Cost of the Olympic Games

The Olympic Games, considered to be the world's foremost international sporting event with over 200 nations participating,[1] has historically had the highest costs and expenses for the hosts, with the estimated cost of the 2016 Summer Games in Rio de Janeiro being at approximately US$11.1 billion.[2]

Sports-related costs for the Summer Games since 1960 is on average US$5.2 billion and for the Winter Games $393.1 million dollars. The highest recorded total cost was the 2014 Sochi Winter Olympics, costing approximately US$55 billion. The 2016 Rio de Janeiro Summer Games experienced the biggest loss recorded at approximately US$2 billion.[3]

CostsEdit

The current highest cost of hosting the Olympic Games was the 2016 Rio de Janeiro Summer Games, costing approximately US$11.1 billion. In order to meet the requirements set out by the International Olympic Committee (IOC)[4] The Rio de Janeiro council had to invest heavily in building the necessary facilities/venues, and an entirely new subway line. The lack of a solid infrastructure to support these investments led to the council underestimating their costs by 25%.[5]

The costs of hosting the Olympic Games can be classified into 2 categories; infrastructure and operational costs.

InfrastructureEdit

General infrastructureEdit

The costs of general infrastructure consist of preparing the necessary infrastructure to accommodate the influx of tourists and athletes in the host city. The International Olympic Committee requires a minimum of 40,000 hotel rooms available for visiting spectators and an Olympic Village that is able to house 15,000 athletes as well as referees and officials.

Internal and external transportation facilities that can transport spectators into and out of the host city as well as from venue to venue are also required by the Committee. These requirements are often met through renovations to already-built facilities or construction of entirely new facilities. These facilities include train/subway lines, roads, airports

Sports infrastructureEdit

The host city is also required by the Committee to invest in sport-specific infrastructure that meets their requirements. Facilities must reach the specific seating and safety protocols set by the Olympic Committee, often requiring refurbishments in order to do so, particularly less-used facilities such as natatoriums and velodromes.

Operating costsEdit

Once the necessary infrastructure is put in place, the Olympics require a large amount of spending on operating costs throughout the duration of the Games. Historically, the most significant operating costs for the hosts have been event management, organization and preparation of the opening and closing ceremonies and increasingly in recent years, security.

TableEdit

The table below lists the costs of hosting the Olympic Games. Due to the multitude of reporting methods, the table contains both the operating costs and total final costs (which include various infrastructure upgrades and security costs), as well as both known and not estimated figures. Net loss or gain are measured against the operating budgets. Intangible costs (such as to the environment and society) and benefits (through tourism) are not included here.

