Economic, Environmental, and Social Impact of the London Olympics

This report provides an executive summary and in-depth analysis of the impacts of global events, specifically focusing on the London Olympics. It examines the economic, environmental, and social consequences of hosting such a large-scale event. The economic impact section discusses job creation, taxpayer costs, and the future effects of the Olympics on various industries. The environmental perspective highlights the challenges of increased carbon footprint and pollution, along with eco-friendly practices and strategies for sustainable development. The social impact assessment explores the effects on local communities, including cultural exchange, infrastructure development, and opportunities for skill development and employment. The report concludes with recommendations for maximizing economic benefits, minimizing environmental challenges, and ensuring the long-term positive impact of global events. The report emphasizes the importance of meticulous planning, flexibility, and sustainable practices to ensure successful and beneficial outcomes for the host country and its residents.

Academic and
Professional Skills

Executive Summary
This report is prepared to discuss global events and their negative and positive impacts
over the host country. In this report, global event namely Olympics is discussed. Whenever a
country bids for hosting event like Olympics, they undertake impact assessment over different
sectors of their society. In this report, economic impact assessment, environmental impact
assessment and social impact assessment has been undertaken. A conclusion and
recommendations are drawn on the basis of impact assessment done in previous sections.

Table of Contents
Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................1
ANALYSIS......................................................................................................................................1
The economic impact .................................................................................................................1
The impact from environmental perspective ..............................................................................3
The impacts from social perspective...........................................................................................4
CONCLUSION................................................................................................................................5
RECOMMENDATION...................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Global events are events which of limited duration as well as have global reach, need
significant investment from public and build environment (Viehoff and Poynter, 2016). In
addition to this, in global events several people from distinct countries take participation. There
are several type of global events in which people from different countries take participation such
as Seminars, conferences, games and many more. This report is based on Olympic which is also
global event and in that people from distinct countries take participation as well as several types
of games conduct in Olympic.
Bid is an offer that made by an investor, trader as well as dealers for purchasing security,
currency and commodity. In addition to this, bid stipulates the price which potential buyers are
willing to pay, quantity he or she purchase for particular purpose of price. Moreover, bid is the
price at that market maker willing to purchase a security. But retail buyers as well as market
makers should have to display ask price. Along with this, it can be said that bidding have
positive as well as negative both aspects. Furthermore, in global events bidding take place within
that several people bid on distinct team on the basis of their capabilities.
ANALYSIS
Global events like London Olympics have a variety of impacts on the host such as
potential health and safety impacts on the local public, job creation and domino effect over future
trade, logistics and hospitality challenges, generation of carbon footprint, etc. This report aims to
map impacts of Olympics from economic, environmental and social perspective.
The economic impact
Olympics are a global event and hosting such event would not only bring repute for host
place but will also create many economic opportunities and challenges for relevant industries
such as tourism, hospitality and their allied industries (Kassens-Noor and et.al., 2015).
Job Creation
Hosting events like Olympics requires a lot of preparation. Right from building up of
infrastructure to development of various facilities like transportation, it involves lot of revenue
generation for the economy and job creation for Londoners. For example, Government has said
that London Olympics had generated around £10bn for the economy and was able to create
almost 70,000 jobs for people (London Olympics jobs target, 2013). This job creation helps in
1

reducing unemployment level. These jobs were created in constructions, developments,
management, etc. of various infrastructures that are to be developed for hosting Olympics such
as stadiums, hotels, tourists destinations and their allied industries.
The challenge is that many of these employment opportunities are not sustainable
(Giulianotti and et.al., 2015). They are like part-time and temporary roles which will only be
there till the development process will go on or the Olympics will conclude. Post it, the
unemployment rate will again rise. Therefore, it is important for government to not just develop
infrastructure but also provide assistance and training so that people develop skills and business
models that can get them permanent employment or help in establishing sustainable business
model. This will not only only help reducing unemployment rate at present but will ensure that
people remain employed post Olympics as well.
Tax payers' costs
Hosting for a global event like Olympics requires a very huge amount of funds that costs
in billions. This includes the cost to bid for the event, development of infrastructure like Olympic
village and conduct the event. Therefore, various sources of finances are required to raise funds
for it such as public sector funding (non-government) in the form of funds from selling of
broadcasting and sponsorship rights, central funding (example, government tax funding,
contingency funds), etc. Diversification of sources of funds help government reduce the load on
public purse.
For example, supposedly, total funds required for organising Olympics are £12bn. Out of
which, £6.2bn are financed by public sector funding in the form of sponsorships and
broadcasting rights. Another £2.7bn were raised from government savings. This leaves public
funding at £3.1bn, of which a good part will form cost to tax payers. Most important for the
event host committee is to manage conducting the event within budgeted cost, so that
contingency expenditure does not create more burden on the government funding which
primarily consists of collections from tax payers as public funding is required for other
developments as well and if the expenditures overshoot the budgeted amount, either government
would reduce some other developmental works or will put more burden over tax payers of UK
which would create unnecessary burden over them (Vanwynsberghe, 2015).
2

