It seems that there are now only two remaining contenders to bid for the 2024 Summer Olympics: Los Angeles and Paris. This is the result of Budapest pulling out of the back as a consequence of the lack of political support for the events. It turns that activists played a great part by collecting signature from Hungarians who were not in favor of the Olympics.
The primary reason for the loss of support is the significant amount of budget required for hosting the Olympics.
Some of the organizers of the petition against bidding for the Olympics claimed that citizens fear that the cost for hosting the event will reach incredible amounts.
The same concern for budget also prompted other cities, including Rome and Hamburg, to bailed on the 2024 Olympics. On the other hand, Stockholm and Krakow stopped bidding for the 2022 Winter Olympics, which now will be hosted Beijing.
When hosting the Olympics, the host city will be in charge of planning and funding the construction of all the sporting venues and other infrastructure projects that will be needed. In addition, the host city will have to take care of the security costs for all participants. Hotels will also be forced to construct additional rooms just to accommodate the number of guest athletes and tourists.
The bulk of these expenses will be shouldered by taxpayers.
Though some government leaders claim that the costs will be compensated by tickets sales, construction jobs, and promotion of tourism, economists comment that actual profits for hosting the Olympics is not that much.
For instance, during the 1976 Summer Games, though the mayor of Montreal declared that it is impossible for the Olympics to result in loss of income, the city was left with $1.5 billion debt that was not paid in full until 2006.
The Montreal’s case was considered an extreme one, cost overrun is constantly true for all Games.
The case of Montreal caused hesitation in some cities to bid for the 1984 Olympics. However, Los Angeles considered an alternative approach by relying heavily on private financing and also utilized existing stadiums as venues.
As for the more recent host cities of the Olympics, Russia supposedly spent $50 billion in the 2014 Sochi Olympics, whereas China shows no concern for expenses for the Beijing Olympics. Meanwhile, the 2016 host, Rio de Janeiro, is currently in ruins as a result of the extreme expenses for the Rio Olympics.
Obviously, the International Olympics Committee should address the problem in funding and develops measures that can minimize the costs for hosting these international sports events.