Do Olympics really benefit the host cities?

Does hosting a major international event such as the Olympic Games benefit the host city, and does such an event hinder the economic growth of the host city or the host country? The world, including leading intellectuals, economists and other experts, is divided on the question. While many have argued that hosting the Olympics does not lead to accelerated economic development for the host city or country, some have suggested that such events could hinder the development of the host city or country due to the enormous debt they incur to stage such extravaganzas, and the long-term underutilization of venues, which could place a heavy burden on both the host city and country.

Within the global sports academic community, there are at least three viewpoints. One viewpoint is that the host cities and countries, even bidding cities and countries, can expedite their coordinated development by adjusting their plans, including laying greater emphasis on sports, and changing their economic and industrial structures, and consumption patterns.

The second viewpoint is that the substantial short-term investment to host an Olympic Games could lead to a crowding-out effect, and the subsequent deterioration of the venues can create a long-term burden for the city. Many examples support this argument, by citing the example of the Montreal 1976 Olympics.

Reports suggest that Canada was repaying the loans it had taken to host the Games for the next two decades. On the other hand, the Los Angeles 1984 Olympics, under the leadership of Peter Ueberroth, chairman of the Los Angeles Olympic Organizing Committee, changed the perception that the Games are a long-term burden for the host country, with the Los Angeles Organizing Committee ending with a surplus of $225 million.

Yet later Olympic Games, such as the 2004 Games and 2016 Games, were financial burdens for the host cities of Athens and Rio de Janeiro, respectively.

Some Olympic Games, however, have benefited the host cities — for example, the 2008 Beijing Olympics yielded a surplus of 1.2 billion yuan ($165 million) and the 2012 London Games resulted in the transformation of East London.

As a scholar who has studied the Olympic Games for many years, I maintain that the Olympics, as the largest global sports and socio-cultural event during peacetime, can thrive under certain conditions, which include a relatively peaceful global environment despite the ideological and political differences. Also, countries and cities experiencing economic growth are better positioned to host the Olympic Games, and can use them to achieve sustainable advancement.

Cities and countries with rapid economic growth can leverage the global platform provided by the Olympics to attract investments, change public attitudes and transform urban landscapes. They can also use the Olympics to bring together global resources to significantly boost the sports, tourism and cultural industries, including global exhibitions and conventions. For instance, the Barcelona 1992 Olympics and the Sydney 2000 Olympics boosted the two cities' tourism and hospitality sectors.

However, the Olympic Games do not automatically increase public participation in sports or boost the local economy. Many scholars say that to promote sports or boost the local economy, preplanning is necessary. Or else, the long-term benefits can't be realized.

The IOC has already selected Brisbane, Australia, as the host city for the 2032 Summer Olympics, and is likely to select the French Alps and Salt Lake City in the US to host the 2030 and 2034 Winter Olympic Games. However, more than 10 cities have bid to host the 2036 Summer Olympics — some reports suggest a Chinese city has also shown interest in hosting the 2036 Summer Games.

Reports on the Paris Olympics have highlighted many problems, including worker strikes, inadequate police force, and unclean Seine River. Such problems are not so uncommon when developed countries host the Olympic Games, perhaps because they don't invest substantially in infrastructure and other facilities and arrangements for the event.

In contrast, developing countries hosting the Olympics make substantial investments to improve their infrastructure, including building stadiums and other necessary facilities.

Nevertheless, we can expect a successful and exciting Paris Olympic Games, given the French people's passion for sports, and the IOC's rich experience and knowledge in helping organize the event.

The author is the director of the institute for Olympic Governance at the Wenzhou University.

The views don't necessarily reflect those of China Daily.

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