Future effects
Global events like Olympics at the time of event create a domino effect and help so many
industries to grow and develop such as sports industry, hospitality industry, tourism industry, etc.
Multiplier effect help allied and related industries to develop as well (Goldblatt, 2016). For
example, at the time of Olympics, many national and international tourists visit the city, they
flock hotels, visit restaurants, tourists' places, etc. which help them flourish and along with them,
transportation industry, clothes industry, entertainment industry, etc. also thrive. Many new
centres of attractions come up and develop to exploit the business opportunities presented by a
global event.
The best part of such events are that these effects do not phase out with end of event.
They continue to prosper. For example, Post London Olympics 2012, Olympics village was
made open to public and it started providing opportunities of UK people to learn and practice
new sports, which they were earlier not able to. This continued to strengthen sports and allied
industry. Tourists that visited London and were impressed with its hospitality and tourists
destinations, returned again to visit it. Business associations that were formed then, continue to
benefit people of London even today.
The impact from environmental perspective
Whenever any global event is to be conducted, infrastructure development takes place,
which is bound to increase carbon footprint and pollution level of the place both before the event
and at the time of the event (Fabry and Zeghni, 2019). Before event, construction and
development of infrastructure gives rise to high carbon footprints, air, land, noise and water
pollution which continues and even increases during event with arrival of so many extra people
which puts extra pressure on the resources. Effects of that pollution are felt by local residents
even the conclusion of that event.
Therefore, it is very important to develop eco-friendly practises that can put pressure on
resources at ease. These practises need to be aiming long term sustainable improvements and
technological innovations to increase environmental awareness. For example, while preparing to
organise for London Olympics, Olympic Deliver Authority (ODA) and London Organising
Committee for the Olympic Games (LOCOG) has made an elaborate carbon management
strategy in relation with British Standards for sustainable event management and made sure that
they organise the games according to those targets. They listed eco-friendly practices such as
3

reuse or recycle of construction waste, developing a biodiversity action plan, greater use of on-
site renewable resources, developing new technologies for waste management, etc. as their
priorities while applying knowledge, skills and supply chain to managing London Olympics.
Other strategies like development of games-time waste minimisation, greater use of renewable
and clean energy such as providing electricity from solar energy , striving for zero carbon,
targetting strategy of zero waste games and promoting reuse, recycle or compost of waste
generated, etc. shall be considered. Companies shall be encouraged to develop eco-friendly
packaging for their products (Kassens-Noor, Vertalka and Wilson, 2019). No waste shall be
dumped in landfills to pollute land or incinerate to pollute air. These technologies and practices
can help in organising Olympics at lesser pollution level and with lower carbon footprint.
The impacts from social perspective
Global events like Olympics which have a profound economic, environmental, health,
tourism impact, are bound to make deep impact over social fabric of the society. All these events
are organised in co-operation with local communities as they are the people who are most
impacted by such events. Such events present multiple opportunities for these communities to
showcase their culture and traditions to whole world. It also gives them multiple chances to
intermingle with other communities, cultures and traditions from all over the world. This
encourages cultural infusion which is helpful in generating so many opportunities in this
globalisation era. These events also present opportunities to develop new infrastructure like new
sports facilities, hotels, recreational places , amusement parks, etc. and restore old and heritage
infrastructure that were not much cared about earlier, which would be used and utilised by the
local people later on.
These events present developmental opportunities for local people (Salazar and et.al.,
2016). They are able to learn so many skills, offered employment opportunities, greater
community engagement, etc.. For example, London Olympics were organised in East London. It
is a culturally diverse area and less economically-developed area, ideal for initiatives in urban
revitalisation, economic development and job growth (London Olympics: Social Impact through
legacy planning, 2019). Local residents were hired for construction, were offered various job
trainings so that they can improve their skill sets and are able to get better employment
opportunities later on in the competitive job market. They were made volunteers, ambassadors
and visitors' guide during the games so that they can improve their various employment skills
4

