Is Hosting The Olympics Good For A City?

IS HOSTING THE OLYMPICS GOOD FOR A CITY? All eyes are on London for the 2012 Olympics! And 2016 will bring the Games to Rio de Janeiro. But will these and future host countries see any benefit? When making any decision you have to analyze your data so we looked at a few factors related to hosting the Olympics to learn more. MEDALS Does the host win more medals? Hosts generally see an increase in their medal count leading up to and during the year they host the Olympic games. Beijing 2008 100 China won 63 medals in 2004 and then jumped to 100 medals in 2008! 1968 to 2008 Sydney 2000 80 Medal Counts for some Australia won 58 medals the year recent hosts it hosted. The most ever for the Aussies! 60 Seoul 1988 S. Korea averaged 7 medals in the years leading up to 1988. In the years since it hosted, S. Korea has averaged almost 30! 40 20 Barcelona 1992 Spain jumped from 4 medals in 1988 to 22 medals in 1992! 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004 2008 GREAT BRITAIN IS NOT EXPECTED TO WIN THE MOST MEDALS IN 2012/ BUT THEY DID PLACE 4TH IN TOTAL MEDALS IN 2008! HIOHEST MEDAL Conclusion RANKINO 1908 Host cities DO get more 1ST LOWEST MEDAL RANKINO 1996 medals! 19 MONEY How much do the Olympics cost? Hosting the Olympics generates costs at prohibitive levels. 1976 1980 1984 1988 1992 1996 2000 2004 2008 2012 $50 If the Games continue to grow at the current rate, they may soon cost nearly How many cities in the world can afford this? BILLION. Conclusion It is more difficult for hosts to be profitable. INFRASTRUCTURE Do hosts benefit from new infrastructure? Primary Structure Tertiary Structure • Traffic: Airport, roads, transportation Tourism: hotels, Secondary Structure Athletic village and media village • Media and press center Training Facilities • Parklands • Stadium • Indoor Arena Special facilities such as swimming pool, shooting range, rowing course & equestrian attractions • Telecommunications, fiberoptics facilities 1984 2008 Los ANGELES VS BEIJING least expensive Olympics in 30+ years most expensive Olympics in history Constructed the Beijing National Stadium (The Bird's Nest) specifically for Used the LA Coliseum built in 1922 for opening ceremonies and Track Field Events the 2008 Games $954,000 $12 million in 08 dollars $423 MILLION $423 million in 08 dollars COST Used continuously since 1922, FACTS Only <20 events since 2008 including the 1932 Olympics, closing ceremonies Super Bowls and World Series China's leading soccer club Declared a National Historic declined use citing embarrassment Landmark at using a 91,000 seat stadium for only ~10,000 spectators Has hosted everyone from the Expected to be turned into a Pope to Pearl Jam shopping mall 2012 2016 LONDON YS RIO DE JANEIRO $770 MILLION NEW STADIUM $750 MILLION FACELIFT The two Athens stadiums built for the 2004 Olympics have closed, but Athens has benefited from other developments. Athens city center received pedestrian walkways linking ancient sites THERE HAD BEEN PLANS FOR THESE WALKWAYS FOR 150 YEARS; THE OLYMPICS MADE IT HAPPEN Beijing made some lasting changes too. Spent $3.7 billion on subway extensions and new roads Hosting the Olympics can be an impetus for projects that might not otherwise happen, with questionable long-term results Conclusion INTANGIBLES What about all the other things the Olympics bring? The intangible elements related to hosting the Olympic games can end up good or bad. Much of the success lies in the public's reaction to a city's handling of issues. REPUTATION BARCELONA became a European hotspot since hosting the 1992 Olympics, as shown by nightly stays and growth in comparison to other European cities. City 1990 2000 % Variation Barcelona 3,795,522 7,777,580 104.9% Prague 4,524,000 7,921,953 75.1% Berlin 7,243,638 11,412,925 57.6% London 91,300,000 120,400,000 31.9% Rome 12,915,225 14,781,281 14.4% There was no real economic advantage to the individual in Barcelona, but surveys showed an improvement in residents' levels of happiness post Olympics. DISPLACEMENT So hosting may result in a tourism increase, but what about impoverished people who live in the cities hosting the Games? = 75,000 displaced residents Rio De JaneirO 170,000 Beijing 1 to 1.5 million Seoul 1 720,000 Barcelona 2,500 Atlanta 30,000 Conclusion and negative aspects to hosting the Olympics There are positive Cities should be thouroughly prepared for both 2020 OLYMPIC BIDDERS Six applicant cities threw their hat into the ring for the 2020 games and the host city will be selected on September 7, 2013. Here is some information about the bidders: Madrid, Spain Baku, Azerbaijan Spain hosted the '92 Olympics in Barcelona. Their last bid for 2016 did NOT lead to them being a finalist. Madrid's last bid for 2016 led to them being a finalist. Doha, Qatar Rome, Italy Their last bid for 2016 did NOT The Italian government withdrew its support considering Italy's lead to them being a finalist. current financial condition. Tонуо, Japan Istanbul, Turkey Hosted '64 – their last bid Turkey's 5th bid (2000, 2004, 2008, 2012, 2020). They are currently 0 for 4. for 2016 led to them being a finalist. As WITH ANY STRATEGIC BUSINESS DECISION, THESE POTENTIAL HOST CITIES NEED TO ANALYZE A BROAD RANGE OF FINANCIAL, SOCIAL, ECONOMIC, HISTORICAL, AND CULTURAL DATA TO MAKE THE RIGHT CHOICE. SOURCES: http://paidcontent.org/article/419-vancouver-2010-nbcolympics.com-by-the-numbers/ http://roomfordebate.blogs.nytimes.com/2009/10/02/do-olympic-host-citiesever-win/#robert http://www.terracurve.com/2009/11/06/do-the-olympics-hurt-or-help-international-tourism/ http://www.terracurve.com/2009/11/06/do-the-olympics-hurt-or-help-international-tourism/ http://www.easydestination.net/blog/index.php?itemid=2542 http://www.chinatownconnection.com/beijing-games-homeless.htm http://www.guardian.co.uk/world/2007/jun/06/sport.china http://www.sports-reference.com/olympics http://www.pages.drexel.edu/-rosenl/sports%20Folder/Economic%20lmpact%20of%20Olympics%20PWC.pdf Information Builders. NOTE: This analysis based on various data sets. Correlation doesn't imply causation. Montreal $1.2 Billion Moscow $2 Billion L.A. $546 Million Seoul $4 Billion Barcelona $9.4 Billion Atlanta $1.8 Billion Sydney $3.8 Billion :) Athens $15 Billion Beijing $40 Billion- London >$20 Billion