GaWC Research Bulletin 154

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This Research Bulletin has been published in Tourism Review, 60 (1), (2005), 12-19.

Please refer to the published version when quoting the paper.


(Z)

Economic and Tourism Aspects of the Olympic Games

P. De Groote *


1. INTRODUCTION

In this paper the development of the Olympic Games (the biggest mega sport and media event ever) is analysed as an interesting case in the sport-tourism relationship. The Olympics are indeed the biggest show on earth … the most participants in history, … spectators on site and the greatest television audience ever (Fortune Magazine, May 1996 p. 33-56). This marriage of convenience between sport and tourism will be explored and exemplified, first in general and second by means of on historical overview and the economic impact of the Olympic Games.

2. SPORT AND TOURISM

2.1. Relationship between Sport and Tourism

2.1.1. Tourism and the Tourism Industry

According to a World Travel and Tourism Council report (www.wttc.org) discussing the economic importance of tourism in the year 2004, tourism is the “world's largest industry and largest employer” with $US 5,490.4 billion in gross output and 214.7 million jobs or 8.1% of total employment.

Countries now boast considerable potential for developing different strategies to attract tourists. The basic facilities (cf. figure 1) a visitor to a place looks for are:

  • adequate transport infrastructure like roads, airports, public transport, etc.;
  • a store of cultural and/or historical wealth to appeal to visitors such as beautiful landscapes, rustic villages, architectural and artistic monuments, etc.; and
  • appropriate and various accommodation, hospitality and commercial supply.

"Today, [this has been] added to by new [tourism factors] such as fairs, exhibitions, congresses, sporting and cultural events, all of which occupy an international arena.” (Verdaguer, cited in Montanari & Williams 1995 p. 193-198)

Medlik (1996 p. 252) describes the tourism industry as: “firms and establishments providing attractions, facilities and services for tourists.” Some companies can be further categorised as falling into the tourism-related industries if their activity and revenue is significantly dependent on tourists (this is shown as a Core or Primary tourism provider in Figure 1). Those companies that benefit indirectly from tourism through their dealings with core tourism-related businesses are classified as Secondary (i.e.sporting events) and Tertiary beneficiaries of tourism.

Figure 1: The Core Tourism Model

Source: based on A National Tourism Strategy, Australian Tourism Commission, Canberra 1992 p. 5.

2.1.2. Definition of "Sport Tourism"

“All forms of active and passive involvement in sporting activity, participated in casually or in an organized way for noncommercial or business/commercial reasons, that necessitate travel away from home and work locality.” (Standeven & De Knop 1999 p. 12)

Sport influences tourism in a number of ways (see Figure 2). More and more people are interested in activity vacations from which niche markets have arisen for tourism suppliers and operators. A good example of this is horse riding camps, hang-gliding, parachuting, rafting, etc.. A typical trip can be arranged with the exclusive intention of practicing a sport or, indeed, starting something new.

There is also another class of sports tourist who is sometimes a passive and sometimes an active spectator. For example, agents and operators arranged tickets and trips to cater for the ‘connoisseur observers' in France for the 1998 World Cup. The spreading of sport, therefore, leads to a complementary expansion of sport-related tourism. And the Olympics have contributed a great deal to the dispersion of sport around the world with its 199 National Olympic Committees and regional athletics competitions having sprung up all over the world (such as the Commonwealth Games since 1930, Asiatic Games since 1951 or African Games)(Augustin 1995, p.33) as well as the Paralympic Games.

Figure 2: Tourism as it Flows through Sport

Source: Standeven & De Knop 1999 p. 13.

2.1.3. Tourism and Sport; a Two-Way Relationship

The authors, Standeven and De Knop (1999) also explain that the sport-tourism relationship works both ways. Ski holidays are a good example of this. An interest in the sport can develop despite having no natural facilities in the practioner's local region. Thus the ski industry develops elsewhere to cater for the incoming enthusiasts.

The Olympics is an interesting case in the sport-tourism relationship. If examined from the tourism side of the relationship, The Olympics contribute, ... “permanent value to sport in the local community,”...But, according to Standeven and De Knop these facilities may be “over-sophisticated for community use.” The two-way relationship explained here is shown in Figure 3.

Figure 3: The Interrelationship between Sport and Tourism (The Basic Model of 'Sport Tourism')

Source: Standeven & De Knop 1999 p. 5.

2.2. Olympic Sport as a Mega-Event

“Organizing major events, for example the Olympic Games, can bring benefits to the host nation such as prestige and improved national morale.” (Ritchie 1988 p. 2-11 & cited in Standeven & De Knop 1999 p. 213)

What impact do The Olympics have on local communities? It is known that localised participative or spectator sports can contribute to tourism (i.e. local teams travelling to play away from home), and that tourism in turn can lead to local sports development. But when the sport is a mega-event, the added impact of the media means that the sport/activity is communicated to a much wider audience. Therefore, the relationship between tourism and sports and tourism and mega-event sports differs, as shown in Figure 4.

