E-ISSN:2319-3050

Review Article

Sports Management

International Journal of Research Padagogy and Technology in Education and Movement Sciences

2023 Volume 12 Number 02 APR-JUN
Publisherwww.theuniversityacademics.com

SHOULD INDIA HOST OLYMPICS 2036 OR NOT: ECONOMICAL PERSPECTIVE

Kaur A.1
DOI: https://doi.org/10.55968/ijems.v12i02.245

1 Akwinder Kaur, Assistant Professor, MehrChand Mahajan DAV College for Women, , Sector- 36 A, Chandigarh, India.

India has expressed interest in hosting the Olympics in 2036. To be taken seriously in the intervening 13 years, India must upgrade itself at every level and have a clear vision and purpose on why it wants to host the Olympics. The country must also increase its funding in sports. It is one of the greatest honours for a nation to become an Olympic host country. However, just dreaming of becoming an Olympic host nation cannot make it turn into a reality. It requires willingness and resources to become a host of Olympics. Thus in conclusion we can say that hosting Olympics has both pros and cons from economic point of view. But country like India should see its priorities first.

Keywords: Olympics, Economics, Host and India

Corresponding Author How to Cite this Article To Browse
Akwinder Kaur, SHOULD INDIA HOST OLYMPICS 2036 OR NOT: ECONOMICAL PERSPECTIVE. IJEMS. 2023;12(02):48-55.
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Manuscript Received Review Round 1 Review Round 2 Review Round 3 Accepted
2023-02-07 2023-02-28 2023-03-16 2023-03-31 2023-05-17
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© 2023by Akwinder Kaurand Published by The University Academics. This is an Open Access article licensed under a Creative Commons Attribution 4.0 International License https://creativecommons.org/licenses/by/4.0/ unported [CC BY 4.0].

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Introduction

India's plan to make a bid to host the Olympics in 2036 not only makes eminent sense but it should be pursued with Olympian enthusiasm and planning, the two not always coming in one automatic package. This is no fuzzy wish for an aspirational world power. India will be in contention as a host for the 2036 Olympics with the likes of Qatar South Korea and Indonesia. If India finally showed potential for its still-underperforming athletic prowess last year in Japan, hosting a world sporting event requires, as Qatar showed, a different set of skills, enterprise and dedication.
But apart from the prestige of hosting the Olympics 13 years from now, what makes such a bid worthwhile? Target-based infrastructural development - whether the 1982 Asian Games or the 2010 Commonwealth Games, both of which provided that developmental push for Delhi - can be a great catalyst, the effects of which become permanent, long after the actual event is over. And if Indian economic growth, despite the current globally induced unsteadiness, is anything to go by, Citius, Altius, Fortius - Faster, Higher, Stronger is not just a rallying cry confined to the Olympics but to the public life of a nation beyond.

India, according to the likes of the Centre for Economics and Business Research, is slated to become the world's third $10 trillion economy in 2035. To answer spoilsports decrying whether 'a country like India', with its legacy socioeconomic challenges yet to be resolved, should waste money on it, the very challenge of hosting an Olympics can also be a cause for - and not just an effect of - sustained wealth creation.

International Olympic Committee (IOC) President Thomas Bach has recently said that India is among the aspiring countries to host the Olympics in 2036, 2040, and beyond. Olympics in India? Sounds fascinating be it in Mumbai, Delhi, or Ahmedabad in 2048 as a part of the centenary celebration of the Independence, or even before.

Hosting the first Asian Games in New Delhi in 1951 was certainly a glorious statement for the newly independent nation. However, India’s experience of organising the 2010 Commonwealth Games is not quite inspiring, for sure. Quite often, hosting mega multi-discipline events like the Olympics is an exhibition of the capacity of the host nation.

Japan wanted to portray the 1964 Tokyo Games as a narrative of its miraculous recovery from the War. China treated the 2008 Beijing Olympics to showcase its stature as a big global power.

The primary argument behind hosting mega multi-discipline events, however, is that the host city becomes enriched with civic infrastructure at a rapid pace in addition to the state-of-art sports facilities. A boost in tourism is also desired, but historically the impact of the Olympics on tourism is mixed as the security, crowding, and higher prices that the Olympics bring dissuade many visitors.

Barcelona was a success story in terms of tourism, it rose from the eleventh to the sixth most popular destination in Europe after the 1992 Olympics. Sydney in 2000 and Vancouver in 2010 both experienced slight increases in tourism, while the impact of Olympics on tourism in London in 2012, Beijing in 2008, and Salt Lake City in 2002 were negative.

