Because people from all over the world go to the host country to witness the Olympic Games, the country’s economy benefits from increased spending on travel and tourism-related activities during this time. There is a possibility that this could contribute somewhat to economic expansion.
The hosting of the Olympics typically has less of a favourable effect on the local economy than was anticipated. Towns that lack the essential infrastructure would likely be better off not submitting bids for the games because most host cities end up incurring large amounts of debt from hosting the games.
Because the best athletes in the world are gathered in one place for the Olympics, attendance and media coverage tend to spike every four years. This will result in an immediate expenditure boost and new capital introduction into the regional economy for several weeks.
The revenue for the Olympiad that spans 2017 to 2020/21 was a total of USD 7.6 billion. This revenue was generated through the sale of broadcasting, marketing rights and other income streams.
The Olympic Movement generates cash through several different programmes, including selling broadcast rights (for television, radio, and digital media), international and national sponsorship, and selling tickets and licensed merchandise. You can also make money from NetBet Sport .
More than 56% of international visitors to Brazil for the 2016 Games were first-time visitors. The country broke records for the number of international tourists (6.6 million visitors) and the amount of money they spent ($6.2 billion).
Countries that agree to serve as hosts typically receive invitations to join important global economic groups. A nation can credibly express its commitment to trade liberalisation by simply placing a bid. After winning the right to host the Beijing 2008 Summer Games, China entered into negotiations with the World Trade Organization, which resulted in the opening of trade for the country.
Since 1960, there has not been a single Olympic Games that came in under budget. The Summer Olympics in Tokyo is the most expensive in history. As of September 7, 2020, they were already running 200% over their budget. In their bid from 2013, Tokyo predicted that it would cost $7.3 billion, but the actual cost is estimated to be $15.84 billion as of September 2020. According to a study conducted in January 2021, Japan could lose as much as $23 billion in revenue due to the COVID-19 restrictions.
Most of the world’s Olympic venues are currently abandoned. Before the 2018 Winter Olympics, the $78 million Olympic Stadium built in PyeongChang for the summer games was demolished. In 2019, the Sydney Olympic Stadium from 2000 was dismantled to make room for a more compact and functional arena. The maintenance of the Bird’s Nest Olympic Stadium, built for the 2008 Summer Olympics in Beijing and seats 91,000 people, costs the city an annual total of $11 million.
There is a wealth of knowledge from the Olympic Games and the athletes. However, there is a need to talk more about the short- and long-term effects Olympic games.