Benefits and Issues of Hosting the Olympics

This report examines the benefits and challenges of hosting the Olympics, focusing on the economic, environmental, and social impacts. It discusses the investment required, the potential economic benefits, and the environmental consequences. It also highlights the importance of social services and risk management. Recommendations are provided to reduce negative social influence, minimize economic impact, and mitigate environmental effects.

Olympics Game

Table of Contents
INTRODUCTION...........................................................................................................................1
ANALYSIS......................................................................................................................................1
Overview of hosting Olympics...................................................................................................1
Economic impact of hosting Olympics.......................................................................................2
Environmental impact of hosting Olympics...............................................................................3
Social impact of Olympics on host city......................................................................................4
CONCLUSION................................................................................................................................4
RECOMMENDATIONS.................................................................................................................4
Key recommendations to reduce pessimistic social influence....................................................4
Key recommendations for declining agnostic economic impact................................................5
Key propositions for minimising negative environment impact.................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
A global event can be said to be an event which is organized by virtue of involvement of
large number of individuals from different parts of the world. Olympics is an event which is
mainly concerned with the pride of nations and encompasses several competitions as well as
heroic moments. In this relation, host cities are known to make an extensive investment within
the games. Hosting of Olympics provides assistance in generation of several temporal jobs in the
form of improvement of infrastructure. This renders advantage to a nation in future context of
time. Investment in this relation is concerned with improvement of accommodation services
whereby the individuals belonging to international as well as domestic context arrive to witness
the games or give their participation within it (Kenyon and Bodet, 2018). Apart from this,
investment is also done for the purpose of construction of airways, roads, and improvement of
environmental situations of circumscribing area. However, it is also known that hosting
Olympics is a risky affair whereby enormous activities have to be conducted, thus implying that
the funds may easily get busted during the arrangement of this event. Some of the main
challenges or issues that are linked to the hosting of a global event are inclusive of price
inflation, inconvenience associated with travelling, crime and security, and so forth. In addition
to this, there is a probability of occurrence of several other forms of risk such as negative
publicity, cost of developing stadium, cost associated with security maintenance, and so on.
Also, it consists of issues circumscribing the domain of health & safety, legacy of sports, and
other extreme public health associated risks (Atç, Unur and Gürsoy, 2016).
The following report studies the benefits and issues faced by a nation at the time of
considering to bid for hosting the Olympics event. The discussion will include impact of hosting
the event from economic, environmental and social perspective. The main purpose of the report
is to examine the impacts from various perspectives and devise recommendations in accordance
with them to host the Olympics event effectually.
ANALYSIS
Overview of hosting Olympics
Hosting a global event such as Olympics leads to the generation of remarkable
environmental, social and economic benefits in the form of increment in tourism related
statistics, long run investment, legacy benefits of sports, and so on (Hahm, Tasci and Terry,
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2019). Whenever a nation hosts any kind of global event, it leads to elevation of the city profile,
further accounting to creation of a long lasting economic benefit. With reference to Olympics, it
has been analysed that this event is linked to an assured increment in the recognition of the host
country as an impeccable tourism destination. Barcelona, Beijing and Sydney are some of the
places which have already conducted the Olympics event, thereby gaining enormous popularity
as a tourism destination, across the world. One of the most important benefits accruing from the
hosting of this event is the long run investment (Park and et. al., 2019). In the long term, this
results into the creation of a legacy of enhanced sporting venues whereby government needs to
carry out the investment within the domains of transportation as well as infrastructure. This helps
in catering to the needs and requirements of a large number of tourists who visit the host country.
