The Economic Impact of Major Sporting Events: A Cost-Benefit Analysis of Hosting the Olympic Games
Year: 2025
Type: article
Abstract: This study conducts a comprehensive cost-benefit analysis (CBA) of hosting the Olympic Games to clarify cost/benefit compositions, key influencing factors, and optimize decision-making for potential host cities. Using literature reviews, case studies (2008 Beijing, 2016 Rio de Janeiro Olympics, etc.), and quantitative methods (NPV, input-output analysis), the research finds: (1) Costs include direct expenditures (venue construction, event operation, security) and indirect costs (infrastructure upgrades, environmental governance, opportunity costs); (2) Benefits cover direct revenues (tickets, sponsorships, TV rights) and long-term indirect gains (tourism growth, industrial drives, city reputation enhancement); (3) Outcomes vary—Beijing 2008 achieved positive long-term impacts via rational planning, while Rio 2016 faced cost overruns and facility underutilization; (4) Core influencers include pre-existing infrastructure, economic development, and management efficiency. Policy recommendations for cost control (venue reuse, modular construction), benefit maximization (tourism marketing), and sustainability (urban renewal integration) are proposed to enrich sports economics research and guide future hosts.
DOI: 10.54097/d76n0173
Authors: Peichi Chang, Farid Uddin Ahmed, Isabelle Houlbert
Language: English
Topic: Sport and Mega-Event Impacts
Subfield: Sociology and Political Science
Field: Social Sciences
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4414089398