The Rising Costs and Benefits of Hosting the Olympics: A Global Perspective

A report by Lea Fayad, English adaptation by Nadine Sassine

Despite the excitement and enthusiasm of the Olympics, the eagerness of cities to host the event has been steadily declining. For the 2004 Games, 11 cities submitted bids, but a decade later, that number had dropped to just two!

The reason? The exorbitant costs: from improving infrastructure and expanding roads and airports, to building facilities for athletes, security costs, and constructing world-class stadiums.
Many of these stadiums become abandoned after the event.

Imagine that over the last 60 years, every host country, without exception, has exceeded their planned budget. Revenue from ticket sales, sponsors, TV broadcast rights, and tourism during the Games often hasn't been enough to cover costs, and has resulted in losses instead.

For example, the 1976 Montreal Games left the Canadian government and its people with a debt lasting 30 years. The Athens 2004 Olympics saw irresponsible spending that increased Greece's debt and contributed to the Greek financial crisis. Similarly, the 2016 Rio Games faced protests due to their cost, leaving the government in debt and unable to pay its employees.

The Tokyo 2020 Olympics, delayed by a year due to COVID-19, cost two billion dollars just for the postponement, making it the most expensive ever with a total cost exceeding 15 billion dollars—equivalent to building 1,200 elementary schools in Japan!

On the other hand, some cities have managed to benefit and make a profit from the Olympics, such as Los Angeles in 1984, which took advantage of existing facilities rather than building new ones, and Atlanta in 1996, which followed the same approach.

All eyes are now on the Paris 2024 Games, which are set to cost around 9 billion dollars, the lowest since 2000. Paris is also relying on existing venues, and the city hopes to generate a profit, with the French central bank predicting positive economic growth during the Games.

However, beyond the financial figures, the Olympics hold greater significance. It’s an opportunity for the host city to gain international attention and take pride in hosting this historic event that unites the world in celebrating talent, excellence, and respect.