Are Olympics Good For Economy?
Are Olympics Good For Economy?
Most of the countries want to host the Olympics. Even India is one of the countries in thinking stage when it comes to bidding for the Olympics. Here, the question is not about the hosting of Olympics but here the question is why even any country should host Olympics. There are many drawbacks linked to Olympics Games. There are people who oppose Olympics. Are you one of them? Let us share our views on the topic: Are Olympics Good For Economy?
• Olympics and other major events require investment in infrastructure and transport. The expenses should not be analyzed for short-term benefits as it results in a lasting legacy for the country’s economy.
• Olympics attract thousands of people in the hosting nation that is a strong boost to tourism and local economy. The tourists who come for Olympics will like to visit the place again and again.
• Investment in infrastructure, transport and other major facilities indicates creation of more jobs before and during the grand event.
• Higher investment and more number of visitors imply more tax revenues for the nation ultimately resulting in economic growth.
• It is the Olympics because of which London invested in new rail links in East London and worked on up gradation of train services.
• Organising Olympics gets a country a prominent position on the World map which helps in increasing the business tie ups in the country. This ultimately benefits the economy.
• The investment required to host Olympics has increased considerably in recent years. It not only requires investment on infrastructure but also on security. The higher costs cannot be met by ticket sales and sponsorship alone.
• It is not necessary that the investment done on infrastructure be of any use in the future. It stands especially true when a major part of investment is done on stadiums.
• Olympics create several problems for the local people. They cannot continue with normal lifestyle or businesses due to increased security during the event.
• The cost incurred in planning and organizing can be used by the countries for many other developmental projects for growth of economy.
• Olympics have a disappointing history of causing losses to the host nations, even when everything was done in the most legitimate way.
• A lot of visitors from all over the world visit the hosting nation to watch the sports. They come with a baggage of lot of communicable diseases which is ultimately a burden on the economy.
The Olympic Games requires investment but it also becomes a source of income for the hosting nation. The benefits can be divided into categories, the short term and the long term. The short term money comes from the visitors coming to the event. Most of the money falls under the category of tourism revenues. The long term benefits can be further divided into three categories. It boosts infrastructure, the hosting nation gets the international focus through the media coverage and lastly it encourages youth to make a career in sports. Just because some problems are associated with the Olympics, we cannot stop organizing Olympics.
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