Hosting the Olympics: why are we always getting the cost wrong?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maroula Khraiche ◽  
Abhinav Alakshendra

PurposeIn the last 50 years, every Olympics has experienced a major cost overrun. This paper explores the reasons for this cost underestimation and looks into the occurrence of the winner's curse. We also forecast the spending pattern of future host cities. Finally, we discuss the role of the International Olympic Committee in making the Olympic Games more efficient and sustainable.Design/methodology/approachThe review of literature on the topic of constant cost overrun in the Olympic Games is surprisingly very thin. We comprehensively review the existing literature to understand the scholarship in this area. This paper also produces future cost trends for the host cities.FindingsWe argue that cost underestimation is resulting from the outdated bid process which encourages spectacle over efficiency. A no-bid environment is more efficient and allows the host city to negotiate effectively with the International Olympic Committee. The Los Angeles Games of 1984 was profitable and has shown reusing the infrastructure can save a lot of money which could help make the Olympic Games economically sustainable.Originality/valueThis paper adds to the existing knowledge on the cost overrun aspect of Olympics financing. We also forecast the cost trends of hosting future Olympics.

Author(s):  
Mikhail E. Komarov

В данной статье рассматривается актуальный вопрос расходов на организацию летних Олимпийских игр на предолимпийском этапе. В статье проводится анализ структуры расходов на рассматриваемом этапе на примере XXXII летних Олимпийских игр в Токио. Детально исследуется структура расходов на двух крупных подэтапах: подача заявки на проведение Игр и непосредственно организация Олимпиады, при этом отдельно выделяются расходы трёх основных групп: Международного олимпийского комитета (с фокусом на программе Олимпийской солидарности), условной группы бизнеса и условной группы государства. На первом подэтапе в условную группу государства входят Токийский муниципалитет, правительство Японии и Заявочный комитет Токио 2020, в то время как на автором рассматриваемом подэтапе место Заявочного комитета занимает учреждённый в 2014 г. после официального избрания Токио городом-организатором Организационный комитет Токио 2020. В рамках каждой из трёх основных групп приводятся конкретные проекты, проводится анализ статей расходов на их осуществление. Отдельно стоит выделить тот факт, что автор, являясь действующим сотрудником Организационного комитета Токио 2020, осуществляет детальное изучение проектов и статей расходов, зачастую не попадающих в поле зрения исследователей данной темы. Отдельно анализируются факторы и причины увеличения первоначального бюджета на организацию и проведение XXXII летних Олимпийских игр, в частности такие, как перенос соревнований по марафону и спортивной ходьбе из Токио в г. Саппоро, перенос Игр на 2021 г. в связи с угрозой распространения вируса COVID-19 и т.д. На основе имеющихся данных по состоянию на май 2020 г. выделяется ряд тенденций, связанных со статьями расходов отдельно взятых групп. Основываясь на данных проведённого исследования, автор делает вывод, что наибольшие расходы на предолимпийском этапе несёт условная группа государства, в рамках которой доли Токийского муниципалитета и Оргкомитета Токио 2020 условно равны. Ключевые слова: Олимпийские игры, Организационный комитет Токио 2020, структура расходов Олимпийских игр, Токийский муниципалитет, Заявочный комитет Токио 2020, Международный олимпийский комитет, экономика Олимпийских игр, предолимпийский этап, XXXII летние Олимпийские игры, программа Олимпийской солидарности. This article deals with the topical issue of the costs related to hosting the Olympic Games at the pre-Olympic stage. The article provides an analysis of the cost structure at this stage on the example of the Games of the XXXII Olympiad in Tokyo. The cost structure in two major sub-stages is studied in detail: bidding stage and the organizing stage, with the focus on the costs of three main groups: the International Olympic Committee (highlighting the Olympic Solidarity program), nominal business group and nominal state group. In the first sub-stage the nominal state group includes Tokyo Metropolitan Government, the government of Japan and the Tokyo 2020 Bidding Committee, while in the second sub-stage the Tokyo 2020 Bidding Committee is replaced by the Tokyo 2020 Organising Committee, established in 2014 after Tokyo was officially elected as the host city. Specific examples of the projects within each of the three main groups are indicated and the analysis of the costs related to their implementation is conducted. It is important to highlight the fact, that the author of the article, being the current employee of the Tokyo 2020 Organising Committee, has carried out a detailed study of projects and cost items that frequently are not covered by other researchers of this issue. The factors and reasons for increased budget, compared with the initial one, for staging and holding the Games of the XXXII Olympiad are analyzed separately; particular emphasis has been put on the transfer of the marathon and race walk competition from Tokyo to Sapporo city and on the postponement of the Games till 2021 due to the threat of the COVID-19 virus spread, etc. Based on the available data as of May 2020, a number of trends related to the cost items of the main groups are indicated. Based on the materials of this article the author concludes that the largest expenses at the pre-Olympic stage are borne by the nominal group of state, within which the shares of Tokyo Metropolitan Government and the Tokyo 2020 Organising Committee are conditionally equal. Keywords: Olympic Games, the Tokyo 2020 Organising Committee, Olympic Games cost structure, Tokyo Metropolitan Government, the Tokyo 2020 Bidding Committee, the International Olympic Committee, the economics of the Olympic Games, pre-Olympic stage, the Games of the XXXII Olympiad, Olympic Solidarity program.


