MOD003325 Olympics and Their Economic Impact Assignment Sample

• Subject Code : MOD003325
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• Subject Name : Management

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Executive Summary of Olympics and Their Economic Impact

The following project report is a short compilation of various positive and negative implications that a global event like the Olympics have on a particular host country. Such implications include but are not limited to economic implications, health implications and social implications. The report also provides a few recommendations which can be utilized to minimize the risks and maximize the benefits from a global event. The report makes certain references to the 2012 London Olympics and other such events to determine certain implications that a global event can pose.

Content

Introduction

Analysis

Conclusion

Recommendations

References

Introduction to Olympics and Their Economic Impact

A global event is essentially defined as an organized event that covers, influences and relates to the entire world. Such an event, for instance, a World Cup, Olympics, an Expo or any such related event is hosted by a particular country that witnesses participation from countries all over the world (OECD 2020). These events, though conducted for a limited duration, have a global reach and have an impact on the population and environment of the host country. Not only do such events have the ability to stimulate growth and development in a particular country, but such events can also act as a catalyst for local development and can be used to leverage various infrastructural investments, create new job opportunities, promote community development and boost tourism (OECD 2020). However, it is also important to note that such events hold certain negative aspects which should also be taken into consideration. A country, while considering hosting a global event, is required to look into such issues and weigh the pros and cons that are brought along an event of this scale. While a global event can potentially improve tourism and development, it also carries a risk of increased crime and security issues, increased disease and pollution concerns and other ecological impacts. Such events might also carry with them massive economic implications on the funds of the host country. This particular project report will carefully analyse the various impacts, positive and negative, that hosting the Olympics shortly will have on the country of the United Kingdom. Further, this analysis will be utilized in formulating various suggestions that can help in maximizing the benefits and minimizing the challenges that are held by the event.

Analysis of Olympics and Their Economic Impact

Hosting the event of Global Olympics can have various positive and negative impacts on various sectors of a particular country. Before hosting such an event, it is important to perform an in-depth analysis of the various implications that the event holds. This process involves studying the different sectors that will get directly or indirectly influenced by the organization of such an event. Thus, this section aims to solely analyse the potential impact that the event will have from an unbiased perspective. For this project report for the Olympics in the United Kingdom, the Heath impact, Economic impact and Social impact will be taken into consideration.

1. Health impacts of hosting a global event

• It is widely recognized that a global event like the Olympics can deteriorate the health systems of a particular location when not planned efficiently. A global event witnessed participation and spectators from all over a globe, which presents a perfect opportunity for various diseases from different countries to spread to other countries (Cummins et. al. 2018). This situation was observed in the Rio Olympics which exacted a significant toll on the public health. As stated by the World Health Organization (WHO), such global events “allow hundreds of thousands of people from all over the world to flock to the epicentre of an expanding global pandemic of the poorly understood, untreatable virus” (Cummins et. al. 2018). This situation has also been witnessed in similar situations like the FIFA Women’s World Cup in 2003 that was shifted from China to the USA to prevent the spread of SARS. Though a global event is not indefinitely a house of spreading pandemics, they can certainly act as one if they are not planned and organized carefully.
• Contrary to the popular belief and general view, it has been observed that the Olympics have a minimum impact on the physical and mental health of a particular country (NIHR 2019). This was witnessed in the 2012 London Olympics where though a general improvement was witnessed regarding access to sporting activities and green spaces, no major impact was recorded involving the physical activity or well-being of the citizens of the country (NIHR 2019). Thus it has been concluded that such events are unlikely to be effective in improving the physical health or mental health of the residents, though it should also be noted that no negative impact is expected either.
• However, a global event like the Olympics can have a positive impact on the transport facilities and sporting facilities of a particular country (Rosenblum 2014). The Olympics are accompanied by a wave of health awareness with a specific focus on various athletes and their physical activities. This presents the country with a good opportunity to reflect upon their sporting facilities and make improvements in them accordingly along with attracting various locals and tourists to delve in the activities they provide. With the vision of new sporting facilities and other projects, anticipation for better facilities and increased job opportunities grows (Burgo and Cromartie 2020).
• The Olympics and other such global events are accompanied by various fears regarding the security of the residents and visitors of the country, especially the city where the event takes place. A process of securitization has been witnessed in such cities which has been fueled by the fear of attack on popular sporting events such as the bombing that took place in the Boston Marathon in 2013 or the targeting of Paris’ Stade De France in 2015 (Grao 2016). It falls under the duty of the host country to ensure that such risks are not only tacked but also prevented in any circumstance.
• An increased commotion in a country along with an increased utilization of vehicles increased commotion and increased utilization of resources can also have an impact on the health and lifestyle of the locals of a particular area (Haxton 2007). Apart from environmental pollution, a global event is also accompanied by noise pollution and other forms of disturbances that might disturb the everyday life of the citizens. Though not very substantial, it is important to consider the comfort of the citizens when a country is planning a global event of the largest scale possible.

