Abstract
The aim of this paper was examining how competitive sporting events impact the society. Specifically, the research focused on economic impacts of the Olympic Games on the host city or nation. The researcher has analyzed past Games, 2000, 2004, 2008, and the future 2020 regarding how they affect the economy in various sectors such as employment, tourism, and the GDP. In detail, the paper has provided the pre-phase, during-phase, and after-phase of the Games and how each period interrelates with the economy. The costs incurred in setting up the infrastructure have been provided in addition to the changes in the tourist numbers. In conducting the study, the researcher relied on secondary data. Secondary data is sourced from pre-existing materials such as journal articles, government reports, IOC reports as well as past research papers. Various sources were analyzed to ensure they were credible and valid to be used in the study. Adhering to ethical considerations was of importance to the researcher. Charts and tables were utilized in the results sections to emphasize significant economic aspects. Moreover, the results provide for both the negative and positive elements as stated by various researchers and authors. By following the provided procedure, the researcher was able to make a concrete conclusion on the overall impact caused by hosting Olympic Games. In general, hosting the Games is profitable to the government, local entrepreneurs, and the local man concerning improved living conditions. However, the extent of profitability depends on the costs incurred in the preparation and the revenue gained during the games.
Key Words: Olympic Games, GDP, Economic Impact, Tourism, Infrastructure, Costs, Hosting/ Host, Nation/ Country, City,

Table of Contents
Abstract 2
1.0 Introduction 4
2.0 Literature review 7
Methodology 11
3.1 Introduction 11
3.2 Philosophical Foundation 12
3.3 Research Approach 13
3.4 Research Strategies 13
3.5 Time Horizons 14
3.6 Data Collection Method 14
3.7 Data Analysis and Presentation 15
3.8 Ethical Consideration 15
4.0 Results 16
4.1 Sydney 2000 16
4.2 Athens, 2004 20
4.3 Beijing 2008 22
4.4 2020 Tokyo Olympic Games 24
Conclusion 28
References 30

