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Essays on economic impact of the olympics
Economic and social impacts of the Olympics
Economic and social impacts of the Olympics
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The Economic Impact of the Olympic Games
Missing Graphs
With the Olympic games being held in Sydney this year, I wondered if perhaps the performance of the economy was being affected in part by the fiscal stimulus provided by Olympic construction in Sydney and other parts of the country. Australia’s economy has been performing well recently, suggesting that there might be some effect. Over the last five years, growth in Australia’s gross domestic product has averaged 4.35%, almost a full point above it’s thirty year annual average of 3.5%, and the unemployment rate is near a ten year low. According to one estimate, the Olympics will tack on an additional six and a half billion dollars, about 1.6% of the GDP, to Australia’s GDP over the 1994-2000 period. A natural question to ask is if this growth is due primarily to the Olympic preparation, or if, instead, it is a result of some other change in policy, or perhaps just plain old luck.
One way to address this question is to see if other host countries have experienced increases in GDP around Olympic years. Below is a graph of one measure of the boost to GDP that countries receive from hosting the Olympics. Each point represents the average, over all of the host countries since 1952, rate of growth of GDP. What this graph suggests is that prior to the Olympics and during the Olympic year GDP growth is higher than average - maxing out at nearly 1.5% above average GDP in the 3rd year before the Olympics. This number seems consistent with the estimates for Sydney - at least prior to the Olympic year. However, the graph also suggests that growth rates are lower in the years after the Olympics, than in the years prior to the games.
The economic benefits of the 2000 Olympics can be classified as direct and indirect. Direct benefits include the impact of the Olympics on exports, investment and employment. In terms of exports, the main impact will be inbound tourism, sponsorship fees, media broadcast rights, and ticket sales. The staging of the Olympics will encourage more international tourists to visit Australia. Sponsorship fees received from international sources were strong leading up to the Olympics and according to the Reserve Bank of Australia (RBA), broadcast rights, approximately one billion dollars in value, were recorded as exports in September quarter 2000. Ticket sale sold to overseas visitors,...
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...tself. Importantly, the benefits will continue well into the new millennium as Australia gets more international exposure for its exports and gains from the transfer of technology and knowledge from the world’s best. Opportunity beckons for the athletes, for exporters, for artists, for scientists and for the whole Australian community.
Bibliography
Arthur Anderson / CREA (1999) “Economic Impact Study of the Sydney 2000 Olympic
Games”. January 1999. Arthur Anderson and the Centre for Regional Economic
Analysis, University of Tasmania.
Dabkowski, S and Ketchell, M (1999) “Olympic Dream May Not Deliver Riches.” The
Melbourne Age.
Gittins R (1999) “Swifter! Higher! Richer? Sadly Not With Our Games.” May 8 1999,
Sydney Morning Herald.
Mules,T “The Economic Impact of Special Events .” Griffith University, Gold Coast
Queensland.
Olympic Co-ordination Authortiy (OCA) (1999) “State of Play: A Report to the People
of New South Wales” June 1999, OCA, Sydney.
Reserve Bank of Australia (1999) “The Economic Effects of Staging the Olympic
Games” Semi-Annual Statement of Monetary Policy, May 1999, Reserve Bank,
Sydney.
When we see an economic downturn many of the different industries are affected in different ways depending upon their demand. The industry which always seems to be affected first and the last to recover is the construction industry. The construction industry is one of the largest sectors of the UK’s economy. It contributes around £90billion which is 6.7% of the total and 2.9 million people are employed within the construction sector. (HM Government, 2013) (Barawas and Fleetwood et al., 2013) This contribution is measured by the Gross Value Added (GVA), here below is a table to represent the contribution the construction industries GVA (for 2012 prices) and its % of economy.
A strong year in 2000 was followed by an average of .6% growth rate from 2001-2005. Germany was affected by the world’s economic status, which caused a drop in German exports. Since exports are one of the largest contributors to Germany’s GDP, it caused the their economy to slow. In addition to the world’s economic status, they were also affected by the “appreciating euro and sagging domestic investment” (Marketline).
We shall start with the positive externality. Hosting the Olympics in Boston would bring benefit to the construction crews in Boston. The Olympics is an international event that attracts immense amount of visitors. In 20012, the London Olympics has attracted 680,000 over sea visitors1. Since these visitors are from oversea, they will require temporary residence for their stay in Boston. Thus leading to an increase in need of Hotels and Restaurants. Apart from the stay, setting up temporary
The Reasons Behind the Increasing Commercialism of the Olympic Games The Olympic Games is a world wide event, held once every 4 years. It is the most important event amongst the elite athletes of today. It is viewed on television by billions of people across the world, by satellite transmission (started in Tokyo in 1964). This worldwide viewing attracted sponsors as they realised that by supporting the Olympics their product would be advertised on every product sold, as they would be the 'official sponsor'. The advances in technology has played a fundamental role in the increase in commercialism, as large sums of money are put forwards for television rights over the Games from companies such as Sky, the BBC and ABC.
