The value of hosting a mega event




The ultimate mega event, the Olympic Games, has the power to turn the entire world’s eyes on a country and city and many argue that hosting a mega event such as this is a catalyst for regeneration and tourism. However, Adam Taylor for the Business Insider refers to the lack of a legacy as the Olympic Curse. In 1992 Barcelona was the host of the Summer Olympics and is one of the few cities that did not suffer from the “Olympic Curse” that Taylor refers to. For the 1992 Olympics, Barcelona created a 2 mile beach front, new roads, and sewage systems and increased their hotel capacity by 300%. When Barcelona was awarded the Olympic Games, the unemployment rate was at an all time high with 127 774 but in July 1992 this had reduced to 60 885, with the Olympic infrastructure creating 20 000 permanent jobs. Taylor also reports that the IOC states that, 20 years after the Olympics Barcelona is now the 12th most popular city destination in the world and the 5th in Europe, this compared to 1990 when Barcelona was the 11th most popular city destination in Europe. Not to mention the sport reputation Barcelona has had which Taylor says “is a direct result of investment in sporting facilities and training before and after the Barcelona Olympics”.

Unfortunately there are very few success stories like the Barcelona Olympics. According to Bladen et al.,(2012) the Beijing Olympics in 2008 came to a total of $40 billion and created six new sporting venues. Gus Lubin at the Business Insider reports that $3 billion were spent on renovations and construction of new stadiums that are now empty and losing money with a third of the stadiums breaking even whilst the rest of them lost $44 million in 2010 alone. Lubin concludes that “it’s starting to look more like Athens than Barcelona”. A member of the SportsEconomist Group blog argued that the Athens Olympic Games in 2004 was a key factor to the Greek financial crisis, saying that “in 2005 Greece suffered an Olympic-sized hangover with GDP growth falling to its lowest level in a decade”. Sophie Jane Evans from the Daily Mail refers to Athens £7 billion Olympic project as “the new ruins of Athens", in the same article Pyrros Dimas said “We simply made the biggest mistake in our history: We switched off, locked up the stadiums, let them fall to pieces, and everything finished there.” Despite this, Spyros Capralos, a senior member of the 2004 organising committee, still argues that the Athens 2004 Games were a success from a non-sporting aspect, contributing to a new airport, roads, metro system and increased tourism. Evans also reports that after the Winter Olympics in Sochi 2014 came to $51 billion, many Western European cities withdrew their bid for the 2022 Winter Olympics. Forcing the question of the value of hosting the Olympic Games?


SimonJenkins from the Guardian, reported that the 2016 Olympic Games in Rio de Janeiro is behind schedule, comparing it’s progress to that of the London 2012 Games, that were 60% complete with two years to go, in contrast to Rio that only has completed 10% of their preparations. Jenkins also criticise the extravaganza that the IOC has become accustom to, in London 2012 they got exclusive limousine lanes outside Harrods, they booked up luxury hotel rooms and then released the unwanted rooms back to the market when it was too late for re-letting. London 2012 was meant to be the “people’s game” and brought in on a low cost budget of $4 billion but was raised to $13 billion to meet the IOC’s requirements of a spectacular show. Jenkins argue that Rio has the opportunity to do what London was meant to, “it could welcome the world to whatever stadiums and arenas are left from the 2007 Pan-American games, and rely on television to reach audiences. It could tailor the Olympics to Rio rather than Rio to the Olympics. The city of carnival would offer a carnival of sport, proving that poor cities as well as rich ones can sometimes stage these mega-events. Do that and instead of being abused for delay and incompetence, this magnificent city would have the world cheering its daring and its guts.


It is time for a change for mega events such as the Olympics. It should be about people coming together, accomplishing greatness within their sport and feeling the support and pride from their fellow countrymen. Instead it has become a regeneration game where the Olympic legacy more often than not is white elephants and a struggling economy. What the Olympics need is a country that is willing to host an Olympic Game similar to that Simon Jenkins suggest for Rio 2016. Because all that is really needed is for one country to set an example of how to deliver a successful Olympic Game within budget and without any white elephants and thereby change the perception of how it could and should be delivered. I have always had a fascination for the Olympic Games and a dream to be part of it, but I as an Event Manager do not want to be part of creating more “Olympic curses” but be part of creating something that is remembered for all the achievements and greatness that came out of it.

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