List of Tables
Table 1 Economic benefits and costs of the Olympic Games 9
Table 2 Economic effects and Games period 19
Table 3 Impact of the Games in phases analyzed 26
Table of Figures
Figure 1 Research Onion 12
Figure 2 Tourist Arrivals 17
Figure 3 Sydney 2000, Revenues of the Organizing Committee 18
Figure 4 Greece GDP 21
Figure 5 Beijing 2008, Revenues 24
Figure 6 Changes in the GDP 25
Figure 7 Impact of 2020 Olympic Games on Japan’s GDP 26
1.0 Introduction
Today’s mega-competitive sporting activities have become critical platforms for athletes from different parts of the world to flourish and at the same time put a spotlight on the host nation. Consequently, hosting countries can promote their cultural identities, tourism attraction sites, and other unique facilities to millions of people. According to Dolles & Söderman (2008), sporting events increase the visibility of a society. Moreover, the games positively contribute to financial gains in the community which help in urban regeneration. Sporting activities bring people together and enable them to work towards a common cause (Dolles & Söderman, 2008). Some of the areas that are impacted by sporting events in society include tourism, the host nation’s culture, other sports-led projects, entertainment sectors, and reshaping of the community (Matheson & Baade, 2004). Improvement in these areas boosts the nation’s economy, and due to more visibility, prospective investors are lured into the host nation helping to build and improve other sectors such as the social environment. Florek, Breitbarth & Conejo, (2008), state that competitive sporting events can be termed as flagship projects which turn the society from being a ‘problem place’ into an ‘opportunity place.’
Nonetheless, hosting competitive sporting activities such as the World Cup may be extremely expensive. The hosting nations are required to build more infrastructures such as new stadiums which are costly. At the same time, preparation and building of the needed gaming facilities involve the local individuals creating more jobs for the citizens. Moreover, after the successful hosting, the society benefits from the new infrastructure and land degeneration. Dolles & Söderman (2008), distinguished the benefits associated with hosting competitive sporting events in three ways namely “economic growth, image promotion, and infrastructure legacies.
Tourism and infrastructure development leads to the creation of entertainment facilities such as nightclubs for foreign visitors. Kurtzman (2005), notes that millions of people are involved in sporting events which means that most societies benefit from their services to the foreigners. Additionally, trade activities increase lifting the lives of intermediaries in the society. Some foreign visitors who attend the sporting functions are more interested in visiting the historical places of the host countries. As a result, the community members can generate charging fees which primarily impact on the surrounding economic situation (Kurtzman, 2005).
At times, competitive sporting events may have negative impacts on the country’s economy. However, Dolles & Söderman (2008), states that the economic impact of enormous sporting activities likes the Olympic Games or the FIFA World Cup may be difficult to predict. The host nations may not immediately be sure of the outcomes these events have on various societies sectors considering the success vary depending on how many visitors arrive for the event and the total income generated compared to the expenses. According to Jones (2001), organizing major sporting events may be difficult in low-income societies since there is need for committing substantial financial and skilled human resources aspects which cannot be readily available. For instance, when a nation is preparing to host a significant sporting event the consequence is a slow down on other development plans. In some cases, people may be evicted to create space for building new roads and stadiums for the sporting event. For example, during the 1996 Atlanta Olympic Games, more than 15000 residents were relocated from their homes (Jones, 2001). During the event, prices of most goods increases which mean that they affect both the foreigners and the locals (Matheson & Baade, 2004). If locals are unable to generate enough income as a result of low numbers of tourists, they are unable to afford a decent living that guarantees a healthy life. In such a case, many become against the idea of hosting the event as was witnessed during the Brazil Olympics where citizens felt the government could have committed resources to meet their basic needs.
According to Florek, Breitbarth, & Conejo (2008), youths are integral to the development of the society. Thus, the impact of sporting events to the community has a direct effect on how they behave. An example is the London 2012 Olympic Games where the event positively impacted on young people within the UK society. England had a vision for the youth to take over various sporting activities. Therefore, when bidding to host the games, the United Kingdom had a message they wanted to put across to the world. Their message was ‘choose London, and we will inspire a new generation to take up the sport (Florek, Breitbarth, & Conejo, 2008).’
In most societies and especially the rural ones, there are many problems associated with people’s lifestyle. These issues include inadequate housing, lack of water and sewage systems, and environmental pollution among others such as security threats (Matheson & Baade, 2004). However, these problems are curbed when the government takes the initiative to develop these areas due to the millions of people attending the sporting events. Governments aim at establishing a positive public image to the world meaning that preparations for the event hugely improve the physical condition of various societies. For example, during the 2012 Summer Olympics, approximately 13,000 police officers were deployed to secure the event while being supported by more than 17,000 members drawn from the armed forces. In addition, private security was contracted. The security operation has been regarded one of the most comprehensive and largest that Britain had to carry out (IOC, 2013). Security is a critical concern and just recently, the Rio Olympics were slammed to be shambolic as officials accused the organizers of failing to do enough to protect both visitors and athletes (Blake, 2016). Incidences of visitors being robbed during the event were numerous raising questions on how the huge resources set aside for security were utilized by the Brazilian government (Blake, 2016). In addition, cases of fake accreditations to enter the Olympic Village were widely reported with the security organs doing little to control. Nevertheless, considering Rio is one of the most dangerous cities in the world a deployment of 85,000 security personnel confirmed the intentions of the organizers to keep each visitor safe (Blake, 2016).
Tenants happen to be the most affected by the limited housing rights, during competitive sporting events. Jones (2001), noted that they are adversely affected due to the increment in rent during the sporting duration or even being evicted by the landlords to create space for foreign visitors who happen to pay more money for accommodation. Societies which lack community groups to protect their interests end up being mistreated by the government or other individuals who own the premises they live in when the events begin. Local business in societies located near the sporting grounds sees their enterprises decline when preparations for the games start. Moreover, markets which are not associated with the sport may be closed during that period since there is lack of a conducive working environment (Dolles & Söderman, 2008).
The purpose of research paper was determining the Olympic Games economic impact on the hosting country where some of the past Games that will be explored include those held in Athens, Greece, Beijing China, the London 2012 Games, Brazil Rio Olympics and future 2020 Tokyo Olympic among others. The research paper examines the pre, during, and post Olympic impacts that some of these countries experienced. A literature review has been provided, the methodology used in collecting data in addition to the study results, conclusion and recommendations.
2.0 Literature review
The Olympic Games since they were held in 1896 have experienced drastic evolvement. In the 20th century, the revenue produced and the costs of hosting the Olympics grew rapidly, sparking a debate on the burdens that the countries faced (PWC, 2004). Some economists have argued that the benefits, both short and long-term of being a host to the event are non-existent and at worst, exaggerated which leave many countries with colossal maintenance liabilities and debts. Nevertheless, there are economists who have argued that the benefits of hosting the games to an economy are immense. The Olympics is an event of high magnitude which has a potential of significantly impacting on the economy of smaller countries and for the vast countries, the hosting city (Bakouris, 2014). While the Games last approximately for one month, preparations by the host nation start a decade before as the event primarily involves putting high-end infrastructural facilities that can impact on the economy in the long-term. While economists, scholars, and some researchers have investigated the Game’s real impact on the economy, there lacks consensus on whether there is value for the hosting country (Telloglou, 2004). There have been conflicting views on what was the real impact on the economy. The most widespread view associated with the Olympic Games in 2004 is that the costs incurred were excessive. However, the particular assessment does not take into account the indirect beneficial effects or the game’s revenues.
According to Dwyer, Forsyth, & Dwyer (2010), the Olympic Games complete cycle on a city’s economic impact can be classified into pre-games impact, the games impact, and the post-games impact (Dwyer, Forsyth, & Dwyer, 2010). The impact occurs first when the city decides to bid for the games, but significant economic effects are when the award is made. Bids for hosting the games occur several years to the real event because of the significant changes in the infrastructure required (PWC, 2004). Therefore, substantial monetary investments are necessary. According to Matheson & Baade, (2003) due to the enormous costs incurred in preparing for the games, the International Olympic Committee (IOC) selected host cities in developed countries as they already had in place accommodative infrastructure projects. To ensure the that the cities bidding for the games are fully engaged and to provide a peek of the expenses incurred during the actual event, the IOC introduced payment of US$ 150,000 when entering the bid where in-case of a withdrawal US$ 25,000 is non-refundable (IOC, 2013). Cities that are developed only spend few resources in building the needed infrastructure which consumes the highest expenditure. Evidence of the variance in expenditure was the Seoul Olympics where $2 billion was spent in building the required stadiums whereas the games held in France did not cost more than $ 500 million in infrastructure. Surprisingly, a large portion of the funds in France was used in renovations of the premises that already existed (Matheson & Baade, 2003). When considering the impact on the economy, another aspect that influences the outcome is the cost of hosting Summer and Winter Games. According to Singh & Hu (2008), summer games cost almost twice the expenditure of winter games, however, without considering the Sochi Winter Games in 2014 that defied past precedence (Kaspar, 2014). Thus, the pre-games impact is related to the preparatory activities, and in some cases, tourism may start to pick because of the attention directed towards the city or country.
The second phase is the impact of the games during the actual set days. The effect is also by the associated activities surrounding the ongoing games. The final stage is the longer-term effect sometimes referred to as the “Olympic legacy” which can exist a decade later. Often, the long-term stage relates to post Olympic- infrastructure and tourism effects (PWC, 2004). A summary of some of the economic benefits and costs have been provided in table 1 below.
Table 1 Economic benefits and costs of the Olympic Games
Benefits Costs
Pre-Games Phase Tourism
Construction activity Preparatory operational costs
Investment expenditures
Lost benefits

