This part of the report will identify the economic effects which are split up into three phases; the pre Games, the Games and the post Games economic impact on the host city (Athens) and Country (Greece). The Olympic Games is such a big event that it can potentially have a significant economic impact on the host city, and, for the smaller countries like Greece on the host nation as a whole. The actual games last for only a few weeks but preparations for the games may start up to ten years beforehand and may involve large investment expenditures that can have longer term economic significance. The economic impact of the Olympic Games relates to the wider effects of the Games on the general economy arising from associated factors such as increased tourism and improved infrastructure. Clearly for large economies the economic impact of hosting the games is likely to be significant primarily at the local or regional level, But for a smaller economy like Greece, these effects are likely to be felt also at the national level. As mentioned before the full economic impact of the Olympic Games on a host city is spread over time; and can be split up into three phases; the pre Games impact, the Games impact and the post Games impact. Pre Games Economic Impact
The pre games economic impact first start to occur soon after the city has decided to bid for the Games, up to a decade prior to the actual event. But become more significant after the Games are rewarded. The impacts here relate mainly to the investment and preparatory activities required to stage the Games, but tourism could also start to pick up in advance in some cases due to a higher profile of the city. The key economic benefits and costs of the pre Games phase are tourism and construction activity as benefits and investment expenditure, preparatory operational costs which include the bid costs and lost benefits from displaced projects as costs.
Games Economic Impact