The Olympics have undergone tremendous changes since the first modern games in 1896. The prospects of holding mega events particularly the Olympic and Paralympic games is a cause for serious consideration. The discussions around the decision whether to host the games or not depend on its worth to the citizens of the hosting city. The primary feature of the worthiness of the games is the cost factor although it is not the only one. There exists a series of interrelated concerns regarding how mega-events can disrupt long-term agendas of the host cities (Kasimati, 2003). In the past, there have been incidences of withdrawal of host bids. For example, Boston and Hamburg withdrew their bid to host 2024 Olympic Games in fear of possible disruptive outcomes to the cities long-term economic agendas. The 2016 Rio de Janeiro Olympics is an excellent example of how challenging international sporting events can be. The city of Calgary should not pursue a chance to host the 2026 summer Olympics and Paralympic games because the cons of the events outweigh the pros making unsuitable for the economic future of the city.
The Argument against hosting the Games
Cost Factor
The cost of hosting Olympic and Paralympic games as well as the revenue generated by the spectacle has been proliferating sparking a controversy over the burdens subjected to the hosts (Rosenblum, 2009; Giulianotti, Armstrong, Hales, " Hobbs, 2015). Hosting the Olympic Games is a costly affair especially to cities that do not have experience and structure for the events. The table below shows the approximated costs of the previous Olympics:
Year
City
Cost (Billion)
2000
2004
2008
2012
2016
Sydney
Athens
Beijing
London
Rio de Janeiro
US$ 4.7
€ 9.0
US$ 42
US$ 11
US$ 15
Table 1: The approximated cost of hosting the four previous Olympic Games
Source: http://theconversation.com/five-reasons-why-your-city-wont-want-to-host-the-olympic-games-52289
Economists propose that the short and long-term merits of organizing mega sporting activities are often inflated where many host nations are left in debt and maintenance liabilities (Owen, 2005). As Brazils’ Rio de Janeiro struggles with funding shortfalls, rising crime, underequipped hospitals, and police forces, and worries over the Zika virus in the aftermath of the 2016 Olympics, the debate over the costs and benefits of holding such mega-events have taken a new shape. Some case examples that illustrate the financial burden shouldered by the host cities include Denver's rejection of the bid to host the games after her citizens passed a referendum to reject additional public spending for the games in 1972. In 1976, the financial risks associated with the games were evident when the projected cost of $124 million was short by more than $2.6 billion (McBride, 2016). In many cases, the estimated value of holding the Olympics are always underquoted. See Appendix 1
Violation of Human Rights
Hosting of Olympic and Paralympic games demand the building of new infrastructure in a city which leads to the destruction of established urban areas. Removal of current residents from their home to create room for the accommodation of the visitors and the development of infrastructure necessary for the games is a common phenomenon (Rosenblum, 2009). During the preparation process, evacuation of citizens is a common phenomenon. Even though the evacuated are compensated for the inconveniences caused, there are incidences where some people do not get paid, or the compensation is not sufficient to relocate them. For example, during the Beijing Olympics, the government claimed that only 6,000 citizens were displaced where all were compensated. However, Geneva-based human rights society contended that more than 1.5 million people were forcibly displaced and the compensation strategies were unfair Rosenblum, 2009).
Arguments in Favour of Hosting the Games
Political and Social Impacts
Hosting mega-sporting activities like summer Olympics and Paralympic games expose the host to international prestige (Preuss, 2015). Host cities can, therefore, advance their strengths and build a reputation that would promote tourism, conventions or even future sporting events. The opportunity to host the games is associated with a platform for mechanization of investment and trade. For instance, Beijing was allowed to join the world trade organization shortly after securing the bid to host the 2002 Olympic games (Kim, Jun, Walker, " Drane, 2015). The opportunity was however incorrectly perceived as associated with winning the bid. Hosting the sporting events also provides an easy excuse for the leaders to interact and conduct domestic and international politics.
The games also expose the hosts to the very coveted "global status.” Worldwide exposure should, however, be viewed as the two sides of a coin. It can not only expose nations strengths but weaknesses too (Kassens-Noor et al., 2015). For example, chinas poor air quality was put into the limelight during the Beijing Olympics prompting the Chinese government to spend $19 billion in the effort to meet the international standards. Hosting Olympic and Paralympic games increase the display of native culture. For example, the inaugural of the Olympic Games in Beijing demonstrated the culture of the Chinese people on the global scale thereby promoting their cultural heritage. However, the display also exposed the communist nature of the country threatening the rest of the world.
Conclusion
The literature review herein suggests that there are many setbacks to hosting Olympic and Paralympic games and it is quite evident that the actual cost involved is far much higher than the perceived tangible benefits. The financial cost of preparing for the games utilizes a considerable portion of the host's budget to the extent that many proposals by cities to host the games have attracted public uproar opposing the agenda. The games are also associated with the violation of human right through forceful evictions as governments seek to establish structures necessary for facilitating the games. However, the games are perceived to pose positive political and social impacts in the sense that they provide a platform for a country to establish international prestige and political collaborations. However, the hosting the games also expose the weaknesses to the world. To remedy the issues emanating from the Paralympic and Olympic Games, revisiting the cities with experience and infrastructure already in place redundancy to obtain economies of scale. The sporting activities can also be reduced to cut down the preparation costs. Hosting the 2026 Paralympic and Olympic games expose Calgary to huge financial costs making it an agenda not worth pursuing.
References
Giulianotti, R., Armstrong, G., Hales, G., " Hobbs, D. (2015). Sports mega-events and public opposition: A sociological study of the London 2012 Olympics. Journal of Sport and Social Issues, 39(2), 99-119.
Kasimati, E. (2003). Economic aspects and the Summer Olympics: a review of related research. International journal of tourism research, 5(6), 433-444.
Kassens-Noor, E., Wilson, M., Müller, S., Maharaj, B., " Huntoon, L. (2015). Towards a mega-event legacy framework. Leisure Studies, 34(6), 665-671.
Kim, W., Jun, H. M., Walker, M., " Drane, D. (2015). Evaluating the perceived social impacts of hosting large-scale sport tourism events: Scale development and validation. Tourism Management, 48, 21-32.
McBride, J., (2016). The economics of hosting the Olympic Games. Retrieved from: http://www.css.ethz.ch/content/dam/ethz/special-interest/gess/cis/center-for-securities-studies/resources/docs/CFR-The%20Economics%20of%20Hosting%20the%20Olympic%20Games.pdf on November 18, 2018.
Owen, J. G. (2005). Estimating the cost and benefit of hosting Olympic Games: What can Beijing expect from its 2008 Games. The industrial geographer, 3(1), 1-18.
Rosenblum, S. (2009). The impact of the Summer Olympics on its host city: the costs outweigh the tangible benefits.
The Conversation. (2016). Five reasons why your city won’t want to host the Olympic Games. Retrieved from: https://theconversation.com/five-reasons-why-your-city-wont-want-to-host-the-olympic-games-52289 on November 18, 2018.
Preuss, H. (2015). A framework for identifying the legacies of a mega sports event. Leisure Studies, 34(6), 643-664.
Appendix
Appendix 1: estimated versus final Olympic Games costs
Source: http://www.css.ethz.ch/content/dam/ethz/special-interest/gess/cis/center-for-securities-studies/resources/docs/CFR-The%20Economics%20of%20Hosting%20the%20Olympic%20Games.pdf
