Benefits and Challenges of Hosting the Olympics

This report analyzes the benefits and challenges of hosting the Olympics, including the economic, social, and environmental impacts. It provides recommendations for minimizing negative impacts and maximizing benefits.

Academic and Professional Skills

Executive Summary
Making a bid and organising a global event like Olympics, requires a large documenting
and heavy investment of capital for host country. It not only proves beneficial but also arise a
number of issues which need to be addressed before hosting such a show. It includes possibility
of heavy financial loss, worst impact of environmental conditions on health of participants and
visitors, etc. So, all these factors enforce government to make prior arrangements for resolving
all such issues, which results in achievement of potential economic benefits of same.

Table of Contents
Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................1
Analysis............................................................................................................................................1
Overview of hosting Olympics....................................................................................................1
Social impact of Olympics on host city.......................................................................................2
Economic impact of hosting Olympics........................................................................................2
Environmental impact of hosting Olympics................................................................................3
Conclusion.......................................................................................................................................4
Recommendations............................................................................................................................4
Key suggestions for minimising negative social impact.............................................................4
Key suggestions for minimising negative economic impact.......................................................5
Key suggestions for minimising negative environment impact..................................................5
References........................................................................................................................................6

INTRODUCTION
A global event can be defined as an organised event which involves people of various
countries around the world. Olympics is all about competitions, heroics and pride of a nations,
where host cities make a large investment in games (Scandizzo and Pierleoni, 2018). Hosting
such a global event aid to create a large number of temporary jobs in terms of improving
infrastructure, which would proves beneficial to a country in future. Investment in this regard,
includes enhancement of accommodation facilities where people of both domestic and
international area who comes to visit or participate in games. In addition to this, investment also
made for constructing roads, airways and on improving environmental conditions of surrounding
areas. But hosting Olympics event refers as an enormous and high-risk undertaking project,
where budget might get busted to arrange entire things (Ribeiro and Correia, 2020). Travel
inconvenience, price inflation, crime and security concern consider as main challenges of hosting
a global event. Along with this, there are numerous risks occur in terms of cost of building
stadium, minimising chance of negative publicity, cost of security and more. It also includes
legacy of sports facilities, issues relating to health and safety, potential social issues and more.
A report is thereby prepared, to study the benefits and challenges that a country face while
considering a bid of hosting an Olympic event. Discussion will be made over impact of hosting
such an event in both environmental and social perspectives. Along with this, economic impact
in terms of job creation, future trade, costs and investment etc. will be analysed. The main aim of
this report is to analyse various impact and recommend ways accordingly, to maximise the
benefits and dealing with challenges while hosting the Olympics event.
Analysis
Overview of hosting Olympics
Hosting a global event will bring enormous economic, environmental and social benefits,
in terms of increasing tourism, long-term investment, sports and legacy benefits etc. When a
country hosts a global event then it raises high profile of city, which leads to create a long lasting
economic benefit (Ribeiro and et. al., 2018). In context with Olympics, this event is assured with
a persistent increase in recognition and tourism, where countries like Barcelona, Sydney and
Beijing have already hosted it at large level in their cities. A significant benefit in this regard,
also includes long-term investment that comes from preparing this major event. This will create a
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legacy of improved sporting venues, where government requires to make investment in
infrastructure and transport for catering an influx of tourists.
Social impact of Olympics on host city
Social impact and legacy can be defined as positive and sustainable impact on host country
or city, associated with hosting of Olympics Games. In bidding process of hosting a global event,
