| Introduction | | | | in tourism. (Aaade and Matheson, 2002) |
| Hosting the Olympic Games can bring a lot of benefits | | | | Another long term economic impact that will come |
| for the host country. These benefits can be divided | | | | from the Olympics is the formation of various |
| into either long term or short term ones. The short | | | | community related groups. It should be noted that there |
| term economic benefits include fresh cash flows from | | | | will be certain new initiatives that can come from this |
| the visitors who will come to the host country, officials, | | | | sort of arrangement. National agencies will be created |
| athletes, training activities, media activities, cultural | | | | for this purpose. In line with that there may be |
| events linked to the Olympics and the formation of an | | | | numerous volunteer groups that will come out of such |
| Olympic committee. These investments will be done | | | | an initiative. These community groups may be formed |
| within the City that hosts the event and many other | | | | in order to encourage betterment of the community |
| surrounding areas in the respective country. (Carros et | | | | and may continue years after the Olympics |
| al, 2001) | | | | themselves are over. |
| Long term economic benefits of hosting the Olympics | | | | The Olympics can make many companies come out |
| fall in three major categories. The first is the creation | | | | to train the public on their jobs. These job training |
| of infrastructure that reaches worldwide standards. | | | | development programs may be aimed at people who |
| The second category is the benefit of receiving | | | | can provide services in construction or the like. Those |
| international attention through media coverage. The last | | | | training programs will be quite beneficial to individuals |
| long term economic benefit is related to the | | | | who partake of them and also to the overall |
| community; there will be formation of educational and | | | | community because they may always have a means |
| youth programs, there will also be formation of jobs | | | | to improve their work force. Those kinds of efforts |
| for a number of individuals in the country. Some local | | | | may be directed towards the economically |
| volunteer programs will also be formed. Thereafter, | | | | disadvantaged members of society. This could also |
| there will be formation of community development | | | | refer to some marginalized groups. It should be noted |
| programs. All the details of both the short term and | | | | that there may be some community training programs |
| long term benefits will be examined in the subsequent | | | | formed to offer knowledge and skills to those |
| portions of the essay. (Segrave, 1998) | | | | marginalized groups. Examples include women, ethnic |
| Short term economic benefits | | | | communities and the physically handicapped. |
| Short term economic benefits may be defined as the | | | | Hosting the Olympics also helps numerous projects in |
| total changes that will occur in terms of employment, | | | | terms of revenue. The State and other private |
| revenue and total national output through outside | | | | organizations may be motivated to invest in their |
| investments. The first economic impact will result form | | | | community through provision of grants. Cities hosting |
| the fact that the host country will be required to | | | | the Olympics will be given the greatest precedence in |
| produce more goods and services to cater for the | | | | terms of funding and this will empower their |
| additional numbers. The consumers of those gods are | | | | communities. Besides that, there may be creation of |
| most likely going to be the athletes themselves and | | | | youth programs and cultural programs. This will be |
| their officials. There will also be international spectators | | | | instrumental in development of communities and will |
| and national spectators that will need to consume | | | | also be useful in the tourism sector. (Daka and Hess, |
| additional industrial products. It is a matter of fact that | | | | 2002) |
| the event will need to be covered by media | | | | The Olympics are also quite instrumental in the |
| personalities both nationally and internationally. These | | | | process of creating national unity. Sporting activities |
| groups will need to consume goods made by the host | | | | have always been seen as contributory factors to |
| country. The Olympics themselves have | | | | national cohesion. For example, there may be |
| representatives in the host country and they will need | | | | overwhelming support for the host country to do well |
| to consume commodities. Lastly, there will be | | | | within those Olympics and also to market the country |
| numerous sponsors attending the event and they will | | | | positively to outsiders. Hosting the Olympics will create |
| also be required to purchase commodities. The total | | | | a feel good factor among members of that |
| sum of additional revenue that will come from the sale | | | | organisation and this will go long way in enhancing |
| of commodities produced by the host country's | | | | national pride. For example France is trying to win the |
| industries to the above mentioned groups will make up | | | | bid to host the 2012 Olympics and it used the image of |
| a huge chunk of the direct economic benefits coming | | | | well known player ‘Zinadine' to inform the world |
