Paris dazzled with incredible feats of human strength, skill, and spirit during the Olympics and will witness more superhuman exploits during the Paralympic Games starting in late August.
However, the glamour of hosting these prestigious events often masks a darker reality — the financial strain, environmental impact, and social disruptions they can bring.
In recent decades, the Olympics have become synonymous with budget overruns, long-term debts, and wasteful infrastructure. Cities have faced displacement, gentrification, political strife, and environmental damage in their quest to stage the ultimate sporting spectacle.
The International Olympic Committee (IOC) is attempting to steer the ship in a more sustainable direction, with the Paris Games aiming to be more frugal and eco-friendlier.
Paris shines but at what cost?
Victor Matheson, an economics professor, noted that Paris’s total costs are expected to be under $10 billion, a stark contrast to the extravagant spending of previous hosts. This shift is partly due to the dwindling number of cities willing to take on the financial risk of hosting.
Yet, some experts argue that a truly sustainable Olympics requires a radical departure from the current model. Andrew Zimbalist, a sports economist, points out that the LA Games of 1984, which used existing infrastructure and ended with a surplus, showed a path to profitability. However, the trend since then has been towards ever-increasing costs, with cities spending fortunes on bids and facing soaring expenses once chosen.
The Paris Games are already projected to exceed the original budget by at least 115%, and this estimate is conservative, excluding indirect costs such as infrastructure improvements. Beijing, Sochi, and Rio de Janeiro have all borne the brunt of the Games’ financial burden, with costs spiraling into the tens of billions.
The economic impact of the Olympics is also scrutinized for its long-term benefits. While some argue that the Games can boost a city’s economy and tourism, others, like Zimbalist, contend that the costs often outweigh the gains, leading to economic losses and debt.
Making Games more sustainable but how?
The IOC has introduced measures to make the Games more sustainable, such as using existing venues and minimizing the construction of new facilities. The 2024 Paris Games will feature only one permanent sports facility and will repurpose the Olympic Village to address social and environmental concerns.
Looking to the future, economists suggest that the long-term viability of the Olympics may require a permanent host city or a rotation between a few cities. This approach could reduce the financial and environmental strain, ensuring the Games’ survival in a more sustainable form.