By Ashley Eneriz | August 15, 2016 — 2:38 PM EDT There is no denying that the Olympics is a spectacular event that much of the world’s population eagerly watches. It is considered a huge honor for a country to host the Olympics, and usually no expense is spared, since most countries hope to profit on the event. The 2012 London Olympics and Paralympics cost $14.6 billion. That price is a bargain next to Beijing’s $42 billion 2008 Olympics. Taxpayers Foot Some of the Bill Who pays these high prices? Taxpayers of the hosting city will foot a good portion of the bill. For the 2012 London Games, taxpayers were responsible for $4.4 billion of the costs. Boston also pulled out of the 2024 Games bidding when the mayor found out locals could be held accountable for run-off costs. The International Olympic Committee’s Part The International Olympic Committee (IOC) and all of the related organizations within the Olympic Movement are privately funded. The committee only retains 10% of its funding and disburses the other 90% to the Olympic games and to support the worldwide Olympian movement. This funding includes monies for national Olympic committees and financial support so every country can compete. Debt and The Olympic Games Many cities will end up going into debt because they hosted the games. Economists have questioned how badly the 2016 Olympics will hurt Rio, since Brazil is facing the worst recession since the 1930s. Even with the downturn of the economy, the Brazilian government authorized an $850 million loan to Rio to build its Olympic infrastructure. Politicians have justified the high costs of the games as a chance to boost overall profits and tourism. However, that is not always the case. Athens is just one city that overspent, blowing its budget by 60%. Sadly, the Olympic stadium and many hotel rooms remain unused, and the games did not boost tourism like planned. While hosting the Olympics is a big deal for a country, it can also come at the cost of the taxpayers. Many times the fame of the Game only lasts until the pro-athletes and cameras are gone. Read more: Who Actually Pays for The Olympics? | Investopedia http://www.investopedia.com/news/who-actually-pays-olympics/#ixzz4HTzFtRdY
I heard Vancouver ended up in a huge debt after hosting the 2010 Winter Oly. Just recently its debt paid off. I s'pose Rio will face the same probs, wonder how they manage it. Poor cities should never host the Olympics just let the rich nations do the host thingee.
Looks like the IOC itself plays the most important part of all considering promotions for future Olympic events.
