How Much Money Did The Pyeongchang Olympics Make
Over 100 events, well-nigh 3,000 athletes, more than 300 medals -- and a check for $13 billion.
That's the cost of property the 2018 Winter Olympics in Pyeongchang, South korea. The hefty price Olympic host countries pay has prompted some experts to enquire whether it's worth the fiscal burden.
Olympic events accept become notorious for cost overruns and broken promises of economic windfalls. The 2014 Winter Games in the Russian resort of Sochi cost an eye-watering $l billion. Perhaps most famously, Montreal spent iii decades paying back debts after the 1976 Olympics.
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Will Pyeongchang face a similar fate?
Some analysts are optimistic. S Korea's Hyundai Research Found has forecast that the Wintertime Olympics volition generate economic activity of almost $40 billion. That will come up mainly from spending by tourists both during the Games and in subsequent years.
Uncertain legacy
But plenty of experts are skeptical this economic bonanza will ever materialize.
"I don't think the government or organizing committee is going to get their money back," said Park Sung-bae, acquaintance professor at Hanyang University'south department of sport industry and management. The cost of hosting the event already ballooned from earlier forecasts of nigh $8 billion.
South Korea wants to turn Pyeongchang into a tourist destination for winter sports later on the games. It has congenital several new venues with that goal in mind -- but they face up an uncertain future.
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The 35,000-seat Pyeongchang Olympic Stadium was built to host just two events -- the opening and closing ceremonies. Information technology volition be partially dismantled and turned into a memorial hall and theater. That makes sense, given that the stadium's capacity is plenty to hold the unabridged population of Pyeongchang.
Just it's unclear what volition happen to the other venues. Leaving them as they are could be plush. Winter sports venues are expensive to maintain and are only useful sure times of the twelvemonth.
Park said Pyeongchang will struggle to describe tourists considering the area is besides remote, lacks accommodation and doesn't have many things to do compared with bigger cities similar Seoul.
"We have spent a lot of money on making great stadia, but no one is going to use them afterward," Park said.
That could create a big problem for Gangwon, the province where Pyeongchang is located. The area -- just 50 miles from the N Korean edge -- is one of the poorest parts of Republic of korea.
Kim Won-young, an assistant professor at Wichita State Academy'due south sports management department, said that maintaining these venues is likely to weigh heavily on local government finances.
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Kim estimates it could push the Gangwon government into the red by around $9 1000000 every year. It may also accept to coughing up as much as $ninety meg for the ecology clean upward after the Games are over, he added.
"Many Koreans have expressed serious concerns about the prospective fiscal burden," Kim said.
It's also unclear how much acquirement the Games will bring in for the region.
Organizers say they sold more than xc% of available tickets, but they've too been faced with the uncomfortable sight of empty seats at some events. The state of affairs wasn't helped by brutally cold weather at the starting time of the Games and whipping winds that forced officials to call off some events.
Low expectations
Kim Yuk-youm, an associate professor of global sport management at Seoul National University, said expectations are low among S Koreans that the Olympics volition gift the economy much of a elevator.
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"In that location'southward lots of concerns and uncertainty about why we are holding this, and what volition exist the benefits for us," he said.
The country hosted the Summer Olympics in 1988. Back and so, the regime wanted the effect to promote emerging S Korean companies and put the country on the globe stage.
Today, South Korea is a far richer country that's dwelling to global brands like Samsung (SSNLF)and Hyundai (HYMTF). Many South Koreans think their country has already arrived.
Source: https://money.cnn.com/2018/02/24/news/economy/south-korea-olympics-cost-debt/index.html
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