| form hosting the Olympics. | | | | that sports unite French men of all kinds. This national |
| There may be some visitors that will still be interested | | | | unity can then be translated economically be |
| in seeing the host country's sites during the Olympic | | | | cooperation during execution of tasks. When a |
| Games and after. There can be huge amounts of | | | | country's social fabric has been strengthened, most of |
| revenue received from those visits. Research | | | | their workers end up being very productive |
| conducted in this area has indicated that a host | | | | economically since they have minimal reservations |
| country can earn up to 823 million dollars out of the | | | | about each other. (Barney, 2000) |
| visitors who may come to visit the host country within | | | | Another underlying factor that must be considered is |
| the first twenty days prior to the event and twenty | | | | that fcat that hosting the Olympics allows for country |
| days after the event. This is also topped up by some | | | | to demonstrate their integrity. Some critics have |
| new businesses that may be created as direct result | | | | claimed that countries use corrupt methods to win bids |
| of the Olympics and this can bring about a total of 1.1 | | | | for hosting Olympics. However, this argument is not |
| billion dollars. (Reinberger, 1988) | | | | valid because The Olympics committee has gone out |
| Employment is another great economic benefit that will | | | | of its way to establish mechanisms that ensure |
| come as a result of hosting the event. One cannot | | | | transparency and eliminate cases of corruption during |
| underestimate the level of job creation that an event | | | | the process of bidding. This means that countries that |
| of such magnitude can bring to the host country. The | | | | win bids are the rightful ones and most transparent |
| employment opportunities may either be part time or | | | | ones. |
| full time. An economic estimate in Atlanta, Georgia (a | | | | There are also certain underlying factors that |
| State that held the Olympics) found that about | | | | encourage the economic benefits indirectly. Hosting the |
| seventy seven thousand new jobs were created. | | | | Olympics facilitates creation of numerous leisure and |
| Forty seven percent of this figure came from the | | | | sporting spots like sailing, rowing, shooting, tennis and |
| direct spending made by visitors in the host nation. | | | | many more. What this does is that it encourages the |
| There are certain industries that will benefit more than | | | | host nation's citizens to enjoy sports in general. This will |
| others in this regard. The lodging and hotel industry will | | | | go a long way in encouraging sports companies and |
| take up the largest portion of those new jobs. The | | | | businesses in the future since more and more people |
| second most important industry is the food industry, it | | | | will have interest in them. Such businesses will have |
| should also be noted that bars or other facilities | | | | market in the host nation. Other places that can |
| offering drinks also fall in that category. The third | | | | receive attention are training camps. This will be a |
| category of industries that will also benefit from new | | | | source of revenue for the host country years later |
| jobs will be the retail sector and the business service | | | | since its citizen are now interested in the sport. |
| sector. Additionally, there will also be jobs in the | | | | (Access Economics, 1994) |
| construction sector since there will be a need to make | | | | All in all, the following were found to be the major |
| additional infrastructures like building. In relation to this | | | | economic benefits that come from hosting the |
| industry, there will be the renovation of certain | | | | Olympics as conducted by COMPAS polls. They |
| infrastructures like roads and bridges. (Barney, 2003) | | | | created a scale of one to seven. Those who were |
| Long term economic benefits | | | | given a score of 1 believe that the costs emanating |
| The long term economic benefits that will come from | | | | from hosting the Olympics outweigh the benefits. On |
| hosting the Olympics can be considered as a legacy | | | | the other hand, those who scored 7 believe that the |
| to the host nation. This is because they will be | | | | benefits of the Olympics are greater than the costs. |
| remembered for decades o come. The first legacy will | | | | Mean |
| be seen in terms of the facilities built specifically for the | | | | Increased tourism |
| Olympics. These facilities will continue in operation | | | | 5.7 |
| years after the event is over. A host country will need | | | | Increased pride inthe City |
| top build a Stadium meeting international standards. In | | | | 5.5 |
| the year 1996, Georgia was hosting the Olympics. It | | | | Investments inpublic infrastructure |
| was estimated that their stadium cost them about 189 | | | | 5.3 |
| million US dollars which is quite a good investment | | | | Renovations like roads |
| since the returns outweighed the investments by far. | | | | 5.5 |
| Other facilities that sprung up from those Olympics | | | | New housing |
| include; | | | | 4.1 |
| - An international Horse Park (1440 Acres large) | | | | Source; |
| - A shooting range complex (worth seventeen million) | | | | As it can be seen from the survey, majority of the |
| - Tennis facilities | | | | respondents thought that the benefits of hosting the |
