The Economics of Olympic Hosting: An Impact Analysis Report

This report analyzes the economic impacts of a country's bid to host the Olympic Games. It examines the motivations behind government bids, the benefits such as increased tourism, job creation, and infrastructure development, as well as the challenges, including high costs, potential for negative publicity, and the financial drain on the host city. The analysis explores the perspectives of various authors and researchers on the topic, addressing research questions related to the government's bidding process and strategies for maximizing benefits while minimizing challenges. The conclusion highlights the financial risks and potential rewards associated with hosting the Olympics, emphasizing the importance of careful planning and investment. The report provides recommendations for cities seeking to enhance their development and progress through hosting the games, while considering the long-term economic consequences.

Advise the government on a bid
to host a future Olympics
Analyse the various impacts of
hosting such an event

Executive Summary
The present study initiates to determine about why the government is bidding to host the
Olympics and the various impacts of hosting Olympic events. So, this is a board research field
that is effectual into determining the positive and negative impact of bidding to host Olympic
within a country. The introduction section provides a summary about the global event and a
discussion about the government bidding for hosting an event and how it’s provide positive and
negative impact over the economic condition of the country. In addition to this, the section of
analysis evaluates the suitable in-depth discussion in relation to the aspect of The government
bidding to host Olympics, Benefits and Challenges to hosting Olympics for a country, Impact of
Hosting Olympic Games within a country with the suitable assistance of authors perspective.
After that, conclusion has been drawn to summarise the findings of the project as the outcome
has stated that countries are bidding to host the Olympics for the intention to creating effective
image of the city and also developed economic benefits to the country via the emergence of
tourists, visitors and the athletes. Despite from this, recommendations are created for the cities to
enhance the opportunities for the countries to gain effective development and progression.

Table of Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................1
Analysis............................................................................................................................................2
Conclusion.......................................................................................................................................4
Recommendation.............................................................................................................................5
References........................................................................................................................................5

