Economic Overview of the Sport, Social, Urban and Environmental Impacts and Legacies of the Olympic Games


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Presentation given by Dr. Ferran Brunet, lecturer at the UAB Faculty of Economics and academic collaborator of CEO-UAB, at the “IX National Seminar of Sport and Leisure Public Policies: Brazil 2016: the Olympiad and its desire impacts on Brazilian cities’ sport and leisure public policies”. The seminar was organized by the Ministry of Sport of the Brazilian Federal Government and the Municipality of Sao Bernardo do Campo, March 24-27 2010.

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Economic Overview of the Sport, Social, Urban and Environmental Impacts and Legacies of the Olympic Games

  1. 1. Presentation prepared for the ‘IX Seminario Nacional Políticas Públicas de Esporte e Lazer: Brasil 2016: a Olímpiada e os impactos desejados nas políticas públicas de esporte e lazer das cidades brasileiras’ organized by the Ministério do Esporte do Governo Federal brasileiro e a Prefectura Municipal de São Bernardo do Campo (Estado de Sao Paulo), March 24-27, 2010 An Economic Overview of the Sport, Social, Urban and Environmental Impacts and Legacies of the Olympic Games Professor Dr Ferran Brunet Universitat Autònoma de Barcelona Faculty of Economics & Center for Olympic Studies
  2. 2. TABLE OF CONTENTS  The Key for Olympic Success  The Barcelona Model  The Barcelona Olympic Areas  The Concentric Circles  The Economic Impact Scheme  The BCN’92 Olympic Accounts  The Olympic Employment  Barcelona Dynamics: Employment, Works, and Hotels  The Olympic Games Resources, 1964-2008  Impacts of the Olympic Games  Strategic Position vs. Competitiveness: The Best European Cities for Business  The Olympic Economy Decalogue… and Some Questions © Ferran Brunet 2010
  3. 3. THE KEY FOR OLYMPIC SUCCESS Separate Insti- Agencies for Mixed tutional Organization Economy Unanimity and for Works Excellence Urban of Sports Renewal and Urban Capacity Program Source: © Ferran Brunet (1988 and 1994)
  4. 4. The Barcelona Model Source: © Ferran Brunet (1988 and 2008)
  5. 5. The Barcelona Model  Organization Forms & Aims  Urban Renewal Forms & Aims  Economic Management and Impact Forms & Aims © Ferran Brunet 2010
  6. 6. The Barcelona Olympic Areas Main Urban Renewal Areas, 1986-1992 Source: © Barcelona City Council (1988)
  7. 7. The Barcelona Olympic Areas  S-W, Montjuic: Stadium, main other sport facilities –Swimingpool…  S-E, Poblenou: Olympic Village, Port  N-W, Diagonal Area: Sport facilities, Hotels  N-E, Vall d’Hebron Area: Sport facilities, Hotels  All the city in works!  Decentralization - Many Sub-sites: all region, all big Spain cities © Ferran Brunet 2010
  8. 8. The Concentric Circles Concentric circles The organization of the Olympic Games / mega event 1. Organization stimulates investments and these have a strong impact on economic activity, living standards, wages 2. Investments and quality of life. 3. Impact The effect of the OG / mega event has been made permanent thanks to strong investments and the enlarged attractiveness and quality of life in the city. Source: © Ferran Brunet (1989 and 2008)
  9. 9. The Economic Impact Scheme Before the OG After the OG Organization Investments Impact Capacities olympic organizational Know-how Culture of excellence, culture of consensus Organization Period 1986-1993 Barcelona model of event organization, economic impact and urban transformation 1364 M $ (162.880 M Pta) Major Government and social capital Major private and business capital 41.450 positions for workers during 6 years 5390 M $ Commercial Fiscal Olympic 2622 M $ Temporary occupations income income Urbanization Hotels 1256 M $ (149.933 M Pta) 108 M $ (12.947 M Pta) Houses Collective transportation Legacy Business locals Offices Ring road 8012 M $ Houses Cultural institutions Olympic port Investment Cleaning sports facilities Companies Period 1986-1992 8012 M $ (956.630 M Pta) Maritime facade, beaches, parks Greater occupation (20.230 positions for work) and major qualifications for work force Public Private Better competitiveness (2002: 6th place in the ranking of European cities) 5390 M $ 2622 M $ (643.613 M Pta) (313.017 M Pta) Olympic Rent: 702 M $ per year Improved and better economic activity, better quality of life major Added Value Improve Strategic Position Social cohesion, Economic and social impact occupations Permanent Improve Productivity 20.230 positions improved Rent Period 1986-1992 16266 M $ (1.942.188 M Pta) and permanent 702 M $ per year Improve Competiveness and improved Well-being Fiscal yield Improved and better Attractiveness: of the residents Urban renovation Greater occupation Major Activity 150 M $ per year more capital, residents and tourism Source: Brunet (1997 and 2002) and this research. Source: © Ferran Brunet (1989 and 2004)
