Economic impact of the organization of the Olympic Games

Economics of Sport
Marlen Ranšová
  “The Olympic Games are a unique global
celebration of sports, bringing together over
200 nations to compete in more than 400 events
The Olympic across both the Summer and Winter Games. the
Games - Olympics are where the world comes to
definition compete, feel inspired, and be together.”
(International Olympic Committee 2024)
  A SWOT analysis is a strategic tool used to
evaluate the Strengths, Weaknesses,
Opportunities, and Threats related to a project
or organization. It helps align the organization's
SWOT objectives, plans, and resources with the
external and internal environment in which it
operates. (SWOT analysis 2024)
 STRENGTHS
1. Boost in Economic Activity

by generating revenue through tourism,

ticket sales, media broadcasting
rights, and increased consumer spending

Visitors want to travel to the host city,

spending on accommodations,
restaurants, transportation, and
souvenirs

2012 London Olympics contributed an

estimated £9.9 billion to the UK’s GDP
 STRENGTHS
2. Job Creation

 Preparations for the event generate employment in industries

like construction, hospitality, and event management
 Tokyo 2020 - created more than 1 million jobs for the capital
region alone and approximately 2 million for Japan
 Paris 2024 - approximately 150 thousand jobs
 Barcelona 1992 - The
Olympic Games
significantly increased the
city's global visibility,
created opportunities for
long-term tourism growth
STRENGTHS and attracted foreign
3. Global investment
Recognition
Barcelona was a lesser-
known city. It did not have a
large tourist industry
 STRENGTHS
4. Improved Infrastructure

Barcelona 1992 -
 the expansion of the city's airport
 a new system of ring roads was introduced to ease traffic flow
 investments were made in rail systems, including a high-speed rail
network
(95% of the city's budget allocated for the Olympic Games was
dedicated to these transport and infrastructure improvements)
 STRENGTHS
5. Tourist Influx

= events attract large numbers of

international visitors
 London 2012 - welcomed 470 000
tourists during the Games
 Paris 2024 - there were 3,1 million
 WEAKNESSES
1. Costs Overruns

 Beijing 2008 spent over $40 billion, Sochi 2014 went beyond
$50 billion, and Rio 2016 reached $20 billion
 The Paris Olympics organizers argued their budget increase
was only 16%, but researchers said many costs, like upgrades
to transport and infrastructure, are left out of official budgets
 Countries have small profits, but investigations found the
actual spending was likely much higher
WEAKNESSES
1. Costs Overruns
WEAKNESSES
1. Costs Overruns
 WEAKNESSES
2. Debt Burden

 the Olympics can strain national finances

 Athens 2004 - Infrastructure projects (such as a new metro
system, a renovated airport, and upgraded roads) provided
long-term benefits, but financial strains deepened Greece's
national debt, which stood at €400 billion (in 2010)
 WEAKNESSES
3. Underutilized Facilities

 many of the buildings and stadiums

built for the event are no longer used
 The Olympic Aquatics Stadium in
Rio de Janeiro (on the picture)
 some of pools have found a second
life in community centers across
Brazil
 WEAKNESSES
3. Underutilized Facilities

 Rather than build new venues, the

organizers decided to adapt existing
structures in the French capital
 A good example of this is Versailles
 WEAKNESSES
4. Unequal Distribution of Benefits

 the Olympic Games are often concentrated in specific

sectors, such as tourism, hospitality and construction

 regions outside the host city and industries not directly

involved in the Games may experience little or no
economic growth
 OPPORTUNITIES
1. Promotion of Sustainability

 The Olympic Games put a strain on the environment - on the

other hand, they can promote sustainability
 Many athletes are role models for many people
Paris 2024 - 50% reduction in CO2 emissions compared to
previous games

- reducing single-use plastics by 50%

 OPPORTUNITIES
1. Promotion of Sustainability
o - Swimming in this river has been illegal
since 1923 due to high levels of
pollution and high risk of disease
 - The city had spent €1.5 billion
 - The river was very polluted (there
were bicycles, motorbikes, shopping
carts …)
 OPPORTUNITIES
2. Strengthens Community Spirit

 unite communities and promote a sense of

belonging and togetherness
 inspire youth through sports programs, and
create opportunities for local involvement,
such as volunteering
 OPPORTUNITIES
3. Tourism Legacy
help boost tourism by improving a city’s image and infrastructure
 THREATS
1. Economic Sensitivity

 unexpected global events (like the COVID-19

pandemic) can disrupt plans
 reduce income because fewer people attend
  Rio 2016 - Olympics were marred by political
unrest as protests erupted against interim President
Michel Temer

THREATS
2. Local
Opposition
 THREATS
3. Environmental Damage

 Building infrastructure for large-scale events

can harm ecosystems and disrupt local
communities
 Sochi - illegal waste dumping in protected
water areas, destruction of wildlife migration
routes, and damage to the Sochi National Park
 THREATS
4. Uncertain Economic Returns

 Investments may not yield long-term benefits

if expectations for tourism or infrastructure
use aren’t met
 CONCLUSION
STRENGTHS WEAKNESSES

