The Olympics

Impacts of Beijing 2008
An appraisal of the impact of the Beijing Olympics presented by Lee Sands considered that, ‘the huge inflows of investment to support the Olympics and recreate Beijing have had an important ripple effect on economic growth’. To prepare for the games, China invested nearly $40 billion in infrastructure alone from 2002 to 2006, transformed the cityscape of Beijing. Furthermore, the Olympics have had a significant influence on Beijing's economic development, environment, and the growth of the country's advertising, television, Internet, mobile phone, clean energy, and sports sectors. Development has also impacted on refurbishment of 25 historic areas, including many of the city's landmarks, old streets, and fourcorner residences that date from the imperial period; and restoration of Beijing's many historic places, including the Forbidden City.
An analysis by Tobias Birkendorf agreed with this, and considered that economic growth can be attributed to the Beijing Olympic Games primarily by the realisation of necessary infrastructure investments and that investment led to improvements of the overall production conditions for domestic and foreign enterprises, making investment for private enterprises in Beijing more attractive.
Both Sands’ and Birkendorf’s evaluations focused on the benefits of the investment in the Olympic Games themselves, and did not point to longer-term economic benefits.
Other studies agree with this conclusion, that the longer-term economic impact of the games on China, and Beijing in particular, is not yet clear. Some sectors of the economy may have benefited from the influx of tourists, but other sectors, such as manufacturing, lost revenue due to plant closings related to the government's efforts to improve air quality. Many evaluations of the benefits of the Olympics are pessimistic, and it is generally expected by economists that there will be no lasting effects on the city's economy as a result of the games.

Impacts of Athens 2004
Preparations to stage the Athens Olympics were estimated in 2004 to be $11.2 billion and led to a number of positive developments for the city's infrastructure (airport, metro system, the metropolitan tram (light rail) system, a new toll motorway encircling the city, and the conversion of streets into pedestrianised walkways in the historic center of Athens). This infrastructure is still in use, and there have been continued expansions and proposals to expand Athens' metro, tram, suburban rail and motorway network, the airport, as well as further plans to pedestrianize more thoroughfares in the historic center of Athens.
In 2008, however, it was reported that almost all of the Olympic venues had fallen into varying states of disrepair and that the annual cost to maintain the sites was estimated at £500 million. This conclusion is supported by other reports. Consistent with recent literature in this area, Kasimati and Dawson considered that whilst the impact effects were quite strong during the preparation phase and the year the Games took place, the long-term economic legacy effects appear to be quite modest.
Regarding the impact on housing, a report written by Theodoros Alexandridis 12 considered that‘the final lines of the chapter of modern Greece entitled “Olympic Games 2004” have yet to be written. An important part of the Olympic heritage has yet to be taken advantage of, constituting for the time being more of a burden than an asset.’ Regarding housing, the Olympic Games left Athens with a significant infrastructure that will ameliorate the living conditions of all its inhabitants, while the Olympic village will, despite all the problems it has encountered, provide a house to approximately 3,000 families, an important contribution to social housing in Greece.

Impacts of Sydney 2000
Price Waterhouse Coopers concluded that the Sydney Olympic Games delivered substantial benefits to Sydney, New South Wales and Australia. These included:
• some $3 billion in business outcomes, including: i. $600 million in new business investment ii. $288 million in new business under the Australian Technology Showcase iii. almost $2 billion in post-Games sports infrastructure and service contracts
• injection of over $6 billion in infrastructure developments in NSW
• injection of over $1.2 billion worth of convention business for NSW between 1993 and 2007
• over $6 billion in inbound tourism spending during 2001
• greatly enhanced business profile for Sydney, NSW and Australia through the equivalent of up to $6.1 billion worth of international exposure
• greater expertise and confidence in tendering, both domestically and overseas, on large-scale projects.
The total economic stimulus from the Sydney Games ranked among the highest to that time (Price Waterhouse Coopers, 2001). There were undoubtedly clear, lasting financial rewards for the substantial investments made for many interest groups in the city, region and even country as a whole. The experience gained by organising successful Games suggests that the Games can open up substantial business opportunities, which is a further indication of the longer-term benefits for a city. However, the PWC report goes on, it would be a mistake to assume that events such as the Olympics always were unquestionably beneficial.
Summary of Economic impacts of the 2000 Sydney Olympic Games

