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ECONOMIC IMPACT OF HOSTING OLYMPICS FOR A COUNTRY

Updated: Sep 22, 2021

The economic impact of hosting the Olympics is often not as good as expected. After the Olympics, most cities have fallen into a vicious circle of debt. However, if a city lacks the necessary infrastructure, it is best not to host them.

COST INCURRED

Delaying the bid to host the Olympics with the International Olympic Committee (IOC) will cost millions of dollars. Cities typically spend between $ 50 million and $ 100 million on consultants, event planners, and travel-related accommodation obligations. For example, Tokyo lost nearly $ 150 million on its bid to host the 2016 Olympics and spent approximately $ 75 million on its successful bid to host the 2020 Olympics.

When it comes to hosting the Olympics, it is much more expensive than the bidding process. For example, London paid $ 14.6 billion to host the 2012 Olympic and Paralympic Games, of which $ 4.4 billion came from taxpayers. Beijing spent US $ 42 billion to host the 2008 Olympics. Athens spent US $ 15 billion to host the 2004 Olympics. Taxpayers in Athens will continue to fully assess debt of approximately $ 56,635. Sydney paid US$4.6 billion for hosting the 2000 Olympic Games. Among them, taxpayers paid 11.4 million U.S. dollars. By the end of the 2016 Olympic Games, Rio de Janeiro is expected to pay more than 20 billion U.S. dollars.

Once a city has a chance to run for the Olympics, the city generally expands roads, builds or upgrades airports, and builds rail lines to accommodate the influx of people. Housing for the Olympians must also be built or improved, as well as at least 40,000 available hotel rooms and special facilities for the event. All in all, the cost of infrastructure can be between the US $ 5 billion and the US $ 50 billion


DEBT ARISING FROM DEVELOPING OLYMPIC ARENAS

Many arenas built for the Olympics are still expensive due to their size or special nature. For example, the annual maintenance cost of the Bird's Nest Stadium in Beijing is US$10 million. Montreal only ended its debt for the 1976 Olympics in 2006, and Russian taxpayers will pay nearly $1 billion a year for many years to repay the debts of the 2014 Sochi Winter Olympics. In addition, most of the facilities built for the 2004 Athens Olympics caused Greece's debt crisis and remain vacant.

THE 2020 (2021) OLYMPICS IN TOKYO

Japan won the 2020 games by presenting $ 12 billion, won against a rival of Italy, and won a housing position. However, the Olympic Games stopped at the Strike Pandemic of 2020 Springs Covid 19 and 2021 summer. If there are no lovers, global tourism will not provide expenses that you want to offset the costs covered by the Japanese government.


By- Nivedita




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