| - A rowing Centre at Lake Lanier (worth ten million | | | | Olympics outweigh the costs. A mean of greater than |
| dollars) (Bacon, 1993) | | | | half the scale (3.5) was recorded by all the |
| Additionally there may also be other renovation, repairs | | | | respondents. |
| and improvements that can result form holding the | | | | Conclusion |
| Olympics. First of all, some universities and higher | | | | Hosting the Olympics can have numerous economic |
| education facilities may need to be improved. For | | | | benefits the host country. The short terms benefits |
| example, their dormitories might be increased. A | | | | include job creation to the tune of 77 thousand new |
| country may choose to this because they feel the | | | | jobs. On the other hand, there may also be increased |
| need to provide cheaper alternatives for certain | | | | cases revenue through the visitors that will come from |
| guests' accommodation. On the other hand, this may | | | | other countries. In addition, a host country may have |
| be done to boost the host country's image. A host | | | | numerous facilities that will provide benefits to the host |
| country may need to improve some of their memorial | | | | country decades after the Olympics. The Olympics will |
| facilities and museums or it may choose to invest in | | | | encourage host countries to expand some of their |
| other sporting facilities like boxing and swimming. These | | | | facilities and also inspire improvements of some of the |
| improvements may be done to make the host City | | | | infrastructural facilities. This will go along way in |
| more attractive but the overall effect is that they will | | | | ensuring that the host country projects a good image |
| boost tourism decades after the Olympics are over. | | | | of itself. Besides that, a host country gets the |
| It should be noted that certain facilities may be | | | | opportunity to market itself to the world as at op |
| improved not just for the sake of the Olympics. It is | | | | tourism and business location. This will go long way in |
| quite likely that certain projects are always on the | | | | boosting their revenues in those respective areas. One |
| draft table but they lack the good will and funds to be | | | | can therefore say that the Olympics can increase |
| implemented. Consequently, the Olympics provide a | | | | foreign investments in the host country. Lastly, there |
| platform for their completion. Some of these facilities | | | | are numerous community programs and groups that |
| include renovation of airport terminals and | | | | will come from such an event. (Caimbridge, 1998) |
| improvement of all the surrounding restaurants and | | | | Reference: |
| pubs in those airports. (Hall, 1972) | | | | Access Economics (1994): Report on Tourist |
| Another important economic aspect of hosting the | | | | Forecasts – Sydney Olympics 2000 |
| Olympics is the fact that there will be excessive media | | | | Aaade, R. and Matheson, A. (2002): Bidding for the |
| exposure for the host country. The City hosting the | | | | Olympics: Fool's gold? Oxford University Press |
| Olympics will be seen by the rest of the World. Most | | | | Bacon, W. (1993): Watchdog's bark muffled; |
| of their strong points will be reflected in their marketing | | | | Reportage: Newsletter of the |
| endeavours and this will greatly boost their tourism | | | | Australian Centre 1993 |
| industry years ahead. Additionally, there will also be | | | | Barney, R. (2000): Mr. Samaranch goes to |
| exposure in the business aspects. Investors may be | | | | Washington: protecting IOC stakes in the American |
| wooed to come and invest in the host country. Even | | | | corporate world; University of Indianapolis Press |
| expansion programs for international companies may | | | | Barney, R. (2003): The Olympic legacy of wealth: a |
| cover a host country. There is overwhelming evidence | | | | double-edged sword; Routledge Publishers |
| that media coverage enhances a country's image | | | | Carros, M. et al (2001): Transatlantic Sport: The |
| from the media. After the City of Atlanta hosted the | | | | Comparative Economics of North American and |
| Olympics, they earned recognition form top magazines | | | | European Sports; Cheltenham, UK: University of |
| like World Trade. The latter magazine listed Atlanta | | | | Oxford Publishers |
| City as one of the top ten Cities in the World to | | | | Caimbridge, M. (1998): Outcome uncertainty in sporting |
| conduct business with. Besides that, a host country | | | | competition: the Olympic games; Applied Economics |
| can have a reputation as a sporting complex. Cities | | | | Letters, 5,3, 161-164 |
| containing those sporting facilities can use this to their | | | | Daka, R., and Hess, R. (2002): An analysis of recent |
| advantage by hosting numerous games and this can | | | | Australian success at the Winter Olympic Games; |
| promote sports in a respective country. In the latter | | | | McGraw Hill Publishers, pp. 107-116 |
| mentioned City, surveys conducted after hosting the | | | | Hall, D. (1972): Olympic Games competition: structural |
| event indicated that there was a thirty five percent | | | | correlates of |
| increase in the travel and tourism sector afterwards. | | | | National success; International Journal of Comparative |
| This can only be attributed to the media exposure. | | | | Sociology, 13, 8, 186-200 |
| Some people have estimated that exposure to the | | | | Reinberger, R. |
| international world can lead to about Eight million dollars | | | | |
