Economic Impact Of The Olympic Games In Sydney Tourism Essay

Every state ‘s ultimate key factor is to prolong and accomplish the rubric and appellation of being the ‘ultimate touristry finish ‘ . Promotion is a well-known method used in a assortment of states in order to value the above differentiation. Mega events are one of the most common publicity techniques, and the Olympic games is an illustration of this. Research showed that Sydney “ gained ?5 billion rise on touristry in the five old ages after the Olympic Games of 2000. ” ‘Mega events ‘ attract a batch of clients and this gives the potency of advancing their finish chances to tourers. However both positive and negative methods originate when set uping and developing this method of publicity.

The hosting state experiences a batch of positive effects such as the investing in the state, the creative activity of new occupations and the most of import is the addition in touristry due to the Mega Events. On the other manus, negative effects can include congestion, pollution and rising prices ( Li, S 2010 ) .

The touristry industry is quickly turning, due to the explicit sum a state invests in seeking to increase their tourist per centum and make a sense of consciousness, making a competitory flood tide between states. Therefore the Olympic games is an effectual manner to promote tourers to see the host metropolis and hence at the same advertisement it. Preparation, effectual and efficient strategic methods are significant for the authorities to implement in order to accomplish their persuaded ends. The authorities is the chief beginning for assisting state host a Mega Event and the schemes will so be used to profit from the Olympic Games.

Event touristry is “ the people who visit a finish for the primary intent of take parting in or sing an event ” ( Turco, Riley & A ; Swart, 2002 ) . However it has n’t been a long clip since event touristry and direction, the chief beginning of international touristry has been advertised and developed by states.

Furthermore, in every Olympic Game there are associations that visit the host metropolis to discourse or even oversee the state of affairss formed around this Mega Event. The International Olympic Committee ( IOC ) are sustained as the before-Olympic visitants. The IOC is responsible to reexamine the development of the undertakings. Following, the associates of international federations for a scope of athleticss, observe the process of the installations. Last but non least the participants are the 3rd group of visitants that visit the host metropolis in the pre-Game stage. These persons attend the host metropolis to see the conditions and the athletics locales. The just figure of tourers that visit the host metropolis before the Games, contribute to increase touristry ( Sport Journal ) .

By taking into history the positive consequence that a state can acquire from Mega Events, so the authorities is encouraged to offer for a Mega Event. The host metropolis will have a batch of benefits such as societal, environmental, cultural and economical maps. Greene ( 2003 ) states that the hosting metropolis will obtain a new degree of investing in the touristry sector by showing a positive image for the state.

Mega Events bring forth big economic effects due to the size of the event ( Owen, 2005 ) . Additionally, it has been discussed that the most indispensable impact is the economic state of affairss, which arise us a consequence of such an event ( Li, Blake, 2009 ) . The host metropolis depends on such event in order to see an economic growing. Olympic Games will move as an injection to the round flow of income and could better the economic system ( Owen, 2005 ) .

Furthermore, the Olympic Games will be a magnet of investing either in the signifier of public support and private investing to be spent on athleticss locales, touristry installations and substructure betterments ( Owen, 2005 ) . In order for the host metropolis to see economic growing through the Olympic Games the authorities should utilize its resources efficaciously, this will ensue to an addition in employment, redeveloping rural countries, bettering the substructure etc ( Li, Blake, 2009 ) .

Sydney ‘s Olympic Games 2004 had many economic impacts during it ‘s 12 twelvemonth period, from 1994/5 to 2005/6. These twelve old ages were divided into three categories: Pre-Games, Games Year and Post Games ( Li, Blake, 2009 ) .

The pre-Games period is a cardinal subscriber to the host metropolis due to the fact that the metropolis is hosting a batch of tourers because of the Mega Event and the advertizement that the state is having. Besides, the building of the Olympic locales and the substructure of the host metropolis take topographic point at that period of clip. In the Games twelvemonth the impacts are the grosss that are generated from the Olympic Games, and the disbursals of runing the games. This income comes from visitants that visited to watch the games, and other tourers that avoided the Olympic Games. The station Games impact is chiefly the bequest that the Olympics left to the hosting metropolis. It is the long-run impact that will convey an addition in investing, touristry and the pull of new concern to the metropolis ( Blake 2005 ) .

In the pre-Game period in Sydney Olympics had to complete the Olympic Venues for the multitudes of tourers that will come to watch this Mega Event. The building phase was singular ( Greene,2003 ) . With regard to the article on the Economic Impact Of The Sydney Olympic Games, by new South Wales Treasury ( 1997 ) , about $ 2.5 billion of both public and private investing were spent on the substructure development. A batch of positive effects resulted from the building, such as it encouraged more demand for capital and labor, ensuing to an additions end product and employment. The host metropolis attracts a batch of tourers before the Olympics every bit good. This generates more economic benefits for the host metropolis ( Li, Blake, 2009 ) .

