The 2012 London Olympics and the 2016 Rio Olympics both cost over $13 billion, while the 2020 Tokyo Games ran over $20 billion. In every case, the bill for hosting the Olympics has turned out to be dramatically higher than originally budgeted. In fact, a study by the University of Oxford found that since 1976, the average cost overrun was an astonishing 215%. But why is this? What makes hosting the Olympics so expensive, or at least much more expensive than everyone plans for? To answer that, we have to start from where the costs originally begin: the bidding process.
The Bidding Process
The journey to hosting the Olympics begins about 7 to 10 years before the actual games start. Hopeful cities often spend in excess of $100 million within two years, employing consultant firms, legal experts, city planners, and various professionals needed to bolster their proposals. The process begins with interested cities submitting an application to the International Olympic Committee (IOC) through their own National Olympic Committee.
Following these bid submissions, applicants are required to complete a questionnaire covering essential aspects of successfully hosting the games within six months. These aspects include general infrastructure, sporting venues, environmental factors, and more. Each file is evaluated by the IOC delegates, who provide a weighted score. If an applicant scores less than 6 out of 10, their bid is considered unsuccessful. The highest scores progress to a second round, capped at around four to five cities.
In the second round, candidates submit a more detailed questionnaire to the IOC Evaluation Commission, followed by a week-long site inspection. Based on this, the commission compiles a comprehensive report, which is distributed to IOC members who vote for their preferred host city. Once the votes are tallied and a winner is announced, the selected city signs the host city contract, officially confirming their status as the upcoming Olympic Games host.
Preparation: The Host City Contract
The host city contract is over 200 pages of obligations, setting the framework for revamping the city for the games. Key elements include the opening and closing ceremonies, media provisions, transport infrastructure, security, an athletes’ village, sporting venues, and more. Additionally, sporting venues must comply with the specifications and standards set by the respective international federation for each sport. This contract guides the planning for the eventual master plan, outlining how the host city’s organizing committee will achieve the outcomes set by the contract.
Case Studies: Recent Summer Olympics
Beijing 2008
The Beijing 2008 Olympics cost $6.8 billion, with three main venues constructed: the Beijing National Stadium, the Aquatic Center, and the Beijing National Indoor Stadium. The National Stadium, famously nicknamed the “Bird’s Nest,” cost $430 million and included a $100 million opening ceremony. The Aquatic Center, known as the “Water Cube,” required an additional $140 million investment.
Transportation infrastructure was significantly expanded, more than doubling Beijing’s metro network. From 2001, before Beijing won the bid, the rail system consisted of only two operational lines. By the time the games began, seven new lines and 80 stations were added. The Beijing Subway and airport expansion projects had budgets of $7.7 billion and $3.5 billion, respectively.
Environmental initiatives were also a priority, with billions spent on reducing pollution and improving air quality. Security costs were over $3 billion, with 110,000 police, 1.4 million security volunteers, and 300,000 surveillance volunteers deployed.
London 2012
The London 2012 Olympics cost $15 billion. Existing venues like Wembley Stadium and Wimbledon were used for football and tennis competitions, while new facilities like the 80,000-seat Olympic Stadium were constructed at a cost of just over $1 billion.
London spent around $10.5 billion on transport upgrades, including the creation of the Olympic Javelin trains. Security costs were $1.6 billion, with 40,000 security personnel ensuring safety. London faced significant security challenges, including a deadly militant attack the day after being awarded the games, prompting extensive security measures.
Rio 2016
The Rio 2016 Olympics cost about $13 billion. Rio de Janeiro integrated and developed three modes of transport: bus rapid transit, metro, and light rail, effectively doubling its public transport infrastructure. Environmental projects, including a massive cleanup of Guanabara Bay, cost $200 million.
Security concerns were addressed with nearly 22,000 military personnel added to national public security. Iconic venues like the Maracanã Stadium underwent renovations costing over half a billion dollars. Despite the costs, Rio reassured that investments would leave a transformative legacy for its residents.
Tokyo 2020
The Tokyo 2020 Olympics, held in 2021 due to the pandemic, cost $15.4 billion officially, with actual costs closer to $25 billion. Major renovations were made to the National Stadium, and new venues like the Tokyo Aquatic Center were constructed. Tokyo planned extensive upgrades for its metro system, which were scaled back due to the pandemic.
Accommodation was a significant concern, with plans to dock cruise ships in Tokyo Bay as makeshift hotels. The international broadcast center was a major investment, ensuring seamless coverage of the games. Despite the limitations, Tokyo leveraged advanced technology to create a memorable viewing experience.
Paris 2024
The Paris 2024 Olympics benefit from existing infrastructure, with only three new facilities needed: a media center, the St. Denis Aquatic Center, and the athletes’ village. Railway upgrades were necessary to accommodate the expected 15 million visitors. Paris also emphasized cycling transformation, providing 257 miles of new cycle lanes and 20,000 bicycle parking spaces.
The Athletes’ Village
One of the largest universal aspects hosts must prepare for is constructing an athletes’ village. This temporary residential complex houses athletes, coaches, and trainers during the Olympics. The village must accommodate 11,000 athletes and 5,000 training personnel, with specifications covering everything from room dimensions to village facilities.
Future of Olympic Hosting
Given the rapidly growing budgets of each passing Olympics, the IOC plans to move away from constructing venues and infrastructure for single-use events, favoring existing facilities. This approach aims to reduce costs and ensure sustainable investments, although the exact impact on future host cities remains uncertain.
Conclusion
Hosting the Olympics is a massive undertaking, requiring meticulous planning, adaptability, and vast resources. Each city faces unique challenges, but the consistent theme is the immense scale of preparation and investment needed. Despite the high costs, the legacy of improved infrastructure, environmental initiatives, and global recognition can provide lasting benefits for host cities.
Frequently Asked Questions (FAQ)
1. Why do the costs of hosting the Olympics often exceed budgets? The costs often exceed budgets due to the extensive preparations required, including infrastructure upgrades, new venue construction, security measures, and unforeseen challenges.
2. What are some key components of the host city contract? Key components include opening and closing ceremonies, media provisions, transport infrastructure, security, an athletes’ village, and sporting venues.
3. How does the bidding process for hosting the Olympics work? Cities submit applications, complete questionnaires, undergo evaluations, and participate in site inspections. The IOC members then vote on the preferred host city.
4. What are some notable investments made by host cities? Notable investments include Beijing’s expanded metro network, London’s transport upgrades, Rio’s environmental projects, and Tokyo’s accommodation solutions.
5. How do security concerns impact Olympic preparations? Security concerns lead to significant investments in law enforcement, military personnel, and surveillance measures to ensure a safe event.
6. What are the long-term benefits of hosting the Olympics? Long-term benefits include improved infrastructure, environmental initiatives, increased tourism, and global recognition.
7. How does the IOC plan to reduce future Olympic hosting costs? The IOC plans to utilize existing facilities instead of constructing new ones, promoting sustainability and cost-efficiency.
