The Olympic Games significantly contribute to the development of sports and promotion of a healthy lifestyle of residents in the country where they are hosted, boost the development of international relations, strengthen peace and mutual understanding between peoples of various nations. Olympic Games give the host city many benefits and opportunities — and require careful multi-year planning. It has a considerable influence on the operating of all sectors of the state economy of the host country. The purpose of this paper is to analyze the social and economic effects of the Olympic Games on Asian host countries.
At the pre-Olympic stage, the need to improve the infrastructure and to build new sports facilities will provide people with jobs and encourage new investment in the state economy. The country will gain profit from the Olympic Games by selling the rights to broadcast the event on television, on the Internet, selling tickets and souvenir products, commercials, licenses, and accreditations. During the Olympics, the number of tourists coming to the Games increases significantly, which, in turn, contributes to the influx of currency into the country. This period of the Olympic business cycle is the most short-term, but nevertheless, it is crucial, because all actions of the state, business, and the international Olympic movement at the pre-Olympic stage are aimed at it.
At the post-Olympic stage, the use of infrastructure built for the games will show the effectiveness of investment. In terms of revenue, the post-Olympic stage is the most significant. Researchers note that “Olympics in China have contributed to the increase of GDP by 2.5 % since 2002.” (Muller et al., 2016, p. 87). The long-term economic impact is the most considerable, and it is expressed in creating jobs and new training programs, promoting trade, strengthening infrastructure, protecting the environment, etc.
The holding of the Olympic Games exercises a significant influence on the business growth and expansion in the host city, especially its sports sphere. The building of necessary sports venues, improvement of city infrastructure, growth in the quantities of tourists, in essence, all these factors attract foreign direct investment. Thanks to the great number of sports constructions and related infrastructure, new jobs are created, which consequently results in a significant decrease in the rate of unemployment in the host cities. The improvement of infrastructure contributes not only to the economic recovery but also to the social development of the city hosting the Olympics. The complex development of the transportation system and communications, creation of consumer services, and travel industry growth give opportunities for economic progress and improvement of its macroeconomic parameters.
Despite the great expenses on infrastructure development and the considerably long payback period, such major investments frequently result in vigorous growth and high-quality renovation of the host city. This happened, for instance, in 1964 with Tokyo, which after the XVIII summer Olympic Games, began to turn into a dynamically developing and prosperous city to live in (Kietlinski, 2016). The huge capital of Japan has been significantly transformed, the new metro lines and an urban monorail appeared. Dilapidated buildings were demolished, and the streets were widened.
Besides, to solve the transport problem of the city, high-speed highways were laid through Tokyo, and street junctions were built by building overpasses and bridges. The hotel economy of the Japanese capital has been significantly expanded. A characteristic feature of the Tokyo Olympic Games was the entry of electronics into the Olympic arenas. The use of high-tech electronics in sports judging has considerably increased its accuracy and efficiency. Television broadcasts opened a new stage in the development of mass media through space, which crossed the borders of continents and introduced a previously unthinkable number of viewers to what is happening in the Olympic arenas. The opportunity to see the Olympic Games for anyone on earth has immeasurably increased the popularity of the Olympic movement.
A striking example of infrastructure development was the Olympic Games in Beijing held in 2008. Researchers state that in China, approximately 280 billion yuan (about 44 billion US dollars) was spent on major infrastructure—including urban transportation, energy, water resources, and the urban environment—ahead of the Games (Osada, 2016). Most of the city’s economy has undergone construction and reconstruction, starting from the sewage system and ending with the new terminal of the Beijing Capital International airport. Beijing repeated the experience of Tokyo in 1964 and turned into a highly developed city, comfortable to live in.
The Olympic Games are a unique sporting event for the whole world. It shows the best in sports and hosts cities and countries. The Olympic Games have large-scale social external effects on host-countries growth. The priority for infrastructure development in organizing the games opens up great opportunities for both the residents of the Games hosting country and the outside world. Infrastructure can be used not only by guests and participants of the Games but also by residents of the event’s host city. Besides, due to the Olympic Games, a sense of civic solidarity and community strengthens, and the status of the entire country hosting this international sporting event improves.
References
Kietlinski, R. (2016). Japan in the Olympics, the Olympics in Japan. Education About ASIA, 21(2), 35-40.
Muller, A., Biro M., Rathonyi-Odor, K., Rathonyi, G., Szeles-Kovacs, G., Boda, E.,… & Andras, A. (2016). Economic impacts of sports events. Studia Universitatis Babes-Bolyai Educatio Artis Gymnasticae, 61(4), 85-95.
Osada, M., Ojima, M., Kurachi, Y., Miura, K., & Kawamoto, T. (2016). Economic impact of the Tokyo 2020 Olympic games. BOJ Reports and Research Papers, 1-21.