Economic Impact of Hosting the Olympics

Sporting events, such as the Olympics, have been thought to be large magnets for foreign investment, and large sums of money are often spent on developing state-of-the-art facilities. These sporting events have played a large role in raising awareness for the host country on the global stage and developing infrastructure. The 2015 Special Olympics World Games were recently hosted Los Angeles, California, and Brazil will be hosting the 2016 Summer Olympics in Rio de Janeiro. China recently won the bid to host the 2022 Olympics, but the International Olympic Committee has been struggling to find suitable cities to host the 2024 Summer Olympics. However, lately there has been debates regarding the economic benefits of hosting the Olympics.

Brazil has spent billions of dollars to improve its infrastructure in preparation for the upcoming 2016 Summer Olympics, a continued project from hosting the 2015 World Cup. Many believe that this is an attempt to showcase Brazil’s economic power and prosperity. In the past, hosting the Olympics has been seen as a milestone for emerging economies to showcase their economic strength. These sporting events could increase the host city's visibility to foreign investors and global business leaders and can increase the likelihood of foreign investment and infrastructure projects. However, there is little guarantee for the increase in tourism, and new investments could be considered risky, as lavish spending can result in unused structures and facilities following the event.

An interesting idea that has recently been brought up is the Olympics being hosted by several cities. To be able to host a successful Olympics or other major sporting event, governments would have to invest large amounts of money to complete the infrastructure needed in a short time period. From the end of the 19th century, the Olympic events were held in one city, due to travel being less practical and more expensive. However, due to technological improvements, it could be practical to host the Olympic events in a couple of host cities.