Abstract Given the huge investment that goes into the preparation as well as organization of the Olympic Games, some continue to regard the Olympics a total waste of money. However, such views are not in most cases backed by facts. In this text, I highlight the various economic benefits associated with hosting the Olympic Games.
¶ … Olympics a Waste of Money?
Over the years, the Olympic Games have withered many trials including but not limited to boycotts, wars and poor organization. Further, there have been claims that the benefits derived from the Games do not justify the costs. In that regard, some continue to view the Olympic Games as a waste of money. Those of a similar opinion are convinced that the money 'wasted' in seeing the Olympics through would rather be used to help the poor. Despite the challenges as well as criticism that has been leveled against the Olympic Games over time, the relevance of the Games from both an economic and social perspective cannot be overstated.
Are the Olympics a Waste of Money?
In the words of Humphreys and Howard (2008), "sporting events produce two types of economic benefits: direct and indirect." In the opinion of the authors, direct economic benefits in this case include but they are not limited to the net spending by visitors/tourists who come to witness the event, improvements made on the locality's infrastructure, etc. Indirect benefits on the other hand according to the authors include enhanced advertising that rises the profile of the city hosting the events, etc. As the authors further note, the only difference between the Olympic Games and other games is the number of fans, participants as well as officials involved. Unlike other sporting events, the Olympic Games attract a significant number of participants and fans. In that regard, the economic benefits I identify above apply in the Olympics as well. Indeed, as Humphreys and Howard (2008) point out, "because of the larger size and profile of the Olympic games, they have a greater potential to generate economic benefits than smaller sports events." In seeking to demonstrate why the Olympic Games cannot be regarded a waste of money, the two immediate sections below will address the direct as well as indirect benefits of the Olympic Games in greater detail.
Regarding the direct economic benefits of the Olympics, Humphreys and Howard (2008) single out tourist spending as one of the most prominent direct economic benefits associated with the Olympics. Given that the Olympics are not a single day event, those who come to witness the same spend at least a couple of days viewing their favorite games. Given that visitors need food, beverages and a place to sleep, businesses offering the relevant goods and services benefit significantly in terms of increased revenue. According to Humphreys and Howard (2008), prior to the Olympics, venues have to be constructed and updated. Venues subject to changes and/or modification include "facilities for the actual competition, accommodations for the participants, and visitors, and facilities for the army of media covering the Games." The authors further point out that significant resources are also spent constructing the necessary infrastructure to facilitate the movement of fans, officials as well as participants from one venue to the other. It is however important to note that with the said investment in infrastructural development, the local community stands to benefit most in terms of employment opportunities and better infrastructure. Indeed, in the opinion of Humphreys and Howard (2008), such activities call for the hiring of numerous construction workers. This spurs further economic activity in the area. The infrastructural projects initiated in the locality hosting the games are also likely continue benefiting residents for many years to come (Humphreys and Howard, 2008).
Next are the indirect benefits associated with the Olympic Games. One of these benefits according to Humphreys and Howard (2008) "is the advertising effect of the Olympic Games." In the opinion of the authors, many metropolitan areas hosting the Olympics regard the games as an opportunity to enhance their profiles globally. During the Olympics, the concerned locality plays host to numerous journalists, visitors and media representatives from all over the world. The locality hosting the event in this case thus has a unique and rare chance to demonstrate what it has to offer to potential tourists from all over the world. Should such a locality embrace this opportunity, it could benefit from increased tourist visits going forward. In that regard, the Olympics cannot be regarded a waste of money as they could enhance a certain locality's revenue streams from tourism both in the present and in the future.
Recognizing Dissenting Views
You’re 72% through this paper. Sign up to read the full paper.
Sign Up Now — Instant Access Already a member? Log inAlways verify citation format against your institution’s current style guide requirements.