Economic effects of Olympics on a country

Photo taken by Anthony

The Olympics have been around for thousands of years. It has a long history that goes back to 3,000 years ago. The modern Olympics are inspired by the ancient ones. In 1894, Baron Pierre de Coubertin founded the International Olympic Committee (IOC). The first modern Games were held in Athens in 1896. Since then, the Olympics have been expanding. Now, we have the Winter Olympics, Paralympic Games and Youth Olympic Games.

Every two years the countries willing to host the Olympics enter a competition and the country that suits the most is chosen by the IOC.

What are the economic effects of the Olympics on the host country?

Hosting countries need to take preparation years before. They need to build and enhance their transportation systems, communication systems, buildings, houses and many more that all can result in many job opportunities for the locals. The Olympics also helps the host country’s economic growth through increasing tourism and events industries. It increases tourism attraction and many business contracts for the country. Brands from around the world will be active in the Olympics and may advertise their brands that can result in more job opportunities and financial benefits for the host country.

Furthermore, hosting the Olympics, which is an important event in the world, will enhance diplomatic relations and the overall global profile of the country. It may attract new foreign investments and trade opportunities and raise international visibility for the country.

In contrast, hosting the Olympics has its own negative aspects too. For example, one of the major problems is the cost associated with the preparation. The host country needs to spend millions to prepare the residential area for the athletes and stadiums for the games that may not be used at all after the Olympic Games are over. As a result, host countries need to be careful about their decisions.

Hosting the Olympic Games has advantages and disadvantages. It can boost a country’s economy and can have costs too.

By M. Nargis

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