Figure 4: The Interrelationship between Sports Mega-Events and Tourism

Source: revision of Standeven & De Knop 1999 p. 5.

2.2.1. Relationship between the Games and Tourism

The relationship between the Olympics (which are the greatest sport event) and tourism is obvious.

The diverse preparations in Sydney for the 2000 Games not only cater for the 11,116 athletes, but also take into consideration the potential tourism inflow from Olympic spectators (which could number in the millions), athletes' families, and an estimated 15,000 media personnel. Tourism stands to benefit directly and indirectly from The Olympics through economic and employment spin-offs. And when the Olympics leave the organising host city the Olympic-standard sports facilities will be at the disposal of many sports enthusiasts. Indeed the facilities will be sophisticated, but Sydney has a population of over 4 million people and had a well established tourism industry before the Olympics. The criticism of over-sophistication and waste levied at previous mega-events (such as the Albertville and Barcelona Olympics, Brisbane and Seville Expos) can not be made on Sydney. The Sydney Organising Committee of the Olympic Games (SOCOG) have gone to great lengths to make the facilities sustainable and recyclable in one form or another—hence the title the ‘Green Games'(see § 3.4.2.).

3. THE OLYMPIC GAMES

The International Olympic Committee (IOC) was founded at the (23 of June) 1894 Paris Congress by Baron Pierre de Coubertin (who was also its Secretary General until 1924). The first president was Dimitris Vikelas. The IOC moved their base to Lausanne, Switzerland, in 1915. It's main responsibility is to supervise the organisation of the summer and winter Olympic Games. De Coubertin defined it as; “The laying of the foundations of the Olympic idea.” (Olympia & Olympic Games 1999 p.118)

The IOC is a non-profit, non-governmental organisation that, alongside overseeing the smooth running of the Olympic events, owns and protects the rights to all Olympic symbols, flags, mottos, anthems and Games as part of the umbrella term the ‘Olympic Movement'.

3.1. Short Historical Overview of the Games

Almost three millennia separate the Ancient and Modern Olympic Games. Yet, despite the time separating the two Olympics, the same spirit of peace and unity has prevailed. Founder of the Modern Games, Barron Pierre de Coubertin sums it up best:

“The irreplaceable value of the Olympic Games consists in that they are peculiar celebrations during which people of all religions, all tribes, all nations and all ranks can be unified with the others and during which it is revealed to them the deep sense of community above every kind of difference and border.It is necessary and advantageous to regard and cultivate the Olympic Games as a great celebration of the whole mankind, because in this way it promotes mankind.” (Olympia & Olympic Games 1999 p.17)

3.1.1. The Ancient Games

Interestingly, the origins of the English word for sport stem from the ‘old' French word desport , from the verb desporter which meant to embattle or do battle. The perhaps ironic connection between this word and the idea of the Ancient Olympic Games being foremost an occasion to promote truce from the wars and battles that plagued ancient Greece at the time should not be overlooked. The word appeared again in a 12 th century French book called the Eneas. This text used the word desporter to characterise ‘all genre of amusement for passing the time agreeably.” (Thomas 1991 p.15). Again centuries later, Rabelais referred to the word simply as “amusement”.

Eventually, the word was imported into English as disport via soldiers returning from battle on the Continent in the 15 th century. The ‘di' was inevitably removed and the stem (sport) in English currently means, according to the Council Of Europe (1992):

“All forms of physical activity, which through casual or organised participation, aim at improving physical fitness and mental well being, forming social relationships, or obtaining results in competition at all levels.” (Standeven and de Knop 1999 p.7&8)

Clearly the word ‘sport' has evolved significantly in meaning since it was first introduced into England six centuries ago. However, evidence on pottery, frescoes and sculptures indicate the existence and, thus, practice of sport as far back as between 3,000 to 1,500 BC. Sporting activity has been documented in the Greek text the Iliade . In this text, Achilles organises an event incorporating athletic activities to commemorate the death of his companion Patrocle. The Ancient Games were conducted between 884 BC and 393 AD—and regularly every four years from 776 BC (= the First Olympiad) until around 393 AD. Theodosus, then Emporer of the Holy Roman Empire, condemned the Olympic Games as unchristian; believing them to be part of a religious festival honouring the pagan God Zeus and other unholy ceremonies. He eventually banned the Olympics, which marked the end of an era. The Ancient Games were held at the ancient site Olympia, which is located in the north-western part of the Greek island, the Peloponnese.

