympics, are left behind with debts and astonishing shift in their
economy that takes their economy scale downward once done with Olympics.

THE ECONOMIC IMPACT OF THE OLYMPIC GAMES:

The major economic consequences of the Olympic Games can be easily evaluated after
reading the paper. The host countries spend billions of dollars for Olympic Games to boost and
magnify their economy, by updating the infrastructure and increasing the tourism. Also raises
the employment opportunities in the hosting countries. In 2016, Rio de Janeiro hosted the mega-
event with $20 billion and come up with be the discussion of costing and advantages. Still the
city grapple with debt acquired, including preservation cost and increasing the crime rate due to
future candidate’s countries bids and their policies. Being a host country is more difficult as
compared to participate in bidding procedure.

Host countries costing and Benefits:

There are discussing some authentic points on economic impact in context of cost and
benefits of Olympic Games for hosting countries which are mention below;

 Olympic Host Country Economic benefits:

i. Stimulate cost in framework, transport and infrastructure.

World’s Prime events mostly focus on enhance the communication, infrastructure and
transportation facilities. This spending leaves an inheritance for the complete economic
system. Improvement in transport can minimize the overcrowding and enhancing the
 domestic trades. For instance: In 2012, London introduced the new rail tracks in east London,
also updated the old track of over ground and underground railway traffic.

ii. Streaming of overseas tourist:

Mostly the great events of world can attract the audience or tourist like Olympics have power
to gain the tourist for increasing the local trades. Although the visitors are temporary but they
boost the host country economy by facilitating from the shops, hotel and transportation.
Secondly the visitors can also become the future tourist of host country if they will satisfy
from the local business. Such as, after participating in host bids of Olympic Games, China
and Barcelona becomes the most visitor countries of the world.

iii. Employment Chances and Growth of Economy:

Dramatically, major events have requirement of incumbent for maintenance the hotel
and stadium buildings. This thing becomes the reason for hire new employees. This great
event gives positive impact for creation jobs and increasing the domestic economy rapidly.
Also Host country can easily maximize the revenue and growth of economy due to huge
spending of overseas tourist/visitors.

 Olympic Host Country Economic Costing:

i. Expenditure of Olympic Games:

In recent years, costing for hosting countries maximize gradually, not only bear major
investment but intensive security as well. It can not only bear from the sponsorship cost
that’s why the country put burden of high tax on local population and local economy same as
like Athens and Montreal. For instance: In 1970, The Montreal Olympics was approximated
costing as $120 Million.

ii. Future usage of infrastructure and Security System:

Olympic Games need to updates the infrastructure which leads to invest huge amount.
Now the question is take place here, will infrastructure of Olympics be useful for host
country’s future or not? Local traders are affected with increasing security as high alert it
becomes the very burdensome for running the domestic business.
2. How Olympic Games affect the economies around the world?

Answer:
The Olympic Games affect the economies of hosting countries lean to be guide positive
than forecasted. Mostly countries which host the Olympic Games have drastically ended and
massively in debenture. Submitting bids and hosting the major events of Olympics Games have
huge economies affect like Olympics Games needs major spending of millions of dollars.
Including, the transportation, consultation charges, event organizers, sponsorships and
infrastructure charges. In 2016, bid of Olympic Games won by Rio and organized very well but
it affected the domestic business and deal with debts. Unfortunately, some host countries became
the bankrupt/insolvent after hosting the Olympics Games. In 2002, Salt Lake City introduced
7000 jobs. Ultimately it can conclude as that Olympics games have both favorable and
unfavorable impact for host countries economy.

 History of Host countries costing:

i. In 2000, Sydney invested $4.6 billion for become the host country of Olympic Games.
ii. In 2004, Athens paid $15 billion as hosting country of Olympic Games.
iii. In 2008, as host country Beijing spent $42 billion.
iv. In 2012, London invested $14.7 billion for being the host of Olympic Games.
v. In 2016, Rio de Janeiro spent almost $20 billion for being the host of Olympic Games.

Conclusion:

Olympics don’t only mean a set of games in which different athletes will compete to get
medals and positions. It also means a lot to the country who is actually hosting the mega event.
Olympic can either boost the economy and reputation of any country due to their hospitality and
preparations or else can ruin the entire economy scale and leave the country with debt and loan
and more striving condition.