Introduction
Global event is defined as the actions of the some degrees of periods which has international
contact, needs appropriate public investment and have a wider influence over the population and
the build environment. In addition to this, global event also refers as an organised event that
involves people from different countries through around the world (Merkel and Kim, 2011).
There are multiple global events like Olympic Games, cultural festivals, world cups, expose and
so on, which are effective in gaining attention of media, which create positive as well as negative
impact over a country or its development. The hosting of Olympic Games have long been seen as
the opportunity for the stimulate development and the progression within a country and mainly
the cities which host them. The Olympic bidding procedure mainly start along with city’s usages
compliances to IOC through their domestic Olympic committee as well as last with host country
election through member of International Olympic Committee at the time of common
programme. The government of countries are mainly bidding to host the Olympic as it has
positive as well as negative impact over the growth of the country; therefore, hosting an Olympic
game can have assorted advantages that are associated with the city likewise, ticket sales,
broadcasting revenue, developed employment, sponsorship and the developed tourism (Grix and
Houlihan, 2014). As well as hosting an Olympic also have negative influence in terms of
increasing cost of building stadium, short term use, higher taxes and pay cost, potential for
negative publicity, suffer of local businesses and so on, thus these affects the economic
development of a country. The potential aim of this study is to discuss about the government
bidding to host the Olympics and its impact over the economic development of a country.
Olympic host cities have developed the exports in around 20 percent, thus, enhancement into
export of global events host cities develops good reason for investment, which in turns
increasing value for the country to attain higher growth and development (Kenyon and Bodet,
2018). For further exploration the study is based on two aspects which are mentioned in the form
of questions and are associated as below:
Research Questions
 The government is bidding to host the Olympics. You have been asked to analyse the
various impacts of hosting such an event.
 Use this analysis to recommend ways of maximising the benefits and minimising the
challenges of hosting the Olympics.
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Analysis
Information examination is considered as the methods of scrutinizing, purging converting as
well as representation data along with ending objectives to determining the appropriate
information which notifying the outcome as well as assisting into formulating decisions. Within
current examination, analysis is depend upon evaluating aspect that government is bidding to the
host the Olympics and its impact over the hosting such an event (de Nooij and van den Berg,
2018). Into addition to this, analysis also recommends ways of maximising the benefits and
minimising the challenges of hosting Olympics. In this analysis is based over developing
theoretical perspective which aid in enhancing individual knowledge and ability to evaluate the
benefit of bidding to hosting the Olympics and how it generate benefits to the hosting country. In
this analysis is conducted in the form of literature in which information is being gathered via
analysing the views and opinion of authors, writers and so on.
The government bidding to host Olympics.
According to Chepkemoi (2018), The Olympic bidding is defined as the procedure which
begins through city’s application submission to IOC through their domestic Olympics team and
ending through hosting city election through International Olympic committee member at the
time of common meeting. Though, Olympics is one of the key sport event which is conducted in
each year as well as dates back to year 1896 while initial modern Olympic version game was
performed in Athens, Greece through the 14 nations undertaking effective portion into which
opening occasion. Therefore, as thereafter event have been supposed into assorted nation across
globe (Scandizzo and Pierleoni, 2018). Thus, the both event of Olympic named as winter as well
as summer are two distinguish event but have similar in nature that are implemented to be staged
within similar year in anticipation of 1992 while decisions were created for undertaking upon
separates cycles of four year into changing even various years. The summer Olympic is
conducted among July as well as august, during winter Olympic are performed into march at
winter seasons. therefore, hosting an Olympic is beneficial for a country to attaining higher
growth and success, thus in each 2 years the key cities across globe formulate competitive
bidding to IOC for chances of hosting Olympics sports event. The countries and cities which get
submitted are then put into an actual consideration of the ten month audit which helps the
committee to ensure that the city has everything which are needed to execute the Olympics in
appropriate manner. However, the major considered aspects which are mainly considered by the
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international Olympics committee are the availability of the accommodation for the wide range
of traveller, journalist as well as sportsperson those would be jetting into for sports competition,
thus, Olympics is recognised as major consideration of people and individual are seeking for
attending Olympic games for the purpose of fun, entertainment, carer development and so on
(Holmes And et. al., 2015). The metropolitan has an effective transportation communications
which is assessed to pass up postponement while whole events of Olympic comply a tough
agenda. Therefore, it is important for the city to be maintaining abundant protection as any risk
to sportsperson can interrupt the athletic competition adversely. Hosting city have to whole
destination for overall sports regulation as well as those place has to be of higher benchmark
(Louw, 2012).
Benefits and Challenges to hosting Olympics for a country.
According to Pettinger (2019), the game of Olympic has created much important mega-
global events of sports. Therefore, rising figure of cities that bid to hosting event of Olympic as
well as the developing finance which are invested into Olympic bidding represents, domestic
managers that perceives the protecting an event as an opportunity for getting better societal as
well as economical prospects of cities or countries via gathered investment generate through
enacting sports event. Hosting Olympics within a country has assorted an challenges to hosting
Olympics for the country (Müller, 2015). In order to hosts key sports events may provide various
social, cultural and economical advantages. Though, cities hosting Olympics attain temporary
jobs fir the infrastructure development which continues benefiting the cities into the future.
Olympics mainly effective in developing he valuable tourism that can boost the local economies,
thus the sports events enhance the emergence of tourists within the country and this developed
the economic condition of the country. For instance, England welcome above single individual in
each second in year of 2013 during month of June after the 2012 London Summer Olympics, a
12% boost has been taken place from the year of 2012 (Rowe, 2012). Therefore, the visitors and
the travellers also invested around 2.57 billion dollar within June and a 13% hike has been taken
place of around 12.1 billion dollar in the initial half of 2013. The Olympics has also increases
sense of national pride as the image of country has increased and the increased awareness helps
the city of country to attain more benefits in terms o enhancing job opportunities, business
