Economic Impacts of Mega Sporting Events

mega sporting event is the large-scale sports competition that have significant international interest in a short duration and examples of such events are World Cups and Olympic Games in order to host them the countries have to meet the certain requirements just having necessary sport facilities and proper infrastructure the Olympic Games which originated in ancient Greece as many as three thousand years ago were revived in the late 19th century and have become the world's permanent sporting competition the first modern Olympics took place in 1896 in Athens and featured 280 participants from 13 nations competing in 43 events the interest of governments and corporations to organize mega sporting events has become to be high worldwide this increase is related to their focus on beneficial economic political and social impacts that result from hosting these events motivation of countries to host mega sporting events is mostly economic benefits but there can also be significant adverse economic impacts the first issue that is encountered by the host country is displacement hosting meta sporting events caused increase in the number of foreign visitors contributing to the development of tourism however organization of Olympics or World Cups can also damage the traditional tourism industry during the event more people who are interested in the sports visit the host country but other travelers can prefer not to visit the country in this crowded period the intentions of normal tourists can be decreased because of the disruptions such as increased rates of crime and high price during the period of sporting events the second issue is opportunity cost there are certain requirements that countries have to meet in order to host mega sporting events for example to organize FIFA World Cup the country must have at least 10 stadiums capable of seeding 40,000 to 60,000 spectators therefore because other products are not funded preparation for this event requires very high expenditure and this causes significant opportunity costs the the seven seats per se dia which which each of which could have actually built a school library across the South African nation only 7% of schools in South Africa have a functioning library so you asked me whether seven bits of plastic were worth the trade-off that we actually have had there is a difference in the success between developed and developing countries majority of countries that in significant economic benefits are developed once from this figure it can be seen that gains of the developed countries are much higher than in developing countries for example profit of Germany from organizing 2006 World Cup was 14 billion dollars while Brazil gained only three billion dollars which is four times less than in Germany the reason for these differences is that developing countries already have the necessary infrastructure such as stadiums and highways therefore their costs for the preparation are much lower than in developing countries there are countries that were economically successful in their experience of hosting mega sporting events and the opposite case is also accurate hence it is necessary to consider ways how the adverse economic impacts of these events can be reduced and the benefits be maximized the first way is that only developed countries should attempt to organize mega sporting events it was proposed by Carol Ford's Griffin who has a PhD in management he currently works as an assistant professor at Valdosta State University in the US his analysis showed that only in developed countries economic benefits will definitely occur and they are significant furthermore who's the Olympics the World Cup in several countries permanently who increase the quality of the events because hosting country will be more experienced in addition the expenditures for the event will decrease since the infrastructure stadium sports centers will be left after the previous Olympics Muruga if only developed countries will have an opportunity to organize these events and developing ones want to host them too they will have more motivation to expand their economy and which developed countries level one of the reasons why if only developed countries who host these events will be more efficient is that usually people in developing countries are against hosting such large-scale events this is because they believe that there are plenty more domestic issues in their countries as poverty unemployment and others for instance people in Brazil showed their disagreement with government decision if developing countries want to host this events through the second suggestion for this issue countries will desire to be economically successful in hosting Olympics World Cups should focus on the construction of the supporting infrastructure such as transport and communication services rather than specialized sport venues and stadiums during the preparation for the event the host country acquires consider arount of investments and this money should mostly be spent on construction of supporting infrastructure because it will enhance the development of the country by causing reduction of the transaction costs higher trade and supply diversification however specialized sport facilities are required to be constructed in order to organize the sporting events therefore while designing and constructing them their long-term further use should be planned for example some of them should be constructed in the way that in future they can be reconstructed into theatres concert or conference to sum up it was illustrated that there are significant negative economic impacts of hosting mega sporting events especially for developing countries this includes displacement and huge opportunity costs therefore ways to control adverse effects were suggested application of these solutions will decrease the risk of economic costs and failures thus the economic stability while hosting this events can be maintained [Music] [Music] to the crabbers don't okay

Channel: Aigerim Akiyasheva

Views: 11,183

Keywords:

Id: g3Nwp7EEceQ

Length: 7min 9sec (429 seconds)

Published: Tue Apr 04 2017