The Olympics bring a huge amount of recognition and stature to a hosting country. The country will become more well-known. This will increase tourism and travel to that country, and especially to that region. The Olympics themselves will bring a large boost to the economy. Fans from all over the world will come to the events. Hotels, restaurants, tourist shops and stores will all make lots of money during the games. There will also be media and important people at the events. This all makes hosting the games worthwhile.

Cities will get to become more popular all around the world, and also upgrade their buildings, roads and stuff. The cost may be too much, but it's worth it, as the city afterword’s will be better and known. Also, a part of the money will be replaced in the Olympics, as millions of people will visit the city for the Games, and the hotels will get to be full, winning lots of money. The Olympics are like a period of time when cities work so hard and they lose some money and also win some money. So money can be replaced, but the city's reputation will get even higher after this.

The Economy of India is the tenth-largest in the world by nominal GDP. According to Indian Finance Ministry the annual growth rate of the Indian economy is projected to have increased to 7.4% in 2014-15 as compared with 6.9% in the fiscal year 2013-14.


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As per the data available hosting the Olympic Games is, economically, not worthwhile in the slightest. The Games are ridiculously expensive. For instance, the 2008 Beijing Games cost over 42 billion dollars. All of the money spent on these games is much better put into worthwhile causes that will be beneficial in the future, such as facilities designed with the residents of the host city in mind. Also, it is not just the games that negatively impact the host city. The bidding process to host the Olympic Games takes a minimum of 2 years to complete and ties up land and government resources. Thus we can say that India being a developing country to bear this much of economic burden is not viable and suggestive.

After the financially profitable 1984 Los Angeles Olympic Games, some citiesbegan to compete for and host the Olympics in part to garner economic growthand development. The purpose of this paper is to study current economic cost andbenefit analysis, before quantifying if and when benefits exist for the 1992Barcelona, 1996 Atlanta and 2000 Sydney Games. To assess the economic impactof hosting the Olympics, the host state/region will be compared to a same-countrystate/region that did not host the Games through the examination of infrastructure,prestige and general financial growth models over a nine-year period. Apart fromone section construction from the 1992 Barcelona Games, all models appearto show that host states/regions do not have significantly different changes ingrowth compared to the control states/regions.

They show no growth in the environment due to pollution which gives them diseases dueto air and water pollution. Also, India won’t be able to bring many of their own people into theOlympics stadiums because 16.2 of the people of India are Dalits. Dalits are very poor homelesspeople in India. Lastly, India's government is so corrupt to the point where the government fundsterrorism!!!! So if the olympics were held in India, the Olympics would be a very likely target toterrorists due to India's current condition. Thus we can say that India being a developing country to bear this much of economic burden is not viable and suggestive.

India has shown absolutely no economic growth and development due to the castesystem. The caste system is a division of society in which Indians are ranked on theirwealthiness.The

Olympic Games is about sports, other than cricket. Indians are not that good in sports, other than cricket. So, it would seem ironical that a country which is not able to produce fine, medal-winning sports persons is bidding for the Olympics. If we host the Olympics, it would be a loss of face for all of us and we may become the object of ridicule. Unless, India is capable of producing athletes who can consistently perform well at the Olympics, it is futile to think about hosting it. At the same time there will be lack of public support for our participants, because there would be not many people whom we could support.

The Economic Factor

The cost of hosting the Olympic Games has snowballed. Even bidding and lobbying are quite expensive. In fact, in 1972, Denver became the first and only chosen host city to reject its Olympics after voters passed a referendum. The skyrocketing costs of staging the Olympics dissuaded many countries in recent times. Cities such as Oslo, Stockholm, Lviv, and Krakow had dropped out of the race for hosting the 2022 Winter Olympics, and Boston, Budapest, Hamburg, and Rome also withdrew their efforts for the 2024 Summer Games.

 Los Angeles in 1984 and Barcelona in 1992 are the two financially successful Olympics in recent history, as pointed by American economist Andrew Zimbalist in his 2015 book ‘Circus Maximus: The Economic Gamble behind Hosting the Olympics and the World Cup’.

In fact, the 1984 Games kick-started the era of corporate sponsorship in the Games, and the television rights were also sold for almost thrice the amount of 1980. Barcelona made a $10 million profit in 1992 to become the poster-child of success in Olympics hosting.

