OLYMPIC GAMES BOOSTING ECONOMY? NOT ALWAYS

Andrew J. Wein - Jul 22, 2008
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Hosting the Olympic Games seems certain to boost the economy of any place in the world. After all, this is thought to be the main reason why most cities around the globe which apply for the right to host them, want to stage the event in the first place. However, financial success is not always guaranteed. Why?

 

Firstly, many locals are put off by the fact that prices tend to rise. This is usually the case everywhere as for example the price of beer can rise from 3 Euro to as much as 5 Euro for half a litre. The recent football Euro competition in Austria and Switzerland paid testimony to this particular example.

 

The problem is that not only locals believe this, yet some visitors also shy away from the higher prices. Similarly, the previous Olympic venues such as Barcelona and Sydney did not financially benefit from hosting the games as the usual tourists were deterred from coming for the same reasons.

 

However, London does not plan to fall to the same fate in 2012 as the English capital is determined to avoid overpricing and negative media. The London authorities are aiming to boost the economy by an ambitious L2 billion by hosting the Olympic Games.

 

They insist that this will be achieved not by overpricing, yet by reasonable pricing and shrewd business. It has been stressed that it is extremely important to attract masses of normal people rather than a smaller amount of visitors willing to pay extraordinary prices for common services. The aim is to make the special Olympic buzz a firm positive rather than a negative.

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