Olympics

Is Hosting the Olympics Worth the Cost?
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There are few international events more highlighted and discussed than the biennial Olympics, the world’s foremost sports competition. But is hosting the Olympic Games really worth the cost to their host city and country?

The Olympic Games were first held in Olympia, Greece, in 776 bce as a religious festival to honor Zeus. The first Olympic Stadium was in an area thought to have been cleared when Zeus hurled down a lightning bolt. When not in use as a stadium for the Games the area (which never contained an actual building) was a wheat field. [1][33][34]

The early games included sports for male athletes only such as pankration (a combination of boxing and wrestling with only two rules: no biting and no gouging), along with boxing, chariot racing, running, wrestling, and field events. [51]

Paul Christesen, professor of ancient Greek history at Dartmouth College, explains, “It is hard for us to exaggerate how important the Olympics were for the Greeks. The classic example is that when the Persians invaded Greece in the summer of 480 (bce) a lot of the Greek city states agreed that they would put together an allied army but they had a very hard time getting one together because so many people wanted to go to the Olympics. So, they actually had to delay putting the army together to defend the country against the Persians.” [51]

The Games occurred every four years for 1,168 years from 776 bce to 393 ce, when they were ended by Emperor Theodosius I[35]

A French nobleman, Pierre de Coubertin, revived the Games after becoming interested in physical education. The first modern Olympic Games were held in Athens in April 1896 and included 241 athletes from 14 countries competing in 43 events. [36][52]

The Games have been held since, with five canceled due to the world wars. The first modern Winter Games were held in 1924 in Chamonix, France. Beginning with the Lillehammer Winter Olympics in 1994, Games were held every two years, alternating between summer and winter. [33][37][38]

The 2020 Summer Games in Tokyo, Japan, were originally scheduled to begin on July 24 but were postponed due to COVID-19 (coronavirus) concerns to July 23 through August 8, 2021, and were still referred to as Tokyo 2020. The Games were closed to foreign and domestic spectators and played under a COVID-19 state of emergency. The 2020 Games were the first time the Olympics were rescheduled in peacetime. Despite the delay, the 2020 Games debuted four new sports: karate, skateboard, sports climbing, and surfing. Baseball and softball returned for the first time since Beijing 2008[54][55] [56][57][58][63]

On December 6, 2021, White House Press Secretary Jen Psaki announced a diplomatic boycott of the 2022 Winter Olympics: “The Biden administration will not send any diplomatic or official representation to the Beijing 2022 Winter Olympics and Paralympic games given [China’s] ongoing genocide and crimes against humanity in Xinjiang and other human rights abuses.” AustraliaCanadaLithuania, and the United Kingdom also announced diplomatic boycotts. [64][65]

The host cities for five future Games have been announced: Milan and Cortina d’Ampezzo Winter 2026, Los Angeles Summer 2028, the French Alps Winter 2030, Brisbane Summer 2032, and Salt Lake City Winter 2034. [1][2][62][69]

Pros and Cons at a Glance

PROSCONS
Pro 1: The Olympics increase valuable tourism, which can boost local economies. Read More.Con 1: The Olympics are a financial drain on host cities. Read More.
Pro 2: The Olympics increase a host country’s global trade and stature. Read More.Con 2: The Olympics force host cities to create expensive infrastructure and buildings that fall into disuse. Read More.
Pro 3: The Olympics create a sense of national pride. Read More.Con 3: The Olympics displace and burden residents of the host country and city. Read More.

Pro Arguments

 (Go to Con Arguments)

Pro 1: The Olympics increase valuable tourism, which can boost local economies.

The 2016 Rio de Janeiro Summer Games had a global audience of five billion with the Games broadcast in 200 countries. More than 56 percent of foreign visitors to Brazil for the 2016 Games were new visitors and Brazil set tourism records with 6.6 million foreign tourists and $6.2 billion dollars. [3][4][5]

England welcomed more than one visitor every second in June 2013 after the 2012 London Summer Olympics, a 12 percent increase over 2012. Those tourists also spent more: $2.57 billion in June (a 13 percent increase) and $12.1 billion in the first half of 2013. [6]

The 2018 Winter Games in Pyeongchang reported a $55 million surplus that was used for the benefit of sport in the host country, South Korea. The 1992 Barcelona Summer Olympics made a profit, helping to revitalize the city and transform it from an “industrial backwater” into the third best city in Europe, according to Travel + Leisure magazine. [7][8][9][59]

The 1984 Summer Olympics in Los Angeles netted the city a $215 million operating surplus and $289 million in broadcasting fees. The Olympics brought a record 43.2 million tourists to Los Angeles County that year, an increase of 9.3 percent over 1983. [10][50]

Pro 2: The Olympics increase a host country’s global trade and stature.