Subsequently, of course, Atlanta in 1996 and Beijing in 2008 registered healthy profits, and London in 2012 reported no-profit-no-loss, but Sydney in 2000, Athens in 2004, and Rio de Janeiro in 2016 all experienced huge losses. Critics such as Miles Wray pointed out that any attempt to host the biggest, grandest Games can be compared to “a family shoving themselves into bankruptcy by insisting their dinner party have silk napkins, a private chef, gold-speckled sundaes.”And Zimbalist writes: “Much of the alleged legacy comes in the form of qualitative gains, and the rest comes


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over very long periods of time.” It’s certainly quite easier to host Olympics with existing infrastructure. With LA scheduled to host the 2028 Olympics, it would be using infrastructure that is already in place.

In a 2018 working paper in Harvard Business School, Isao Okada and Stephen A Greyser discussed the so-called ‘white elephants’, or expensive facilities that, because of their size or specialised nature, have limited post-Olympics use. Sydney’s Olympic stadium now costs the city $30 million a year to maintain. Similarly, Beijing’s famous “Bird’s Nest” stadium costs $10 million a year to maintain, and sits unused.

Almost all the facilities built for the 2004 Athens Olympics, whose costs contributed to the Greek debt crisis, are now derelict. Okada and Greyser revealed key factors to prevent Olympic sites from becoming ‘white elephants’ from the viewpoints of venue sustainability and Olympic legacy — such as reducing capacity after the Olympic Games, continuous selective meaningful re-investment after the Olympic Games, etc.

Debt Hangover

The so-called “implicit costs” include the opportunity costs of public spending that could have been spent on other priorities. The 1976 Montreal Olympics became a symbol of the financial risks of hosting, saddling the city’s taxpayers with $1.5 billion in debt that took three decades to pay off. Greece’s billions in Olympic debt was the catalyst to bankrupt the country.

And the debt and maintenance costs in the Sochi 2014 Winter Games will cost Russian taxpayers nearly $1 billion per year for the foreseeable future. And we now learned about the impact of viruses on hosting the Olympics as well. The 2016 Rio Games had to contend with concerns about the Zika virus. More recently, the pandemic-hit one-year-delayed Tokyo 2020 became the most expensive Games in history. About 80 per cent of Japanese were in favour of either cancellation or further postponement of it.

However, the decision to cancel the games lies ultimately and unilaterally with the IOC as per the agreement of the IOC with the host. The agreements for future events should take care of such loopholes. Overall, personally, the prospect of holding the Olympics in India is quite exciting.

Could India emulate the models of LA and Barcelona Games eventually? Never easy though. However, the experience from the previous Games might help to make it more economically viable.

 Coming to India, it has not even tried to bid for the Olympics in some years. The question here is - why? Is it not in a position to host Olympics or doesn’t even want to try? Should India try to host mega Event?

Yes

  • Becoming a host city to Olympics will make other sports popular in India. The athletes will be keen to display their skills in own nation.
  • Many people argue that India doesn’t have the required infrastructure but India can always build it. We can take the example of Qatar which has started preparing for 2022 FIFA World Cup.
  • If India manages to become a host country for Olympics, the Asian countries will move one step ahead to eliminate the disparity existing between them & American and European countries.
  • India is successfully hosting Hockey World cups and even U-17 Football World Cup. We have hosted Asian and CWG. It is the time to take a big leap in right direction.
  • India can make its name on the world map and also the businesses can earn money during the season.
  • Hosting or winning a big game makes you well known on World map. The other nations start taking you more seriously and the overall business and International position improves.

 

No

  • Olympics are linked with a terrible history of causing losses to the host nations, even when everything was done in the most legitimate way.
  • Olympics incurred expenditure of over 10 billion USD even when London had most of the required infrastructure to host Olympic Games. Are we in a position to spend so much money on hosting these games?
  • Remember the cost of organizing the Commonwealth Games in India which was made as one of the costliest event by Indians.

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  • Security is of prime importance in Olympic Games and India cannot handle the crowd that will become a part of grand event.
  • Scams and corruption are a part of Indian economy, and they are the greatest obstacles in hosting Olympics in the nation.
  • India doesn’t have the athletes who can perform well at the Olympics. Also, it can witness lack of public support as there won’t be many people to participate in the grand event.

 The recent and successful FIFA Football World Cup in Qatar has created a desire within India for hosting mega-events like the Olympic Games. It would certainly be a big statement of India’s prowess if it can successfully host a sporting event of this magnitude. Prime Minister Narendra Modi acknowledged the popularity of the FIFA World Cup at a public rally he addressed in Meghalaya on December 18 2022, the day of the World Cup Final, that India too will host a World Cup in the near future.