3.1.2. The Modern Games: The Summer Games

The modern Olympic Games have gone from very humble beginnings in Greece in 1896 to a sporting mega-event second to none in the new millennium. But the rise of the Games was not all clear sailing. French aristocrat, Baron Pierre de Coubertin (1863-1937) together with the Greek, Georges Averoff (1818-1899), founded the new Olympic movement. Initially, they had difficulties financing the first Modern Games in 1896, but eventually found support in two prominent Greek industrialists. The Games survived two World Wars, terrorist attacks in Munich (1972), riots in Mexico City (1968), boycotts in Russia (1980), quarantine and logistical problems in Australia (Melbourne in 1956, not Sydney in 2000), pipebomb attack and communication problems in Atlanta (1996), near financial collapse after the Montreal Games (1976)(but since then always with positive figures)) and many smaller challenges and tribulations. Since Atlanta 1996 it was the first time all of the then registered National Organising Committees (=197) attended the Games together.

The modern Olympic Games continued to put on the biggest show on earth with Sydney (2000) culminating a century of wonderful successes that far outweigh the trials. Athens (2004) has got a negative image because of the delay in constructions of infrastructure, but after all the Games were “unbelievable dream games”. The historical overview is showed in annexe 1.

Next Olympic Games are planned in Beijing (2008), and the candidates for 2012 are Paris, London, Madrid, Moscou, New York. Is it a joke or not, Flanders is preparing (feasibility) studies concerning the opportunities to organise the Games in 2016!

Table 1: Olympic Games Comparisons (1896-2004)

Description

Athens 1896

Atlanta 1996

Sydney 2000      

Athens

Days

5

17

17

17

Sports

9

26

27

28

Events

43

271

300

301

Countries

14

197

199

202

Participants

245

10,332

11,116

ca. 10,005

Tickets available

60,000 (est.)

11.2 million

9.6 million

-

Funding

Donations 67%

Stamps 22%

Tickets/coins/medals 11%

Television 34%

Sponsors 32%

Tickets/retail/other 8%

Television 40% (est.)

Sponsors 36% (est.)

Ticket sales 21% (est.)

Consumer products 3% (est.)

Budget app. 11.5 billion $, of which

35% TV,

17% sponsors,

12% security

Source: slightly altered from IOC Marketing Matters 1996, pp. 1-16 & estimates for 2000 by SOCOG, and update.

The history of The Games has, on the whole, been an example of success through continuous growth in terms of the number of countries where broadcasts (cf. table 1) of The Games are available. This is where organisers of The Games pride themselves the most, being able to deliver their message of hope, peace and goodwill to every corner of the globe. As Richard Pound from the IOC aptly put it; “You turn on the (TV) set and see athletes of the world...trying as hard as they can to win and yet remaining friendly. It says something to the rest of the world about what is really possible.”

Now that the summer and winter Olympic events alternate every two years, the spotlight returns to The Olympic Flag, Rings (symbolising the five continents) and Motto (Citius, Altius, Fortius = Swifter, higher, stronger) twice as often.

3.1.3. The Winter Games

Though sometimes in the shadow of the Summer Games, the Winter Olympics deserve in their own right to be classified as a truly spectacular four yearly event. They provide an unparalleled forum for the finest talent in winter sporting to gather in the one place. Like the Summer Games, the Winter Olympics are offered to a number of potential host cities (countries) up to 10 years ahead of the scheduled time of the competition to allow the nominees to submit proposals and to lobby the International Olympic Committee for the right to host (see § 3.3.) the Games.

During 1999 this process was cast in a bad light with accusations of bribery and corruption surrounding the Salt Lake City application to host the 2002 Winter Games. The IOC were under fire from the media to justify their selection process and announced at the end of 1999/ early 2000 that the procedure would be overhauled to ensure a free and open Olympics host city bidding process.

As with the Summer Games (which are usually referred to simply as ‘The Games'), the chronology of Winter Games and host countries is given (annexe 2). Interesting to note that in the 1994 the Winter Games occurred only two years after the Albertville Games in 1992. This was a conscious decision by the IOC to stagger the Winter and Summer Games in order to be able to concentrate their efforts individually to the two events and to draw media and public attention on the Games twice as often. After 11 September 2001 het world changed a lot and there was a real fear for other terrorism attacks. Fortunally the Winter Olympics in Salt Lake City were very successful. The budget for security has increased extremely (like in Athens 2004). The next venues are planned in Turin (Italy) in 2006 and Vancouver (Canada) in 2010.

3.2. The Sydney Olympic Games in 2000 (= The Millennial Games)

The Games began September 15 and the 27 different sports (Tae-Kwon-Do and the Triathlon new for these Games) and 11,116 athletes competed for world glory over the 17-day extravaganza. Like Atlanta, all NOCs attended the 2000 Games. And, again like Atlanta, huge audiences were expected via terrestrial and satellite television: 25 billion cumulative global audience watching +/- 3,000 hours of feed by host broadcaster Channel 7.

In fact, television will again be the winner at Sydney, playing the all-important role of spreading the Olympic message of peace and unity. SOCOG claims that the Sydney Games will be the first to be fully digital, which means 100% documented and reproducable by the 15,000 strong media presence.

