The Economic Impact of the Winter Olympics
Eric Collins
The 2014 Winter Olympics in Sochi, Russia just ended this past week and it was full of excitement. Although there were so many highlights to the couple of weeks, the economic side of things for Russia took a large hit. This years Winter Olympics took around $50 Billion to run and after the Olympics they did not really make any of that money back as shown in the image.
Through ticket sales, sponsorship, and broadcast revenue, all of the other countries that hosted the games earned a little money back, but Sochi really struck out and is in the hole by $50 Billion! Who would’ve ever thought that the Olympics could cost so much to run?
Although this years Olympics cost so much money there are some positives to having the Olympics in your country. Right now in the United States a huge topic that everyone is talking about is the unemployment rate. There are so many people without any type of job at all. Having the Olympics in your country will decrease the unemployment rate by a lot. All of the setting up, advertising, managing all of the events, ect. All includes someone who needs to run each of them. There are thousands of jobs that need to be filled in order for the Olympics to run smoothly. The pre-work and during the Olympics is just the beginning. With thousands of fans and athletes coming to compete and watch there will be a huge mess afterwards. There are so many jobs created because they have to take down everything Olympics and make it into the original city again. But I guess that is a good example of opportunity cost because in order to have a good Olympics you need to spend money. But by spending all that money they will eventually create jobs and new windows for the country.
One cool thing that Russia is doing is that for all of the athlete’s rooms and living areas, they are going to make them into affordable living facilities for the people of Russia to buy and live in. This will do a lot of great things for Russia’s economy. By selling or renting all of the living areas this will generate a lot more money. This will also create more jobs and it will enrich the city of Sochi.
Something else for Russia to look forward too is the 2018 World Cup they are hosting. Although this event is not for a long time, they have to be thinking about planning and preparation after the Olympics is all done. Just like the Olympics, the World Cup will generate a lot of costs as well. Russia is going to be putting out a lot of money to host this event but the ticket prices are high enough where Russia won’t take such a beating on losing money as they did in this year’s Olympics. There is more output in the World Cup than the Olympics. Overall the Olympic games in Sochi played a huge role in Russia’s economy and the country will soon face another similar experience in 2018.
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