Game phase Tourism
Revenues from games
Olympic jobs
Infrastructure and stadium

Post-Games phase Human capital
Tourism
International reputation
Urban generation Stadium maintenance
Lost benefits from the projects displaced
Source: PWC (2004)
The variations on the economic impact of the games could be influenced by the various definitions of what is called or considered an economic impact where Crompton (1995), considers the impact to be a change in the economy resulting from expenditure associated with a particular event. PWC (2004), states that there is need to differentiate between financial impact and economic impact concerning the Games. Financial impact refers to the budgetary balance of the organizing committee in the hosting city as well as the ability of the overall financial costs incurred when hosting the event to be covered by direct revenues such as TV rights that the Games generate (PWC, 2004). Consequently, the economic impact includes the broader effects on the general economy, for instance improved infrastructure and increased tourism. According to Malfas, Theodoraki, & Houlihan (2004), direct income from these events is derived from television rights, sponsoring contracts, or sales of ticketing which often covers the preparation costs but do not spread to the development of the general economy. Before the Olympics were hosted in Los Angeles, the Games were well thought-out to be financial lumber for the hosting city. However, following the success that came with this event in 1984, many acknowledged the potential held when such a mega sporting occurrence is successfully held (Singh & Hu, 2008).
The positive attributes associated with the games includes attracting international investment locally as well as creating larger competition. Evidence of such investments is that the IOC contributes approximately 60% of the financial budget that is presented (Malfas et al. 2004). Also, the economic effects influenced the creation of new jobs despite being short-term and attracting low pay (Malfas et al. 2004). The games also contribute to the construction of airports and new sporting facilities, improvement of the living conditions of future tourists and native residents, for instance, the development of recreational places and public transportation (Gratton, Shibli, & Coleman, 2006).
Methodology
3.1 Introduction
The section below details the methodology adopted in the study. The methodology can be defined as a systematic campaign with the aim of acquiring knowledge (Bryman, & Bell, 2015). Research methodology helps in understanding a study’s problem and obtaining data or information in a systematic way. Moreover, the study methodology details the methods used in the process of data collected. Therefore, in the chapter, an outline of the procedure used in conducting the study which includes the analysis of data has been explained in-depth. Saunders, & Lewis, and Thornhill (2009), explain more about the research methodology and the sequences used in the chapter by the use of a research onion depicted in figure 1.

