World - - Feb 24,2017
Financial concerns have led many cities to abandon their Olympic dreams, Rome, Boston and Hamburg dropped out from 2024 Olympics Games.
Hungary's government has withdrawn Budapest's bid to host the 2024 Olympic Games, financial burden and lack of political unity are the main reasons behind the withdrawal.
“NOlympia”, a left-wing Momentum Movement, argued that the money spent on hosting the Olympics should be spent on healthcare, education, transport, housing and other social programs. This movement has now acquired more than 266,000 signatures on a petition against the bid, this appealed the Hungarian Government to pull out from the bidding.
Also bidding alongside big names like Los Angeles and Paris, made Budapest, a long-shot candidate.
Hosting the Olympic Games requires a massive investment in sporting venues and infrastructure projects. These costs run into billions of dollars. Thousands of hotel rooms are also to be constructed for athletes and tourists.
All this happens on Tax payer’s money with a little discernible economic and social benefit.
Some people argue that construction jobs, increased tourism and ticket sales counterbalance the costs. But economists argue that the real return of hosting the Olympic Games is not so attractive.
Every Olympic Games till date have cost beyond their estimate, as the estimate is a fictitious minimum.
Montreal hosted the Olympic Games in 1976, spent more than $1.5 billion, this debt wasn’t paid until 2006.
The Montreal despair prevented potential host cities from bidding for 1984 Olympic Games. Only Los Angeles made a bid and followed a new model that was dependent on private investment. During 1984 Olympic Games, already existing stadiums were used, canceling out the highest cost associated with Olympic Games. This model helped Los Angeles make a profit.
Recent Olympic Games saw a different approach with Russia, spending a massive $50 billion on the 2014 Sochi Olympics. China and Brazil also spent an incredible amount on 2008 and 2016 Games respectively.
The International Olympic Committee (IOC) understands the issue and is preparing reforms aimed at lowering the costs for managing the Games.