•  Financial Benefits

Many of the benefits which a city receives from the Olympic Games stem from the extra revenue it provides. Games such as Barcelona have able to undertake their vast urban renewal schemes from sources directly related to the Games, such as money from TV rights and sponsoring companies.

Sydney 2000 OlympicsSydney 2000 was also generally successful, but not only from direct funding from hosting the Games. Sydney's tourist profile was vastly enhanced by the Olympics, and as a result, an additional 1.6 million tourists visited the city in 2001. Also, bookings for future conferences and events have guaranteed the city an extra $230 million. So the legacy of the Games can provide economic benefits for lengthy periods in the aftermath of the Olympics.

•  Employment Effects

The Olympic Games obviously brings with it a large number of jobs to a city. Unemployment will decrease, but a lot of these jobs are only going to remain there in the short-term. More important to a city are long-term jobs, but it is difficult to see what long-term effects an Olympic Games has on employment, as there is no data to compare it with had the city not hosted the Games.

•  Intangible Benefits

There are less obvious benefits to a city following an Olympic Games, which cannot really be quantified or measured. These include the effect on a city's profile from a tourism perspective, or the benefit to local residents from being able to use better sports facilities or more efficient public transport. These, in spite of their lack of concreteness, are still important to a city.


•  Olympic Debt

With the Olympic Games being of the scale that it currently is, there is a risk of ending up in huge financial deficit if preparations are not organised or overseen properly. The result is a debt that lasts for years, as happened at the 1976 Montreal Olympics.

•  Rising Consumer Prices/Rent

A sudden increase in demand for goods or services as a result of phenomena such as the Olympic Games is very likely to cause price increases. Renting of accommodation, for example, is an area in which landlords will be able to charge 10 times their normal price during the surge of visitors to Athens in 2004.

If too many prices shoot upwards in this way, a lot of poorer locals may find goods or services which they used to be able to afford are now out of reach. However, this change may not be affect larger cities. Cities such as Montreal and Los Angeles did not undergo any significant price surges around the Games, and price changes were consistent with those in surrounding cities.

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