2016 ◽  
Vol 18 (2) ◽  
pp. 4-27
Author(s):  
Toby C. Rider

Scholars who have examined the role of the Olympic Games in U.S. Cold War strategy have dealt mostly with the post-Stalin era, when the Olympic Games were a stage for “symbolic combat” between athletes from the East and West and a cultural force with a powerful and compelling message that could be used for political gain. The Games were overseen by the International Olympic Committee, which both influenced and was influenced by the actions of world leaders and states. Although U.S. officials generally refused to approve federal funds for the national Olympic team, they took steps to manipulate the Games for propaganda purposes. The Cold War origins of such activities have not yet been clearly delineated. This article shows that Harry Truman's administration in the late 1940s and early 1950s was the first to address and to take advantage of the propaganda potential of the Olympics in the Cold War era, and this transformative period coincided with, and was driven by, the government's much expanded information offensive, the “Campaign of Truth.”


2017 ◽  
Vol 8 (4) ◽  
pp. 558-577 ◽  
Author(s):  
Faiza Khan ◽  
Michelle Callanan

Purpose The purpose of this paper is to address the confusing use of terminology associated with tourism undertaken by Muslims and to identify key concerns associated with this type of tourism. Design/methodology/approach This is an exploratory study and adopts a critical review of literature following the evolutionary concept analysis method. Content analysis of popular UK media, UK-based tour operators’ websites and tourism strategies of destinations popular with Muslim tourists were conducted to examine the use of terminology. Findings There is no clear difference between the various terms (halal, Muslim friendly, Islamic, etc.) used. Overall, academia uses the term Islamic tourism, while the industry and media use various terms. Among destinations, however, there is no clear and consistent use of terminology. A key concern of Islamic tourism is the role of certification in assuring travellers and the lack of standardisation of halal certification. Research limitations/implications The paper is based on literature review and secondary data analysis. It lacks primary research. Practical implications This study highlights the need for consistent use of terminology across industry. Another implication is the issue surrounding halal certification of food and the importance of trust in the seller/service provide. Another trend that industry providers need to consider is the growth of the Muslim millennial traveller and the needs of this market segment. Originality/value The paper highlights the importance of studying the Muslim tourist market and provides a starting point for further research. It highlights several issues such as the need to develop a typology of Muslim tourists. Of particular interest is the concern whether halal values in danger of being commodified in the absence of a universal agreed criterion for halal certification.


2018 ◽  
Vol 19 (2) ◽  
pp. 160-177 ◽  
Author(s):  
Tiago Miguel Ribeiro ◽  
Abel Correia ◽  
Rui Biscaia ◽  
Carlos Figueiredo

Purpose The purpose of this paper is to examine the effects of service quality on perceived positive and negative social impact of the 2016 Rio de Janeiro Olympic Games. Design/methodology/approach A field study was conducted in Rio de Janeiro, and data were collected from residents who attended the Olympic Games through a self-administered questionnaire (n=519). The questionnaire included measures of perceived service quality, positive and negative social impact. A confirmatory factor analysis analysed the psychometric properties of the constructs, and a subsequent structural equation model examined the relationships between service quality and social impact perceptions. Findings The results show good psychometric properties of a multidimensional construct of service quality composed of the technical, functional, aesthetic, access, accommodation and complementary events dimensions. The service quality construct was significantly related to both positive social impact (city image and community pride enhancement, social experiences and public infrastructures) and negative social impact (social conflicts and costs) perceptions. Originality/value This study contributes to the literature by examining the role of service quality in sport mega-events and testing on different facets of social impact. The findings highlight that social atmosphere and new experiences in the Olympic Games are critical when planning these events.


