Sumary of Are the Olympic games a bad deal for host cities?:
- Jul 22nd 2021TOKYOSILENCE FILLS the official merchandise shop in Tokyo’s Aqua City mall, just steps from the Olympic village.
- But the pandemic means that the games, which are due to open on July 23rd, will proceed with little fanfare.
- The outlook for the wider gains from the Olympics is similarly gloomy—but covid-19 is only partly to blame.
- Economists have long argued that, rather than consumption, tourism and prestige, the games leave high debt, wasteful infrastructure and onerous maintenance obligations.
- In a 2016 paper Victor Matheson and Robert Baade, two American academics, concluded that “in most cases the Olympics are a money-losing proposition for host cities.
- ” The games this year offer plenty more grist for the sceptics’ mill.
- Calculating the economic impact of mega-events like the Olympics can be tricky.
- Organisers and critics argue over which costs are actually incurred by the games, and which are investments cities would have undertaken anyway.