enhancement and so on. On the contrary side, there are different challenges that are also faces by
the host cities while hosting Olympics. The Olympics are considered as the financial drain on the
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host cities, thus the cost of arraigning Olympics are high and this affects the economic condition
of the country (Tella and Labuschagne, 2018). The Olympics also forces the hosting the
countries to develop costly infrastructure as well as construction which comes under neglect.
Impact of Hosting Olympic Games within a country.
According to Cromartie (2018), The Olympics is mainly considered as huge sport occasion
into globe and are mainly conducted in each 4 years as well as garb the attentions of hundreds
spectators millions. For hosting region, the Olympics mainly provides immense various
advantages involving stressing the interest of world into their cultural assets, rendering
opportunities of job to their individual, gaining incomes through tourism as well as open up
friendly relationships with international society. The Olympic is a wider consideration of
government and for that government is bidding to host an effective Olympic game as it is
imperative for the purpose of enhancing economic performance of a country. Hosting Olympics
games has positive and negative impact over the host country. Therefore, the cities around the
globe are also willing to finding out opportunities for hosting the games of Olympic as well as it
is because of the numerous intentions (Zhang and et. al., 2020). The primary intention of hosting
the Olympics is enormous pride of hosting events, Olympics are undertaken as much essential
events of sports within globe as well as conducting this getting a sense of pride. Despite from
this, hosting Olympics also created into various travellers within region as well as it transforms
to effective funds and marketing region as a key host destination of travellers into globe. The
another impact is that the infrastructure create into performance for Olympics do not employs
domestics but this goes on providing individual longer term after Olympics game has overed
effectively (Lauermann, 2016). In the modern scenario, the key motive of each country is to
enhancing the economic development and bidding to host the Olympic games has created
assorted benefits for the host county in enhancing business opportunities and also develops the
image of the country within the entire globe.
Conclusion
From the detailed analysis of the project it has been concluded that, with the high costs of
investments within infrastructure or the supporting environment, many countries and cities are
no longer involved in taking the risk of hosting the Olympics as it is quite cost consuming in
nature as the infrastructure cost of hosting event are high which may create a negative impact
over the county’s economic condition. Therefore, the return on investment is hazardous. For the
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countries which have money to invest within such Olympic events the opportunity to develop the
infrastructure is attractive; and within the rich countries the investors are still willing to put
money into an event that is high profile on an international level for the sack to increasing higher
benefit and generating more profitability. Cities which are concern over hosting events can
seeking the growth and development, thus the technological advancement and infrastructure may
be a magnet for gaining attraction from the national stage. The process is very competitive;
however, as the entire project has represents that a bidding city also advantageous through
economic influence and international recognition.
Recommendation
This is an important area of an investigation which is imperative in providing suggestions to
the countries to effectively hosting the Olympics and make suitable arrangement for attracting
people to attain higher growth and success. The suitable recommendations for this analysis are
associated as below:
 From the detailed analysis of the study it has been recommend to the host countries to
develop an implement a framework for the global events which leverages the economic,
social and environmental benefits, thus an effective framework helps the countries to
arrange appropriate funds and capital to arrange accommodation, transportation, safety and
security of their tourism, athletes and the local citizens.
 After the execution of the study, it has also been suggested to the host countries to ensure
effective multilevel governance, coordination, collaboration and institutional capacity, as it
helps the host city to attain government support to attain higher development. Multi level
governance helps the host city to manage systematic operations which helps in working with
more coordination and collaboration and also enhance the opportunity to attain higher
advancement and development.
 As per the evaluation of the study it has also been recommended to the countries to establish
collaborative partner relations with international event owners, thus this helps the cities to
increase in the number of investors which support in easy execution of the event and make it
success operations.
References
Books and Journals
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Merkel, U. and Kim, M., 2011. Third time lucky!? PyeongChang's bid to host the 2018 Winter
Olympics–politics, policy and practice. The International Journal of the History of
Sport, 28(16), pp.2365-2383.
Grix, J. and Houlihan, B., 2014. Sports mega-events as part of a nation's soft power strategy: The
cases of Germany (2006) and the UK (2012). The British journal of politics and
international relations, 16(4), pp.572-596.
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.
de Nooij, M. and van den Berg, M., 2018. The bidding Paradox: Why politicians favor hosting
mega sports events despite the bleak economic prospects. Journal of Sport and Social
Issues, 42(1), pp.68-92.
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.
Holmes, K. And et. al., 2015. Events and sustainability. Routledge.
Müller, M., 2015. The mega-event syndrome: Why so much goes wrong in mega-event planning
and what to do about it. Journal of the American Planning Association, 81(1), pp.6-
17.
Rowe, D., 2012. The bid, the lead‐up, the event and the legacy: global cultural politics and
hosting the Olympics. The British journal of sociology, 63(2), pp.285-305.
Tella, O. and Labuschagne, P., 2018. Sport, Politics, and Diplomacy: Perspectives on Durban's
(South Africa) Bid to Host the 2022 Commonwealth Games. Politikon, 45(3),
pp.408-425.
Zhang, J.C. and et. al., 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.
Lauermann, J., 2016. Temporary projects, durable outcomes: Urban development through failed
Olympic bids?. Urban Studies, 53(9), pp.1885-1901.
Louw, A. M., 2012. Ambush marketing & the mega-event monopoly: How laws are abused to
protect commercial rights to major sporting events. Springer Science & Business
Media.
Online
Chepkemoi, J., 2018. How is an Olympic Host City Chosen? [Online]. Available through: <
https://www.worldatlas.com/articles/how-is-an-olympic-host-city-chosen.html>.
Hosting the Olympic Games – Top 3 Pros and Cons. 2020. [Online]. Available through: <
https://www.procon.org/headlines/hosting-the-olympic-games-top-3-pros-and-cons/>.
Pettinger, T., 2019. Advantages of hosting a major event. [Online]. Available through: <
https://www.economicshelp.org/blog/4909/economics/advantages-of-hosting-a-
major-event/>.
Cromartie, F., 2018. The Benefits of Bidding and Hosting the Olympic Games are Difficult to
Justify Due to the Overall Costs. [Online]. Available through: <
https://thesportjournal.org/article/the-benefits-of-bidding-and-hosting-the-olympic-
games-are-difficult-to-justify-due-to-the-overall-costs/>.
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