2016 ◽  
Vol 8 (2) ◽  
pp. 143-162 ◽  
Author(s):  
Premilla D'Cruz ◽  
Brita Bjørkelo

Purpose – Through state-of-the-art insights on whistleblowing in India, the purpose of this paper is to highlight the role of sociocultural dynamics in whistleblowing. Design/methodology/approach – A review of literature on wrongdoing and whistleblowing in India revealed various aspects of the national context pertinent to different stages of the phenomenon. Thematic analysis of these dimensions, allowing for a nomothetic approach, resulted in identifying six sociocultural themes common across wrongdoing and whistleblowing. Findings – Sociocultural dynamics impacting the emergence, persistence and recognition of wrongdoing, the decision to blow the whistle, engagement in whistleblowing and the outcomes of whistleblowing encompass social relationships, power distribution, materialistic considerations, sense of propriety and fairness, public/civic orientation and ideological leanings. These factors coexist with international influences, institutional framework, workplace ethos and individual orientation. The presence of wrongdoing and the trajectory of whistleblowing in India are affected by the aforementioned factors. Research limitations/implications – The paper is based on secondary data rather than empirical endeavours. Social implications – By underscoring the relevance of contextual dynamics, in particular sociocultural factors, in the whistleblowing process, the paper indicates an important basis for appropriate interventions to manage wrongdoing and encourage whistleblowing while protecting whistleblowers and ensuring attention to rectifying wrongdoing and sanctioning offenders. Originality/value – Apart from providing a contemporary and comprehensive overview of whistleblowing in India, the paper uncovers the significance of sociocultural factors which have been overlooked so far in the substantive area. Moreover, a contextualised process model of whistleblowing is proposed based on the analysis. In subsuming temporality, context and outcomes for all stakeholders, the model displays complexity and causality, emphasising holism.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Geoff Dickson ◽  
James Jianhui Zhang

PurposeAlthough both sports and cities have transformed over the last century, research on the intersection of sports and urban development remains scarce. This special issue was designed to advance a research agenda in relation to sports and urban development. The sports and urban development special issue of International Journal of Sport Marketing and Sponsorship brings together a collection of conceptual, empirical and commentary papers from four continents. Themes explored in this special issue include legacy, governance, image, climate change and sustainability. We encourage collaborative approaches between sport researchers and those with a focus on urban development, urban design and urban governance. Understanding the role of sports in the development of smart cities is an excellent opportunity for these collaborations to occur.Design/methodology/approachA comprehensive review of literature was undertaken to assess the literature related to sports and urban development.FindingsIn addition to this introductory article, there are ten manuscripts selected for this special issue investigating sports and urban development.Originality/valueThis special issue seeks to promote more research on sports and urban development, ultimately ultimately advancing theories and providing solutions.


2019 ◽  
Vol 12 (3) ◽  
pp. 291-313 ◽  
Author(s):  
Vishwas Maheshwari ◽  
Janaina de Moura Engracia Giraldi ◽  
Maria Gabriela Montanari

Purpose Olympic Games provide an arguably unparalleled amount of opportunities for the host city and country in relation to economic and socio-cultural growth and development. However, the achievement of such long-term success measures lies with the holistic involvement of community groups, specifically residents, in the planning of the mega event. The purpose of this paper is to examine the residents’ attitudes of the 2016 Olympic Games and to verify moderating effects of place of residence in support of the Games. Design/methodology/approach The data were collected in Brazil in the months leading to the Rio Olympic Games using non-probabilistic convenience sampling. A total of 501 responses were collected prior to the opening ceremony of the event. Both exploratory and confirmatory factor analyses were applied. Findings The socio-cultural and economic dimensions had a positive and significant effect in support for the Olympic Games; however, the environmental dimension did not have such strong effect. Furthermore, differences between host and non-host city residents tested positive in support of the Olympic Games. Practical implications This study aims to contribute to the developing application of country branding by examining attitudes of internal stakeholder groups in the form of residents. Originality/value This research presents a conceptual model to further establish the importance of such attitudes for organizers and government authorities involved with the bidding, planning and management of mega events from a country branding perspective, particularly in developing countries such as Brazil.


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