Impacts of Atlanta 1996
Ten years after the Olympic Games were held in Atlanta, the city was still being transformed by an Olympic legacy that changed the face of downtown Atlanta and strengthened the city’s position as a global commerce hub. The 1996 Games drew more attendees than any prior Olympic Games, created a $5 billion economic impact and branded Atlanta. A worldwide Lou Harris poll revealed that positive perceptions of Atlanta among corporate decision makers nearly doubled after the Olympic Games. Highlights of a ten years legacy include that today Atlanta is home to nearly 1,600 international companies, representing a more than 30 percent increase in international companies since the Olympic Games.
In a BBC article in 2006 (ten years after the games), Kurt Barling discussed the legacy of the Atlanta games and drew tentative conclusions that for the city itself, the games had a sustained impact (but did not say specifically what the impacts were). For example, he concluded that,‘…there is a sense that more widely Atlantans attribute the transformation of their city to the Olympics’; and, ‘…a few days ago it [Atlanta] opened a new wing in its history museum dedicated to the Olympic Games. It clearly put Atlanta on the International map, but as the exhibition recognised it also gave Atlantans an excuse to think big’; and ‘…’last week the City of Atlanta hosted a massive outdoor party in Centennial Olympic Park to celebrate 10 years of Olympic legacy. Whilst internationally few people may recognise it, Kurt Barling considered that many Atlantans were quietly (and not so quietly) confident that they would still be reporting fresh legacies from the 1996 Olympics in another decade’s time.

Impacts of Barcelona 1992
The labour market of Barcelona and its hinterland, benefitted substantially in the run up period to the Games. Between October 1986 and August 1992, Barcelona’s general unemployment rate fell from 18.4% to 9.6%, while the Spanish figures were 20.9 and 15.5% respectively. In addition, Olympic-linked investment in infrastructure and facilities led to additional permanent employment of an estimated 20,000 people. The immediate impact of the Olympic Games was highly notable. However, what was surprising was the impact and scale of the permanent Olympic legacy and the continuation of this impact.

Other appraisals of benefits
In addition to the examples provided in the previous sections, Jones Lang LaSalle (2009) compiled examples of historic regeneration from three past Olympic Games, as follows:
Beijing:
• Transport improvements included 5 additional metro lines completed between 2004 and 2008, contributing over 50 new stations. A further 13 lines will be completed or have major work.
• Planting of new green space within Beijing in the 2 years prior to the Olympics alone, was in the region of three times the size of New York City’s Central Park.
• 37 venues, 22 of which were new with 15 refurbished.
Athens:
• Rehabilitation of almost 300ha of disused quarries, 250ha of old garbage tips and 600ha of former army camps.
• Establishment of park, recreation and environmental education areas covering 250ha of urban space (including the remodeling of 60 dry and seasonal river beds into landscaped parks).
Sydney:
• Clean up of a 760ha site where previously there was swamp, and a mix of semi-urban uses.
• A new airport rail-link, which was completed at a cost of US$500 million.
• A US$350 million expansion of Sydney Airport.
Jones Lang LaSalle (see footnote 21) also divided success measures of benefits into four categories and provided examples:

The London Olympics 2012
Price Waterhouse Coopers were commissioned by the DCMS (Department of Culture, Media and Sport) to undertake an analysis as part of an Olympic Games Impact Study to assess the likely national, regional and local impacts of hosting the Olympics in London22. The study examined three categories of impacts: economic, social and environmental.
Clark 23 described the `urban development benefits over the next eight years` (2008 -2016) for the London Summer Olympics 2012 as follows:
Up-skilling of 70,000 volunteers, 7.9 million spectators will bring an estimated GBP £2.1 billion extra revenue, of which GBP £400m will affect areas outside London; 8,000 jobs in construction each year up to 2010, rising to maximum of 20,000.