Figure 1 Research Onion
Source: Saunders et al., (2009)
3.2 Philosophical Foundation
According to Bryman & Bell (2012), ‘research philosophy’ is “the set of beliefs relating to the nature of reality being examined in the research.” Additionally, philosophy in research is an explanation of the knowledge used in the study used for creating expectations for the researcher enabling them to rationalize the manner in which the research is done. The research process can be carried out through two major ontological approaches which include Positivism and interpretivism. The positivism approach assumes that reality exists autonomously from the variables in the research. Moreover, this shows that the significance of positivism cannot be assumed even when they are used among the subjects. The interpretivism approach implies that a group or onlookers create the underlying sense of social phenomena. Nonetheless, the research aims at exploring the significance of determining the economic impacts of Olympic Games on the hosting city. Therefore, interpretivism is the best approach to use. Furthermore, by the use of this tactic, the researcher can get more results and approaches thereby appreciating the different views of the participants. People view Olympic Games impact differently and therefore; the researcher adopted an ontological approach which helps them to accept people’s differences.
3.3 Research Approach
A researcher has to examine whether to use deductive or inductive reasoning after determining the research philosophy to use (Saunders et al., 2009). The deductive reasoning begins with the advancement of propositions based on the theory they exist in followed by formulation of a method or approach which they can be tested. However, inductive approach is different from the deductive approach since the former starts from specific advancements to the general ones. Additionally, the researcher makes observations and then establishes patterns from the information collected. In the study, the inductive approach is used where the researcher starts with specific questions and later reviews other sources of literature while observing emerging patterns.
3.4 Research Strategies
The researcher preferred to use an explanatory approach during the study. One of the main advantages for using this approach is the significance in researching a study question and giving the similarities available in the research variables. Nevertheless, the relationship in these studies can also be known as cause-and-effect. In the study, the researcher focused on determining the impact the Olympic Games have on the economy of the hosting city. Additionally, quantitative and qualitative data in the previous research was used.
3.5 Time Horizons
The researcher showed that the time horizons refer to a structure in which the study can be completed (Saunders et, al.2009). Based on the statement, this research was conducted with the involvement of cross sectional horizons in which the data is obtained at a specific period and is collected frequently contrary to a longitudinal.
3.6 Data Collection Method
The researcher used secondary data sources in collecting information for the research. Previous studies conducted on determining Olympic Games impact on the economy of the host city formed part of the evaluation. The researcher obtained secondary sources from online libraries, government reports, and the official statistics by the IOC among others. Search words used in the research were “the economic impact of Olympic Games on the hosting city.” However, the researcher sieved the sources to ensure that only the credible information was used. The criteria for selection involved reviews from peer sources and other reliable websites. Moreover, the researcher preferred sources which were more recent based on the year of publication. The investigator used secondary reasons for the following reasons; first, studies from magazines, journals, books and other secondary sources are easy to access online. The use of secondary data saves money and resources which can be used in meeting participants and traveling among other expenses used in the study (Saunders et al., 2009). Secondly, finding the right participants for the research could be difficult and therefore, through the use of secondary data, the time used to find respondents is saved. Participants may not disclose private information which could be useful in the research, but through secondary data, the researcher can get every detail provided the information is obtained from quality sources. Despite having many advantages, secondary sources have limitations which include; lack of suitability especially if the data collected is from a different location, lack of reliability and the possibility of becoming obsolete over time. The researcher used recent sources to avoid some of these limitations.
3.7 Data Analysis and Presentation
The researcher used secondary sources which include books, journals, internet sources, and magazines to evaluate the relationship between variables and give feedback to the research questions. The researcher determined the aim of the study before the implementation process. Preceding chapters explain the goals of the research. The next step in the study is to locate the most critical data for analysis. The researcher used keywords from the research topic to find more information for the study. After obtaining data, the researcher evaluated it for relevance which included the following; the data’s original purpose, the sampling strategy, time in which the data was collected, the population or respondents used, the form or shape of data and the questions asked. Moreover, the researcher assessed the credibility of the data and the consistency of the data as well as the eligibility of the original researchers. Finally, the data were analyzed. The researcher categorized the results from various researches into more significant themes which were related to the research questions. The findings were presented in tables, figures, and critical descriptions.
3.8 Ethical Consideration
One of the issues raised in regards to secondary data usage is the harm they cause to the individual’s subjects and also the return for consent. Sometimes, the researcher may have variations while identifying information in secondary data. The data may not be identified or have codes which cannot be identified. As a result, the ethical issues do not arise in these cases (Irwin, 2013). Data collected from books, the internet and other public sources require permission for further utilization. Moreover, there is need to acknowledge the ownership of such data. The researcher used the available data sources and referenced them using the Harvard citation as guided by the University.
4.0 Results
In this section, the results showing how Olympic Games impacts on the economy of different cities have been detailed using analysis of past events.
4.1 Sydney 2000
IOC (2013b), notes that Sydney won the bid to host the 2000 Games in the year 1993 in its first attempt after the other bidding countries such as China, UK, Turkey, and Germany were considered worse choices (Blake, 2005). Following the bid confirmation, there was a minor impact concerning price increases nevertheless; the stock market experienced no change. The city spent 1.7 billion Australian dollars in preparing the sporting facilities and another 1.5 billion Australian dollars on other supporting infrastructure including the Olympic village (Malfas et al. 2004). The significant infrastructure which was explicitly implemented for the Games was Sydney Olympic Park (SOP) which today holds numerous parks and recreational areas (Sydney Olympic Park, 2014). Teigland (1999) notes that there were estimations that the summer Olympics in Sydney would bring approximately 100% tourist increase, in actual numbers 2 million international arrivals between 1994 to 2004. Nonetheless, these estimates failed to take into consideration the crowding out effect which would cause adverse effects to other Australian cities. For instance, at one time Melbourne experienced 20% decrease in hotel bookings at the end of the month compared to the first half (Humphreys & Prokopowicz, 2007). As shown in figure 2 below, the Sydney Olympics led to a rise in tourist arrivals despite experiencing a fall in 1998 caused by the Asia crisis. Following the 9/11 attack, Australia experienced a 15% decrease in the number of tourist arrivals. However, the IOC (2013c), mentions that the Olympics remain one of the critical beneficial events that have contributed to the history of Australian tourism.

