The Telegraph reminds us that big sports events usually fail to meet the promises made regarding their impact on economic development. The Paris Olympics, set to open in less than two weeks, was supposed to be a grand event to boost tourism, revive the city, and kick-start France’s sluggish economy.
The reality is starkly different, and we shouldn’t be surprised. Historically, the economic benefits of hosting the Olympics have been dubious, and Paris is proving no exception. Despite the €7.5 billion investment, tourism has slumped, with travelers avoiding the city due to expected overcrowding. The author of the Telegraph piece writes:
Judging by the experience of other cities, many of those supposed benefits never materialise and the host is stuck with a series of expensive developments that no one can find a use for. To take just one example, the London Stadium, constructed for the 2012 games, makes a decent ground for West Ham, but it is hard to understand why taxpayer’s cash was needed to build it.
I share this in the hopes that seeing the failed promises of big sporting events overseas will make the argument at home more palatable. These investments just don’t pan out for taxpayers, be they for the Olympic Games, the Royals, Chiefs, or Cardinals. And yes, as my colleague David Stokes wrote 14 years ago, “there is a big difference between hosting an event for which you have to build facilities, like the Olympics, and hosting an event for which you already have the requisite facilities for other purposes.” But the impact, or rather the lack thereof, remains.
Given these challenges, the author suggests a permanent home for the games. Perhaps Greece. Establishing a permanent venue could drastically reduce costs, simplify organization, and minimize corruption.
That may be a viable solution for the Olympics, but for those of us stateside, the lesson needs to be learned. These events, be they Olympics or political conventions, don’t drive meaningful economic activity. They aren’t worth expending public funds on.
