Games and sports are part of the main entertainment elements in the world. Today, more people have taken up sporting activities as their careers and pursue the games professionally. The main sporting and gaming events of the world such as the Olympic, the World Cup, the American Cup and many more are destined to connecting people from different parts of the global in one arena. These sporting activities also serve as an epitomical embodiment of the underlying socio-cultural and political structures that exist within a given societal setting or context. They have also taken over the commercial and entertainment industry hence requiring a complete analysis to determine the cost-benefit involved[1].
Problem Statement
Hosting the Olympics is expensive and has always raised questions on the benefits associated with it especially for the host country[2]. A thorough bidding process is also involved in ensuring that the individuals are able to fairly contest for the hosting of such important sports[3]. Hosting these major hallmark events does not only entail having people visiting the country but rather various commercial, entertainment and security factors. A whole lot of preparations are required before the main event or the country can qualify as a host. This has often raised the question on whether the Olympics and other hallmark sporting events are ever worth to the host countries[4].
SWOT Analysis
Strengths
Immense management and financial risk is usually at stake when considering hosting major sporting events[5]. Many European countries no longer participate in the bidding process for hosting such events and those that have been in the line-up often end up withdrawing from the bidding list. The main ideas going through people’s minds when looking forward to hosting such events are the aspects of economic growth for the host country through tourism and economic development due to the infrastructure. Tourism will have the hotels in the host country growing and earning revenue that other high seasons experienced.
Weaknesses
Hallmark sporting events especially the Olympics and the FIFA World Cup are viewed as poor investments following the financial risk associated[6]. The financial planning of major sporting events has proven to fail with the costs overrunning the estimated budgets by huge margins. This means that the host countries experience budget cuts in other important aspects of their economies with the taxpayers feeling every ounce of the risk. An analysis by Robert Baade and Matheson clearly points out that the costs outweigh the benefits thus explaining the predicted disasters in the upcoming events.
Opportunities
On the other hand, hosting for the major hallmark events in the developing countries is a major opportunity for economic growth. This is because the events help them gain certain ranks globally and the countries are willing to go an extra mile in gaining prestige. [7]This year’s World Cup for instance, hosted by Russia increased the countries rating with their infrastructure and arenas growing drastically. The same effect is expected to be experienced in Qatar during the next World Cup[8]. The costs overrun the expectations but these are the expected rice the countries are willing to pay for the global recognition.
Threats
The declining allure is a clear indication that the Olympic events hosting is no longer worth it or the host country. The withdrawals by most cities in the world due to the losses incurred have attracted the International Olympic Committee’s attention to define some cost-saving measures to attract more countries into bidding for the hosting. Even so, the cost overruns are still a major concern that should be addressed to protect the economies from the host countries. [9]Brazil has suffered the greatest recession following the effects of the World Cup, a similar scenario likely to have been experienced by others who hosted such hallmark events.
Works Cited
Gursoy, Dogan, and K. W. Kendall. "Hosting mega events: Modeling locals’ support." Annals of Tourism Research 33.3 (2006): 603-623.
Leonard Zhukovsk, Major sports events: are they worth it? Aug 9, 2017
Maharaj, Brij. “the turn of the South? Social; and economic impacts of mega-events in Brazil and South Africa” Local economy (2015) 983-999.
Zimbalist, Andrew. Circus maximus: The economic gamble behind hosting the Olympics and the World Cup. Brookings Press, 2016.
[1]
Leonard Zhukovsk, Major sports events: are they worth it? Aug 9, 2017
[2]
Zimbalist, Andrew. Circus maximus: The economic gamble behind hosting the Olympics and the World Cup. Brookings Press, 2016
[3]
Maharaj, Brij. “the turn of the South? Social; and economic impacts of mega-events in Brazil and South Africa” Local economy (2015) 983-999
[4] Zimbalist, Andrew. Circus maximus: The economic gamble behind hosting the Olympics and the World Cup. Brookings Press, 2016.
[5]
Maharaj, Brij. “the turn of the South? Social; and economic impacts of mega-events in Brazil and South Africa” Local economy (2015) 983-999
[6]
Gursoy, Dogan, and K. W. Kendall. "Hosting mega events: Modeling locals’ support." Annals of Tourism Research 33.3 (2006): 603-623.
[7]Zimbalist, Andrew. Circus maximus: The economic gamble behind hosting the Olympics and the World Cup. Brookings Press, 2016.
[8]
Gursoy, Dogan, and K. W. Kendall. "Hosting mega events: Modeling locals’ support." Annals of Tourism Research 33.3 (2006): 603-623.
[9]Maharaj, Brij. “the turn of the South? Social; and economic impacts of mega-events in Brazil and South Africa” Local economy (2015) 983-999.