Figure 2 Tourist Arrivals
Source: Australian Government (2010)
In hosting an Olympics event successfully, the Australian government utilized $1.33 billion from the citizen’s money in addition to $690 million from the private funds giving a total of $2.02 billion (O’Brien, 2006). In the history of the country, there was no other single event which had matched the amount that had been gathered. Therefore, to the stakeholders, they had great belief of getting huge returns. Matheson & Baade (2003) notes that with the remarkable numbers, there were predictions for instance, the New South Wales Treasury assuring there would be a creation of approximately 100,000 new jobs. Moreover, before the games, Blakes (2005), stated that there were three trendy forecasts. The first one was in 1993 where the games were predicted to impact the Australian economy in the US $ 5.1 billion. Secondly, in 1997 the forecast was that the impact would be the US $4.5 billion and later in 1999 the same numbers (Blakes, 2005). There is a wide acceptance that the Olympic Games in Sydney positively impacted on the Australian economy. According to Humphreys & Prokopowicz (2007), there has been an analysis that if the games did not occur, the Australian GDP would not have experienced a 0.25% increase. Malfas et al. (2004), states that some of the less economic impacts included an increase in housing prices of 7 percent higher than the inflation. Additionally, the earnings from television rights were $1.12 billion, the most senior amount recorded to date. The revenues of the organizing committee are shown in the chart below where the largest percentage was provided by TV rights, 40%, followed by sponsorships, 24%, and then ticketing at 22% (Preuss, 2004).

Figure 3 Sydney 2000, Revenues of the Organizing Committee
Source: Preuss (2004)
Below is a table providing a summary of the economic effects per the games period.
Table 2 Economic effects and Games period
GDP Real Household Consumption Employment
$95/96 million $95/96 million ‘000 annual jobs
Pre-Games New South Wales 546 255 10.1
Australia 564 200 11.1
Games-Year New South Wales 1237 255 24
Australia 1128 382 29.4
Post-Games New South Wales 291 273 3
Australia 309 473 0.4
Source: (Blake, 2005)
The security costs and the volunteers is another aspect of the Games which is used in determining the impact the actual event will have on the economy. The volunteering was introduced during the 1948 Games in London, and has become a critical part of the event. Volunteers helps in ensuring that everything runs as efficiently and smoothly as possible. London 2012 games attracted 70,000 volunteers (Blake, 2005). In the Sydney Olympics, approximately 47,000 volunteers were recruited. At the same time, the organizing committee spent US $180 million to provide the necessary security (Black, 2012).

4.2 Athens, 2004
In 2004, Athens hosted the Games for the second time for Athens after being awarded the bid in 1997 presenting the government with seven years to make the necessary preparations (Singh & Hu, 2008). Concerns had emerged on the ability of the nation to successfully hold the games. According to Kasimati & Dawson, (2009), Athens is the second smallest capital to host the games after Finland in 1952. Moreover, there was fear of being unable to put in place the necessary infrastructure, as well as incidents of terrorism (Kasimati & Dawson, 2009). As a result, the organizing committee at the particular time spent the US $1.5 billion in the provision of security, a figure which was almost eight times more than the money spent in the summer Olympics in Sydney (Black, 2012). Additionally, approximately 160,000 volunteers had been recruited across the world, setting a new world record at the particular time (IOC, 2012). The original estimation of the total costs of hosting the games was $1.71 billion (Matheson & Baade, 2003). However, the government of Greece financed 6 billion Euros translating to 83% of total expenses (Matheson & Baade, 2003). These numbers caused wide reactions from the public, and as a result, numerous studies were conducted to investigate how the games would impact the country’s economy. Blake (2005) indicates that two studies which stand out are by Papanikos (1999) and Balfousia-Savva et al. (2001). The hosting of the event contributed to a decrease in the high unemployment rates that the country experienced. Between 1997 and 2005, approximately 688,000 new jobs were made available for the citizens representing 1.88% yearly increase in employment which consequently impacts the economy with 5.5 billion Euros (Blake, 2005). Precisely, the country’s GDP experienced a rise of 18.2 billion Euros compared to the cost which amounted to 7.2 billion Euros (Blake, 2005). In figure 4 below, Greece experienced a decline in the growth of its GDP which could have been caused by the aspect that the infrastructure prior the event lead to more economic activity but later dropped. Additionally, after 2007, the country was significantly affected by the economic crisis (Mitchell, 2012).

