AUTHORED BY : ALISA CHETTIAR , HARSHADA GAWADE
The Olympic Games, a prestigious and globally acclaimed event occurring every four years, serve as a beacon of unity on an international scale. This grand event unites elite athletes from
around the world in a spirit of sportsmanship and excellence. Beyond fostering global harmony, the Olympics play a pivotal role in the economic landscape, influencing host cities, national
economies, and global market trends. The Paris 2024 Olympics are setting new benchmarks in creating a positive and enduring impact on the local community, environment, and populace. Projections indicate that the forthcoming Games will spur economic activity ranging from EUR 6.9 billion to EUR 11.1 billion within the Paris metropolitan area, significantly boosting the local economy. This economic influence is anticipated to revolve around tourism (30%),
construction (28%), and Games organization (42%) of the net economic effect.
A study by the University of Limoges forecasts that the 2024 Olympics will yield a net economic gain of nearly $12.2 billion for the Paris region, underscoring the substantial financial benefits expected from this monumental event. Paris 2024 has engaged suppliers that prioritize economic, social, and environmental goals, actively supporting various
aspects of the Games like construction, catering, furniture, and laundry services. The majority of suppliers, 90%, are French, and 78% of them are small- and medium-sized
enterprises.
Fully embracing the principle of achieving more with fewer resources, the Games have set a precedent by fully aligning with Olympic Agenda 2020. This strategic directive established
by the International Olympic Committee (IOC) seeks to revolutionize the future of the Olympic Movement and the Games, emphasizing sustainability, cost-efficiency, and meeting
the requirements of host cities and communities. Olympic Agenda 2020 proposes strategies like the use of existing and temporary venues, reduction of carbon footprints, and
advocacy for sustainable energy sources. Additionally, approximately 500 small and medium-sized enterprises from the social and solidarity economy (ESS) sector are actively
participating, catering to local businesses and social enterprises. Paris 2024 has engaged suppliers that prioritize economic, social, and environmental goals, actively supporting various
aspects of the Games like construction, catering, furniture, and laundry services. The majority of suppliers, 90%, are French, and 78% of them are small- and medium-sized
enterprises.
WHY THE PARIS OLYMPICS COSTS SO MUCH LESS THAN IN RIO, LONDON OR TOKYO?
According to a study by the Oxford University, cities hosting the Olympics have consistently exceeded their initial budgets since the 1960s. Surprisingly, the 2024 Paris Olympics are
notable for their relatively modest budget. As per a report by S&P Global Ratings, the expenditure for the 2024 Paris Olympics is projected to be below $10 billion (with the IOC
contributing $1.7 billion) – only around 25% over the initial budget. In contrast, the 2016 Rio de Janeiro Games and the 2020 Tokyo Games surpassed their original budgets by more
than 350% and 280%, respectively, the report highlighted. One significant reason for the reduced budget is the strategic choice to utilize approximately 95% of existing venues.Only three new venues were required for construction: the $1.6 billion Olympic Village, the $190 million Aquatics Centre, and a $150 million venue for gymnastics and badminton. The Paris
2024 Olympics adopt a "frugal" strategy not only to mitigate cost overruns but also to establish a sustainable financial legacy for the host city.
TOURISM SURGE
The influx of tourists is another significant economic benefit. The Olympics attract millions of visitors from around the globe, boosting demand for hotels, restaurants, and other services.
According to estimates, the 2024 Olympics could generate an additional 2.5 million visitors to Paris. This surge in tourism not only benefits the hospitality industry but also creates a ripple
effect in local businesses, from retail stores to transportation services.
Long Term Economic Impact
The long-term economic impact of hosting the Olympics extends beyond the immediate financial gains. The enhanced global visibility and improved infrastructure contribute to a positive legacy for the host city. Paris will benefit from increased international recognition, which can lead to future opportunities for hosting major events, attracting international businesses, and boosting tourism beyond the Olympic period.
Infrastructure Investments
One of the most immediate effects of hosting the Olympics is the substantial investment in infrastructure. Paris has committed billions of euros to upgrade its public transportation system,
construct new sports venues, and improve urban amenities. In these investments boost economic activity. Improved infrastructure can lead to increased efficiency in the movement of goods and people, benefiting businesses and enhancing the city's attractiveness for future international events.
Oppurtunities
181K jobs will be created for the organisation of the Olympic and Paralympic Games, with measures to give equal opportunity to unemployed people and other disadvantaged groups.
KEY TAKEAWAYS
Economic Boost: Paris 2024 will generate up to €11.1 billion in economic activity, create 181,000 jobs, and attract millions of tourists, benefiting local businesses and infrastructure.
Cost Efficiency and Sustainability: The Games have a modest budget, focus on using existing venues, and emphasize environmental responsibility and support for local businesses.
Long-Term Impact: Paris 2024 will enhance the city's global image, attract future events and tourists, and create lasting opportunities for disadvantaged groups.
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