During the period of the Games a batch of money circulates in the economic system of the host metropolis chiefly, from the ticket gross revenues, licensing, contributions and most significantly from telecasting rights. Furthermore the disbursals that are included is security, medical services, conveyance and the cost to run the imperativeness and broadcast medium centre ( Li, Blake, 2009 ) .

Mega Events normally last for a short period of clip. During this short period of clip a batch of people come to the state to see this dramatic event. This generates a batch of gross to the host metropolis, “ a encouragement to the state ‘s economic system ” ( Clarke,2004 ) . With mention to Chalip ( 2000 ) , about all of the hotels in Sydney were full from tourers. However, after the games, researches showed that touristry was high during the Games Year but non every bit high as expected to be. ( Berman, 2009 ) .

Despite of all the compensations produced by the Olympics, there is besides a downside. Herding out and monetary value rising prices are two negative effects that a batch of states ponder. Locals are normally relocate during the Games Year, and some of them rent their houses in order to do a net income ( Clarke, 2004 ) .

As demonstrated in Figure1, Sydney predicted to hold a $ 2.100 million growing of GDP during and after the Olympic Games, due to the increased figure of tourers. All of the above resulted to an addition in the criterion of life in Sydney.

Normally in every determination and declaration an chance cost takes topographic point by passing a big sum of money on athleticss locales, substructure development etc ( Owen, 2005 ) . All of the investing used to construct all of the above are cut from other public demands. For illustration, poorness, relief, wellness attention and instruction, which are some facets that produce benefit and value to the economic system. ( Li, Blake, 2009 ) .

Furthermore, in the pre Game stage a batch of occupations were generated due to the building of the athletics locales, substructure and the transit system. However this is merely for a short period of clip, when the installations are completed most workers lose their occupations. In the Games Year at that place was an 18 % lessening in the building sector in Sydney, go oning with farther decreases in the following old ages. In add-on, in the station Games period the hotels had a 65-70 % lessening, with their rates falling up to 5 % . As pointed out in Figure1, Sydney ‘s employment dived from 24.0 to 3.0, followed by a intermission in the economic growing. Besides, hotels located outside of Sydney did non derive much from the tourers that attended the Olympic Games. However, the hotels which gained from the Games had a huge advantage against their rivals due to the gross they received.

A common questioned asked is, “ What happens to all of the Olympic locales after the Olympic games? ” . A batch of the locales remained fresh after the Olympics. Other bowls were renovated to host other kind of events. All of these installations were dearly-won to continue. In fact some of them were closed down. For illustration, the Sydney Olympic locale was renamed Olympic Park 2000, transformed in a manner so that they would be able to host all types of events. This transmutation was carried out in order for the installation to host events and bring forth net incomes. However, some specializers fight over the fact that this redevelopment perished the Olympic Spirit ( Chalip, 2000 ) .

One of the authorities schemes for the Sydney Olympics 2000 was to better the public transit system. Before the Olympics, Sydney faced a batch of congestion jobs, during the Games traffic congestion was non a job. The system was working expeditiously. Another serious job is the escape of economic benefits from the state. The Australian authorities fought and dealt with this job by reding the Australians to do private investings and besides, for concern to use locals for any work, this improved the commonwealth in Australia.

Mr. Payne manager of the Marketing International Olympic Committee in 2000 acknowledged that “ Australia is the first Olympic host state to take full advantage of the Games to smartly prosecute touristry for the benefit of the whole state. It ‘s something we have ne’er seen take topographic point to this degree earlier and its theoretical account that we would wish to see carried forward to future Olympic Games in Athens and beyond ” ( Australian Tourist Commission, 2001 ) . Furthermore, this shows us that Sydney tried to take full advantage of the short-term economic effects and to follow the long-run 1s.

Mega Events alter the full image of the host metropolis, and with farther helper from the authorities this could convey new companies that want to merchandise or put in Australia. Besides, the advertizement that Olympics provide to the hosting finish is an addition in touristry ( Cooper, et al 2008 ) . A farther Australian authorities scheme implemented was to utilize the advertizements to publicize Australia as the ultimate touristry finish in order to catch the attending of more tourers. As a effect, an addition in the long-run economic effects provoked Australia.

Besides that, the Australian authorities wanted to increase touristry and take advantage of the Olympic Games. They should hold concentrated and persuaded visitants to research other parts of the state non merely Sydney where the Games took topographic point. This would hold resulted in the hereafter for farther touristry ( Chalip, 2000 ) .

Mr. Payne ‘s statement for Australia taking full advantage of the Olympic Games, shows that the authorities schemes were successful. Two undertakings were formed to pull oversea investors “ Meet in Australia ” and “ Australia Open for concern ” . Under these two undertakings Australian companies cooperated with foreign companies. The oversea spouses and offices decided that Australia is the best finish to direct their employees as a ‘bonus ‘ .

