Olympics 2018: $ 13 billion for the wind?

Friday. Pyeongchang-gun. Colourful show at the opening ceremony of the Olympics. Photo: Reuters

“SE” found out how much it cost Korea the organization of the Olympic games-2018.


A global problem is clearly manifested in recent years – the rising cost of Games and, as a consequence, the decrease in wishing to get involved in their organization. The last time the Olympics took place in Western Europe in 2012 – in London and will return to the Old world only in the 2024-m – summer Games will be held in Paris.

12 years, five of tournaments early to imagine such a thing was simply impossible. As is now quite difficult to imagine the Olympics in a quiet European towns like Albertville or Lillehammer, though, I think it was recently.

Modern Games are a luxury item, a prestige piece, but impractical. Almost all economists agreed that the long-term cumulative effect on the economy of the host country, they are not. For example, according to research by scientists at the University of British Columbia after the Games-2010 tourism revenues in Vancouver for the next three years is almost grown.

Each new games announced by the functionaries of the IOC as the best in the history and unwritten standards below which fall like as indecent. No wonder the Europeans are not accustomed to wasting money, no enthusiasm for the idea of hosting the Games. And local government the voice of the public heard.

So, for the right to host the Olympics-with 2018’s Pyongyang competed in just two cities – Munich and French Annecy, and the Koreans won easily in the first round. For the winter Games in 2022 at first, struggled a few candidates, but got to the finish only Beijing and Alma-ATA. Norwegian Oslo has withdrawn the application because the government failed to provide required financial guarantee. Residents of Krakow voted against the Olympics in a referendum, as well as the denizens of St. Moritz and Davos – the Swiss have not approved the cost of the Game. For economic reasons, withdrew its application and Stockholm. But Norway, Switzerland, Sweden – the country is not poor.

For the summer Olympics 2024 there were only two contenders – Paris and Los Angeles. In the end, the IOC gave preference to the French capital, and the American metropolis as a consolation prize was awarded to Game-2028. And no you competitive.

Each new games is more expensive than the previous one, and talking about it, even the official data, not to mention independent experts. For example, the Vancouver 2010 officially cost of 3.28 billion U.S. dollars, according to experts – 6.5 milliard. Sochi-2014, the figures are 9.2 and $ 50 billion.


But there are tricky nuances that allow for different ways to assess the financial results of Competitions and, accordingly, different ways to present them to the public.

There are so-called operating costs – i.e. the costs directly to the organization of the Games. This includes investment in the construction of sports facilities, the opening ceremony and the closing, conducting the competitions.

And then the outcome is usually positive. For example, the operating expenses of the Olympics in Vancouver in 2010 according to the official report on the website of the IOC amounted to $ 1.9 billion. And organizers, according to the audit report, failed to go to zero – that is, the losses they suffered. And the Games in Sochi in 2014, according to official figures IOC and did become profitable and brought the organizers of the 53 million dollars.

However, this is only part of the costs. This does not include the cost of the construction and preparation of non-infrastructure – and they are, as a rule, more operating.


Accurate data yet. The official figures will be available closer to the end of 2018 and, as usual, will include only operating costs. Perhaps even in spite of the difficulties with the implementation of tickets, the Olympics 2018 will be break-even.

However, rough estimates have to be given. With regard to operating costs, in November 2017, according to Bloomberg, the budget of the Games has grown four times compared to the original – with 518 million to $ 1.9 billion. The Korean authorities explained that the change project in the programme of the Olympic games has added new disciplines and that the cost for the construction of two major facilities, the Olympic square and the International broadcasting centre was shifted from infrastructure to the operating budget.

According to the source, infrastructure costs amounted to about $ 10 billion. Basically, the money went to roads, and expansion of high-speed rail network. Including and in order to do as more affordable the mountain cluster.

Its construction cost a total of $ 1.5 billion. Resort called Alpensia will be one of the main objects of the Olympic games-2018 – there will be competitions in cross-country and Alpine skiing (technical disciplines), biathlon, there was also built the ski jumps and bobsleigh track.

Interesting story from the main stadium of the Games – the place where the ceremony will be held the opening and closing of the Olympics and Paralympics. Initially its construction was estimated at $ 60 million, but in the end, according to Business Insider, at a cost of 109 million. That is almost two times more than expected. Despite the fact that he has neither roof, nor any heating system. And after the Paralympics the arena and not tell.

In addition, as reported by Bloomberg, the budget directly to the organizing Committee of the Olympiad amounted to $ 2.5 billion.

As for the total cost of all this celebration of sport, then expert evaluation vary. So, in 2015, the Ministry of culture, sports and tourism of Korea said that according to their forecasts, the overall cost of the Olympics will amount to approximately $ 10 billion. According to Business Insider, the total amount is equal to 12.9 billion dollars – and that’s two times more than planned in 2011, when Pyeongchang won the right to host the Games.

However, the Korean authorities hope that the Olympics will allow Pyeongchang to become a new center of winter sports in Asia and with time to return on investment.

Dmitry GIRIN, sport express

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