Behind the spectacle of world-class competitions
Major sporting events like the Olympics and World Cup attract massive international attention. But more than the prestige, what impact do they have on host countries? Let’s take a Deep Dive.
🏟️ Hosting prestigious sporting events has environmental and social impacts, which are hard to assess due to a lack of transparency and reliable data.
💰 Hosting the Olympics was manageable for wealthy European and US cities in the past, relying on public funding and advanced infrastructure without expecting profits. But a study revealed that since 1960, the average cost of hosting has been triple the bid price.
📉 Major sporting events often do not offer a good return on investment. Host countries may see an increase in inbound tourism, but would have had to spend a lot of money on specialised infrastructure that has limited use after the event.
QUOTABLE
“I will not take money out of hospitals and schools in order to fund an event that is three times the cost estimated and budgeted for last year.”
— Daniel Andrews, former Premier of Victoria, Australia
BY THE NUMBERS
172% Since 1960, every Olympics has exceeded its budget by an average of 172 percent over the initial cost estimate.
$800 million Tokyo lost at least $800 million in ticket revenue hosting the 2020 Summer Olympics when it banned fans due to the pandemic.
$27.5 billion The Hangzhou government reported spending more than $27.5 billion on infrastructure in preparation for the 2022 Asian Games.
$118 million Cambodia spent more than $118 million on the 2023 South East Asian Games and Asean Para Games.
QUIZ
How many times has the host country emerged as the champion of the Fifa World Cup?
A. 6
B. 9
C. 13
Scroll to the bottom for the answer.
DID YOU KNOW?
The 1964 Winter Olympics in Innsbruck faced a snow shortage, prompting the Austrian army to intervene by transporting 20,000 ice bricks from a mountaintop to the bobsled and luge runs. In total, they moved 40,000 cubic metres of snow to the Alpine skiing courses.
THE EDIT
🏢 Finding new purpose. Several Olympic Villages have been repurposed as public housing or student accommodations post-games with varying success.
⚠️ An unsustainable venture. Hosting mega sporting events often boosts short-term economic momentum but hinders sustainable economic growth for the host country.
🔥 The heat is on. With rising global temperatures, major events must adapt to extreme heat and storms to ensure the safety of athletes and fans.
🏭 Battle of emissions. Major sports organisations are adopting carbon-offsetting schemes, but the effectiveness of these initiatives remains debatable.
WATCH
CNBC’s exposé, Why Hosting The World Cup Is A Bad Idea For Countries, examines Qatar’s $229 billion investment in hosting the most expensive Fifa World Cup. Experts question if the economic benefits outweigh the substantial debt.
THE FULL PICTURE
The total forecasted spending on the Paris 2024 Olympics is $9.1 billion—the lowest budget for an edition in the last decade. The highest record to date is Beijing 2008 at $52.7 billion.
KEY PLAYERS
Thomas Bach
Thomas Bach is the president of the International Olympic Committee (IOC) and an Olympic fencing gold medalist. The IOC selects host countries through a competitive bidding process by evaluating proposals based on infrastructure, legacy and alignment with Olympic values.
Raja Randhir Singh
Acting president of the Olympic Council of Asia (OCA), the official organiser of the Asian Games, Raja Randhir Singh is set to be nominated for election as its president in September 2024. Together with other National Olympic Committees in Asia, the OCA nominates cities as candidates for future hosts.
HONOUREES TO KNOW
Vivian Kong
Vivian Kong is one of the few Hong Kong athletes ranked world number one in an Olympic sport. At Paris 2024, the fencer clinched Hong Kong’s first gold medal in the women’s épée event and the special administrative region’s third-ever Olympic gold.
Datuk Nicol Ann David
Retired former world no.1 squash champion Datuk Nicol Ann David is training the next generation of players through her eponymous organisation. She was also appointed as Malaysia’s deputy chef de mission for the Paris 2024 Olympics, coordinating the preparation and supervision of the country’s athletes.
ONE FINAL THING
The lack of live sporting events during the pandemic gave rise to the popularity of The Marble League, an annual tournament where 16 mm marbles from different teams compete in various sports events.
