The document discusses the economics of hosting the Olympic Games. It outlines the economic benefits and costs during the pre-games, games, and post-games phases. Some benefits include tourism revenue, infrastructure development, and promoting the host city. However, there are also significant costs of hosting such as construction, security, and opportunity costs of displaced projects. Overall, the Games can have long-term economic legacies for the host city if planned and financed strategically.

1. OLYMPICS AND
ECONOMICS
Muhammad Hamizan bin Zaini
2008253478

2. Olympics : A History
Olympic games is a major international event
which features summer and winter sports.
The ancient Olympic games were held in Olympia,
Greece, from the 8th century B.C to the 4th century
A.D
The evolution of the Olympic games had resulted
in several changes to the Olympic Games. Some
includes the creation of Winter Games, Paralympic
Games, and Youth Olympic Games.

3. Introduction
 The Olympic Games is an event of such magnitude that it can potentially
have a
significant economic impact on the host city.
 Preparations are made commence up to a decade beforehand and may
entail considerable investment expenditures that can have longer term
economic significance.

4. Are the Olympics Worth It?
Yes, because economically its Companies and governments
mixed bags. look at these games now more
from a promotional element
than economic
The long term legacy aspects
Promoting the feel good vibe of
which define these aspects, in
the city and hoping to get some
particular, affect the citizens of
public works projects done
a host city for years go come.

5. Economic Stages in the
Olympics
Pre-Games Phase Post-Games Phase
Games Phase

6. Key Economics Benefits and Costs of the
Games
Benefits Costs
Pre-Games Phase •Tourism •Investment expenditure
•Construction activities •Preparatory operational
cost
Games Phase •Revenues from games •Operational expenditure
(TV rights) •Lost benefits from
•Stadium and infrastructure displaced
projects
Post-Game Phase •Human capital •Maintenance of stadium
•Urban regeneration

7. Identifying the economic impacts of the Olympic
Games
Pre- Games Impact
 Impacts start to occur soon after the city has decided to bid for the Games,
up to a decade prior to the actual event, but become more significant after
the Games is awarded.
 Investments and other preparatory activities related to the Games.
 Tourism could also start to pick up in advance in some cases due to the
higher
profile of the host city.

8. Games Impact
 The impact of the Games and the associated events immediately
surrounding them.
Post-Games Impact
 The longer-term impact, often referred to as the
“Olympic legacy”.
 Can last for at least a decade after the Games.

9. Demand Side Benefits of the Olympic Games
 Tourism is the only activity whose impact can be seen in
all 3 stages
 Olympic games provide unique events that attracts
visitors from all over the world
 The latter effect can sustain increment in tourism flows
for several years after the event

10. Direct Cost of the Games
 Operating costs of hosting the Games itself
 Construction of necessary Olympics infrastructure
 Rent could also be affected indirectly if housing projects
are displaced by other building projects

11. Supply side Benefits
 Increase productivity. Example: Improving transport facilities.
 Creation of enhancement of sports facilities.
 Provide working opportunities for residents.
 Make city a more attractive place to live.

12. Financing the Olympic Games
 Olympics were financed almost entirely with the city‟s own public
funds.
 A considerable amount spent on improving infrastructure and sports
facilities in a relatively small area of the city.
 Public financing was first introduced when Los Angeles hosted the
„84 Olympics.
 Increasing attention was focused on the wider economic impacts of
the Games.
 Benefits stretching beyond the financial viability of the event itself.

13. Factors Affecting Total Medal Awarded
■ Population
■ Average income levels (measured by GDP per capita at PPP
exchange rates)
■ Whether the country was previously part of the former Soviet bloc
(including Cuba in this case)
■ Whether the country is the host nation
■ Medal shares in the previous Olympic Games.

14. How Olympics will help London’s Economy
 London 2012 Olympic Games will cost between $9 to $24 billion
dollars with $9.3 billion being covered by the Olympics‟ public sector
funding – which covers the cost of aspects such as building venues,
security and policing.
 The Games are drawing people to London from all over the world,
from spectators to athletes and coaches, family members to worldly
dignitaries.
 Supporting the local businesses and their employees that in return
helps the economy.

15.  People pay to come and watch events as well as purchase
merchandise and food at the venues
 Creates this whole atmosphere of pride and happiness for the host
country.
 Gives a platform for inspiration and pride.

16. Marketing strategies in funding the Olympics
McDonalds inside the Olympic stadium.

17. Advertisements in investing funds to the Olympics

18. Olympics Logo

19. London 2012

20. Conclusion
The Olympic Games have significantly boost major economical
aspects such as building more infrastructure projects which could
benefit the host country in generating profits out of the events.
Furthermore, it also provide more job opportunities for the citizens.
This subsequently will provide a better return on investment due to
the presence of the Games
Thus, the Olympic Games could be considered profitable if it is
planned and structured strategically to the economic condition of a
certain country. All aspects must be analyzed thoroughly to
minimize any types of loss due to the Games held.