Non-sports-related costs, such as airport infrastructure and hotel upgrades, have not been included in this hefty price tag and are typically several times the above (and below) mentioned number.<\/p>\n\n\n\n
Most expensive games<\/strong><\/p>\n\n\n\n According to The Oxford Olympics Study 2024: Are Cost and Cost Overrun at the Games Coming Down?<\/a> by Alexander Budzier, the estimated sports-related costs of hosting the Olympics vary but have reached a whopping<\/span> R526 billion before.<\/p>\n\n\n The Rio 2016 Summer Games were the most expensive, costing $23.6 billion (R429.41 billion), followed by London 2012 at $16.8 billion (R305.68 billion). <\/p>\n\n\n\n Budzier highlights that Tokyo 2020\/21 officially cost $13.7 billion (R249.28 billion), but there significant budget exclusions. Including additional costs like land and Tokyo’s budget, the Tokyo Games could range from $19.2 billion (R349.35 billion) to $33.4 billion (R607.72 billion).<\/p>\n\n\n\n For the Winter Games, Sochi 2014 topped the list at $28.9 billion (R525.84 billion), followed by Beijing 2022 at $8.7 billion (R158.30 billion).<\/p>\n\n\n\n Every Olympics from 1960 to 2020 (data not yet available for Paris 2024) has run over budget, at an average of 172% in real terms \u2013 the highest overrun on record for any type of megaproject, according to the paper.<\/p>\n\n\n\n All of these figures most often exclude the substantial indirect costs for urban and transportation infrastructure, raising questions about the true cost of hosting the Games.<\/p>\n\n\n\n The successes and failures<\/strong><\/p>\n\n\n\n Professor of Economic History at Stellenbosch University, Johan Fourie, wrote<\/a> that scholars have identified four main reasons why cities volunteer to host the Olympics.<\/p>\n\n\n\n This includes:<\/p>\n\n\n\n However, “there is little evidence to support these claims,” said Fourie.<\/p>\n\n\n\n “The truth is that mega-events are largely underwhelming: they are mostly just a good night out that often leaves cities with a headache rather than a heritage” due to their hefty price tag, he added.<\/p>\n\n\n\n While there are possibilities of cities earning a handsome amount of revenue, hosting the Games has proven to hurt some.<\/p>\n\n\n\n “The economic burden of hosting the Olympics has become a significant deterrent \u2013 the costs associated with preparing for and hosting the Games are staggering,” said Shammi Rana, secretary-general of the International Council of Traditional Sports and Games.<\/p>\n\n\n\n “This financial strain is compounded by the fact that many of the anticipated economic benefits, such as increased tourism and international recognition, often fail to materialise,” said Ranaq.<\/p>\n\n\n\n However, Ranaq said that “instead, cities are [often] left with expensive, underutilised venues \u2013 these ‘white elephant’ stadiums, built for the grandeur of a few weeks, often find no purpose post-Games, leaving taxpayers to bear the financial burden for years.” <\/p>\n\n\n\n Prevalent examples of cities which incurred hefty blows as a result of hosting the Olympics include Athens (Greece), Montreal (Canada) and Rio (Brazil).<\/p>\n\n\n\n \u201cThe Cost overrun and associated debt from the Athens 2004 Games weakened the Greek economy and contributed to the country\u2019s deep financial and economic crises,\u201d said Flyvbjerg, Budzier, and Lunn.<\/p>\n\n\n\n \u201cSimilarly, in June 2016 \u2013 less than two months before the Rio 2016 opening ceremony \u2013 Rio de Janeiro\u2019s governor declared a state of emergency to secure additional funding for the Games.”<\/p>\n\n\n\n “When Rio decided to bid for the Olympics, the Brazilian economy was doing well. Now, almost a decade later, costs were escalating, and the country was in its worst economic crisis since the 1930s, with negative growth and a lack of funds to cover costs,\u201d added the researchers.<\/p>\n\n\n\n In Montreal in 1976, the Games totalled CA$606 million in revenue, CA$383 million in operating expenses (hosting the Games), and CA$1.21 billion in capital expenditures\u2014720% over budget.<\/p>\n\n\n\n This left the country with a deficit of CA$ 922 million. Canada\u2019s subsequent 30 years of debt repayments incurred as a result of the Games was enough to discourage other cities from bidding so liberally.<\/p>\n\n\n\n However, the Games are not always accompanied by a bleak legacy. <\/p>\n\n\n\n In 1984, the Los Angeles Olympics were held using almost entirely preexisting infrastructure. That year, the Games made a US$215 million profit<\/a>.<\/p>\n\n\n\n![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/07\/Summer-Games-1024x576.jpg\")
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