Host City Year Final Operating
Budget
Total Costs Taxpayer Contribution Profit/Loss Year Debt Paid Off Notes
 Athens Summer Olympics 1896 3,740,000 [6] Donations by George Averoff of 1,000,000 ₯ covered potential losses
  Paris Summer Olympics 1900
  St. Louis Summer Olympics 1904
  London Summer Olympics 1908 US$394,000 est.[6]   £6,377
  Stockholm Summer Olympics 1912
  Antwerp Summer Olympics 1920
 Chamonix Winter Olympics 1924 3,500,000₣ 2,000,000₣
 Paris Summer Olympics 1924   5,496,610₣[6]
 St. Moritz Winter Olympics 1928 CHF706,000   CHF104,800
 Amsterdam Summer Olympics 1928 $1,183,000[6]   $18,000
  Lake Placid Winter Olympics 1932
  Los Angeles Summer Olympics 1932   $1,000,000[6]
  Garmisch-Partenkirchen Winter Olympics 1936
 Berlin Summer Olympics 1936 $30,000,000[6]
  St. Moritz Winter Olympics 1948
  London Summer Olympics 1948 £761,688[7]   £29,000[6]
  Oslo Winter Olympics 1952
  Helsinki Summer Olympics 1952 1,580,000,000 mk[6]   49,000,000 mk
  Cortina Winter Olympics 1956 lira 460 million
  Melbourne Summer Olympics 1956 A£5,400,000[7]  A£300,000[6]
  Squaw Valley Winter Olympics 1960 US$80 million[8]
  Rome Summer Olympics 1960
  Innsbruck Winter Olympics 1964
  Tokyo Summer Olympics 1964 US$72,000,000[7] US$1,926,000,000[6]
  Grenoble Winter Olympics 1968
  Mexico City Summer Olympics 1968 US$176,000,000[7]
  Sapporo Winter Olympics 1972
 Munich Summer Olympics 1972 1,972,000,000 DM[6]
  Innsbruck Winter Olympics 1976
  Montreal Summer Olympics 1976 CDN$207,000,000[9] CDN$1,410,000,000[9]   CDN$990,000[9] 2006 A special tobacco tax was introduced in May 1976 to fund the loss
  Lake Placid Winter Olympics 1980 US$49,000,000[10] US$169,000,000[10]
  Moscow Summer Olympics 1980 US$231,000,000[11] US$1,350,000,000[11]
US$2,000,000,000[6]
  US$1,190,000 deficit[citation needed] This was the year that The United States and 64 other Nations boycotted due to the Soviet invasion of Afghanistan.
  Sarajevo Winter Olympics 1984 US$55,400,000[12] US$110,900,000[12]   US$10,000,000 [12] The first Olympics since 1948 to make a profit
  Los Angeles Summer Olympics 1984 US$320,000,000[13] US$413,000,000[13] $75,000,000[14][15]   US$250,000,000[16] 1984 The first Summer Olympics since 1932 to make a profit[15]
  Calgary Winter Olympics 1988 CDN$438,000,000[17] CDN$899,000,000[17] CDN$425,000,000[17]  CDN$32,000,000[17] 1988
  Seoul Summer Olympics 1988 US$4,000,000,000[citation needed]   US$300,000,000[16] 1988 A record profit for a government-run Olympiad[citation needed]
  Barcelona Summer Olympics 1992 US$850,000,000[citation needed] US$9,300,000,000[18]   US$10,000,000[16] 1992 Operating costs were put at 9.1% of the total cost. The vast majority of spending was to improve infrastructure.[19]
  Albertville Winter Olympics 1992 US$1,200,000,000 on infrastructure[20]   US$67,000,000[20]
  Lillehammer Winter Olympics 1994 US$1,100,000,000[21][22] US$250,000,000[21][22]
  Atlanta Summer Olympics 1996 US$1,800,000,000[citation needed] US$609,000,000[14]   US$19,000,000[citation needed] 1996 Following the model of LA 1984, Atlanta achieved a healthy profit
  Nagano Winter Olympics 1998 ~US$10,000,000,000 in new infrastructure[23]   Net loss[citation needed] Estimated 2015[23] The full cost of the Nagano Olympics is unknown, due to Nagano Olympic Bid Committee vice-secretary general Sumikazu Yamaguchi ordering accounting documents burned[23]
  Sydney Summer Olympics 2000 A$6,600,000,000 [24][25] A$3,000,000,000 (A$3,635,000,000 borne by the public)[citation needed] A$2,050,000,000[26]   US$2.1 billion [27] 2000
  Salt Lake City Winter Olympics 2002 US$2,000,000,000 [28] US$1,200,000,000 [29] US$600,000,000[30]   US$101,000,000[31] 2002 Additional security costs were incurred in the wake of the September 11 attacks
  Athens Summer Olympics 2004 US$15,000,000,000[32] US$9,000,000,000[33] US$6,200,000,000[34]   US$14,500,000[35] The cost of the 2004 Athens Summer Games has been cited as a contributor to the Greek government-debt crisis. Many of the venues lie vacant and rotting; the Independent newspaper reports as many as 21 out of 22 are unused.[36]
  Turin Winter Olympics 2006 US$700,000,000[37]   US$3,200,000[38] The Italian government created a lottery game to cover its financial losses.[citation needed]
  Beijing Summer Olympics 2008 US$44,000,000,000[39]   CNY 1,000,000,000 (US$146,000,000)[40] 2008
  Vancouver Winter Olympics 2010 CDN$ 1,700,000,000 (US$1,260,000,000)[41] US$ 6,400,000,000[42] US$ 2,300,000,000[43]  CDN$ 1,900,000[44]
2014 [45] Included in the total US$6,400,000,000 cost are the $1,000,000,000 for security, $2,500,000,000 for transportation extensions and upgrades, and $900,000,000 for the new Vancouver Convention Centre (An additional $554,000,000 was spent by the city including a portion on the Olympic Village).[42][46][47]
  London Summer Olympics 2012 US$10,400,000,000[48] US$14,600,000,000[49] US$4,400,000,000[50] GBP £nil[51] 2012 Additional costs include $90 million for converting the Olympic Stadium (London) to a football venue[52]
  Sochi Winter Olympics 2014 US$51,000,000,000[53]   US$53,150,000[54] The most expensive Olympic Games in history, surpassing the previous record set by the 2008 Beijing Summer Olympic Games.[55]
  Rio de Janeiro Summer Olympics 2016 US$13,100,000,000 [56][57] US$11.6 billion [58][59]   US$2.0 billion [60]
  Pyeongchang Winter Olympics 2018 US$12,900,000,000[61]   US$55,000,000[62]
  Tokyo Summer Olympics 2021 US$15,400,000,000 [63] US$28,000,000,000 [64]
  Beijing Winter Olympics 2022 US$3.9 billion[65]
  Paris Summer Olympics 2024
  Milano Cortina Winter Olympics 2026
  Los Angeles Summer Olympics 2028
  Brisbane Summer Olympics 2032

See alsoEdit

ReferencesEdit

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External linksEdit