How much the Olympic Games benefits the host?

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16 May 2024 17:15
How much the Olympic Games benefits the host?

The 2024 Paris Olympic Games will bring economic benefits to the region between 6.7 billion euros and 11.1 billion euros.

Idman.biz reports that most of the funds will come from sponsorship, ticket sales and media rights, as well as private investments in long-term infrastructure projects.

Centre de droit et d'économie du sport (CDES) published a report related to this topic.

“Spanning the period from 2018 to 2034, the net impact comes from an external injection of economic resources within the Île de France region, which would not have happened without the Games.

The impact is expected to revolve around tourism, construction and the organization of the Games, constituting 30, 28 and 42 per cent of the net economic impact respectively.

Between 2.3 and 3.1 million unique visitors with Games tickets are expected to visit Paris during the Games, some 64 per cent of them French. An estimated EUR 2.6 billion will be spent by tourists travelling to Paris during the Games, with or without tickets, according to the Paris Tourism Office.

Most of the EUR 7 billion in private funding for the Paris 2024 Games comes from media rights, sponsorship and ticketing, but also private investment in long-term infrastructure projects, and includes an IOC contribution of USD 1.7 billion in cash and services.

Public funding amounts to EUR 3 billion, and mainly covers projects that will address long-term needs of local communities. It is estimated that for each euro of public spending there is a leverage effect of three euros of economic impact (according to the intermediate scenario).

Eighty per cent of the public investment is going to Seine-St-Denis, one of the youngest and most disadvantaged departments in France. The Olympic Village, for example, situated in Seine-Saint-Denis, will provide 2,800 housing units and two new schools, benefitting 6,000 residents.”

Idman.biz