Does The Olympics Benefit The Economy

Why should countries compete to host expensive ‘mega-events’ like the Olympic Games? How might the Olympics benefit the economy of the host city if there is any benefit at all? After extensive research, I have realized that many studies draw a fine line between wether the Olympics benefit a host city's economy or not. The result of hosting an event such as the Olympics is constantly changing from city to city. Some host cities experience economic benefits in some components of their economy but not others. In this paper I have decided to outline positive economic benefits to host cities of the Olympic Games. Many research papers demonstrate the effects to a host city's economy through "module comparisons", "modelling discrepancy patterns",

Hosting the Olympic Games has proved to positively affect the economy of several cities in many different countries across the globe. Three host cities that have experienced a boost in economy and national attention are the 1984 Los Angeles Olympics, the 1988 Seoul Olympics, and the 2012 London Olympics.

LOS ANGELES To begin, the 1984 Los Angeles Olympic Games were very financially and economically successful as a result of smart infrastructure investment. The Los Angeles Olympic Organizing Committee relied on venues and parks that were already built from when they hosted the 1932 Summer Olympics. Only two new venues were built for the Games, the Olympic Velodrome and the Olympic Swim Stadium, which were largely funded by McDonald's and 7-Eleven. The low construction costs, along with private corporate funding, allowed the L.A. Games to generate more than $200 million USD. This advantage made them one of the most financially successful in history. The Los Angeles Games also earned a large amount of revenue from broadcasting rights and ticket sales. "Broadcast rights to the Olympic Games are sold principally to broadcasters that can guarantee the broadest coverage throughout their respective territories" states

the South Korean government hoped to use the games as a means of show casing their newly industrialized economy. Many venues were installed or renovated as new Olympic infrastructures. Several facilities were built in the Seoul Sports Complex, Olympic Park and outside of the city. The Seoul Sports Complex was used as the main venue of the Asian Games and reused for the Olympic Games in 1988. Although these venues were not as successful as those of the Los Angeles or London Olympics, the facilities continue to be operational through the hosting of other events such as soccer games and concerts in the Olympic Stadium. The Seoul Sports Complex continues to host giant concerts, events, and sporting events. The construction of infrastructure created thousands of jobs for the citizens of Seoul adding to the tremendous economic boost. "In 1950, the country’s GDP was a mere $62. Thirty years later, while trying to pay to host the Olympics, it was about $1,200. Now, after a successful Olympics, last year’s South Korean GDP was $22,000", said Man Lip Choy a UCLA double alumnus on March 14th at the Charles E. Young Research Library. Seoul experienced a 1.40% increase in GDP since the previous quarter. Ultimately, the Seoul Olympic Games earned most of their profit through sale of TV broadcasting rights and marketing. Approximately 160