Research on the Economic Impact of the Olympics on Host Countries

The role and value of hosting the Olympics differ from country to country. Going as far back as Greece’s 1896 sole bid to host the Olympics, countries worldwide have participated in this rigorous bidding since then to host either the Summer or Winter Olympics, inclusive of the Paralympics. Countries that have won these bids have dedicated billions to this mega event. Even though the literature shows that these countries acquired net losses as opposed to the expected positives, the reasons for hosting aren’t only fiscal. These countries do so to create an international profile, improve their image if it has suffered a blow, promote their technology and culture, and create long-term alliances. This paper aims to investigate how much the Beijing 2022 Winter Olympics cost to host and its tangible and intangible impacts on its economy. The results show that China overspent hosting this event, and debt has been incurred. Fiscally, hosting the Olympics seems to be doing more harm than good, with countries being forced to find ways to deal with the bill after winning the bid.