Getting ready for the world's biggest sporting event is a massive task for host cities. There's a lot to plan, build, and organize. It all comes with a hefty price tag. Is hosting the Olympics and Paralympics really worth it all? The games are certainly expensive. Just bidding to be a host can cost vast amounts of money. Tokyo spent as much as $150 million on its failed 2016 bid, then half that much again on its successful pitch.
Tokyo's final budget stands at more than $15 billion. It's reportedly set to be the most costly summer games ever, though past events didn't come cheap either.
According to one study, the average sport-related cost of hosting the Olympic games between 2007 and 2016 was $12 billion. And over the past decades, host cities have always ended up spending more than planned, much more. In Greece, the cost of the 2004 Olympics in Athens has been blamed for contributing to the country's later economic crisis, and the 1976 games left Montreal laden with debt, which took decades to pay off. But of course, the Olympics make a lot of money, too.
revenues from TV deals and sponsorships for the International Olympic Committee. Almost $6 billion from recent summer and winter games, funding sports and future games. The host cities themselves hope to see economic gains from things like job creation, from tourism and investments in infrastructure and sports facilities. Redevelopment for the Barcelona Games in 1992 has often been credited with helping to turn the city into one of Europe's most popular destinations. But during the 2012 London Olympics and Paralympics there were actually fewer international visitors
But while tourists come and go, many of the buildings and sporting facilities are here to stay. In London, the Olympic Stadium in Stratford is now West Ham United's football ground. Rio de Janeiro's Olympic Park hosts events like music festivals and e-sports tournaments. But parts of it have been criticized for being poorly maintained, and Olympic sporting venues elsewhere have fallen into disrepair. In Athens, some Olympic facilities were unused and overgrown just 10 years after the games. This is the first time that a sports venue has been
can take a heavy toll on the environment. And critics point out the construction of new Olympic sites every few years is not environmentally sustainable. Back in Japan, the Tokyo 2020 Games have also had to deal with the burden of a global pandemic, which has added billions in additional costs. Revenues are likely taking a hit because stadiums won't be full, and international spectators are unable to attend. Even without the effects of a pandemic, after all the spending, economists are generally skeptical about whether hosting the Olympics improves a city's economic prospects.
as future hosts, and some are now calling for the games to have a permanent home. But let's be clear, not everything can be measured neatly in numbers. There's the pride of hosting the world's largest sporting event and the prestige that brings for a city. The Olympics and Paralympics, after all, are about more than just money.