2. The economic impact of hosting a global event

• Every global event is accompanied by massive expenses that are paid for by the host country. Though it is impossible to generalize the number of funds that are spent on such an event, the estimated cost of the London Olympics was 11 Billion dollars while that of the Rio Olympics was 15 Billion dollars (Grao 2016). Thus, such global events come with a heavy price and it is essential to analyse if these expenses are worth spending or not.
• However, further analysis shows that such global events are also accompanied by various public and private investments along with other economic growths within the country (Li, Blake and Thomas 2013). Such events can lead to promoting infrastructure redevelopment, improved transportation systems and new job opportunities, for example, Rio has to construct 15,000 new hotel rooms to accommodate various tourists (Wihbey 2016). The new job opportunities provide the citizens with better prospects of earning along with improved exposure to tourists from all over the world. These new opportunities can also serve as a way to present the country’s culture to individuals from all over the world and thus develop and detail the image of said country’s culture. All these impacts can help improve the productive capacity of the economy of the country.
• A big-scale event like global Olympics bring along with them thousands of sponsors, media and journalists, spectators and athletes. This process not only improves the coverage of the country along with worldwide media attention but also potentially improves the tourism of that country (Hubbard and Wilkinson 2014). Additionally, the host country can see an improvement in trade and increased foreign investment (Hubbard and Wilkinson 2014). This can contribute to the economic growth of a country, though it might not be very substantial.

3. Social impact of hosting a global event

• Studies have indicated that hosting a global event like the Olympics can have massive positive social implications. One of these social implications is improved international cooperation and exchange along with an improvement in the national image of the country (Liu, Hautbois and Desbordes 2017). A global event presents a rare and potentially very significant opportunity for the host country to develop better relations with other countries participating in the event along with presenting its own culture and hospitality to all its guests and visitors. The host country is presented with an opportunity to create an impression and portray themselves the way they want in front of the world (Liu, Hautbois and Desbordes 2017). Additionally, this is also a great opportunity to attract various tourists via a tactical presentation of the culture and heritage of the country along with various attractions and sights.
• The Olympics and other such global events can potentially lead to regeneration of various infrastructures throughout the country. One example of such urban regeneration in London. After hosting the 2012 London Olympics, the country has witnessed a growth in job opportunities, parklands and leisure facilities along with improvement in various prior polluted waterways and land (RICS 2020). Not only that, post the London Olympics the culture of London has severely improved as well, with an aim at a better lifestyle of all the citizens and a better community life.

Conclusion on Olympics and Their Economic Impact

It can be easily concluded from the above analysis that a big scale global event like the Olympics carries both, positive and negative implications. On one hand, such an event can improve the community life and engagement of a country, present job opportunities, create better relations between the said country and other nations along with enhancing the culture and tourism of the country. On the other hand, however, a global event like the Olympics presents various security threats, ecological threats, threat to the health of thousands of individuals along with humongous expenses which may or may not be recovered. However, it should be noted that these positive and negative implications and directly or indirectly dependent on the planning and execution carried out by the host country. Thus, with detailed planning and careful execution, the benefits from the event can be maximized and the challenges can be minimized.