3.2.1. Facilities and Services

All Olympics events, with few exceptions, were be conducted within the Sydney metropolitan area. Construction of new facilities was on a need only basis. Some facilities were built independent of the Olympics but will be put to use during the Games, such as the Penrith Lakes project. The big Olympic Zone for over half of the sports including athletics events, cycling and swimming, was the Olympic Park (660 ha) at Homebush Bay, 14 km from the CBD of Sydney. Another eight sports are expected to be housed within the Sydney Harbour Zone, such as basketball and weight lifting and yachting on the Harbour itself. Equestrian events were going to be at Eastern Creek, shooting at Holsworthy, soccer at the Sydney Football Stadium and mountain biking at Calmsley Hill.

Accommodation

An officially appointed tour operator by NOCs from each attending country should wase able to package accommodation, tickets, transport and tours together. There was also a residential accommodation scheme to billet private housing to the millions of visitors to Sydney for the Games.

Tickets

News about ticket misappropriation came to light late in 1999 with SOCOG defending their allocation decisions and promising to rectify the situation before the Games commence. In total 9.6 million tickets were intended for sale. Cost for tickets vary depending on venues attended and the staging of events (e.g. the Opening Ceremony is more expensive than the heats of the cycling).

Transport

SOCOG would obviously like to prevent a repeat of the logistics problems in Atlanta. Sydney has spent a lot of time and money refurbishing and reorganising its public transport system in preparation for the Games. The new rail link is able to carry 50,000 passengers per hour between venues and the Sydney Olympic Park. Private car access to the park area during the Games was prohibited to reduce the transport anomalies. The Sydney Harbour was also function as an active means of Olympic (water)transport.

Visas and Tourism

Many countries require a visa to enter Australia. Travel agencies handling Olympic packages or trips to Australia can usually arrange visas also. Touring after the Games were is recommended. Australia is a vast continent with natural and cultural diveristy; from deserts, to rainforest, beaches to cosmopolitan cities. Australia offers modern city living and 50,000 year-old native culture (e.g. Aborigines) in the one package.

Television

Television coverage of the Centennial Games of Atlanta 1996 topped all previous records with 3,000 hours of Olympic coverage by NBC, the host broadcaster. The 1992 Games in Barcelona managed 2,700 hours. Atlanta also attracted the largest cumulative television audience to date for an Olympics with a global cumulative audience of 20 billion over the 17-day event. The 1992 Games in Barcelona recorded an impressive 16.6 billion viewers.

The Centennial Games was available on television to an estimated 226 countries world-wide, 33 more than in Barcelona. Additionally, estimates indicate that 142 countries televised Atlanta on national channels, 89 with access to a second foreign channel and 66 countries received satellite coverage.

3.2.2. The Green Games

With a budgeted spend of around $A2.3 billion which, it has already been revealed, may have been blown out to $A5.2 billion, hosting the Olympics is not a cheap way to draw attention to a tourist destination. How the money is spent and what will happen to the faciltities built after the mega-event leaves town are questions being asked by green campaigners against the mass waste that huge international events can represent.

A wave of criticism washed over the Spanish government in the wake of its purpose-built 1992 Expo site in Seville which had little or no sustainable features once the event closed. Later the same year, although a huge tourism success following Barcelona's hosting of the Olympics1,, the Spanish were again criticised for not anticipating sustainable development concerns.

Australia learnt a valuable ecological lesson about hosting mega-events after the 1988 Brisbane Expo, which was much maligned for the waste of resources going into what ended up being a ‘disposible expo'. Virtually nothing could be used of the expo facilities along the Brisbane river site. The Committee for Sydney's Olympic Games and the Olympic Co-ordination Authority invested a great deal of time and millions of A$ into a cleanup of the Olympics site at Homebush Bay which, it has since been discovered, was the dumping site for highly toxic dioxins during the time it was a Union Carbide (chemical) factory.

Despite unfavourable media attention regarding the so-proclaimed “Green Games”; that the dioxin contamination in the Bay area was 1,500 times higher than accepted levels (Hanna 1998 p.44-49) and that the government had covered up a report on the site during its Olympic bid process; there have been some ‘Green' highlights worth talking about in the lead up to the Games in September 2000:

  • The Homebush Bay area has a thorough tree replanting scheme.
  • Solar power was a prominent feature of the Olympic sites, i.e. for the 665 houses in the Olympic Village.
  • 1.2 million native grasses and 30,000 trees have been planted in the southern Olympic site of Haslams Creek.
  • Materials on the Olympic Building sites were recycled for use in road building.

The Olympic Co-ordination Authority's (1995 p.13) Green Olympics vision is a long-term one; “encapsulat[ing] the elements of a complete and integrated approach to sustainable development.”

