The Economic Impact Of The Winter Olympics: Not Great For Russia But Sochi Stands To Gain
written by Christopher Harress
on February 08 2014
The 2014 Sochi Winter Olympics kicked off in glorious style on Friday with an elaborate opening ceremony for what is expected to be the most expensive Olympic games in history, costing in excess of $50 billion and far exceeding the 2008 Beijing Summer Games, a record many said would never be beaten.
According to a report by the European Bank for Reconstruction and Development(EBRD), This astronomical cost will not boost Russia’s national economy in any way, but it may create a lasting legacy for the city of Sochi and the southern Krasnodar region of Russia, which will benefit from improved services that may attract business in the future.
And while the EBRD report says countries generally do not benefit economically from hosting such events, infrastructure and jobs are created that last well after the games have moved on. This is especially important for emerging economies, because they tend to spend far more on hosting games than developed nations. In short, they are improving the lives and business prospects of the population in those regions.
(Olympic benefit to Sochi IOC)
Olympics also create jobs, although most are not permanent. Russian currently has low unemployment but operates a tight labor market, which, as the report suggests, leaves limited scope for creation of new employment.
(Which Olympics has created the most jobs IOC)
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Do you think holding Olympics gives good benefit for country's economy?
I say both yes and no. I kinda think "yes", because the Olympic gives country many attentions, job opportunities, and money etc. I also think "no" because to hold the Olympic, country needs a lot of money to spend for such as ceremonies, traffics, places for athletes etc. Even though they also get benefits from ticket sales, food sales, hotel sales, etc., they don't get much profits because those money they get are not much different to money they spend.
So what do you think about that?
Keep cheering for U.S. athletes in the Winter Olympics!:D
Russia was very unprepared for the Olympics causing them to have to build hotels and sport venues. This costed a lot of money for Sochi especially because they realized the problem too late. I agree that they are also bringing in money from visitors like tickets, hotels, food, ect. It is also benefiting them because the Olympics is recognizing the country and creating many jobs. But Sochi broke the record for the most expensive Olympic games in history so it might not be enough.
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