Additionally, the smallest metropolis of all time that hosted a Mega Event is Athens in the Olympics of 2004. It was the biggest challenge Greece had to face during the 12 twelvemonth period, before and after the games. In contrast with Sydney which is a immense metropolis in footings of country and population ( Sports diary ) . In 2004 Greece was enlightened and was perceived and evaluated by a figure of tourers. This phenomenon gave the opportunity to Athens to publicize itself and make a new trade name image.

Due to this challenge Athens authorities had to put, had to fund the undertakings in general. In the pre-Game stage of the Olympics, in the building phase to be specific, the development of the substructure was singular. For illustration, the airdrome, tube system, the metropolitan ropeway all of them were built before the Games ( Kent Research Department ) . The most impressive was the Rio-Antirion span, the wanted it to complete before the beginning of the Olympics so the Olympic fire can traverse the span ( Greece after the Gold haste ) . All of the above are still in usage and helps a batch of people with their every twenty-four hours going even today.

Furthermore, the Entire Outgo for the operations and the assets of the Olympics came up to a‚¬11,274 billion. The entire outgo was high because they had a batch of holds and had to pay the excess work in order to complete before the start of the Games. The Greeks sponsored about 80 % of the entire outgo the other 20.1 % of the costs were covered by private support ( PDF ) . Taking into consideration that Sydney ‘s budget was much more less than Athinais.

Furthermore, during the Games Year in Athens 2004, there was an addition in GDP by 1.3 % . This shows a short-run economic impact that Athens experienced. Besides, it improved the employment chances by 3000 new occupations ( Hellenic Republic ) . The major cardinal factor for the above alterations was the 5 % addition in touristry in the Games Year.

Who can believe what happens to the Olympic Village after the Games? The authorities decides what to make with it. After the Games the small town is inactive. In fact is expensive for the authorities to continue the Olympic Village, so it offers them for sale, or long rental, at low monetary values to individual female parents or even to multi-families. An extra option for the authorities is to turn the Olympic Village to a athleticss centre. This will promote squads from all over the universe to come and develop, and besides to vie in tourneies. This will bring forth gross to the economic system and the Olympic Village will still be in use alternatively of being it being vacant.

Despite of all the jobs Athens had, the Olympic Village benefited the society by lodging about 3000 households. In add-on, a batch of the Olympic Venues are still in hapless status because it is really dearly-won to continue them. The one-year cost for the fixs sum to ?500 million ( Kent Research Development ) .

The following Olympic Games will be in London in 2012, the UK authorities schemes are shown to be really effectual. To be specific the Olympic Park will be built in East London, which is an developing country. This will speed up the development of the country, with the new substructure, the new houses and the industrial land that is available ( London 2012 ) .

All in all, the appraisals for the prognosis are non rather accurate because they were made for merely one decennary. The schemes could be over-inflate and out of range ( Australian Tourist Commission,2001 ) . In order for the prognosiss to be accurate all of the organisations involved had to work together to carry through their economic growing mark. However, this is really hard to carry through and the mark will non be attained if one of the organisation fails to run into their sensed end. ( Chalip, 2000 ) .

Concluding, the Olympic Games are a positive property towards advertisement and marketing a state. It is besides advantageous toward the development of the state ‘s substructure, occupation chances and overall the economic growing of the state. Olympic Legacy is a coveted aim for every state due to the fact that it develops and lightens a new sense of image to the state and most significantly increases its touristry positions.

Comparing the latest Olympic Legacies we can province that Sydney ‘s Olympic bequest was exceeding, nevertheless Athens was rather moderate. As Mr. Payne stated above Australia was the 1 that made the most out of the Mega Event in contrast to Athens, which did non accomplish the preferable and coveted degree of acquisition.

However the inquiry worth replying is how did Sydney get the better of all complications and managed to increase touristry and concern finishs in contrast to Athens? Sydney acknowledged all complications that could hold arose hence prepared effectual and efficient schemes and methods in order to get the better of all possible negative properties. Sydney was non that successful economically, but by increasing their common wealth this phenomenon bit by bit diminished over the old ages. Due to the fact that Athens did non comprehend any strategic theoretical accounts and was more or less unprepared in comparing with Sydney resulted to un-successful consequences. Their growing was minimum and their touristry did non lift plenty in comparing to of all time state ‘s touristry per centum addition after a mega Event has been undertaken.

As besides mentioned above, Mega Events has a figure of positive properties and effects towards the host metropolis but negative impacts are besides present. A big per centum depends of the authorities schemes and local citizens if the host metropolis succeeds or fails to accomplish their cardinal ends and aims but strategic methods are cardinal to be developed and perceived by every state in order to fruitfully carry through and achieve the rubric of being the ‘ultimate touristry finish ‘ .