Figure 4 Greece GDP
Source: Mitchell, (2012)
Importantly, there is need to realize that between 1973 and 1996, Greece experienced 16 years of rapid inflation and many forecasts depicted that the country’s GDP would grow by 0.5% in the next six years (Kasimati & Dawson, 2009). Similar to previous Olympic Games, before, and during the event, there were many temporary businesses which thrived. Interestingly, unique to Athens games was that many of these companies became permanent (Kasimati & Dawson, 2009). All the evidence provided to this particular point depict that the Olympic Games in 2004 were largely successful to both the economic impacts and the extension of the games. Moreover, various other illustrations reveal that 3 billion Euros were used in building sporting facilities, 1.1 billion and 4.2 billion Euros on security and transportation respectively, and a further 1.2 billion on communication channels (Kasimati & Dawson, 2009). The 2004 games in Athens were closely monitored by the public because of two reasons among them the doubt of the country successfully hosting the event. The second reason was because the city was hosting the event for the second time. Due to the economic crisis in the country, the perceived impact on the economy by the Games has changed to negative. Political parties have attributed some costs to the Games preparations (Smith, 2012). When comparisons are made to the other cities which have hosted the event, Athens was unable to make an impression in attempting to craft a valued legacy. After the Games, the Olympic sites became offices, entertainment joints, as well as a University campus (IOC, 2013c). Nevertheless, today, many of the facilities are unused (Kaspar, 2014).
4.3 Beijing 2008
The rights to the Olympic Games 2008 became Beijing’s first time to win the bid to host the Games after unsuccessfully bidding for 2000 Games which Sydney hosted. Hao and Wang (2005), note that there were many concerns that faced the Olympic Games in Beijing among them exceeding air pollution considering the number of vehicles was estimated to reach 3.5 million in 2008. Byrnes (2012) observed that Beijing had to make some infrastructural facilities from scratch to successfully host the event such as the Baseball stadium, the Ice Cube, and the Bird’s Nest among others. For instance, the Bird’s Nest was built to have a capacity of approximately 91,000 people (The Guardian, 2009) costing $471 million (IOC, 2013c). The Guardian (2009) reported that after the Games the Nest did not hold enough events meaning that to achieve breakeven the stadium will need approximately 30 years. On the other hand, Byrnes (2012) notes that the Ice Cube still generates expenses registering a loss of $1 million in the year 2011. Since 1996, China has experienced a GDP growth of between 7 and 10 percent which was a significant reason that contributed to the Chinese government assessing that the economy had the capability of hosting the event having sufficient capital to accommodate the associated costs (Byrnes 2012). According to Minnaert (2012), the main goal of the organizing committee for these Games in China was to promote the country as a destination for tourists. The decision to host the events attracted much criticism mainly because of the poverty in many parts of the country. To disbelieve of many, the opening ceremony would cost approximately $ 100 million while many people living below the poverty line (Rose & Spiegel, 2009). Moreover, the committee spent the estimated US $ 6.5 billion in providing security in different places that held the Games (Rose & Spiegel, 2009). The figure is almost six times the security costs during the 2004 Games (Black, 2012). Following the need to boost security and efficiency, 70,000 volunteers were recruited to help in successfully hosting the event (IOC, 2012). The impact of the Games was destined to be small having that the GDP of the country around that time was $3.6 trillion with an estimated annual growth rates of more than 10% (Rose & Spiegel, 2009). One of the sectors pre Olympic Games which is boosted is the construction industry nonetheless, in China, little impact was felt. Assessing how the Games impacted on the employment is difficult considering the sector was experiencing a boom as the economy grew first. The revenues gained from the Games in 2008, in particular, the television broadcasting rights were high compared to previous games accounting for 41% of the total revenues. During the games, there were expectations that 4.5 million tourists would visit Beijing with 550,000 of them being foreign visitors. The foreign visitors and the Chinese were expected to spend approximately $4.5 billion (Brunnet & Xinwen, 2008). Consequently, new hotels were constructed and by the summer of 2008, the capacity of the hotels within the city was 38% higher compared to the year 2000 (Brunnet & Xinwen, 2008). Nonetheless, the actual numbers during the games were less than the forecasts. According to statistics, the number of tourist arrivals in the city during the games had no long-term impact on tourism. The figure 5 below shows the revenues of the organizing committee during the 2008 Games. During the 2008 Games TV rights brought the highest revenues followed by licensing and sponsorship.

Figure 5 Beijing 2008, Revenues
Source: Brunnet & Xinwen (2008)
4.4 2020 Tokyo Olympic Games
The next summer Olympics will be in Tokyo, Japan in the year 2020 (MHRI, 2014). There has been a widespread estimation of the probable impact of these Games on the GDP of Tokyo. According MHRI (2014), the countries which have hosted Olympics previously experienced a surge in the GDP growth specifically five years prior to the event. The figure 6 provides a preview of the assertion. The trends in the GDP before and after the games are shown in the figure.

Figure 6 Changes in the GDP
Source: Mizuho Research Institute, MHRI (2014)
Mizuho Research Institute (2014), estimate that the Tokyo Games have the possibility of pushing the countries GPD by JPY36 trillion. The boost has been calculated using the average observed in nations where the Games have been held excluding China, and South Korea where the event happened to coincide with the nation’s rapid economic growth. UK was also excluded because the Games were held during the severe recession that saw the Lehman Brothers collapse (MHRI, 2014). Due to the possible impacts of the 2020 Games, Japan’s GPD might reach JPY600 trillion (Mizuho Research Institute, 2014). Figure 7 below provides a sneak preview of the expected impact on Japan’s economy. The figure shows the recent trend of Japan’s economy over the years and depicts the estimated effect during the Games in 2020.