Economic impact of hosting Olympics
Submission of a bid to host a global event such as Olympics with International Olympic
Committee (IOC) requires millions of dollars to be invested by the host nation. The government
has to incur approximately $50 – 100 million in the form of consultant's fees, event organizer's
charges, travel related to hosting responsibilities. In this relation, an instance can be taken to be
Tokyo that has undergone a loss of more than $150 million in relation to the bidding procedure
of Olympics during the year 2016 (Bakkenbüll and Dilger, 2016). further, the region has made an
investment of approximately $75 million in relation to the bid of 2020. In addition to this,
hosting of the global event is considered to be comparatively more expensive than the overall
bidding process (Tasci, Hahm and Terry, 2019). During the examination of the overall cost
associated with the placement of bid and hosting of the global event named Olympic Games, it is
seen that the host region faces a dilemma. Yet it is seen that it provides assistance in generation
of employment in the short run, in the form of elevation of infrastructural facilities, security,
construction, and so on (Lee, 2020). The risks and benefits accruing from the hosting of such a
major global event may at times not be worthy of the investment by the government. As a result
of the due consideration of the case of Tokyo, it has been analysed that the host and the bidding
cities tend to largely benefit from the global popularity and recognition in the form of the
infrastructural improvement in environmental and health contexts. However, the expenditure of
high cost may give rise to financial risk for the host nation. Thus, it may not be a worthy affair
for the underdeveloped countries. As Olympics is a global event which is easily able to gain the
attention of large number of individuals, thus it becomes an opportunity for the wealthy as well
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as developed countries to elevate their economic development (Müller and Gaffney, 2018). This
takes place by virtue of inviting large number of persons to visit the event and make it
remarkable and successful.
When places tend to bid to host the Olympic Games, it becomes extremely important for
the government of that country to take into account certain aspects. An economic windfall taking
place may result into dampening of the overall project of event organization. However, there is a
also a possibility that economic boon may act as an opportunity for the host location to elevate
the responses and viewers of the event (Zhang and et. al., 2020). For instance- Atlanta expended
almost $600 million during the year 1996 to bid for hosting Olympic Games and for the effective
improvement of the existent infrastructure. Further, $1 billion was incurred by Greece during the
year 2004. Thus, looking upon the extensive investment that is required to be made by the host
country, the support from the public at large becomes almost imperative.
Environmental impact of hosting Olympics
The alterations taking place in the climatic conditions, pollution and other situations can
be considered as the adverse effects of the global event such as Olympic Games upon the
environment. The Winter Olympics organized in Sochi, Russia during the year 2014
demonstrates such kind of issue while hosting of the event. In this relation, it has been
determined that construction of new sites as well as buildings tend to generate tons of wastage,
migration of people as well as animals from that place, pollution and decrement of the quality of
life that the inhabitants of such regions would be subjected to. Concerning this, the usage of
heavy construction as well as other such material for the enhancement of overall structure results
into the increment in carbon emissions. This tends to have an extensively negative impact upon
the environment.
The hosting of Olympic Games during 2016 in the bounds of Brazil demonstrates the worst
impact of an event upon the environment. Hereby, the water bodies of the host country were
extensively polluted owing to the respective global event (Streicher and et. al., 2020). It accounts
to the increment in the concentration of bacteria as well as virus in the waterways or seaways.
This leads to sore throat, nausea, worsened eyesight, water pollution, and so on. Another
negative effect of organizing this global event encompasses deforestation owing to large number
of trees being cut for the area being prepared for hosting the event. Also, increment in tourist
results into pollution, excessive wastage, and other such impacts (Perić, 2018).
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Social impact of Olympics on host city
While bidding for hosting a global event like Olympic Games, it is imperative for the
government of that location to take into account the health care and other services for the visitors
and participants. This implies that the medical system along with the other social services of the
country and that region should be well equipped. This provides due assistance in making sure
that the viewers as well as the participants do not face any kind of issue. Further, social services
also encompass installation of CCTV cameras at the venue to make sure that theft and other such
kinds of social issues do not take place at the venue (Johnson, 2020). Also, the risk management
procedures and methods of the host country should be effective enough to cater to the
requirements of people that are a part of the respective global event. The usage of advanced
technologies and systems is done by the government of the host country in a bid to make sure
that people get access to an impeccable experience which they remember for a long term. Health
care professionals and medical team is there at the venue to cure any kind of illness, injury or
wound suffered by the participant or viewer of the Olympic Games.
