The Olympic games are one of the universe most of import activity from a featuring point of position because all of the most of import participants in the universe will be at that place and will raise the prestigiousness of the state but besides from an economic point of position because to host such an event you attract new investings. concern chances and the figure of tourers will raise and that will hike the economic system of a state for the long. Purpose of hunt: The purpose of this paper is to demo how the Olympic games can act upon the economic system. Cardinal words: Olympic games. economic consequence. costs.
JEL categorization: L83. D6
The part of an Olympic game to a state economic system is really important. besides it helps in developing the host metropolis country by making new occupation chances from the substructure degree to the touristry. However this major athletics events has it’s advantages it besides has disadvantages like: edifice and keeping the substructure. costs of hosting the event and overpopulation.
Critical analysis of the forte literature:
Surveies have showed that there is a period of three old ages where the GDP which is the chief factor to mensurate the wellness of a country’s economic system. grows to a maximal degree being represented by the twelvemonth of the event so it starts to diminish. Harmonizing to Huang ( 2011 ) : “Most of hosted successfully Olympic Games all bring singular economic benefits to host country’s development of assorted industries. For illustration. P reparations for the Olympic Games brought Korea 7 billion dollars in production and 2. 7 billion dollars in national income from twelvemonth 1981 to 1988. the mean one-year economic growing rate reached 12. 4 % . ”
Tourism is besides a really of import subdivision from which you can increase the GDP and to develop the country in which the event is hold with the building of the Olympic small town. bowls and already bing local attractive forces. But to hold a uninterrupted income the athletics touristry it is still a demand to put and advance the athletics industry. Plus there 1000000s of people watching the event from place and might see in the hereafter sing the state. Another asset for a state which host the event comes from the athleticss industry. Harmonizing to Mingxiao ( 2005 ) : ” Sports industry is one of the of import stuff bases to athleticss economic development and socialprogress. has an of import stimulat ing function on athleticss economic system and even national economic growing. and is the outgrowth of modern human economic system in the signifier of a new industrial economic system “ .
For the short run the state who organizes the games has for the beginning really high cost of investings and small grosss but they will be covered the cost and will do a net income in the long tally period. In some peculiar instances they might ne’er be recover the costs. The most expensive winter Olympics games were in Sochi. Russia in 2014 an it cost 50 billion dollars from which $ 6. 4 billion was spent on athleticss related costs. Initially it should hold cost merely 12 billion but the topographic point was chose ill because Sochi has a humid semitropical clime being located near the Black Sea and they went over budget with the cost of keeping the winter conditions.
My sentiment sing the economic consequence of the Olympic games is that the economic encouragement is really important for the state and it can be see in the rise of the income from touristry industry and athleticss industry. It is besides good because there are a batch of investings in substructure that will last for a long period of clip. it creates new occupations for the people. and to host such an event has raised the prestigiousness of a state and the GDP.
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