Host countries tend to be invited to prestigious global economic organizations. According to economics professors Robert A. Baade and Victor A. Matheson, “The very act of bidding [for the Games] serves as a credible signal that a country is committing itself to trade liberalization that will permanently increase trade flows.” [9]

China negotiated with the World Trade Organization, opening trade for the country, after being awarded the Beijing 2008 Summer Games. Korea’s political liberalization coincided with winning the bid for the 1988 Seoul Summer Games. The 1968 Summer Olympics allowed Mexico to make “the leap into the ranks of industrialized nations,” according to David Goldblatt, sociologist and sports writer. The 1964 Tokyo Summer Games led to Japan’s entry into the International Monetary Fund (IMF) and the OECD. After a successful 1955 bid for the 1960 Summer Olympics in Rome, Italy joined the United Nations and began the Messina negotiations that led to the creation of the European Economic Community (EEC), and Spain joined the EEC within a year of the 1986 Barcelona Summer Olympics. [14][15]

One economic study found that “The Olympic effect is robust; hosting the games tends to increase a country’s openness substantively and permanently.” [14]

Pro 3: The Olympics create a sense of national pride.

According to a global poll, a majority of people in 18 of 21 countries stated their country’s performance at the Olympics was “important to their national pride,” including 91 percent of Kenyans, 86 percent of Filipinos, and 84 percent of Turks. [11]

Lee Ji-seol, who lives in Pyeongchang, said that fellow residents celebrated their selection as the 2018 Winter Games host city: “The entire town was out dancing.” [53]

Roger Bannister, the first person to run a mile in under four minutes and a 1952 Helsinki Olympian, says of his country’s performance at the 2012 London Summer Games: “Team G[reat] B[ritain]’s heroic success seems to have reawoken in us our sense of national pride…a realisation perhaps that, as a people, we have the ability, the drive and the determination to be great.” [12]

Moorad Choudhry, treasurer of the Corporate Banking Division of the Royal Bank of Scotland, says, “A genuine feel-good factor [of hosting the Olympics] can be very positive for the economy, not just in terms of higher spending but also in productivity at work, which in turn boosts output.” [13]

Con Arguments

 (Go to Pro Arguments)

Con 1: The Olympics are a financial drain on host cities.

No Olympic Games since 1960 has come in under budget. [16]

Bent Flyvbjerg and Allison Stewart, both at the University of Oxford’s Saïd Business School, say, “In the Games the budget is more like a fictitious minimum that is consistently overspent.” Jadrian Wooten, a professor at Virginia Tech, said, “while proponents usually just pitch the Olympics as an economic investment, it more closely resembles a really expensive party,”[17][70]

The 2028 Summer Games have already stretched Los Angeles thin. The city, besieged recently by wildfires and other expensive catastrophes, had by early 2025, scrapped plans for a $1 billion Olympic athlete village in favor of existing university dorms, moved volleyball from the picturesque Santa Monica to a serviceable Long Beach, and moved canoe slalom 1,300 miles away to Oklahoma City, Oklahoma, where there is an existing venue. While the changes may make hosting more affordable for Los Angeles, is this the definition of a city “hosting” the Olympics? Or is this a more stable option where multiple cities host and re-use venues? [71]

The delayed Tokyo 2020 Summer Games were already the most expensive Olympics in history, running at 200 percent over budget on September 7, 2020 though not scheduled to begin until July 2021. Tokyo forecast $7.3 billion in their 2013 bid, but the actual cost was estimated to be $15.84 billion in September 2020, with costs continuing to rise. A January 2021 study found that losing foreign spectators because of COVID-19 restrictions could cost Japan as much as $23 billion. [60][61]

