The Olympics and economies
The Olympic games are a touted and renowned sporting event where all athletes around the world aim to someday compete for Olympic glory and become Olympians. The sporting event is divided into two, as there are the summer and winter Olympic games. While the games are honorary events that attract not only the world's best athletes, but they also entice millions of viewers and thousands of spectators every year. However, being the host country for the games has both its benefits and drawbacks on the economy.
In first being a host country, the cities must bid for the year they would like to host. That is usually a very competitive and lengthy process. Countries must submit portfolios that detail why their bid should win and prove that their bidding city is most suitable compared to the others. The city that presents the best bidding then becomes the host country, provided it doesn't withdraw its application. Normally, these cities are decided on for at least seven (7) to twelve (12) years in the future to allow for adequate planning and preparation to occur.
The International Olympic Committee (IOC) has recently started to face a potentially dangerous issue. The number of bids to host the games has become fewer over the years as governments and citizens of prospective countries do not perceive that hosting will be beneficial enough to offset the disadvantages coming with the role. One of the most significant challenges is the monetary resources needed to efficiently prepare for and stage the games, which consist of over 30 different sports, above 50 disciplines, and more than 300 events. The ongoing Tokyo Olympics have been the most expensive to date, with a whopping $20 billion in total expenditure, a $12.3 billion difference from the original forecast of $7.4 billion. Based on projections by reputable stakeholders, the cost to host the games will still have quite a pricey requirement, which is a major deterrence to cities of countries that can't afford to stand the loss if the economic advantages aren't reaped.
On the other hand, increased travel, hotel bookings, and tourists’ spending are some ways host countries benefit from hosting the games. Being highlighted on the global map as the Olympics host grants exposure on a significant scale that can create great opportunities for investment and growth in the host city and even country. Despite the challenges that the IOC is facing with fewer bids, the host cities for the next two (2) Summer Olympic Games have already been decided on, with Paris, France set to host the 2024 Olympic Games, and Los Angeles, California announced for the 2028 games