such as communication skills, marketing skills, networking skills, etc. Athlete's housing of the
Olympic village were later converted into affordable residential apartments so that local
Londoners can have low-income housing facilities as well.
CONCLUSION
From the above report, it can be concluded that global events like Olympics require huge
infrastructure to be developed which involves raising huge funds from various sources from
public money in the form of taxes to businesses money in the form of sponsorships and
broadcasting rights. These infrastructure developments impacts society in so many ways.
Olympics have attention of whole world as they are bound to create social, environmental and
economic opportunities of generations of local people to come. It creates employment and other
business opportunities for not just concerned industries but also for allied and related industries
as a multiplier effect. They create huge environmental challenges as well as. Therefore, it is
important to develop eco-friendly practises that can create chances of human development
without compromising on nature. It also impacts local communities and provide them various
chances to learn, develop and grow. It also provides them chance to share their culture with
others and learn about other cultures as well.
RECOMMENDATION
Organising a huge event like Olympics is not an easy thing. It requires years of
meticulous planning and execution. The plan shall be flexible enough to accommodate mid-term
changes.
 Recommendations to maximise economic impacts – Global events like Olympics
creates so many economic opportunities for the whole business environment of the host
city. Therefore, it is recommended to government to develop a business plan keeping in
mind all business community considering multiplier and domino effect. Two plans shall
be made, one for short term development and one for long term development. Value
addition shall be focus of the plan (Mitchell and Stewart, 2015).
 Recommendations to minimise environmental challenges – Environment is most
affected by organising such global events both in terms of increase in pressure on present
resources and degradation of future natural resources. Therefore, it is recommended to
the Olympics organising committee to undertake an environmental assessment plan
5

beforehand starting any planning or development of infrastructure. All developmental
plans shall be made in consideration of environment. Eco-friendly practices related to use
of clean energy sources, waste treatment and management, reuse and recycle, etc. shall be
adopted in practise (Boykoff and Mascarenhas, 2016).
 Recommendations to maximise social impacts – All events can only be successful in
co-ordination with local communities and therefore, shall be the beneficiary with most
advantages. It is recommended that their culture shall made to highlight like theme of the
games and they shall be made ambassadors for its promotions. Their local arts, cuisines,
technologies, etc. shall be promoted so that they can reap economic as well as social
benefit out of it. Maximum inter-culture infusion shall be encouraged to open up new
opportunities for business associations that can help local society to develop more
globally appeasing businesses. This way one single event can provide basis for social and
economic development of whole local society (Koenigstorfer and Preuss, 2019).
6

REFERENCES
Books and Journals
Boykoff, J. and Mascarenhas, G., 2016. The Olympics, sustainability, and greenwashing: The
Rio 2016 summer games. Capitalism nature socialism. 27(2). pp.1-11.
Fabry, N. and Zeghni, S., 2019. 1 Why do cities withdraw from hosting the Olympic
Games?. Hosting the Olympic Games: Uncertainty, Debates and Controversy.
Giulianotti, R. and et.al., 2015. Global sport mega‐events and the politics of mobility: the case of
the L ondon 2012 O lympics. The British Journal of Sociology. 66(1). pp.118-140.
Goldblatt, D., 2016. The games: a global history of the Olympics. Pan Macmillan.
Kassens-Noor and et.al., 2015. Towards a mega-event legacy framework. Leisure Studies. 34(6).
pp.665-671.
Kassens-Noor, E., Vertalka, J. and Wilson, M., 2019. Good Games, bad host? Using big data to
measure public attention and imagery of the Olympic Games. Cities. 90. pp.229-236.
Koenigstorfer, J. and Preuss, H., 2019. Olympic Games-Related Values and Host Country
Residents’ Pre-event Evaluations in the Run-Up to the 2016 Olympic Games. Journal of
Global Sport Management. pp.1-26.
Mitchell, H. and Stewart, M.F., 2015. What should you pay to host a party? An economic
analysis of hosting sports mega-events. Applied Economics. 47(15). pp.1550-1561.
Salazar, N.B. and et.al., 2016. Mega-event mobilities: A critical analysis. Taylor & Francis.
Vanwynsberghe, R., 2015. The Olympic Games Impact (OGI) study for the 2010 Winter
Olympic Games: Strategies for evaluating sport mega-events’ contribution to
sustainability. International Journal of Sport Policy and Politics. 7(1). pp.1-18.
Viehoff, V. and Poynter, G., 2016. Mega-event cities: urban legacies of global sports events.
Routledge.
Online
Mayor missed long-term London Olympic jobs targets, says report. 2020. [Online]. Available
through:<https://www.bbc.com/news/uk-england-london-23371731>
London Olympics: Social Impact through legacy planning, 2019. [Online]. Available
through:<https://www.catalystreview.net/london-olympics-social-impact-through-legacy-
planning/>
7