Which is part of why many places no longer want to host the Olympics, with a large reduction in bidding cities. Which is why the 2024 and 2028 games were awarded at the same time and why there is talk about having 2 or 3 permanent hosts on a rotating basis. The cost of the games just isn't worth the benefits the host might get.
What Would It Cost to Cancel the Tokyo Olympics?
Cancelling the Summer Games over coronavirus fears would not be a fatal economic blow for Japan.thediplomat.com
Spending ‘Already Happened’
Yet should the worse-case scenario for Japan eventuate, the economic impact might not be as devastating as feared, according to Capital Economics.
“The key point…is that most of the spending for the Olympics has already happened. Spending during the Games themselves is small, perhaps just 0.2 percent of GDP, and much of this is diverted from spending in other areas of tourism and recreation,” senior Japan economist Marcel Thieliant said in a February 21 report.
The London-based consultancy points to the experience of previous Games such as the 2008 London Olympics. While spending by overseas visitors surged by nearly 18 percent during the event, it slumped to a 21-month low some two months later. Similarly, the 2000 Sydney Olympics had a “negligible” impact on travel spending.
“What’s more, there is little evidence that the ‘feel-good’ effect from the Olympics boosts consumer spending,” Thieliant said, pointing to data from previous Games.
What Would It Cost to Cancel the Tokyo Olympics?
Cancelling the Summer Games over coronavirus fears would not be a fatal economic blow for Japan.thediplomat.com
Spending ‘Already Happened’
Yet should the worse-case scenario for Japan eventuate, the economic impact might not be as devastating as feared, according to Capital Economics.
“The key point…is that most of the spending for the Olympics has already happened. Spending during the Games themselves is small, perhaps just 0.2 percent of GDP, and much of this is diverted from spending in other areas of tourism and recreation,” senior Japan economist Marcel Thieliant said in a February 21 report.
The London-based consultancy points to the experience of previous Games such as the 2008 London Olympics. While spending by overseas visitors surged by nearly 18 percent during the event, it slumped to a 21-month low some two months later. Similarly, the 2000 Sydney Olympics had a “negligible” impact on travel spending.
“What’s more, there is little evidence that the ‘feel-good’ effect from the Olympics boosts consumer spending,” Thieliant said, pointing to data from previous Games.
www.reuters.com
How many positives now from Princess who were allowed to walk off?