Figure 7 Impact of 2020 Olympic Games on Japan’s GDP
Source MHRI (2014)
The table 3 provides a synopsis of the predicted economic impact of the 2020 Games in three phases. The direct impact and incidental impact as a result of hosting the Games have been listed clearly.
Table 3 Impact of the Games in phases analyzed
Direct Impact Incidental Impact
Before the Games • Rise of consumption expenditure
• Rise in the construction investment such as the Olympic Village and the games facilities • Rise of land and stock prices and the wealth effect
• Increase in international events such as conferences and the number of tourists
• Private sector investment revitalization and accelerating in urban infrastructure improvements
During Games • Expenses related to the games such as It systems and operating systems
• Spectators spending in meals, accommodation, transportation, etc
• Consumer spending such as Olympic related goods • Many tourists visiting various areas within the city and country

After the Games • Redeveloping the Game sites
• Using the Game facilities effectively • Increase in the number of tourist arrivals
• Improved productivity and competitiveness of urban areas

Source: MHRI (2014)
From the construction of the various Games facilities, it is estimated that the Olympics will create demand worth JPY1 trillion as well as contributing to a high increase in the tourist visits. The expectations are that approximately 209,000 new jobs will be created mostly in the service, retail, and construction sectors (MHRI, 2014).
Conclusion
The total cost incurred in preparation of the Olympic Games varies depending on the investments made by the hosting city or nation. The level of expenses is influenced by the state of the existing infrastructure before the Games, the contribution made by the private sector, the goal of the organizing committee and the input by the government. The goal of the organizers is often dependent on their ability to have permanent structures rather than temporary ones. For instance, the organizers of the Sydney and Barcelona Games opted to have permanent facilities while the ones in the Atlanta and London games choose temporary facilities. Importantly, when making an informed decision, various factors need to be considered since in some cases, after the closure of the main event, the facilities can have limited use. Maintaining the facilities is expensive and hence the need to think of how future expenses will be paid without being a burden to the government. The impact of the games to the tourism has been evident in each of the cities that have been hosting the Oylmpics. Many countries experience an increase in the tourist numbers pre, during, and after the Games. However, the peak of the new tourists is during the Games. Due to adverse aspects such as the crowding effect which contributes to a surge in prices, potential visitors might be discouraged from visiting as experienced during the Atlanta Games. Moreover, the security aspect is always critical in terms of influencing the impact Games will have on an economy. Security fears might prevent foreign international tourists from attending the games or spending their resources extensively. Importantly, hosting the Games improves the image of a city and that of a nation. As a result, the exports and imports of a country might experience enhanced growth. The Games have the potential of influencing the hosting country’s GDP as well as the creation of new job opportunities both temporary and permanent. Additionally, a familiar pattern over the years has been the increase in the number of volunteers and costs for security. Due to the challenges, the globe has been facing due to insecurity, organizers of the Games are spending huge sums to provide visitors and athletes with maximum security.
Overall, being a host of Olympic Games is a profitable venture explicitly concerning the positive impacts to the economy. Nevertheless, for the Games to be profitable, the organizing committee should develop a budget which is realistic while taking into consideration long-term and short-term gains. Moreover, governments should not overspend building infrastructures that will become burdens after completion of the games. In almost all modern Olympic Games, cities have recovered the expenses incurred when preparing for the event. The major challenge facing host nations is putting into use the facilities years after the Games. Thus, the profitability of the Games can be to the government, the local entrepreneurs, and the standard man regarding improved living conditions.

