The Modern Olympic Games Economics Essay

The place of birth of Ancient Olympic Games is Ancient Greece which is called as the Olympic Festival and it was held every four old ages. Due to the forfeits of animate beings were made, a figure of the athletics competitions occurred which include bowl race, pugilism, wrestle, Equus caballus siting events and pentathlon such as running, jumping, discus, javelin and wrestle. The victors of the competition were crowned garland of wild olive and besides acquire great award. All the Greeks were being allowed to come in into the competition except for the slaves and savages. The ancient Olympic Festival was continued until the terminal of Greek Empire over two thousand old ages ago.

Baron Pierre de Coubertin which is the laminitis of the modern Olympic Games, said that the most of import of Olympic Games is to take portion in but non to win, as the most of import things in life is struggle but non triumph. The first modern Olympic Games were held in Athens in 1896 which has been chosen as acknowledgment of Grecian Festival. Its intent is to make games in order to guarantee that people around the universe would vie and run into in friendly atmosphere. The significance of the modern Olympic is the jock from each state takes an curse “ In the name of all rivals, I promise that we shall take portion in these Olympic Games, esteeming and staying by the regulations which govern them, in the true spirit of sportsmanship, for the glorification of athletics and the award of our squads ” at the gap of the ceremonial.

The caput office of the International Olympic Committee ( IOC ) is located in Lausanne and Switzerland in order to pull off and command the Olympic Movement and the members are from all around the universe. The slogan of Olympic is called “ Citius, Altius and Fortius in Latin which means faster, higher and stronger or braver.

The Objective of Olympic:

The aim of Olympic is strived to advance Olympic Games which meets the criterions of sustainable development and besides respect the environment. The Olympic Games are to advance sustainable development in athleticss and demands. Besides that, the Olympic Games besides promotes positive bequest to the host metropoliss to the Host states.

Positive Impact of Olympic:

Besides being a athletics, Olympics besides affect concern and hosting states which are concerns can derive from Olympic such as increasing gross revenues, advertizements and repute through sponsorships. Hosting the Olympic Games can convey many benefits for the host state which can be divided into either short term or long term. The short term of economic benefits including of the fresh hard currency flow from the visitants who visit the host state, jocks, functionaries, developing activities, and media activities cultural events linked to the Olympics and the formation of Olympic commission. There have three major classs of long term economic benefits for hosting Olympic Games which are including the creative activity of substructure is making the planetary criterions, the concern of the international community through media and related to the community.

In add-on, the positive impact of Olympic is supplying occupation chances or employment. We should non be underestimates the degree of making the employment chances from the host state. In fact, an economic estimation in Atlanta, Georgia which is a province that organized the Olympic ) , the consequence shows that about 70 seven 1000s of employment chances were been created. The hotel industry and lodging take up the largest portion of making the occupation chances. Besides that, the nutrient industry such as bars besides provides occupation chances. Additionally, the building sector besides will be provided occupations since there will be extra substructure such as new edifices.


As a host state, London Olympic Games was the universe ‘s hottest topographic point in 2012. Olympic is an of import and monolithic event that a aggregation of jocks, media, visitants and politicians from all around the universe which is decidedly a esteemed function metropolis. Harmonizing to London, the Olympic Games provided positive impact to the larger concerns in London although there is non make the extent that had anticipated. But harmonizing to the study of 100 big companies by Deloitte which is the official professional services supplier to London 2012. Since the beginning of the Olympic Games, 42 % of companies reported that an addition in demand and 77 % of retail merchants increase in demand from the new clients. This consequence readying and planning was paid off. Naturally, the greatest advantage is the increasing in Tourism industry. Harmonizing to London, it was been attracted about 300,000 of aliens and besides about 5.5 million twenty-four hours trippers during Olympic Games.

Another fact was harmonizing to Beijing China in 2008, the figure of visitants or tourers were lifting quickly. This consequence shows that Olympic brings the host state to increase the visibleness. Harmonizing to Chen Jian who is the president of Beijing Olympic Economic Research Association was estimated that Beijing was received about 600000 foreign visitants and 2.5 million from China ‘s domestic tourers during the Olympic Games along with the figure of foreign visitants in Beijing will turn 8 % to 9 % yearly. Besides that, a foreign state pupil who analyzing in Beijing was experienced the fad of Olympic Summer by the betterments in substructures and commercial services during the Olympic Opening Ceremony. In add-on, the figure of hotels in Beijing has besides increasing in the recent old ages. That is because since China was entered the WTO and won the Olympic command, therefore the state was reduced the hotel ownership limitations. Furthermore, the enlisting in Beijing Olympic patrons, spouses, providers and others companies besides wants to take the benefits of the Olympic “ bombilation ” in Beijing in order to lend in increasing of advertizement.

