The Olympics’ Economic Impact

The Summer and Winter Olympics are a highly
anticipated sporting event that unites an abundance of countries; however, the
Olympics is not merely a sporting event but also has an economic impact on the
hosting country. Countries invest billions of dollars during this event in
hopes of seeing a positive increase in their economy, yet this is not always
the case. Well developed countries gain a positive economic impact that could
pay off their expenses due to an increase in tourism, spending and updated
infrastructure (“What Is the Economic Impact of Hosting the Olympics?”). On the
other hand, developing countries increase their debt by hosting the Olympics,
which can take decades to pay off. In order for a country to host the games; they
must prove that they are capable of handling a big economical change, and show
that they afford to build new venues with a high level of security (How
Olympic Locations Are Chosen). If a country with a low national Gross Domestic Product (GDP) hosts the
Olympics, then it will cause a negative economic impact, whereas if a
well-developed country with a high GDP were to host the Olympics, then it will
cause a positive economic impact.

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When an economically
stable country decides to bid to host the Olympics, it is easily accepted by
the International Olympic Commission (IOC). This is because developed countries
have a financially stable status and are able to pay for the expenses of
hosting the Olympics. On

Dhatt 2

the contrary, when Brazil decided to
host the 2016 Summer Olympics, it caused a lot controversy because Brazil was
facing one of the worst recessions in decades; increasing the unemployment rate
and rapidly increasing inflation (“What Is the
Economic Impact of Hosting the Olympics?”). The International Olympic
Commission was unsure if Brazil would have any success in hosting the games as
it was thought to make their economy in an even worse state by adding to their
debt. (“Brazil’s Economy May Hit Bottom During
the Rio Olympics”). However, Brazil insisted on hosting the games to
boost national prosperity. In order for Brazil to secure the games, they had to
convince their citizens that while there could
be a possibility of adding on debt to the economy, part of the debt will be
taken care of. Brazil believed that hosting the Olympics will allow their
country to have the perfect opportunity to improve their infrastructure,
land and allow new jobs to be made. Their first
promotional step was to make visas easily accessible and to have newly updated
infrastructure. (“Rio Olympics 2016:
economic gain or loss?”). Over 200 institutions around the world had
notified the IOC that they would much rather have the games be moved to another
country or postponed, as they claimed that the World Health Organization (WHO)
was failing to evaluate the risks of the Zika virus at Guanabara Bay. But Brazilian officials promised that everything would
be resolved before the games were to start. Due to health and safety concerns,
the country will have to re-evaluate their infrastructure plans, in order to
successfully build 12 stadiums and update national transportation. The
Brazilian The Olympics’ Economic Impact

The Summer and Winter Olympics are a highly
anticipated sporting event that unites an abundance of countries; however, the
Olympics is not merely a sporting event but also has an economic impact on the
hosting country. Countries invest billions of dollars during this event in
hopes of seeing a positive increase in their economy, yet this is not always
the case. Well developed countries gain a positive economic impact that could
pay off their expenses due to an increase in tourism, spending and updated
infrastructure (“What Is the Economic Impact of Hosting the Olympics?”). On the
other hand, developing countries increase their debt by hosting the Olympics,
which can take decades to pay off. In order for a country to host the games; they
must prove that they are capable of handling a big economical change, and show
that they afford to build new venues with a high level of security (How
Olympic Locations Are Chosen). If a country with a low national Gross Domestic Product (GDP) hosts the
Olympics, then it will cause a negative economic impact, whereas if a
well-developed country with a high GDP were to host the Olympics, then it will
cause a positive economic impact.

When an economically stable country decides to bid to host theOlympics, it is easily accepted by the International Olympic Commission (IOC). This is because developed countries have a financially stable status and are able to pay for the expenses of hosting the Olympics. Onthe contrary, when Brazil decided to
host the 2016 Summer Olympics, it caused a lot controversy because Brazil was
facing one of the worst recessions in decades; increasing the unemployment rate
and rapidly increasing inflation (“What Is the
Economic Impact of Hosting the Olympics?”). The International Olympic
Commission was unsure if Brazil would have any success in hosting the games as
it was thought to make their economy in an even worse state by adding to their
debt. (“Brazil’s Economy May Hit Bottom During
the Rio Olympics”). However, Brazil insisted on hosting the games to
boost national prosperity. In order for Brazil to secure the games, they had to
convince their citizens that while there could
be a possibility of adding on debt to the economy, part of the debt will be
taken care of. Brazil believed that hosting the Olympics will allow their
country to have the perfect opportunity to improve their infrastructure,
land and allow new jobs to be made. Their first
promotional step was to make visas easily accessible and to have newly updated
infrastructure. (“Rio Olympics 2016:
economic gain or loss?”). Over 200 institutions around the world had
notified the IOC that they would much rather have the games be moved to another
country or postponed, as they claimed that the World Health Organization (WHO)
was failing to evaluate the risks of the Zika virus at Guanabara Bay. But Brazilian officials promised that everything would
be resolved before the games were to start. Due to health and safety concerns,
the country will have to re-evaluate their infrastructure plans, in order to
successfully build 12 stadiums and update national transportation. The
Brazilian 

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