The focus on Paris as it hosts the Olympic and Paralympic Games brings attention to the incredible performances and achievements of the human body, mind, and spirit. However, hosting the Games has become a financially challenging endeavor, plagued by budget overruns, long-term debts, wasteful infrastructure, displacement and gentrification, political strife, and environmental harm. The International Olympic Committee aims to take a more frugal and greener approach with the Paris Games, with total costs coming in under $10 billion. This shift comes as cities have become hesitant to host the Games due to the financial debacles involved.
Historically, the Olympics have faced economic tensions, with cities spending exorbitant amounts on bidding processes and costs often soaring beyond estimates. Five of the past six Olympics had cost overruns of well more than 100%, according to a study. The accounting for Olympics is easily manipulated, with indirect costs often not included in official budgets. The short- and long-term impacts of hosting the Games include economic losses and debt, displacement of residents, gentrification, and potential environmental harm, leading to a near-constant struggle for financial viability.
Efforts to make the Olympics more economically, environmentally, and socially sustainable are evident in the planning for the Paris Games in 2024. Initiatives include building only one permanent sports facility, relying on existing or temporary structures, and minimizing the carbon footprint of the event. Additionally, the Paris Olympic Village will be converted into offices and housing in an impoverished area, aiming to revitalize the neighborhood. Looking ahead to the LA Games in 2028, efforts for a “No Build” Olympics are underway, relying on existing infrastructure and holding some events in locations with suitable facilities.
To truly ensure the long-term viability of the Olympics, economists suggest more drastic measures may be necessary. Designating a single city or rotating through a couple of cities as permanent hosts for the Games could be a solution to ensure economic sustainability and avoid the financial pitfalls that plague current hosting arrangements. While the Olympics hold significant cultural and sporting value, the current model may not be economically feasible in the long run, pushing the need for change. Ultimately, the goal is to transform the Olympics into a financially viable and sustainable event that benefits host cities and communities without burdening them with long-term costs and debts.