acceptance or rejection of the same by citizens, particularly when referendums are required to get
into its final phases is one of the serious concerns (Dolan and et. al., 2019). In case when, games
or any other bidding process is not socially accepted then maintaining legacy could be difficult
for government. Critics related to social impacts of global events like housing affordability,
infrastructure development and more, results in rationalising public infrastructure. But it may
create threat for public about forced evictions for involuntarily displaced from own place. For
example – due to weak tenancy laws at the time of Calgary in Alberta in 1998, an environment
has been created in which rent increases excessively, that led to displace thousands of people.
This indicated the worst impact of hosting Olympics on a country. Another main concerned
factor includes reinforcement of social cohesion of host country i.e. when employment is created
to local residents then problems of rising inequalities and discrimination, arise social issues in
front of government.
Economic impact of hosting Olympics
Submitting a bid for hosting a global event i.e. Olympics with International Olympic
Committee (IOC) costs to millions of dollars to host country (Müller and Gaffney, 2018).
Government has to spend over $50 million to $100 million in terms of consultants’ fee, event
organizers, travel regarding with hosting duties. An instance includes Tokyo which has lost over
$150 million on bidding process of Olympics in 2016 and currently invest about $75 million on
2020 bid. Along with this, hosting the global event is relatively more costly than bidding process.
In examining all over the high cost related to place a bid and hosting the global event i.e.
Olympic Games, host country or city face a dilemma (Dolan and et. al., 2019). However, it helps
in creation of a variety of jobs in short duration, in terms of improvement in infrastructure,
construction, security, health care employment and more. Benefits and all the mentioned risks
may not be worth entire government investments. It has analysed from considering the case of
Tokyo, bidding and host cities both seem to benefit via world recognition in terms of
improvement in infrastructure at both environment and health system. However, extreme cost
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arise questions about financial risks for host country. Therefore, due to requirement of high
capital investment which is seem to be apprehensive reduced opportunity for undeveloped
countries. On contrast, world-wide attention gives an opportunity to wealthy nations with
possibility of stimulate the economy through enhancement of tourism and trade.
When cities or countries make a bid for hosting the Olympic Games, it becomes essential
for government to concern on many areas such as economic, environment and social impact. As
there is a large possibility of getting economic windfalls with overall projected costs which host
cities may incur. However, the potential economic boom seems to difficult to project where,
vision to create an Olympic legacy which will live long after ending of Games, investments on
infrastructure may become much expensive. One of such case, includes Atlanta who has spent
approximately $600 million in 1996 on bidding process to host a global event, for improving the
existing infrastructure (Ribeiro and et. al., 2018). It pales to over cost of $1 billion which Greece
has paid in 2004. Therefore, because of involvement of heavy cost, at the local level, public
support is imperative. Similarly, costs to the tax payer is another big concerned point for cities or
countries before making bid to host games, as it also increase level of cost investment.
Environmental impact of hosting Olympics
Changes in climate, deforestation, pollution and more, are some of the adverse impact of
global events on environment. Winter Olympics held in 2014 in Sochi, Russia, is a clear example
of such wide level issue of Olympics on host country (Ribeiro and Correia, 2020). Construction
of building and entire sites create issues in terms of widespread cases of the illegal landfills of
wastages, animal migration from surrounding areas, waste spillage into water bodies and other
unsustainable process, results in decreasing the quality which have been documented of life to
all inhabitants of particular region. Usage of heavy construction and other materials for
improvement of overall structure leads to increase carbon footprint, which highly impact
negatively on environment. Held of Olympic in Brazil in 2016 shows the perfect illustration of
worst impact or environmental disaster, regarding with water bodies of host city that was highly
polluted before the event (Scandizzo and Pierleoni, 2018). It results in increase concentration of
bacteria and viruses in waterways or at sea that results in causing sore throats, nausea, worsening
eyesight and more for swimmers, who also fall ill because of water pollution. Another adverse
impact of Olympics on environment impact includes deforestations because requirement of large
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area results in cutting of various trees. This would a major concern for Government to be focused
while place a bid to host global event. Similarly, increasing tourism also put negative impact on
