the mirage of financial fallout | EUROtoday

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HASwelcome the Olympic and Paralympic Games (JOP)? No thanks ! For a number of years, cities have not been dashing to prepare this sporting occasion. The causes: the Olympic Games could be an operational headache, could be costly, even very costly (the funds for Paris 2024 quantities to just about 9 billion euros, from private and non-private financing), and all this for advantages economical not likely superb…

On the financial entrance, what’s going to occur for this French version? If a primary estimate of the financial affect had been made through the software part (at 8.1 billion, in line with the intermediate situation), Paris 2024 offered this Tuesday, May 14, a brand new financial affect research ex ante, throughout a press convention bringing collectively the president of the organizing committee Tony Estanguet, the Minister Delegate in control of Business, Tourism and Consumption Olivia Grégoire and the president of the Medef sports activities committee Dominique Carlac'h. Another estimate ought to be made after the Paris Games, in 2025.

9 billion euros

According to the Center for Sports Law and Economics (CDES), which put collectively this research and carried out its calculations utilizing official information, the financial advantages ought to quantity to round 9 billion for Île-de-France. In any case, that is the intermediate situation. A low estimate is round 6.7 billion euros. As for the excessive vary, it’s round 11.1 billion euros.

A determine which can appear spectacular at first look, however which have to be put into perspective. Indeed, the calculated affect extends over a interval of seventeen years (2018-2034), together with the preparation part, the conduct of the occasions and the legacy of the Olympic Games. Compared to the area's annual gross home product (GDP) (765 billion euros in 2021, in line with INSEE), the extra financial exercise is due to this fact greater than modest. Finally, it doesn’t permit us to know what the financial profitability of the Games is as a result of different parts must be built-in into these calculations, akin to long-term results or social and environmental advantages and prices.

Tourism accounts for 30% of the affect

According to the intermediate situation, 42% of the financial affect issues the “organization” element, that’s to say the bills of the Paris 2024 committee made to prepare the occasions, 28% the “construction” half and 30% the bills vacationer. 84% of the affect is targeted on the preparation and supply part of the Olympic Games, in comparison with 16% for the legacy part. Is Paris doing higher or worse than the others? Difficult to say as a result of the methodology utilized in earlier editions was not the identical.

Other research have beforehand tried to mannequin the financial affect of the Paris Games, with a comparable order of magnitude. The Asterès agency thus calculated in the beginning of the 12 months an added worth of round 9.8 billion euros for the entire of France, or lower than 0.1% of GDP over the few years earlier than and after the occasion. “Like all sporting events, the Olympic Games have a negligible economic impact: pro-Olympics highlight the economic benefits while detractors point out the cost,” underlines Sylvain Bersinger, the writer of this research. This evaluation additionally dissected previous examples and confirmed that the Olympic Games had by no means had a notable impact on the expansion of a rustic, whether or not earlier than, throughout or after the occasion. We should discover one other argument to persuade cities to embark on the journey for future editions.