References
Australian Government (2010). Tourist Arrivals. Retrieved from: http://statistics.unwto.org/sites/all/files/pdf/australia_inbound01.pdf
Bakouris K. (2014), Olympic Games, Athens, 2004, Papadopoulos Publishing, Athens.
Black, M. (2012). Winner’s curse? The economics of hosting the Olympic Games. Retrieved from CBC News http://www.cbc.ca/news/canada/winner-s-curse-the-economics-of-hosting-the-olympic-games-1.1186962
Blake, A. (2005). The Economic Impact of the London 2012 Olympics. e-Press. Retrieved from http://epress.lib.uts.edu.au/research/bitstream/handle/10453/19780/Impact%2020 05_5.pdf?seq
Blake, S. (2016). Security failures at Rio Olympics placing athletes and visitors in real danger, say frustrated AOC. Retrieved from The Daily Telegraph, https://www.dailytelegraph.com.au/sport/security-failures-at-rio-olympics-placing-athletes-and-visitors-in-real-danger-say-frustrated-aoc/news-story/77eb87defb5c2baf38a34367b67e3b58
Bogdan, R., & Biklen, S. K. (2007). Fieldwork. Qualitative Research for Education: An Introduction to Theories and Methods: International Edition,.Boston: Allyn & Bacon, Inc.
Brunnet, F., & Xinwen, Z. (2008). The Economy of the Beijing Olympic Games: An analysis of first impacts and prospects. Barcelona: Centre d’ Estudis Olimpics.
Bryman, A., & Bell, E. (2015). Business research methods. Oxford University Press, USA. pp. 12-35
Burrell, G., & Morgan, G. (2017). Sociological paradigms and organisational analysis: Elements of the sociology of corporate life. United States. Routledge.
Byrnes, M. (2012). Beijing’s Olympic Ruins. From the Atlantic, CITYLAB. Retrieved from http://www.citylab.com/work/2012/07/beijings-olympic-ruins/2499/
Crompton, J. (1995). Economic analysis of sport facilities and events: eleven sources of misapplication. Journal of Sport Management. 9(1). 14-35.
Dolles, H., &Söderman, S. (2008). Mega-sporting events in Asia—Impacts on society, business and management: An introduction. Asian Business & Management, 7(2), 147-162.
Dwyer, L., Forsyth, P., & Dwyer, W. (2010). Tourism economics and policy. Bristol, UK: Channel View Publications.
Florek, M., Breitbarth, T., &Conejo, F. (2008). Mega event= mega impact? Travelling fans’ experience and perceptions of the 2006 FIFA World Cup host nation. Journal of sport & tourism, 13(3), 199-219.
Gratton, C., Shibli, S., Coleman, R. (2006). The economic impact of major sports events: a review of ten events in the UK. The Editorial Board of the Sociological Review 2006 (pp. 41-58). Oxford: Blackwell Publishing Ltd.
Hao, J., & Wang, L. (2005). Improving Urban Air Quality in China: Beijing Case Study. Journal of the Air & Waste Management Association. 55(1). 1298-1305.
Humphreys, B.R., Prokopowicz, S. (2007). Assessing the impact of sports megaevents in transition economies: EURO 2012 in Poland and Ukraine. International Journal of Sport Management and Marketing. 2(5). 496-509.
IOC. (2013a). Olympic Charter. Lausanne. Retrieved from http://www.olympic.org/Documents/olympic_charter_en.pdf
IOC. (2013b). Factsheet: The games of the Olympiad. Lausanne. Available on Olympics.org
IOC. (2013c). Factsheet: Legacies of the Games. Lausanne. Available on Olympics.org
Irwin, A. (2013). Sociology and the environment: a critical introduction to society, nature and knowledge. John Wiley & Sons.
Jones, C. (2001). Mega‐events and host‐region impacts: determining the true worth of the 1999 Rugby World Cup. International Journal of Tourism Research, 3(3), 241-251.
Kasimati, E., Dawson, P. (2009). Assessing the impact of 2004 Olympic Games on the Greek economy: A small macroeconomic model. Economic Modelling. 26(1). 139- 146.
Kaspar, R. (2014). Event Management Workshop with Case Study Sochi Olympic Winter Games. Workshop at Modul University Vienna, Austria
Kurtzman, J. (2005). Economic impact: sport tourism and the city. Journal of Sport Tourism, 10(1), 47-71.
Malfas, M., Theodoraki, E., Houlihan, B. (2004). Impacts of the Olympic Games as mega-events. Municipal Engineer. 157(ME3). 209-218. Retrieved from https://epress.lib.uts.edu.au/research/bitstream/handle/10453/19761/muen.157.3. 209.49461.pdf?sequence=1
Matheson, V. A., & Baade, R. A. (2004). Mega‐sporting events in developing nations: playing the way to prosperity?. South African journal of economics, 72(5), 1085-1096.
Minnaert, L. (2012). An Olympic legacy for all? The non-infrastructural outcomes of the Olympic Games for socially excluded groups (Atlanta 1996 – Beijing 2008). Tourism Management, 361-370
Mizuho Research Institute, MHRI (2014). The Economic Impact of the 2020 Tokyo Olympic Games. Mizuho Economic Outlook and Analysis. Economic Research Department.
O’Brien, D. (2006). Event Business Leveraging. The Sydney 2000 Olympic Games. Annals of Tourism Research. 33(1). 240-261.
Preuss, H. (2004). The Economics of Staging the Olympics. Massachussets: Edward Elgar Publishing Inc.
PWC. (2004). III – The economic impact of the Olympic Games. PricewaterhouseCoopers European Economic Outlook June 2004. Retrieved from http://www.pages.drexel.edu/~rosenl/sports%20Folder/Economic%20Impact%20of %20Olympics%20PWC.pdf
Rose, A. K., & Spiegel, M. M. (2009). The Olympic Effect. Cambridge: National Bureau of Economic Research.
Saunders, M. L., & Lewis, P. & Thornhill, A. (2009). Research methods for business students. London, Sage pp. 46-61
Singh, N., & Hu, C. (2008). Understanding strategic alignment for destination marketing and the 2004 Athens Olympic Games: Implications from extracted tacit knowledge. ScienceDirect. Tourism Management. 29. 929-939
Smith, H. (2012). Athens 2004 Olympics: What happened after the athletes went home?. The Guardian. Retrieved from http://www.theguardian.com/sport/2012/may/09/athens-2004-olympics-athleteshome#
SydneyOlympicPark. (2014). Sydney Olympic Park Maps. Retrieved from http://www.sydneyolympicpark.com.au/maps
Teigland, J. (1999). Mega-events and impacts on tourism; the predictions and realities of the Lillehammer Olympics. Impact Assessment and Project Appraisal. 17(4). 305-317
Telloglou Τ. (2004), The City of Games, Hestia, Athens.
The Guardian. (2009). Bird’s Nest stadium slashes prices for tourists. The Guardian. Retrieved from http://www.theguardian.com/sport/2009/apr/23/beijing-olympicsbirds-nest-stadium