Close, Paul, David Askew, and Xin Xu. The Beijing Olympics the Political Economy of a Sporting Mega-event.. Hoboken: Taylor & Francis, 2006.. 34-35
I have elaborated elsewhere* my view that hosting the Olympics is a mug’s game, and the fact that cities all over the world vie with each other to volunteer for the self-sacrificial role of host is just another example of the tragic human tendency to be guided by hope over experience. In London’s case the only tangible gains for the billions spent are a pleasant enough public park in Stratford E and a stadium so surplus to any meaningful requirement that the government has been reduced to letting West Ham play around in it. The intangible effect, which is far from being a gain, is the perception that the British public is utterly enthralled by
This economic growth continued to increase through ‘98 and ‘99, partly being attributed to the weakening Australian dollar that allowed for the opening up and increasing market shares held by Australian exports on world markets. This was the case, as the reduction in the Australian dollar’s value, triggered decreases in the prices of our exports for foreign buyers, thereby increasing demand for our products and increasing the amount of money and investments coming into Australia. This therefore resulting in the aforementioned increases economic growth when combined with the high levels of employment and consumer confidence.
Australia has had one of the most outstanding economies of the world in recent years - competitive, open and vibrant. The nation’s high economic performance stems from effective economic management and ongoing structural reform. Australia has a competitive and dynamic private sector and a skilled, flexible workforce. It also has a comprehensive economic policy framework in place. The economy is globally competitive and remains an attractive destination for investment. Australia has a sound, stable and modern institutional structure that provides certainty to businesses. For long time, Australia is a stable democratic country with strong growth, low inflation and low interest rate.(Ning)
The Olympic Games are held every four years with the main intent to “promote people’s physical and psychological level, likewise to promote different country’s people, have more communication and to help maintaining world peace” (official website of Olympic movement). However, there are many risks in hosting the Olympic Games, for example the effects of an economic downturn after the closure of a host country’s
...llion, various factors caused the budget to expand to over $51 billion, surpassing the estimated $44 billion cost of the 2008 Summer Olympics in Beijing which was the most expensive Olympics in history.
"Money makes the world go 'round." Sports could not exist without the presence of money. You have high paid athletes asking for multi-million dollar contacts, while at the same time you have doctors not even making close to that amount. There are corporations buying out sports teams, buying stadiums, and buying everything that has to do with sports. Someone may ask why they do this. Sports are one of the most profitable industries in the world. Everyone wants to get their hand on a piece of the action. Those individuals and industries that spend hundreds of millions of dollars on these sports teams are hoping to make a profit, but it may be an indirect profit. It could be a profit for the sports club, or it could be a promotion for another organization (i.e. Rupert Murdoch, FOX). The economics involved with sports has drastically changed over the last ten years. In the United States, we spend about 13% of all money on sports and entertainment. Sports has obviously done its job; entertained and drained money out of our pockets.
Every two years the Olympic Games take place on the world’s stage. People are mesmerized as they cheer on their home team. Whether it be the summer or winter games, for two weeks, biannually, people are inundated with the games. But, many may fail to realize the competition and game behind the Games. This is the never ceasing game of the bidding process and subsequent creation and construction of new Olympic venues as newly selected host cities prepare for their opportunity to host the Olympics. But this little known game has only a few select winners, and their prize is not a medal, rather it is huge financial gains. The losers are many, and they are the most vulnerable inhabitants of the city, the poor; they are not simply losing out on a medal, they are losing their homes.
In conclusion, either way you look at it the Olympics has its pros and cons when it comes around. Having the Olympics move each year has not really been considered a problem till recent years. Many people want to stick with the tradition and allow other countries host the Olympics, but other want it to remain in one permanent spot. Either way you go we will still have the pleasure having seeing the best athletes in the world compete against each other and represent their
The greatest athletes of all time have their names set in stone. Every year a new star comes out of the shadows and becomes the focus of global interest. Nations back their athletes financially to ensure they receive a medal. Winning gold in the Olympics Games is seen as the highest honor an athlete can achieve because of its prestigious image. The Olympics have not always been about the athletes. Nations competing have been victims of political scandals. When one country goes against another country, some people do not only view it as a fight for gold, but as a war amongst nations. Soccer fields have become battlegrounds and players, soldiers. Swimming pools turn into bloodbaths, and tennis court nets as do territorial partitions. Since the early 1900s, governments have used the Olympics to prove that their nation is superior by spending more on athletic ability, more on Olympic stadiums, and more on defeating their rivals. At times, athletes can be pushed so far that they collapse under the pressure of chasing for gold. All of the above will be discoursed from a financial, political, and historical point of view.
The World Expo is being held for the first time in the Middle East and North Africa & South Asia region, which definitely brings joy and happiness to all of us. Not only is the Expo the third largest global event after the Olympic games and the FIFA World Cup but also does it act as an economical catalyst, which will create economical just like financial benefits during the run up of the event and even after.