South Africa wants to host the 2036 Olympics – big questions remain

South African Sports, Arts, and Culture Minister Gayton McKenzie recently announced that the country is officially an “Interested Party” in hosting the 2036 Olympics and Paralympics.

This has sparked great debate, with contrasting views on its economic and social impacts.

Proponents argue that the Games could stimulate economic growth through job creation, urban renewal, and increased tourism.

They also believe that it could elevate South Africa’s global image and foster national unity.

However, critics raise concerns about the risks of overspending, unused infrastructure, and potential reputational damage if expectations are not met.

They also point to South Africa’s past challenges with governance and financial planning for events like these, as evidenced by the country’s failed 2022 Commonwealth Games bid.

Professor Daneel van Lill, Executive Dean at the University of Johannesburg’s (UJ’s) College for Business and Economics spoke to BusinessTech, saying that South Africa definitely could benefit from hosting the Olympics and Paralympics.

However, this would only happen if it approaches the bid with a clear strategy, strong governance, financial prudence, and a focus on creating a lasting legacy for communities.

Economic benefits vs. costs

Van Lill highlighted that hosting the Olympics has the potential to spark economic growth through job creation, urban renewal, and increased tourism, citing successful examples like Barcelona (1992) and London (2012) whose investment in infrastructure had lasting benefits for the cities tourism, economy and society.

However, he pointed to Rio 2016 as a cautionary tale of overspending and underutilised venues, where escalating costs amid Brazil’s economic crisis led to a state of emergency and difficulties in paying public employees.

Despite spending an estimated R429.19 billion, many venues have since been abandoned or underutilised post-Games, unlike successful examples like Barcelona.

“For South Africa, aligning the Games with long-term development goals is key to avoiding these pitfalls,” said van Lill.

The cost of hosting the Olympics is substantial.

In their paper titled Regression to the tail: Why the Olympics blow up, Bent Flyvbjerg, Daniel Lunn and Alexander Budzier outline that the average sports-related costs of hosting the games are around $12 billion (R218.8 billion), but has reached a whopping R526 billion before.

Non-sports-related costs, such as airport infrastructure and hotel upgrades, have not been included in this hefty price tag.

In terms of financing, the Executive Dean stated that if South Africa hosts the event, funding will have to depend on partnerships between governments and private entities.

Key revenue sources include corporate sponsorships, broadcasting rights, streaming platforms, and green bonds.

Clear communication from the Sports Ministry and Local Organising Committee would be vital for garnering support.

Van Lill emphasised the SABC’s important role in promoting the Olympic bid while highlighting its financial struggles, noting that government support and media partnerships are crucial to overcoming these challenges.

Avoiding Olympic debt

“South Africa can avoid financial strain by focusing on multipurpose infrastructure that serves event needs and long-term community use,” said the UJ Executive Dean.

“London 2012’s Olympic Village, now transformed into East Village, is an excellent example,” he added.

What was once temporary athlete housing has been repurposed into a thriving residential neighbourhood with over 2,800 homes, including affordable housing, alongside schools, health centres, and recreational spaces.

Van Lill said that this transformation, part of a broader regeneration plan for East London, addressed housing shortages and boosted the local economy.

Similarly, Barcelona’s 1992 Olympic Village was converted into residential housing and offices, contributing to its waterfront redevelopment, and enhancing its appeal as a global tourist destination.

Sydney 2000’s Olympic Park became a mixed-use hub, integrating residential developments, corporate offices, and sports facilities.

“These successes demonstrate how careful infrastructure planning with a post-event purpose can help avoid the ‘white elephant’ phenomenon,” said van Lill.

However, other cities offer cautionary tales.

Rio 2016’s Olympic Village has been largely abandoned, with poor management and lack of a viable post-event plan, leaving facilities underutilised and in disrepair.

Similarly, Athens 2004’s infrastructure was neglected post-Games, with several venues now in ruin due to insufficient maintenance and a lack of integration with broader urban development goals.

“These failures resulted in significant financial burdens and reputational damage for the host nations, highlighting the critical importance of pre-event planning to ensure long-term viability and community benefits,” said the Professor.

“By learning from successful and unsuccessful examples, South Africa can prioritise multipurpose designs and ensure comprehensive cost-benefit analyses guide decisions, ultimately safeguarding its financial stability and legacy ambitions,” he added.

Should we host and where?

The Professor said that successfully hosting the Olympics can elevate South Africa’s global image, much like the 1995 Rugby World Cup.

However, failure to meet expectations could harm the nation’s reputation.

“Persistent issues like water scarcity in Cape Town, outdated transport networks, and energy instability must be addressed,” said van Lill.

“Durban’s event-hosting experience and Johannesburg’s logistical advantages are promising, but all cities need targeted infrastructure improvements,” he added.

Lessons from past failures

Back in 2017, Durban was stripped of the right to stage the 2022 Commonwealth Games after a trail of missed deadlines and financial problems.

“The failed 2022 Commonwealth Games bid highlighted governance and financial planning issues, including unrealistic budgets and poor coordination between national and local governments,” said van Lill.

He said that if South Africa is to bid, it “must ensure realistic budgets, transparency, and strong public-private partnerships to enhance credibility and success.”

Read: How much it costs to host the Olympics – with South Africa looking to bid