Faster, higher, stronger? Games and the economy
NEW DELHI : Prime Minister Narendra Modi on Sunday confirmed that India will formally bid for hosting the 2036 Olympic Games. How much does it cost to host the 16-day event and is it worth the effort? Mint evaluates the economic implications of a successful bid. The members of the International Olympic Committee choose the host through a secret ballot where the majority vote gets to be the host.
There are 99 members in the Olympics committee today and each active member gets a vote but honorary, suspended and those in the fray do not get to vote. Typically, winners are decided 7-8 years before the event and there is frantic lobbying before the elections. Therefore, getting a chance to host the Olympics is both a matter of money power and diplomatic heft.
The next three editions will be held in Paris next year, Los Angeles in 2028 and Brisbane in 2032. Bidding for the biggest sports show on Earth is an expensive proposition. Countries spend $50-100 million—for even unsuccessful bids—which inflates to billions of dollars in preparing for the event in case of a successful bid.
Tokyo spent $150 million for its failed 2016 bid and half as much again for its successful 2020 bid. Toronto decided not to bid as it could not afford the $60 million it needed for the 2024 bid. The cost of hosting the event, which includes building stadiums and beefing up infrastructure for the influx of athletes and tourists, has jumped significantly since the Atlanta Games in 1996.
Most of the expense is on infrastructure and is borne by the local government. It is spread over the years in the country’s budget. Countries mostly borrow to fund cost overruns.
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