CONCLUSION
It is inferred 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, protection from health issues 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 before placing
a bid. However, organizing the 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 impacts so that higher benefits could be earned.
RECOMMENDATIONS
Key recommendations to reduce pessimistic social influence
Conducting Olympics is enormous but it also involves taking high-risks projects like
other mega-projects related with global event. To organise Olympics facilities, it becomes crucial
for government to utilise effective steps that will lead to overcome social issues before
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accomplishment of rock-solid completion on peculiar date. It is necessary that early legacy plans
are being made for designing the master plans that must involve leveraging legacy i.e.
transforming city along with entire social system for safety of visitors as well as sportsperson.
They also need to redevelop entire area by triggering adverse social influence.
Key recommendations for declining agnostic economic impact
To accelerate transformation of city with respect to hosting Olympics it becomes
necessary to minimise adverse influence of economic state. This involves making bids for
determination of entire cost and then organising games accordingly prior actions must be taken
for minimisation of cost. Construction along with other infrastructure development plans must be
created in such a way that material that is used can be recycled through which sustainability can
be ensured.
Key propositions for minimising negative environment impact
For addressing issues associated with sustainable development, environment is regarded as
three pillar movement for supporting different sports as well as culture. Government must
resolve issue related with sustainability within their bidding document. It is necessary that
emphasis is laid on minimisation of carbon footprints, trees cutting must be reduced and eco-
friendly services must be given. The basic aspect that can be considered is that the medals must
be manufacture by usage of electronic waste or through recycling the plastic products.
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REFERENCES
Books and Journals
Perić, M., 2018. Estimating the perceived socio-economic impacts of hosting large-scale sport
tourism events. Social Sciences, 7(10), p.176.
Bakkenbüll, L.B. and Dilger, A., 2016. Willingness to pay and accept for hosting Olympic
Games in Germany.
Atç, D., Unur, K. and Gürsoy, D., 2016. The Impacts of Hosting Major Sporting Events:
Resident's Perceptions of the Mediterranean Games 2013 in Mersin. International
Review of Management and Marketing, 6(1).
Hahm, J.J., Tasci, A.D. and Terry, D.B., 2019. The Olympic Games' impact on South Korea's
image. Journal of Destination Marketing & Management, 14, p.100373.
Park, S.U., Yoon, S., Chung, S. and Park, J.H., 2019. Is hosting a sporting mega-event ever
worth it to the host city? Impact of hosting sporting mega-events on residents’ sense of
community. South African Journal for Research in Sport, Physical Education and
Recreation, 41(3), pp.63-73.
Tasci, A.D., Hahm, J. and Terry, D.B., 2019. A longitudinal study of Olympic Games’ impact on
the image of a host country. Journal of Travel & Tourism Marketing, 36(4), pp.443-
457.
Kenyon, J.A. and Bodet, G., 2018. Exploring the domestic relationship between mega-events and
destination image: The image impact of hosting the 2012 Olympic Games for the city of
London. Sport Management Review, 21(3), pp.232-249.
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.
Lee, J.W., 2020. A thin line between a sport mega-event and a mega-construction project: the
2018 Winter Olympic Games in PyeongChang and its event-led
development. Managing Sport and Leisure, pp.1-18.
Zhang, J.C., Byon, K.K., Xu, K. and Huang, H., 2020. Event impacts associated with residents'
satisfaction and behavioral intentions: a pre-post study of the Nanjing Youth Olympic
Games. International Journal of Sports Marketing and Sponsorship.
Streicher, T., Schmidt, S.L., Schreyer, D. and Torgler, B., 2020. Anticipated feelings and support
for public mega projects: Hosting the Olympic Games. Technological Forecasting and
Social Change, 158, p.120158.
Johnson, C., 2020. The Impact of the Olympic Games on Employment Growth: A Synthetic
Control Approach.
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