2. Olympics : A History
Olympic games is a major international event
which features summer and winter sports.
The ancient Olympic games were held in Olympia,
Greece, from the 8th century B.C to the 4th century
The evolution of the Olympic games had resulted
in several changes to the Olympic Games. Some
includes the creation of Winter Games, Paralympic
Games, and Youth Olympic Games.
The Olympic Games is an event of such magnitude that it can potentially
signiﬁcant economic impact on the host city.
Preparations are made commence up to a decade beforehand and may
entail considerable investment expenditures that can have longer term
4. Are the Olympics Worth It?
Yes, because economically its Companies and governments
mixed bags. look at these games now more
from a promotional element
The long term legacy aspects
Promoting the feel good vibe of
which define these aspects, in
the city and hoping to get some
particular, affect the citizens of
public works projects done
a host city for years go come.
6. Key Economics Benefits and Costs of the
Pre-Games Phase •Tourism •Investment expenditure
•Construction activities •Preparatory operational
Games Phase •Revenues from games •Operational expenditure
(TV rights) •Lost benefits from
•Stadium and infrastructure displaced
Post-Game Phase •Human capital •Maintenance of stadium
7. Identifying the economic impacts of the Olympic
Pre- Games Impact
Impacts start to occur soon after the city has decided to bid for the Games,
up to a decade prior to the actual event, but become more signiﬁcant after
the Games is awarded.
Investments and other preparatory activities related to the Games.
Tourism could also start to pick up in advance in some cases due to the
proﬁle of the host city.
8. Games Impact
The impact of the Games and the associated events immediately
The longer-term impact, often referred to as the
Can last for at least a decade after the Games.
9. Demand Side Benefits of the Olympic Games
Tourism is the only activity whose impact can be seen in
all 3 stages
Olympic games provide unique events that attracts
visitors from all over the world
The latter effect can sustain increment in tourism flows
for several years after the event
10. Direct Cost of the Games
Operating costs of hosting the Games itself
Construction of necessary Olympics infrastructure
Rent could also be affected indirectly if housing projects
are displaced by other building projects
11. Supply side Benefits
Increase productivity. Example: Improving transport facilities.
Creation of enhancement of sports facilities.
Provide working opportunities for residents.
Make city a more attractive place to live.
12. Financing the Olympic Games
Olympics were ﬁnanced almost entirely with the city‟s own public
A considerable amount spent on improving infrastructure and sports
facilities in a relatively small area of the city.
Public financing was first introduced when Los Angeles hosted the
Increasing attention was focused on the wider economic impacts of
Benefits stretching beyond the ﬁnancial viability of the event itself.
13. Factors Affecting Total Medal Awarded
■ Average income levels (measured by GDP per capita at PPP
■ Whether the country was previously part of the former Soviet bloc
(including Cuba in this case)
■ Whether the country is the host nation
■ Medal shares in the previous Olympic Games.
14. How Olympics will help London’s Economy
London 2012 Olympic Games will cost between $9 to $24 billion
dollars with $9.3 billion being covered by the Olympics‟ public sector
funding – which covers the cost of aspects such as building venues,
security and policing.
The Games are drawing people to London from all over the world,
from spectators to athletes and coaches, family members to worldly
Supporting the local businesses and their employees that in return
helps the economy.
15. People pay to come and watch events as well as purchase
merchandise and food at the venues
Creates this whole atmosphere of pride and happiness for the host
Gives a platform for inspiration and pride.
The Olympic Games have significantly boost major economical
aspects such as building more infrastructure projects which could
benefit the host country in generating profits out of the events.
Furthermore, it also provide more job opportunities for the citizens.
This subsequently will provide a better return on investment due to
the presence of the Games
Thus, the Olympic Games could be considered profitable if it is
planned and structured strategically to the economic condition of a
certain country. All aspects must be analyzed thoroughly to
minimize any types of loss due to the Games held.