Each host city is responsible for these cost overruns, in addition to their original budgets. The average cost overrun for host cities from 1968 to 2010 was 252 percent for the Summer Olympics and 135 percent for the Winter, with the 1976 Montreal Summer Games running over the most by 796 percent. Montreal’s 1976 cost overrun took 30 years to pay off, and the people of Quebec still pay $17 million a year to maintain Olympic Stadium, which is still without a roof more than 40 years later and also needs $300 million worth of repairs. [17][18][19]

The 2014 Sochi Games ran between $39 and $58 billion over the $12 billion budget, an amount that is more than was spent on all previous Winter Olympic Games. [20] The 2004 Athens Summer Games’ 60 percent overrun worsened the 2007–12 Greek financial crisis. [17][21][22]

Con 2: The Olympics force host cities to create expensive infrastructure and buildings that fall into disuse.

“Host cities are often left with specialized sports infrastructure that has little use beyond the Games” and that the cities must maintain at great expense, according to economics professors Robert A. Baade and Victor A. Matheson. [9]

Many Olympic venues worldwide sit empty, rusted, overgrown with weeds, covered with graffiti, and filled with polluted water. The $78 million Olympic Stadium in Pyeongchang for the 2018 Winter Games was set for demolition before the 2018 Games even began. In Rio de Janeiro, the $700 million athletes village for the 2016 Games was turned into luxury apartments that are now “shuttered,” and the Olympic Park is “basically vacant” after failing to attract a buyer. Beijing’s 2008 Bird’s Nest Olympic Stadium costs the city $11 million a year to maintain, and the stadium that seats 91,000 mostly sits unused. Sydney’s 2000 Olympic Stadium was demolished in 2019 in favor of a smaller, more useful venue. [23][24][25][26][27][28]

Sofia Sakorafa, Greece member of parliament and former Olympian, says of the 2004 Athens Games venues, “We are left with installations that are rotting away because we don’t even have the money to maintain them. A lot of entrepreneurs and property developers got rich very quickly.” [29]

Con 3: The Olympics displace and burden residents of the host country and city.

Lee Do-sung, a local restaurant owner, expressed concern about the 2018 Pyeongchang Winter Games, “What good will a nicely managed global event really do for residents when we are struggling so much to make ends meet? What will the games even leave? Maybe only debt.” [32]

Residents near Rio de Janeiro’s 2016 Olympic Stadium, whose homes were set to be demolished, were forcibly removed in a “bloody confrontation between police and residents” that reportedly involved the use of rubber bullets and percussion grenades. [31]

“To make way for Beijing’s 2008 Olympic infrastructure, an estimated 1.5m[illion] people were forcibly evicted from their homes with minimal compensation. The neighborhoods were destroyed and residents removed to the outskirts of the city far from friends, family and places of work,” according to Bryan C. Clift and Andrew Manley, lecturers at the University of Bath. [30]

Eric Sheehan, a member of a Los Angeles group called NOlympics LA, said, “We don’t believe that any increased economic output justifies putting anyone at risk of displacement, exploitation or criminalization.” [70]

1-minute Survey

After reading this debate, take our quick survey to see how this information affected your opinion of this topic. We appreciate your feedback.

Discussion Questions

  1. Would your city (or a nearby larger city) benefit from hosting the Olympic Games? Why or why not?
  2. What should happen with the Olympic sports facilities after the games are over? Explain your answer(s).
  3. How should international events such as the COVID-19 (coronavirus) pandemic impact the games? Explain your answer(s).

Take Action

  1. Consider “7 Ways Hosting the Olympics Impacts a City,” at Encyclopædia Britannica.
  2. Explore the official Olympic Games site.
  3. Learn about the history of the Olympics, partially written by Harold Maurice Abrahams, subject of the Academy Award winning film Chariots of Fire.
  4. Consider how you felt about the issue before reading this article. After reading the pros and cons on this topic, has your thinking changed? If so, how? List two to three ways. If your thoughts have not changed, list two to three ways your better understanding of the “other side of the issue” now helps you better argue your position.
  5. Push for the position and policies you support by writing U.S. senators and representatives.

Sources

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