The Sportsgram India - Hosting an Olympics!

In the recent decade, there has been lots of talk related to the economic perils of hosting an Olympics. Given that India is vying to host the 2036 Olympic Games, let us look at various aspects of hosting an Olympic Games:

Let us first look at the bid process of an Olympics:

Bid process for an Olympic generally starts 8-11 years before the Olympics are actual Olympic year. The bid process takes place in 2 phases.

Due to high costs, IOC has changed the Olympic host city bid process in recent years:

Phase 1 – Exploration

In this stage, host Cities, via their National Olympic Committees (NOCs), engage in informal discussions with the IOC. The focus is on assessing feasibility, sustainability, public support, and alignment with IOC goals without formal commitments.

Phase 2 – Targeted Dialogue

Selected cities (or a single preferred candidate) after phase -1 enter detailed discussions with the IOC. They submit comprehensive plans covering venues, transport, accommodation, budget, security, climate impact, and legacy. IOC officials conduct on-site visits and review proposals.

Phase 3 – Election

After phase 2, the IOC Executive Board suggests a preferred host (or shortlist). Final presentations are made to the full IOC Session.
IOC members vote in a secret ballot to elect the host city.

The Costs of Hosting the Olympics:

Hosting the Olympics is no mean feat. It requires lots of planning and huge budgets. Submitting a bid generally costs between $50 million and $100 million. Cities have to spend on consultations, event organizers etc. during the bid process. Here are the major costs involved in hosting an Olympics:

Bidding Costs
Infrastructure Cost: Roads, Hotels, transportation etc.
Stadiums for various Olympic sports
Olympic Village for athletes to stay during the games
Maintenance costs of stadiums after the games
Operational costs

Here is how much it has cost to host the Olympics in recent times:

While there are huge costs involved in hosting the games, there are also some benefits of hosting the Olympics:

Increased tourism
Revenue from sponsors for broadcasting and covering the Olympics
Revenue from tickets
Building better sports infrastructure
Increased jobs in the host city

Source: IOC

If you do a cost-benefit analysis, hosting the Olympics has not been financially beneficial for host cities. The high costs are not offset by the financial benefits and host cities have to take on large debts. Some part of this debt is then passed on to taxpayers. A case in point is the 1976 Montreal Games. It took Montreal 30 years to clear off the debt it took to host the Olympics. Money spent on building facilities for the Athens Olympics contributed to the Greek debt crisis. Due to these reasons, the number of countries interested in hosting the Olympics has gone down considerably in the recent times.

Recently, IOC has acknowledged these costs and has brought in measures to reduce them. Some solutions that are in place:

Reusing currently available infrastructure to host events
Using temporary stadiums/arenas to host events
Simplifying the bid process
Optimizing operational costs

Here is a list of all the Olympic host cities till now:

1896 – Athens
1900 – Paris
1904 – St. Louis
1908 – London
1912 – Stockholm
1920 – Antwerp
1924 – Paris
1928 – Amsterdam
1932 – Los Angeles
1936 – Berlin
1948 – London
1952 – Helsinki
1956 – Melbourne
1960 – Rome
1964 – Tokyo
1968 – Mexico City
1972 – Munich
1976 – Montreal
1980 – Moscow
1984 – Los Angeles
1988 – Seoul
1992 – Barcelona
1996 – Atlanta
2000 – Sydney
2004 – Athens
2008 – Beijing
2012 – London
2016 – Rio de Janeiro
2020 – Tokyo
2024 – Paris
2028 – Los Angeles (Future Hosts)
2032 – Brisbane (Future Hosts)