4. Economic Impact of the Olympic Games

Olympic host nations invest a lot of time and money into earning the right to host the Games. Being an Olympic host nation is usually a great privilege. The value of which can be measured in terms of national pride, world status and a grand platform to promote a destination. But there is also a more tangible benefit of hosting the Olympics—that being economic growth, tourist revenues and increased employment. At least that is the common belief held by people surveyed by the Australian Tourism Commission (26% of respondents stating ‘increased tourism' as a perceived benefit of hosting the Games, 25% stating ‘general economic boost'). Analysts differ in opinion as to how much added value the Olympics brings to a country.

For example, two investigations into the expected additional economic value due to The Games came to different conclusions. The KPMG Peat Marwick report on additional visitors expected to Australia through hosting the Games (between 1994 and 2005) differed to the Australian Tourism Commission (ATC) report by up to 1.1 million. Richardson (1995 pp.59-61) elaborates on this disparity, saying that, with average spending per overseas visitor at $A1,794 (1993), the net difference between these two impact studies (using KPMG's most likely scenario) could be around $A1.6 billion.

The ATC conducted another study in 1998 and revised the expected extra visitors to Australia to 1.6 million (cf. 1.7 in reality, see table 4) which translates into $A6.1 billion in extra earnings between 1977 and 2004. The ATC are leaving nothing to chance, spending $A12 million over four years (1997-2001) to stimulate this extra tourism demand.

KPMG also predicted that, between 1991 and 2004, the Olympics should create 175,006 extra jobs. However, economic analyst, Geoff Carmody, estimated extra employment due to the Olympics to be one fifth that. He was also unconvinced of the tourism and economic growth prospects at the hands of the Games, putting expected growth in inbound tourism at possibly less than 5% with only a 0.33% improvement in GDP (Gross Domestic Product).

4.1. Centennial Games (Atlanta 1996) Budget Forecast

Before the Games, ACOG estimated that hosting the Olympics would have a net economic impact of US$ 5.1 billion dollars (2.4 billion from ACOG spending and 2.7 from sporting events, media, athletes, officials and spectators) on the state of Georgia over the six-year period from 1991 to 1997. This added value was predicted to result from new money coming into the state, primarily in and around venue locations. Positive predictions were also made for short-term Olympics related employment gains and incremental personal and corporate tax revenues in the periods following the Games.

Table 2: The Centennial Olympic Games Budget (Atlanta 1996)

REVENU

US$

Broadcast rights

555,500,000

Joint venture

513,390,000

Ticket sales

261,230,000

ACOG share of TOPIII (sponsorship)

114,380,000

Merchandising

28,700,000

Other income

107,471,000

Total revenu

1,580,671,000


EXPENDITURE

Executive Administration:

Administration & human resources

38,118,000

Executive Operations

24,523,000

Financial & Management Services

120,277,000

Sub-total

182,219,000

Construction:

Venues

469,628,000

Sub-total

516,628,000

Functional Operations:

Communications & Government Relations

13,719,000

Corporate Services

44,778,000

Host Broadcasting

106,329,000

Merchandising

16,647,000

Sports & International Organisations

147,625,000

Olympic Ceremonies

24,180,000

Olympic Programs & Physical Legacy

52,481,000

Operations

405,350,000

Senior Policy Advisor & External Relations

10,015,000

Sub-total

821,125,000

Contingency/Net Funds Flow

60,000,000

Total Expenditure

1,580,671,000


NET RESULT

Break-even

Source: PressGuide Atlanta Games 1994 p. 38.

4.2. Sydney 2000 Games Budget

Leaving aside the differing opinions on how much spin-off potential the Olympics carries, perhaps the net impact should be measured more in terms of the Olympics' unique ability to attract the attention of the world's media. The Australian Tourism Commission (ATC) said in their report on The Games that during the 17-day event the Olympics website is preparing for over three billion visits. And in the 1997/8 financial year (June to June), the Olympics already generated an additional $A48 million in positive publicity for Australia. The conclusion: The Games raise awareness of a host country in the minds of people from all over the world. This could translate into future business.

The ATC conducted research back in 1998 which highlighted that Germans knew that the Games would be held in Australia and 45% said they would consider a holiday to Australia within the next four years.

SOCOG produced a working and planning budget for the hosting of the Games in 2000. This budget was released in May 1997. Based on estimates, the Games are expected to run at a net surplus of $A 42.7 million after contributing $A 363.6 million to the New South Wales (NSW) Government for venue rental, construction, management and security.

