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Economic Impact of Olympics 2024 attracted countries to bid for the 2036 games. Analyze the Economic Impact of Olympics 2024 to understand the economic significance of this event.
Economic Impact of Olympics 2024: The Olympic games are held once in four years in two sessions: the Summer Olympics and the Winter Olympics. Usually, the bidding process for the Olympics is done in 12 years advance to allow the host country to manage the required preparation considering the huge cost involved.
As India is set to bid for the 2036 Olympics, it is crucial to examine the economic impact of the Olympics 2024 and find out the return on investment for the Olympics. The Olympics promise to influence various sectors, including tourism, infrastructure, and employment. Read on to learn the costs associated with hosting such a grand event and the overall economic impact of the Olympics.
Cost of Hosting the Olympics
Hosting the Olympics involves considerable financial investment. For example, the Paris Olympics 2024 cost around $8.87 billion, of which IOC allocated €1.2 billion ($1.29 billion) excluding TV rights and TOP partnership. Similarly, the Summer Olympics in London, Rio, and Tokyo cost around $ 50 billion.
The financial burden of hosting the Olympics can lead to budget overruns, as seen in previous Games. Further, it has been noted that many Olympic host city economies have faced financial strain due to the high costs associated with infrastructure and operational needs. Still, countries like India are bidding to host the 2036 games due to the positive economic impact of the Olympics.
Economic Impact of Olympics 2024
The Economic Impact of Olympics 2024 is projected to be significant. For example, according to France’s National Institute of Statistics and Economic Studies (INSEE), the Paris Olympics 2024 are expected to boost France’s GDP in the third quarter by 0.3% points and can also raise the growth rate by 0.5% in the given period.
The economic impact of Olympic Games stems from increased tourism, job creation, infrastructure development, business sector, etc. Further, long-term effects such as renewing global image, diplomatic advantage, and inspiring a new generation of athletes can also contribute to the overall economic health of the host country.
However, the actual economic benefits of hosting the Olympics 2024 can vary widely depending on factors such as the scale of investment, the efficiency of spending, and the ability to leverage the event for long-term development that will be available once the games are concluded.
Benefits of Hosting the Olympics
The Economic Impact of Olympics 2024 extends beyond immediate financial gains. Hosting the Games can enhance a city’s global profile, attract investments, and foster community development. Some of the key Olympics economic benefits are:
Tourism Boost: The influx of international visitors during the Olympics not only benefits local businesses but also promotes the host city as a global destination. For instance, tourism in Brazil during the year of the Rio Olympics generated USD 6.2 BN.
Job Creation: The preparation and execution of the Olympics generate numerous jobs across various sectors. For example, between 2010 to 2017 more than 110K jobs were created in six boroughs surrounding the Olympic Park in London.
Infrastructure Development: Hosting the Olympics means building new stadiums and improving roads and public services. These improvements benefit the city and its residents long after the games are over.
Business Opportunities: The Olympics bring global attention, giving local businesses more exposure and potential new partnerships. More visitors mean higher sales for shops and services.
Urban Revitalization: The investments in urban development and regeneration projects associated with the Olympics can lead to long-term economic growth. Revitalized areas can attract new businesses and residents.
Global Branding: Hosting the Olympics can enhance the host city’s international profile and brand image. This increased visibility can attract future investments, tourism, and international events, contributing to sustained economic growth.
Cultural Exchange: The Olympics promote cultural exchange and goodwill. This can lead to future tourism and business exchanges, further benefiting the host country’s economy.
India’s Bid to Host the Olympics 2036
Given the beneficial economic impact of Olympics, India is preparing its bid to host the 2036 Olympics. According to PIB, the Indian Olympic Association (IOA) has initiated the dialogue process with the Future Host Commission (FHC). The initiative is seen as a collective dream of 1.4 billion Indians, aiming to showcase India’s potential as the host of the Olympics.
The country aims to leverage the experience gained from previous sporting events, such as the 1982 Asian Games and the 2010 Commonwealth Games, to ensure successful and economically viable games. India’s focus will be on sustainable development, job creation, diplomatic advantages, and infrastructure development from the Olympics.