  10. 10. The Economic Impact Scheme A. Before the OG  The Concentric Circles Temp Employment B. After the Games Due to the O Legacy: Investments attracted, Permanent employment and skills, Income © Ferran Brunet 2010
  11. 11. The BCN’92 Olympic Accounts (I) © Ferran Brunet 2010
  12. 12. The BCN’92 Olympic Accounts (II) © Ferran Brunet 2010
  13. 13. The BCN’92 Olympic Accounts (& III) © Ferran Brunet 2010
  14. 14. The BCN’92 Accounts A. Source of Funding Public- Government (40%) / Private-Commercial (60%) B. Destination of Resources Organization (14,5%: Technology, Olympic Family) / Investments (85,5%: Roads, Communication, Hotels, Housing, Sport facilities) © Ferran Brunet 2010
  15. 15. Employment Generated by the Olympics
  16. 16. Barcelona Dynamics: Employment, Works, and Visitors © Ferran Brunet 2010
  17. 17. Barcelona Olympic Dynamics  1986-1992-1993-2004-2008-2020  Employment – Unemployment  Concrete – Works – Construction  Hotel The Barcelona Model  Adequate size and situation of Barcelona © Ferran Brunet 2010
  18. 18. The Olympic Revenues  TV  Sponsors  Governments  Merchandizing, lotteries… © Ferran Brunet 2010
  19. 19. The Revenues of the Olympic Games Organizing Committees, 1964-2016 © Ferran Brunet 2010
  20. 20. The Olympic Expenditures  Organization: Stable, To minimize it  Direct Olympic Investment: Variable  Impact: To maximize it © Ferran Brunet 2010
  21. 21. The Expenditures on the Olympic Games, 1964-2016 © Ferran Brunet 2010
  22. 22. The Olympic Impacts  Hotel offer  Visitors  Seoul, Barcelona, Atlanta, Sydney, Athens, Beijing, London  The adequate size and situation of Barcelona © Ferran Brunet 2010
  23. 23. Impacts of the Olympics A. Hotel offer: growth before, during and after the Olympic Games B. Foreign visitors: before, during and after the Olympic Games Source: Jones Lang La Salle IP Inc (2002).
  24. 24. Strategic Position vs. Competitiveness: The Best European Cities for Business
  25. 25. Strategic Position vs. Competitiveness: The Best European Cities for Business  Barcelona European City Ranking 1990: 11 / 2000: 6 / 2005: 4 / 2010: 4  Evaluation – Feeling  Investment Decision  Capacity to Attract  World Regions – Creative Industries  Globalization – Competitiveness  City Strategy: continuity-discontinuity © Ferran Brunet 2010
  26. 26. The Olympic Decalog: Economy, Sport, Urban and Environment I. The Institutional Agreement. II. Mixing Economy: Public Direction & Private Management. III. Separate Organs: to Organize the Games (Sports) & to do the Works and Investments (Stone). IV. The Concentric Circles Principle. The Olympic Resources are Not cost but Investment. V. Maximize investment & Minimize costs. VI. The Excellence Principle: in 2 weeks of Excellence you match the past organizing efforts and specially all your new future. VII. The first beneficiary of the Games is the State: at medium term always a fiscal surplus appears. VIII. From a strategic perspective the more important is not 2012 but 2013 and after! IX. The Olympic Investments are the Legacy. X. The Continuity in Investments is needed to maintain and profit of the new Strategic Position of the City and the Country. © Ferran Brunet 2010
  27. 27. …and Some Questions  Global Competition and Mega-events.  Creative Industries.  World Regions.  Competition between European cities and regions.  The current crisis, the depression, and the further Olympics.  A Finished City: What it needs.  The city identity, consensus, identification, attractiveness, design, glamour.  Over-stimulation, over-protection. © Ferran Brunet 2010
  28. 28. Thanks for your kind attention! An Economic Overview of the Sport, Social, Urban and Environmental Impacts and Legacies of the Olympic Games Professor Dr. Ferran BRUNET Universitat Autònoma de Barcelona Centre d'Estudis Olímpics Campus Universitari, Plaça Cívica, Edifici N E-08193 Bellaterra, Spain Phone +34-93-581-1992 © 1986-2010 Ferran Brunet