 Despite the massive financial outlay of $220 billion, criticism ahead of the tournament on how it won the bid and the negative Western media coverage of its human rights record, Qatar successfully pulled off the World Cup and enhanced its global reputation. China too grew in stature when it hosted the Summer Olympics in 2008, sending a message to the world that a superpower was on its way. More recently China hosted the 2022 Winter Olympic Games while the coronavirus pandemic was ongoing. The event became a platform to demonstrate to the world, the country’s ability to pull off a mega event in challenging circumstances under the leadership of Xi Jingping.

Concluding Comments

India did host the Under-17 editions of the men’s and women’s FIFA World Cup in 2017 and 2022 respectively. The 2017 edition was seen as a pivotal step in the country’s journey towards hosting major sports events. Now some serious interest has been evinced in hosting the Summer Olympics in 2036 at the SardarVallabhai Patel Sports Enclave in Ahmedabad, Gujarat.

Hosting a mega sports event is expensive – and increasingly so. According to economist

Andrew Zimbalist writing in his book Circus Maximus: The Economic Gamble Behind Hosting the Olympics and the World Cup, only two Olympics, Los Angeles in 1984 and Barcelona in 1992, registered a profit. “Much of the alleged legacy,” he says, “comes in the form of qualitative gains and the rest comes from very long periods of time.” Sports events also leave behind white elephants built at huge expense but remain unused after the completion of the event. India has faced its fair share of problems with “white elephants” left over from the 2010 Commonwealth Games held in New Delhi, the principal example being the iconic Jawaharlal Nehru Stadium, the main venue of the 2010 Commonwealth Games which was renovated at a cost of ₹961 crores.It has not hosted an athletics event since 2018.

India also has limited experience in hosting mega sports events. The two Under-17 World Cups were not senior level competitions and the larger 1982 Asian Games and the 2010 Commonwealth Games barely made any impact at home or abroad.

Nonetheless India can certainly be ambitious and if it is to win the bid for the Olympics in 2036, these are the five things India needs to do:

  1. When China hosted the 2008 Olympics, it was about a striving superpower showcasing itself in all its glory to the world. For South Africa hosting the 2010 FIFAWorld Cup, one of the biggest objectives was projecting itself as a country that had overcome its apartheid past. For India which wants to showcase its superpower ambitions, hosting the Olympics will be a perfect global platform.
  2. The Olympics have more than 30 sports and there are a good number of them where India doesn’t have sufficient representation, if any at all. The country’s top-end expertise has won it medals in only seven sports in its Olympic history. i.e. shooting, badminton, wrestling, boxing, archery, hockey and weightlifting. To become a nation that finishes in the Top 10 of the medal tally, a win of more than 10 golds and 30-35 medals overall is necessary.  India must identify and focus on sports such as fencing, gymnastics and swimming which offer a large number of medals in the Olympics.
  3. India’s previous hosting of the Asian Games and the Commonwealth Games does stand it in good

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  1. stead, but those events are now decades ago – 1982 and 2010 respectively. Since then, sport has seen dramatic changes. Hosting big sports events in the interim – like the 2030 or 2034 Commonwealth Games – will help India familiarise itself with sport today, and help in assessing the country’s preparedness for the 2036 Olympics. Practice makes perfect.
  2. India’s sports allocation in the 2022-23 Union Budget was only ₹3062 crores ($377 million). The last three Summer Olympics in London, Rio De Janeiro and Tokyo cost $13-15 billion each (with Tokyo’s final costs due to the Covid delay estimated at $28 billion). If India is serious about hosting the Olympics, it must expand the sports budget to at least ₹10,000 crores in the next two to three years, to be part of the league of sporting nations.
  3. All host countries are faced with excessive infrastructure and training facilities after a mega event and a plan is needed to use it to best long-term advantage. An example of this is, London, which built its main venue, the London Stadium for £486 million. The stadium now serves as the home ground of the English Premier League club, West Ham United.
    Conclusion: There are many factors including economic status, infrastructure, scams, corruption etc that hinders the dream of India becoming a host to Olympic Games. However, just because problems are there, India should not give up on its dream of hosting Olympic Games. Problems will always be there but where there is a will there is a way. India should try to improve its infrastructure and solve the basic problems in the systems so that it can also someday become capable of hosting Olympic Games.

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