The 2016 Rio Olympics were considered one of the most expensive Summer Olympics to date. In 2018, the total cost was estimated at $ 20 billion. This is well above the Rio Organizing Committee’s original estimate of $ 2.8 billion.
Rio is not the only city that will overrun the budget when the Olympics are held. According to the Council on Foreign Relations. Since 1960, all Olympics are said to have incurred high excess costs, except for the 1984 Los Angeles Olympics.
Hosting the Winter and Summer Olympics is expensive, but the latter is usually more expensive and vast. An increasing number of athletes, competitions and events require more specialized facilities. The Winter Olympics usually keeps cost overrun costs to a minimum and stays within the cost estimation threshold. However, the 2014 Sochi Olympics were outliers, with estimates reaching $ 40 billion and costs $ 51 billion.
Amid growing concerns, some cities withdrew their bids for the 2022 Winter Olympics in 2014 because of potential costs. And in 2020, the International Olympic Committee faced another challenge. It’s about how to host the 2020 Tokyo Olympics as a pandemic and globally crippled economy for Covid-19.
How can the Olympics find a city to host future events? And how did the Olympics grow from a humble beginning to a large and expensive international event? Watch our video.
Disclosure: CNBC’s parent, NBC Universal, owns NBC Sports and NBC Olympics. The NBC Olympics are the US broadcast rights holders for all Summer and Winter Olympics up to 2032.
How the Olympics turned into billions of dollars in infrastructure investment
Source link How the Olympics turned into billions of dollars in infrastructure investment