Elizabeth Morgan | The Olympic Games: Gaining economic benefits

The 33rd summer Olympic Games in Paris, Francis, have ended after 19 days of striving for the best. 206 countries and territories participated as well as the refugee team.

It is reported that 9.5 million of the 10 million tickets were sold. So, lots of visitors from within and outside of France came to see competition in 32 sports (48 disciplines) at the various venues in Paris as well as other parts of France.

Billions of people across the word followed the Games on television and through other media sources via the internet.

The four-yearly modern Olympics were revived by Frenchman, Baron Pierre de Coubertin, in 1896 and was then held in Athens, Greece, where the Games originated. Paris had last hosted the Games in 1924, 100 years ago.

The economic value of the Olympic Games, like other major sporting events, such as the Football (FIFA) World Cup, has been debated for years. In November 2022, I wrote about the Football World Cup and International Trade. In that article, I had suggested that as “Part of the WTO/FIFA collaboration, including the International Olympic Committee (IOC), World Athletics, Commonwealth Games Federation, and the International Cricket Council, could be a comprehensive study to determine to what extent small countries, like those in CARICOM, have actually benefited economically or could benefit more from their involvement in international sports competitions as participants and hosts”.

With 32 sports and more being added, it is doubtful that any CARICOM or Small Island Developing States (SIDS) could host the Olympics. Recently, the Caribbean countries did collaborate with the USA to host the T20 Cricket World Cup, a much smaller sporting event. The Olympics now seems out of reach even in collaboration with other countries.

In fact, given the costs and size of the Olympic Games, it is being suggested that they should be limited to only a few cities, with existing infrastructure, hosting them or they should be permanently sited by the IOC in Athens, Greece.

The only cities in developing countries or emerging countries of the South to have hosted the summer Olympic Games are Mexico City, Mexico, in 1968; Seoul, South Korea, in 1988; Beijing, China, in 2008; and Rio de Janeiro, Brazil, in 2016. It seems that Cairo, Egypt, is planning to again bid for the 2036 and 2040 summer Olympic Games.

ECONOMIC BENEFITS FOR HOSTS

Countries and cities continue bidding to host these major sporting events because it seems to be still felt that there are economic benefits to be gained from hosting.

There are cities, it is reported, which have benefited from the Olympics and have made a profit. These include Los Angeles (1984) and Barcelona (1992).

Some cities have had mixed results as they have benefited from infrastructure development and upgrade, including use of technology, and increased trade in goods and services, particularly in tourism. However, a serious concern has been massive cost overruns for construction and security, and white elephant sporting venues.

The IOC now has guidelines for the host cities which state that the hosting proposals must be in line with the goals of the Olympic Committee and the country’s long-term development goals and plans. Sustainability and the legacy to be reaped for the future must be part of the bidding proposal. Note that the IOC does support the Games in cash and kind.

Now the host country should ensure that buildings constructed will be used in the future or only temporary structures will be erected.

It seems that Paris endeavoured to implement these guidelines by hosting a green Olympics which included reducing the carbon footprint by using alternative cooling systems; cleaning up the Seine River in which swimming had been banned for 100 years; improving transportation infrastructure; rehabilitating Paris suburbs used for the Athletes Village; constructing temporary venues; and utilising technology.

It seems Paris spent about US$8.2 billion on the Olympics, less than previous host cities. It will take a while to determine how economically successful Paris has been in hosting this 33rd Olympics.

ECONOMIC BENEFITS FOR PARTICIPANTS

We can see the general benefit for the athletes, 15,000 of them, who participated in these Games – win or lose, they are Olympians for life and had the pride of representing their countries and themselves.

For those who have won medals, there are financial benefits that come with these medals, especially gold in track and field. If they reach the finals, they are among the eight or 12 best in the world in their sport. Doors are opened to them to participate in other sporting events with prize money and for the possibility of sponsorship.

The countries they represent also get recognition. The countries are visible in the parade of athletes, at the events, and certainly, if they win medals, their flags are raised and national anthems played for a gold medal. Countries, such as St Lucia and Dominica, winning a medal, and gold, for the first time ever, have the international spotlight turned on them.

Jamaica’s colours, black, green and gold, are well recognised, as the country has made its mark at the Olympics for many years, including the sensation of Jamaica’s bobsled team in the winter Olympics. At this Paris Olympics, the Jamaican flag was present in the stands and on the podium as Jamaican athletes in track and field won six medals. Jamaicans were also in several finals.

JAMAICA HOUSE

From August 3-8 and 11, the Jamaica Tourist Board, with Jamaican commercial sponsors, hosted Jamaica House in the area of the Olympic Athletes Village and showcased the country’s food, music, accommodation, and products. So, the opportunity was taken to engage in some business activities. This opens the door to further economic benefits accruing to the country.

So, while we may not be able to host the games, which does have its economic pros and cons, a country like Jamaica can derive economic benefits from showcasing our athletes. Jamaican athletes should be able to participate not just in track and field, but also in other sports like swimming, cycling, and boxing.

Small countries should be able to derive economic benefits from mega-sporting events, such as the Olympics. Of course, it requires investments at the national level in the athletes and the domestic facilities, and the support of the international organisations.

For health and character-building, a real legacy of the Olympics and other sporting events should be that our youth are encouraged to be more actively involved in sports.

Elizabeth Morgan is a specialist in international trade policy and international politics. Email feedback to columns@gleanerjm.com