environment, while meeting high demand of visitors related to stay, visiting nearby places etc.
Conclusion
It has concluded from all over report that placing a bid and hosting a global event i.e.
Olympics results in getting both benefits and risks. Here, creation of more employment,
improvement in infrastructure, health systems, increase in tourism and more, are some of the best
parts of such events. But extreme cost of investment, security of visitors, safety concerns,
discrimination in employment are some of the factors, which put a high risk for host country or
city. Along with this, making improvement and entire arrangements for organising such an event
require a large investment, which might not result in getting easy return. This lead to raise
financial concerns as well for government, especially for less or underdeveloped country, before
placing a bid. But as organising global event provides long term benefits in terms of trading,
tourism and more. Therefore, it is essential for government of hosting countries to make prior
actions for reducing negative impact of the same, on environment, economic, social and other
areas of concern, so that higher benefits could be earned.
Recommendations
Key suggestions for minimising negative social impact
Hosting the Olympics considers as an enormous but high-risk undertaking project unlike
the other megaprojects of global event. For organising Olympic facilities, it is essential for
Government to take steps to overcome from public health issues, before meeting a rock-solid
completion date. For this purpose, to minimise the risks and leverage health legacy of sporting
events, some recommendations are given as beneath –
 Early legacy plan should be made by government of host city to make improvement in
transport infrastructure first, so that event can be socially accepted. Along with this, ensure
to improve capacity in other services like strengthening its public health system which is
required for hosting the Olympics, also helps in influencing residents about positive
outcomes of global events.
 Regeneration or redevelopment of whole area should be fostered by triggering the adverse
negative impact of Olympics on residents. Other main concerned point about legacy is
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generating interest among young generations, regarding with potential benefits of games
during and after events; creating equal employment to residents will also help in influencing
public to give their approval to host games.
Key suggestions for minimising negative economic impact
For accelerating the transformation of city for hosting Olympics, following points need to
be considered that reduces the worst impact of the same on economic state as –
 Many infrastructure projects before bidding needs to be made, to determine overall cost for
placing bid and organising the games. Through this process, prior actions to reduce cost
could be made.
 Constructions and other infrastructure development related plans must be made on the basis
of way to recycle the materials, so that sustainability could be maintained.
Key suggestions for minimising negative environment impact
To address the issue related with sustainable development, environment is considered as
third pillar of the movement after sport and culture. So, government need to concern for
resolving issues of sustainability in its bid documents, in terms of legitimating a more
environmentally conscious age, despite if a practical guide. For minimising the adverse impact of
organising facilities to host Olympic Games, some actions are needed to be taken as given below
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 To reduce carbon footprints, cutting of trees should be minimised, eco-friendly hotels and
tourism activities should be promoted, with introduction of carbon offsets. Along with this,
bus fleet must be replaced with more fuel efficient as well as less polluting vehicles.
 Beginning from small things such as gold, silver and bronze medals must be manufactured
from electronic waste or by recycling plastic products.
 The projects related to construction of roads should include recycled materials which are
capable of absorbing water; buildings by usage of sustainable wood; eco-friendly beds by
recycling cardboard and mattresses; recyclable polyethylene and more.
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References
Books and Journals
Dolan, P. and et. al., 2019. Quantifying the intangible impact of the Olympics using subjective
well-being data. Journal of Public Economics, 177, p.104043.
Müller, M. and Gaffney, C., 2018. Comparing the urban impacts of the FIFA World Cup and
Olympic Games from 2010 to 2016. Journal of Sport and Social Issues, 42(4), pp.247-269.
Ribeiro, T. and Correia, A., 2020. The relationship between organisational issues and social
impacts of Rio Olympic Games: a volunteer’s perspective. Journal of Policy Research in
Tourism, Leisure and Events, pp.1-22.
Ribeiro, T. M. and et. al., 2018. Examining service quality and social impact perceptions of the
2016 Rio de Janeiro Olympic Games. International Journal of Sports Marketing and
Sponsorship.
Scandizzo, P. L. and Pierleoni, M. R., 2018. Assessing the olympic games: The economic impact
and beyond. Journal of economic surveys, 32(3), pp.649-682.
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