Economic Impacts of Beijing Olympic Essay

One thing many economists agree on is the overall lack of effect sports can have on a city. Cities seem to be less impacted by a professional sports team because of things like opportunity costs, substitution effects, crowding out, and leakages (Baade, Baumann, Matheson, 2008, p. 797). These economists’ theory is that if there weren’t sports teams, people would still choose to spend money on other entertainment or attractions (Baade, Baumann, Matheson, 2008, p. 797). How the substitution effect works in sports is you imagine a city has a game, which supposedly tons of tourists and outsiders come to enjoy. These outsiders come for the specific event in which they are paying a good amount for, are not going to want to spend tons of money on other

London is currently hosting the Olympics this year and in preparation back in 2009 the event was predicted to “provide economic gold at a time of economic need,” however hosting the Olympics is an extremely costly business with the upgrades, new sports facilities, and security that it will cost much, much more than expected.

An entertainment or sports event, such as the MLB World Series, has a direct economic impact on the city that hosts the event because the city that hosts events such as these has to go through a series of new expenses and spending in order to be prepared for tourists. For instance, if a city is hosting the MLB World Series, the city is expected to have people from other cities, or even other countries looking for a place to stay during that given period of time. Therefore, companies such as hotels have to undergo a certain amount of spending to make sure that they have enough resources to meet the needs of these tourists. Another example, is that when an event such as the Super Bowl in the NFL occurs in a city, there are certain requirements

It is evident that hosting the Olympics games is no walk in the park. The countries trusted with this task have to spend billions to make the games a reality. Some people believe that the countries, even after spending billions of dollars benefit from the games, while others believe that the money can be spent elsewhere more efficiently. To reach a conclusion, one must study all of the different impacts in all of the different sectors the games have.

As a sporting mega-event, the Olympic Games have numerous social impacts on the people, not only on those from the host country, but on individuals all over the globe.

With the Olympic games being held in Sydney this year, I wondered if perhaps the performance of the economy was being affected in part by the fiscal stimulus provided by Olympic construction in Sydney and other parts of the country. Australia’s economy has been performing well recently, suggesting that there might be some effect. Over the last five years, growth in Australia’s gross domestic product has averaged 4.35%, almost a full point above it’s thirty year annual average of 3.5%, and the unemployment rate is near a ten year low. According to one estimate, the Olympics will tack on an additional six and a half billion dollars, about 1.6% of the GDP, to Australia’s GDP over the

It is no secret that smart organization and long-term thinking played a major role, in the success of the 2012 London Olympic Games. One key area, which enjoyed a discernible boost, was the British economy. Local business enterprises enjoyed increased sales and trade, while new foreign investment escalated.

The table below shows the steady increase in athletic performance at Olympic game from 1996 to 2016, this improvement correlates with increased funding from UK sport and the government. wikipedia. (2012). Olympic games Atlanta

There Olympics games are really expensive. When a city is hosting the Olympics, they tend to go all out for the opening ceremonies and facilities, going over their budget. If the city is going to go over budget, they should that they could make the money back. A perfect example of that is the two thousand four Summer Olympics held in Athens, Greece. Greece was only going to spend four point six billion dollars as that was their official costs. But the prices rose up as

According to Giulianotti, et al (2015), Olympic Games are among world’s largest sports event held every four years in the different country. The UK has hosted Olympics for a total of three times; firstly, in Athens, and in 2012, London has hosted the global event within its premise. There are myths that hosting global events are beneficial for countries in all aspects like economic, financial, social, business and others. In accordance with the report of Thiel & Grabher (2015), it is true that hosting global events such as Olympics are beneficial for the country, it attract tourists and investors towards the host country, however, when to look at reports and new articles, the decision of hosting Olympics in London was controversial since its

The Olympic Games is one of the biggest and most unrivaled sporting events in the entire world. At first it may seem like a huge plus or advantage for a city or nation to host this event. However on the contrary there are a lot of negative aspects that occur when a nation hosts this event. While the event is taking place, from the outside it looks like a state of the art, prestigious event that it is. Some of the problems that are caused by hosting Olympic games deal with, stadium development, local resident life, security issues, and many others that will be discussed. One of the big problems when dealing with a mega event such as the Olympic Games is the stadiums, which get built, and how they get abandoned or not used after the games are finished. This is one of the major problems surrounding the Athens 2004 games. Many of the stadiums and infrastructure are left untouched and abandoned to this day.