The 3rd fact was harmonizing to Sydney Olympic Games in 2000 were praised as the best Olympic Games because Sydney non merely did accomplishments on bettering the environment, better urban building, promote the development of transit, existent estate and touristry, but it besides promote the host metropolis ‘s international repute. Sydney brought a considerable amount of net incomes and motivated promote the follow-up industrial development of touristry, transit and existent estate. Particularly, it brought the immense figure of direct grosss about 2,605 million US dollars which is the most profitable in Olympic Games. Additionally, it stimulated about 500 1000s tourers.

Negative Impact of Olympic:

The Olympics ‘ prestigiousness non merely goes along with economic benefits, it besides does in ruins and important hazards which should non be ignored. Therefore, hosting the Olympic Games is really of import to the hosting state. To host the Olympic Games is a immense responsible for the state or metropolis due to holding a immense hazard because the hosting state invested a big sum of money in the games but they do non cognize about how many visitants coming for the Games. Therefore, they are put on the lining financess without holding a backup program if there is less visitants in the Games. The Olympic Games besides will act upon the population of the metropolis about one or two months. The metropolis will be crowded of traffic and disrupt the daily of the citizens due to many visitants. Besides that, when the state hosting the Olympic Games, everything must be near perfect such as the street must be clean and in good status, the bowl must be orderly, the hotels must hold sufficient reserves for the visitants. This is all about money. However, the money from the visitants or tourers is non plenty to back up the wastage. Therefore, the state invests a big amount of money in order to maintain the metropolis or state clean and good present during the Olympic Games. If any job occurs during the Olympic Games, the state has to blow money to repair it.

The negative consequence of Olympic Games comes from outgos on conveyances substructure, installations, lodging, safety steps and care in order to run into the demands or demands of the International Olympic Committee and besides to affect to the populace. Harmonizing in London, the entire budget comes up to ?9.325 billion. This consequence estimates that the costs of Olympic Games is a hard undertakings. This was consequence in the concluding budget was exceeded by ?5.906 billion of the jutting budget from the command in November 2004. Besides that, the security disbursals had to duplicate. At the same clip, there has been twelve fold rises in the direction fees by UK Parliament. Therefore, it has been claimed that disbursement is higher than expected which has been exceeded the positive impacts on economic system of United Kingdom.

Another fact was in Athens Olympic Games in 2004 was failed to actuate the economic growings due to miss of promotion or publicity and a big figure of outgos. Harmonizing to Wang and Chen who said about the big sum of outgo was about 12 million US dollars which is a large debt will be paid for about 10 old ages. This consequence shows that Olympic Games so have a important impact on the economic development of the host metropoliss.

Besides that, another negative impact is societal impacts which are cumulative and a broad scope of over infinite and clip. Olympic Games may alter the important and the impact assessment become perplexing due to the long lead times, dimension and natural of the event. The alterations will impact the increasing in congestion, evictions, increasing in monetary values such as increasing in land rental value.


As a decision, I would wish to reason that the Olympic Games are more than a athletics because there are included in cultural, political and economic phenomena. Particularly involvement to see Olympic as a touristry attractive force, selling chance, media event, the accelerator for urban reclamation and development and besides was the inspiration for young person and bring forthing a force for peace and apprehension of international as good. In fact, it can be said that there value-added, non chiefly on sporting, functions which makes Olympic Games becomes alone at the international degree and in order to go on survive likely depends on their continuing to play these functions. For illustration, harmonizing to Sir Roger Bannister ( 1988 ) who is the Olympic jock foremost adult male to run a stat mi within four proceedingss and subsequently became British Sport Minister was discoursing about Olympic Games will travel towards the alterations but still remain the greatest hopes of the universe. Besides that, Olympic is in the deepest involvements of the universe of the hereafter for them to be go oning.

Furthermore, Olympic Games are much more than a show, the games are unfastened to the universe and the full state has the chance to take portion in legion activities such as the marching of the fire throughout the state, cultural activities, educational undertakings and local voluntary services.