For an overview of the Sydney 2000 Olympic Games Budget, refer to Table 3. Interesting to observe that the greatest expected expenditure is allocated to ‘technology, premises and administration', followed closely by ‘venue management & security', which is a payment to the New South Wales Government. A significant sum has also been awarded to ‘media: press & broadcasting' and ‘sponsorship & general marketing', which confirms the financial and qualitative value attached to this very important part of hosting a mega-event the enormity of the Olympics. Perhaps surprising is the relatively small amount dedicated to what has been simply called ‘sport'. Given that the Olympics is a sporting mega-event, it seems strange to see the word sport mentioned in this financial statement just once and for such a small financial contribution. This is perhaps a philosophical question that may need elaborating in the future, and, indeed, has been discussed in relation to the Olympics (the over-commercialisation argument) leading to the Centennial Games being dubbed the ‘Coca-Cola Games (Atlanta 1996). It is not a subject for this particular paper, however.

For a better look at the breakdown of revenue sources for the Sydney 2000 Games, refer to table 3 and “Funding” in table 1.

Table 3: The Sydney 2000 Olympic Games Budget

REVENUE

A$

Sponsors

828,800,000

Consumer products

61,100,000

Ticket sales

487,000,000

Television rights

954,600,000

Total revenu

2,331,500,000


EXPENDITURE

Accommodation

82,900,000

Ceremonies

37,300,000

Merchandise & creative services

25,700,000

Executive office & legal

60,700,000

Financial, risk & project management

50,500,000

HRM, communications & community relations

53,500,000

Logistics

43,900,000

Media: press & broadcasting

184,200,000

Sponsorship & general marketing

135,400,000

Sport

78,200,000

Technology, premises & administration

363,700,000

Ticketing

42,500,000

Torch relay, events & Olympic Arts Festival

38,400,000

Transport & accreditation

52,700,000

Venue management & security

363,600,000

Venues & environment

284,100,000

Villages

197,600,000

Volunteers & uniforms

30,900,000

Contingencies

163,000,000

Total Expenditure

2,288,800,000

NET SURPLUS

42,700,000

Source: Official Site of the Sydney 2000 Olympic Games -SOCOG 1997
A$ = Australian dollar (+/- .59US$ or .62 euro April 2000) .

4.3. Impact of the Sydney Olympics on Tourism

The (Australian) Tourism Forecast Council should have the final say:

“There is widespread agreement that the greatest opportunities lie with the increased media exposure Australia will gain as a result of the Games...(as such the Australian Tourism Commission) is servicing an expanded Visiting Journalist Program, which is expected to rise from 862 in 1997 to 3,000 journalists by the year 2,000...(and will provide) media kits...which contain images and stories on Australian destinations.” (Forecast Vol.4 No.1 1998 p.20-22)

A well planned, properly marketed and publicised mega-event like the Olympic Games attract millions of foreign and domestic visitors to a place. Tourists attend the event and spend money in related tourism businesses while it is being held. They also visit surrounding tourist destinations and attractions and may even extend their stay to take in attractions in other cities and states outside the event perimetres. The flow-on effects of event tourism are numerous: they act as image maker, travel motivator, stimulator of infrastructure and communications development, employment generator, add to gross domestic product and generally boost the economy of the host nation. Some criticism has been levied on governments for not doing enough to lure major mega-events like the Olympics to their shores. Other critics say the net benefits to a place are overrated given the cost of building world-standard facilities to host such mega-festivals, which is increasingly being born by tax payers, and the inevitable disruptions to normal business, residents, the environment and the general living conditions.

“Event tourism must, therefore, seek to enhance the attractiveness of individual events and festivals and to use them to enhance destination attractiveness. [he also states] Successful events can enhance the image of the destination, generating an important but often unmeasurable increase in general-purpose tourism.” (Getz 1991 p.23-36) .

At the same time the event organisers and government participants must be seen to be working toward minimising disruption to local residents in the short-and-long-term, and maximising the return on investment—both financial and emotional—to the private and public contributors. Admittedly, this is a delicate balancing act, one that organisers past of the Olympics have not always been able to achieve.

Table 4 illustrates the summarised results for the Sydney Games 2000 and the impact on Tourism in Australia:

GAMES FACTS AND FIGURES

* Visitors to Australia: 406,500 international visitors in September 2000, 15% higher than September 1999 (Australian Bureau of Statistics preliminary data).

* International visitors attending the Games: 111,000 (estimate, Tourism Forecasting Council)

* Olympic induced visitors 1997-2004: 1.7 million (TFC)

* Worldwide Olympic TV audience: 3.7 billion in 220 countries (IOC)

* Worldwide Olympic Internet audience: 20 million (IOC)

* ATC australia.com web site traffic during the Games: 7 million pages of information delivered – a 600% increase on the same period during 1999 (ATC = Australian Tourist Commission)

* Economic benefit to Australia : A$ 6.1 billion between 1997-2004 (TFC – the Olympic effect)

THE RESULTS FOR TOURISM

The ATC’s Olympic Games Tourism Strategy delivered significant benefits to Australian tourism, the ATC and Australia as a whole:

* Brand Australia has been advanced by ten years, meaning what the world now knows about Australia, it wouldn’t have known until 2010 had Sydney not hosted the Games (ATC).