Countries utilize both the vast market and the attractiveness to increase ticket sales, sales in merchandise and tourism in their country. For the 2012 Olympic in London, it was estimated that 471,000 people visited from overseas primarily for the Olympic/Paralympics. ("Visits to the UK for the London 2012 Olympic Games and Paralympics - ONS", 2013, p. xx-xx) Not only does the country benefit from the ticket sales, but other businesses in the city (Hotels, restaurants, attractions, etc.) will flourish in business due to all the international trades that are occurring. The Olympic also provide jobs since the preparation, and the execution of the event requires a large staff as well as people with different skills. (Performers, construction workers, marketers, designers, etc.) Thanks to the Olympics, the United Kingdom saw a boost of £9.9 Billion ($17,805,486,600 CAD) in trades and investments. ("London 2012 Olympics 'have boosted UK economy by £9.9bn'", 2013) Hosting the Olympics can also make a psychological impact. With the great success Japan had in hosting the 1964 Olympics, (the first Asia Olympics as well as a method of being reaccepted by the rest of the world after World War Two), news that Japan will be hosting the Olympics 2020 significantly brought their citizen’s morale up after being hit with

After the 1984 Los Angeles Games showed for the first time that mega-events could produce an economic surplus, mega-sport events, particularly the Olympic Games, acquired central status for city and national government development agendas (Andranovich, Burbank and Heying, 2001). And the appeal of hosting a mega-event, or more specifically a mega-sport event, has grown significantly over the

For instance, the 2002 Salt Lake City Winter Olympics were able to turn a profit. The Salt Lake Organizing Committee (SLOC), had to make last minute extensions to security measures in the wake of the September 11 attacks. The security force for the games consisted of 12,000 people. Regardless of this unexpected last-minute expense of $500 million USD, the U.S. was able to profit by $101 million USD from the games. This is in part due to the fact that only three out of the fifteen venues used for the games were not already built. This means that the SLOC was able to cut down on their overall costs. The games were broadcast to over 2.1 billion television viewers in 160 nations worldwide. The attendance averaged 70,000 people each day at the fifteen venues as 1.5 million tickets were sold. Each of the fifteen venues used in the games are still in use today. These statistics show that the SLOC was very successful in their approach. Since a lot of capital was invested in security, people were able to feel safe at the games and as a result, ticket sales met expected targets in spite of the September 11 attacks. In another example, China was able to make unprecedented revenues from their 2008 Olympic Games held in Beijing. Their Olympic games cost a never-before-seen total of 19 billion Chinese yuan, which was the equivalent to $44 billion

Sports as Olympics start in hundreds years ago, so many countries treat the sport competition as a glory. Due to old cultures and a new kind of career choice, still have a lot of countries unwilling to face up this emerging industry, even citizens don’t want to spend taxed on computer gaming. In Taiwan, government never help on E-sport. Although we got the champion 3 years ago, government still ignore E-sport. This makes E-sport team hard to survive in Taiwan. Most teams are personal invest or donate, so they get more pressure on their success. However, in South Korea, they set laws to dedicate people and money to develop the E-sport. Last year, they spent fourteen million to build a larger E-sport stadium because there were fifty thousand went to watch the League of Legend Championship in the old stadium and the seats are totally not enough. According to Newzoo’s survey, there is even about 1.5 billion people interested in E-sport and increased 6% from last year. Those countries invest E-sport is because they know they can earn money from travelers or gamers and get huge benefit from