Does Holding the Olympic Games Have Benefits for the Host Country?

Topics: Summer Olympic Games, Olympic Games, 2012 Summer Olympics Pages: 5 (1564 words) Published: March 20, 2013

Does holding the Olympic Games have benefits

for the host country?

In recent years, the Olympic Games have developed into one of the most significant mega-international sporting events (Roche,2000). More and more cities are bidding to host the Olympics and increasingly money are invested in Olympic bids, which is due to the reason that the government believe that they could get benefits from such an event. During the proceeding of the 2012 London Olympic Games, amount of people in the world have been brought into focus on Olympic Games. It is such a big event, holding it successfully will improve one country’s reputation and get more attention around the world. Does holding the Olympic Games have benefits for the host country? It might be said that hosting Olympic Games has some financial risks because of its exceeding budgets. Countries invest huge number of money on sports facilities, which could result in the over-needed of infrastructure. However, there are many reasons why a country should organize Olympic Games.

The first reason why holding Olympic Games have benefits for the host country is that, from the economic point of view, increase the income of revenue. Because of the influx of people who come from all around the world, the needs of consumption will dramatically rise. As a result, it is contributed to the output of factory, which is benefit to the whole market. What’s more, Olympic Games attract numbers of merchants to the host country to look for the business opportunities. Their investment in the market will stimulate the growth of economic. Rose and Spiegel (2009) suggests that the rate of trade is increased 30% for those host countries, which ‘realize an economic benefit in the form of greater openness.’ Furthermore, during the proceeding of the Olympics, large numbers of foreigners will come to the hosts to visit. Bolton (2004) states that the percentage of tourists is increased to 150% in the 1992 Barcelona Games, with the Spanish government’s effort to stimulate the tourism. They are the potential consumer groups which could promote the local economy. This will stimulate some tourism-relative industries (hotels restaurants and shops) to develop. Although it is sometimes claimed that these numbers of tourists tend to be temporary, it must be acknowledged that the host country could become a popular tourist destination. In addition, employment is another great benefit to the host countries. Holding Olympics will create some full-time jobs because of the investment in infrastructure. For example, in Atlanta, the host city of the 1996 Olympic Games, the government invest about $2 billion to Olympic-related projects, which is leading to over 580 000 new jobs to this region between 1991 and 1997. (Steven and Bevan, 1999) suggests that the Olympic Games were stimulating economic growth up to $5.1 billion between 1991 and 1997. During the period of games, Barcelona, the host city of the 1992 Olympic Games, the general percentage of unemployment drop from 18.4% to 9.6% (Brunet, 1995).

The second reason why holding the Olympics Games have benefits for the host country is that infrastructure such as transportation and sports facilities will get improved during the Games. To guarantee a successful Olympics, government should invest into infrastructure, such as improve the public’s transportation and sports facilities. Firstly, the Olympics have promoted the urban development and have an impact on the landscape and urban environment. In Tokyo, the host city of 1964 Olympics games, a new road and highway network was constructed to meet the short-term demands of the Games and to accommodate the city’s continued population and traffic increase in the long-term. Chalkley and Essex (2010) points out a total of 22 main highways were designed for the Games, huge amount of money were spent on land acquisition,...
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