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Benefits
• 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 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.
Risks
• 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. |