* The ATC’s media relations program generated an addition A$3.8 billion in publicity for Australia between 1997 and 2000 (ATC)

* The ATC’s partnerships with major Olympic sponsors, such as Visa, McDonald’s, Kodak and Coca-Cola generated in additional A$300 million in additional advertising exposure for Australia (ATC).

* In late 1999, the ATC launched the Australia 2000 – fun and games campaign to encourage visitation to Australia in 2000. This was aimed at insuring against avoidance, as had been the experience of other major event host cities and countries. In 2000, visitor arrivals to Australia increased by 10.9% to almost five million according to preliminary Australian Bureau of Statistics figures (ABS).

* The likelihood of potential travellers to visit Australia increased significantly because of the Olympic Games (ATC).

* The International Congress and Convention Association (ICCA) and the Union of International Associations (UIA) shows us that Australia and Sydney ranked – since the Olympics of 2000 - much higher in the world classifications of international conference countries and cities.

* In excess of 100 business events, generating millions of additional export dollars for Australia, can be directly attributed to the ATC’s New Century. New World, Australia 2001 campaign aimed at capturing business tourism for Australia off the back of the Games .(ATC)

* Over 5,000 media were serviced at the Sydney Media Centre, a joint venture between the ATC and other government authorities, to cater for media not accredited to the Main Press Centre or International Broadcast Centre. (ATC)

* The ATC used the Games to host 50 of the world’s most influential tourism people from 11 countries to visit Sydney for the Olympics (ATC).

* At the conclusion of the Games, the ATC launched 90 tactical campaigns with 200 industry partners worth A$45 million to quickly convert interest and awareness into actual visitation. In October and November 2000, there was a 10% increase in visitation compared to the same period in 1999 and visitor arrivals for December 2000 were up a massive 23% (ABS preliminary data).

* Research indicates that 88% of the 110,000 international visitors who came to Australia for the Olympics are likely to return to Sydney as a tourist (State Chamber of Commerce)

* Unaided awareness of the ATC within Australia increased between 1999 and 2000 standing at 25%, while prompted recognition was above 80% (ATC)

* The ATC has been invited to present this case study at the inaugural World Tourism Organisation and International Olympics Committee Conference on Sport and Tourism in Barcelona in February 2001 (p.s. this was the first world conference of this kind) (WTO/IOC)

Source: X, Australia's Olympics, Special Post Games Tourism Report, ACT (Australian Tourist Commision), 2001, p.1,4.

CONCLUSION

We have seen that sport and tourism in general and the Olympics in specific have developed into major economics sectors showing steady growth since 1984 in Los Angeles. This analysis suggests that sport tourism must be considered a sector of some significance in the economy of many countries. The most of Olympic cities boomed in tourism and became famous resorts. It is especially the case with wintersport resorts such as St.Moritz in Switserland, Cortina d'Ampezzo in Italy, Garmisch- Partenkirchen in Germany or Chamonix in France.

Barcelona is the best example to illustrate the urban renewal and the explosive increase in number of tourists since the Olympic Games in 1992: 1,727,610 tourists in 1991; 2,455,249 in 1993 and 3,149,002 in 2000 (X, Cahier Espaces 74, 2002, p.1331)

Athens 2004 resulted in a lot of new infrastructures for (public)transport. The new airport Eleftherios Venizelos (19km north of Athens),opened april 2001 and has a capacity of 16 million passengers. Yet the economic benefits attributable to sport tourism have to be offset against the costs involved – and these are not limited to financial costs. Any benefits must be seen in the context of sociocultural and environmental impacts involved. If sport tourism is developed for economic gain without regard to its other impacts, there is a very real danger that its true costs will greatly exceed its economic value. But well planned and organised sport tourism (e.g., Olympic events) can be a roaring success.

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NOTES

* Patrick De Groote, Limburgs Universitair Centrum, Belgium, patrick.degroote@luc.ac.be

1. The 1,492,000 visitors to Barcelona during the Olympics were just below the predicted flow of 1.6 million (Barcelona Tourism News, Jan-March 1993, N°12).

ANNEXE 1 CHRONOLOGY OF THE SUMMER OLYMPIC GAMES (1896-2004)

Year

Date

City

Highlights and Troubles

No. Olym-piad

NOC’s there

Sports Events

Competitors

1896

6.4 - 15.4

Athens (GR)

Financial problems / generally a famed success

1

13

43

245

1900

14.5 - 28.10

Paris (F)(in combination with Expo)

First Millennial Games / competes with international exhibition / lasts five months

2

19

86

1078

1904

1.7 - 23.11

Saint Louis (USA)

(combination with Expo)

First trans-Atlantic / trade exhibition overshadows Games

3

13

89

689

1908

27.4 - 31.10

London (GB)

Games held independent of commercial exhibition / Italy steps down as host due to Vesuvius eruption