1. Boost in Economic Activity 1. Costs Overruns

2. Job Creation 2. Debt Burden
3. Global Recognition 3. Underutilized Facilities

4. Improved Infrastructure 4. Unequal Distribution of Benefits

5. Tourist Influx

OPPORTUNITIES THREATS

1. Promotion of Sustainability 1. Economic Sensitivity

2. Strengthens Community Spirit 2. Local Opposition

3. Tourism Legacy 3. Environmental Damage
4. Uncertain Economic Returns
  Aguilera, A 2022, The Environmental Impact of Hosting the Olympic Games, Viewed 1 December
2024, https://fordhamlawelr.org/?p=1607
 BCC 2013, London 2012 Olympics 'have boosted UK economy by £9.9bn', Viewed 1 December 2024,
https://www.bbc.com/news/uk-23370270
 Bedirian, R 2024, Abandoned Olympic venues and what happened after the Games, from Athens to
Rio, Viewed 1 December 2024,
https://www.thenationalnews.com/arts-culture/art-design/2024/08/09/abandoned-olympic-venues/
 CNBC 2024, Did 2004 Olympics Spark Greek Financial Crisis?, Viewed 1 December 2024,
https://www.cnbc.com/2010/06/03/did-2004-olympics-spark-greek-financial-crisis.html
 Did 2004 Olympics spark Greek financial crisis? 2024, Viewed 2 December 2024,
https://www.foxsports.com/stories/olympics/did-2004-olympics-spark-greek-financial-crisis
 FRANCE 24 English 2021, River of rubbish: Can the Seine be ready for the 2024 Olympics? YouTube,
Viewed 2 December 2024, https://www.youtube.com/watch?app=desktop&v=qCVsCmyyVC0

Resources  Garcia-Navarro 2016, Controversy Grows In Rio Over Political Protests During Olympics, Viewed 1
December 2024, https://www.npr.org/sections/thetorch/2016/08/09/489284024/controversy-grows-
in-rio-over-political-protests-during-olympics
 International Olympic Committee 2024, Olympic Games, Viewed 1 December 2024,
https://olympics.com/en/olympic-games.
 International Olympic Committee 2024, Barcelona 1992: a city turning towards the sea and winning
the hearts of the world, Viewed 1 December 2024, https://olympics.com/ioc/news/barcelona-1992-a-
city-turning-towards-the-sea-and-winning-the-hearts-of-the-world
 International Olympic Committee 2018, Executive Summary of the Tokyo 2020 Olympic and
 Paralympic Games Sustainability Plan Version 2, Viewed 1 December 2024,
https://www.2020games.metro.tokyo.lg.jp/special/docs/Executive%20summary%20of%20the
%20Tokyo%202020%20Olympic%20and%20Paralympic%20Games%20Sustainability%20Plan
%20Version%202.pdf
  Kaplan, E & O'Halloran, C 2024, Was using the River Seine river as a venue worth it?, Viewed 1
December 2024, https://www.espn.com/olympics/story/_/id/40765032/, Viewed 2 December
2024, https://www.paris.fr/en/pages/paris-2024-games-11-2-million-visitors-to-greater-paris-
28160
 Statista 2024, Viewed 2 December 2024, Number of jobs creriver-seine-venue-paris-olympics-
controversy
 Kenton, W 2024, How to Perform a SWOT Analysis, Viewed 1 December 2024,
https://www.investopedia.com/terms/s/swot.asp
 Kyriakopoulou, K 2024, 10+1 Sustainable Practices at the Paris 2024 Olympics, Viewed 1
December 2024, https://ecoskills.academy/sustainable-practices-at-the-paris-2024-olympics/
 O’Shea, P and Maslow, S 2023, The 2020/2021 Tokyo Olympics: Does Japan get the gold medal
or the wooden spoon? Contemporary Japan, 35(1), pp. 16–34. doi:
10.1080/18692729.2023.2169819.

Resources  Paris 2024 Games: 11.2 million visitors to Greater Paris! 2024ated for the Paris 2024 Olympics |
Statista
 SWOT analysis 2024, Viewed 1 December 2024, SWOT analysis | Factsheets | CIPD
 Wallace, A & Leeds Matthews, A 2024, Hosting the Olympics has become financially untenable,
economists say, Viewed 2 December 2024,
https://edition.cnn.com/2024/07/26/economy/olympics-economics-paris-2024/index.html
 Wills, J 2024, The Economic Impact of Hosting the Olympics, Viewed 3 December 2024,
https://www.investopedia.com/articles/markets-economy/092416/what-economic-impact-
hosting-olympics.asp
 Worles, K 2017, The Dark Side of Hosting the Olympics, Viewed 3 December 2024,
https://inequality.org/research/dark-side-hosting-olympics/
 5 Paris Landmarks Hosting the 2024 Olympics 2024, Viewed 1 December 2024,
https://www.homejournal.com/en/lifestyle/5-Paris-Landmarks-Hosting-the-2024-Olympics/6647/
THANK YOU FOR
YOUR ATTENTION