The Tokyo Olympic Games ended on August 8, 2021. It is estimated to have cost USD28b. That’s a far cry from USD7.3b forecasted in 2013 when Tokyo originally submitted its bid. What was the cost to the hosts for the other Olympics?
Tokyo has definitely won the gold medal for its massive cost (shown above) while Sochi (Russia) took the silver and London won the bronze. Many cities have learned the harsh economic lessons from hosting the Games. Many residents in cities hoping to host have rejected the Games based on its cost, e.g. Hamburg. Many others have learned it the hard way. According to research conducted by the University of Oxford in 2016, cost overruns have consistently been over 100%. “No other megaproject is this consistent regarding cost overrun. Other project types are typically on budget from time to time, but not the Olympics”.
Opposition to the Tokyo Olympics was consistent throughout the year. Toyota, one of the main sponsors, pulled-out of running Olympic related TV ads in Japan because of the polarised situation. In a Covid environment, revenue was low as ticket sales were almost nil. Empty stadiums were the norm. Projected revenue of USD6.7b was still far below cost. Visitors or tourists were expected to contribute another USD2b in meals, transportation, hotels and merchandise, which never happened.
Then there were sports, that some may consider as totally alien to the Olympics – golf, baseball, skateboarding, surfing, artistic swimming, beach volleyball, BMX freestyle, BMX racing, mountain bike, rugby, sport climbing, trampoline, kayak flatwater and 3x3 basketball. Have you heard the ancient Greeks doing any of the above? They would have been traumatised, especially on BMX racing and trampoline. Otherwise, Alexander could have skateboarded to India, if he knew it existed.
Then you have “funny” teams like the Refugee Olympic Team. These are athletes who could still compete even though they were forced to leave their home countries. In Tokyo, there were 29 of them. And what about the ROC? That is not a rock band! It stands for Russian Olympic Committee. Never has a committee competed in some Games! Committees usually sit around a table and produce a report. But not this one. There were 335 Russian athletes under ROC designation, because of an international doping scandal in 2019. Should they be there?
What can we learn? You need to be rich to run the Olympics. Cost overruns are part of the game. “Funny” sports and “Funny” teams can make it while other games like squash are left out.
But seriously, the Olympics must return to its original, ancient set of sports – probably only track and field. All other sports are for another “Games” not the Olympics. If the Olympics were limited to its original sports then more nations could bid to be hosts – including Jamaica, Kenya, Uganda, South Africa or India. Well, even Malaysia or Singapore may consider. Then it is truly global and not just for the rich to host every four years and show their wealth.
References:
The massive costs behind the Olympic Games, Niall McCarthy, www.forbes.com
How the cost of the Summer 2021 Olympics will differ from games of the past, Andrew Lisa, July 22, 2021, www.finance.yahoo.com
With the cost of over $20 billion and decreased revenue due to no fans, how many billions will Tokyo lose on the Olympics, Weston Blasi, updated July 26, 2021, www.marketwatch.com
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