4

22

107

2035

1912

5.5 - 27.7

Stockholm (S)

Perfect Games / protoype for the future/ first cultural programm

5

28

102

2437

1916

WW I

6

1920

20.4 - 12.9

Antwerp (B)

Symbol of rebuilding after war / debut the five coloured rings (symbolic of unity among 5 continents) and Olympic flag

7

29

152

2607

1924

4.5 - 27.7

Paris (F)

First times Games in same city / motto Citius, Altius, Fortius introduced / first Olympic Village

8

44

126

2972

1928

17.5 - 12.8

Amsterdam (NL)

Debut for Japan / lighting flame on a giant tower outside stadium

9

46

109

2884

1932

30.7 - 14.8

Los Angeles (USA)

Post-depression but successful Games

10

37

117

1333

1936

1.8 - 16.8

Berlin (D)

Hitler’s Games/ experiment with TV

11

49

129

3936

1940

1944

(Helsinki)

(London)

WW II

12/13

1948

29.7 - 14.8

London (GB)

Post war recovery /Germany & Japan absent

14

59

136

4092

1952

19.7 - 3.8

Helsinki (FIN)

Soviets first Games/ very successful

15

69

149

5429

1956*

22.11 - 8.12
and
10.6 – 17.6

Melbourne (AUS)

Stockholm

Quarantine of equestrian /impacted by politics and logistics

16

67

145

3178

159

1960

25.8 - 11.9

Rome (ITA)

Many records broken/Olympic Anthem introduced

17

83

150

5313

1964

10.10 - 24.10

Tokyo (JPN)

First Asian Games/best organisation of Games so far

18

93

163

5133

1968

12.10 - 27.10

Mexico City (MEX)

Riots- first time in Central America/overall a success Games

19

112

172

5498

1972

26.8 - 11.9

Munich (D)

Terrorist/kidnapping

20

121

195

7121

1976

17.7 - 1.8

Montreal (CAN)

Financial ruin/African protest

21

92

198

6043

1980

19.7 - 3.8

Moscow (USSR)

50 nations boycott/ Samaranch elected president of IOC

22

80

203

5283

1984

28.7 - 12.8

Los Angeles (USA)

Commercial Olympics/Russia boycott

23

140

221

6802

1988

17.9 - 2.10

Seoul (KOR)

Games built tourism image, but Ben Johnson is disqualified for doping

24

159

237

8473

1992

25.7 - 9.8

Barcelona (ESP)

West & East German teams unite again

25

169

257

9368

1996

19.7 - 4.8

Atlanta (USA)

Pipebomb/bad organisation

26

197

271

10332

2000**

15.9 - 1.10

Sydney (AUS)

Green & Hi-tech Games

27

199

300

11116

2004

13.8 – 29.8

Athens (GR)

Return to the roots/ best Olympic village ever/ unbelievable dream games

28

202

301

Ca.10500

Source: De Groote P., 2004.

Based on:1996 Olympic Movement Directory, IOC 1996 p. 5-50 & Olympia & Olympic Games 1999 pp.124-170
* equestrian events held in Stockholm ** some estimated figures necessary (Sydney Organising Committee of the Olympic Games)
NOC = National Olympic Committees (=number of participating nations)

ANNEXE 1 CHRONOLOGY OF THE WINTER OLYMPIC GAMES (1908-2006)

Year

Host City (Country)

Countries

Sports

Participants

1908

Londen (GB) (iceskating only)

6

1

21

1920

Antwerp (B) (iceskating/icehockey)

10

2

85

1924

Chamonix (F)*

16

5

258

1928

St. Moritz (CH)

25

6

464

1932

Lake Placid (USA)

17

5

252

1936

Garmisch-Partenkirchen (D)

28

5

668

1948

St. Moritz (CH)

28

6

669

1952

Oslo (NOR)

30

5

694

1956

Cortina-d’Ampezzo (ITA)

32

5

820

1960

Squaw Valley (USA)

30

5

665

1964

Innsbruck (AUT)

36

7

1091

1968

Grenoble (F)

37

7

1158

1972

Sapporo (JPN)

35

7

1006

1976

Innsbruck (AUT)

37

7

1123

1980

Lake Placid (USA)

37

7

1072

1984

Sarajevo (YUG)

49

7

1274

1988

Calgary (CAN)

57

7

1423

1992

Albertville (F)

64

7

1801

1994

Lillehammer (NOR)**

67

7

1739

1998

Nagano (JPN)

72

7

2177

2002

2006

2010

Salt Lake City (USA)

Torino (Italy)

Vancouver (Canada)

77

7

2399

Source: P. De Groote 2004, based on IOC
* the first ‘real’ Winter Olympics
** began staggering from Summer to Winter Games


Edited and posted on the web on 1st December 2004; last update 21st September 2005


Note: This Research Bulletin has been published in Tourism Review, 60 (1), (2005), 12-19