Recommendations on Olympics and Their Economic Impact

Various measures can be taken in advance by the host country to ensure that they are ready to face any challenge that might be faced by them over the course of the event. Some such measures are listed below:

• Proper health and security measures can be taken by the host country to minimize the possibility of any health and security risks. The host country can take various provisions to ensure that strict security is in place for the entire duration of the global event along with struct sanitary measures like temperature check, proper bathroom provisions and other such measures. Use of metal detectors, 24-hour surveillance and proper emergency provisions can be utilized by the host country.
• The host country can create a detailed media plan which will be followed during the global event. During the heavy media coverage that the host country receives during the event, the host country can pre-develop a strategy which will be followed to emphasize the culture of the country along with a detailed coverage of all the tourist attractions, beautiful scenes and heritage points within the city. This plan will enable the country to attract various tourists for a long term even after the event, thus maximizing the economic profit that can be made via media coverage.
• To maximize the social implications, a proper construction plan can be created by the host country that will not only facilitate improved facilities during the global event but long after its completion. Taking London and London Olympics as a reference point, the social facilities improvement can be studied and accordingly a personal improvement plan for the host country can be created.

References for Olympics and Their Economic Impact

Burgo, E., and Cromartie, F. J. 2020. The Benefits of Bidding and Hosting the Olympic Games are Difficult to Justify Due to the Overall Costs. The Sport Journal, 41 (2), pp. 1–6. Available at https://thesportjournal.org/article/the-benefits-of-bidding-and-hosting-the-olympic-games-are-difficult-to-justify-due-to-the-overall-costs/

Cummins, S., Clark, C., Lewis, D., Smith, N., Thompson, C., Smuk, M., Stansfled, S., Taylor, S., Fahy, A., Greenhalgh, T., and Eldridge, S. 2018. The effects of the London 2012 Olympics and related urban regeneration on physical and mental health. Public Health Research, 6 (12), pp. 1–248.

Grao. 2016. Here are five good reasons not to host the Olympic Games. [Online]. Available at https://citymonitor.ai/fabric/here-are-five-good-reasons-not-host-olympic-games-1740 [Accessed on 16/10/2020]

Haxton, P. 2007. Community Involvement and The Olympic Games - A Review of Related Research. [Online]. Available at http://www.geocities.ws/olympic_seminar7/papers/haxton.htm [Accessed on 16/10/2020]

Hubbard, P., and Wilkinson, E. 2014. Welcoming the World? Hospitality, Homonationalism, and the London 2012 Olympics. Antipode, 47,(3), pp. 598–615.

Li, S. N., Blake, A., and Thomas, R. 2013. Modelling the economic impact of sports events: The case of the Beijing Olympics. Economic Modelling,30, pp. 235–244.

NIHR. 2019. London 2012 Olympics regeneration had minimal impact on physical and mental health. National Institute for Health Research, pp. 1–4.

OECD. 2020. The OECD Recommendation on Global Events and Local Development. [Online]. Available at https://www.oecd.org/regional/global-events-recommendation.htm [Accessed on 16/10/2020]

RICS. 2020. Olympic dreams and urban regeneration. [Online]. Available at https://www.rics.org/en-in/surveying-profession/what-is-surveying/surveying-projects-and-stories/olympic-dreams-and-urban-regeneration/ [Accessed on 16/10/2020]

Rosenblum, S. 2014. The Impact of the Summer Olympics on its Host City. [Online]. Available at https://digitalcommons.bryant.edu/cgi/viewcontent.cgi?article=1004&context=honors_history [Accessed on 16/10/2020]

Wihbey, J. 2016. Olympics and their economic impact: updated research roundup - Journalist’s Resource. [Online]. Available at https://journalistsresource.org/studies/government/infrastructure-government/economic-and-cultural-benefits-of-the-olympics-research-roundup/ [Accessed on 16/10/2020]

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