are there unlimited business opportunities for the Olympics?
Hosting the Olympic Games has been sought after by many cities and even countries in recent years. In recent years, the host cities of the Olympic Games and their countries have not only won a "good reputation" through the Olympic Games, but also often have a large economic surplus. The huge business opportunities of the Olympic Games have made many countries, cities and enterprises "drool".
The p>1984 Los Angeles Olympic Games was the first privately sponsored Olympic Games, and it changed the long-term loss history of the Olympic Games. The Olympic Games was originally planned to cost 5 million US dollars, and only 36 million US dollars was obtained by selling TV broadcasting rights. Since then, the practice of broadcasting sports games for free by radio and television stations has been broken. The organizer Ueberroth raised nearly $1 million by issuing 25 commemorative coins and 2, sponsorship vouchers. According to the announcement of the Organizing Committee of the Los Angeles Olympic Games on December 19th, 1984, the profit of that Olympic Games was 25 million dollars.
The cost of the Seoul Olympic Games in p>1988 was US$ 4 billion, but the organizing committee made a profit of US$ 3 million through corporate sponsorship and selling TV rights (about US$ 4 million), which set a profit record for the government-run Olympic Games.
The total investment in the p>1992 Barcelona Olympic Games was 9.6 billion US dollars, which far exceeded the Seoul Olympic Games, and even the Moscow Olympic Games, which was the most expensive in Olympic history, was not as good as it was. However, most of these funds are used for municipal construction. The Olympic Games won $625 million by selling TV broadcasting rights, $516 million sponsored by entrepreneurs, tickets, commemorative coins, stocks and other income, and finally earned $5 million.
The profit of Atlanta Olympic Games in p>1996 was 1 million dollars. The commercial Olympic Games cost more than $1.7 billion, which mainly came from the sale of TV broadcasting rights, sponsorship from sponsors and the sale of souvenirs. As a result, large-scale advertisements and merchandise propaganda were spread all over the venue, and every inch of land in downtown Atlanta was clearly priced, and trademarks such as Coca-Cola, IBM and Nike were everywhere.
The revenue of the organizing committee of the Sydney Olympic Games in p>2 reached US$ 1.756 billion, which was 8% higher than that predicted when Sydney won the right to host the Olympic Games seven years ago. The Sydney Olympic Organizing Committee initially estimated that it would get 488 million dollars from the sale of broadcasting rights, but the actual income actually reached 798 million dollars, which exceeded the 568 million dollars of the Atlanta Olympic Games in 1996. In addition, the income of international sponsored projects has also increased from 9 million US dollars to 221 million US dollars. At the same time, Australian sponsors have also provided 315 million US dollars in sponsorship, which is 18 million US dollars more than expected.
In addition to direct income, hosting the Olympic Games can promote the development of related industries, such as communication, transportation, tourism, catering and so on, thus generating huge indirect economic benefits.
In September p>1984, the American Economic Research Association investigated the impact of the Los Angeles Olympic Games on the economy of southern California and found that the economic promotion of the Olympic Games was as high as $3.29 billion, far exceeding the 1962 Seattle World Expo and 1992 Seattle World Expo. The two expositions each lasted for six months, and the total economic benefits were 1 billion and 1.5 billion US dollars respectively.
when Barcelona prepared for the 1992 Olympic games, it was in the period when Spain began to recover from the nationwide economic crisis in the 198s. Organizing for the Olympic Games has obviously accelerated the economic recovery;
The economic benefits brought by the Atlanta Olympic Games in p>1996 to the United States in six years (1991-1997) were about $5.1 billion.
According to the Australian Tourism Department, the number of tourists in Australia increased by 11% in 2, and in September of the same year, the number of tourists in Sydney increased by 15%. Of the 11, international tourists who came specially for the Olympic Games, 88% will become repeat visitors, and in the four years after the Olympic Games, Australia will add 1.1 million tourists. As a result of hosting the Olympic Games, Australia's export income increased by 56 million dollars in 21.
It can be said that the business opportunities of hosting the Olympic Games have penetrated into all aspects of the economic and social life of the host country, and the income of hundreds of millions of dollars at a time has made the government and enterprises flock to it. When Beijing won the right to host the 28 Olympic Games, it really excited many enterprises in China, intending to take a slice of the Olympic Games.
On August 4th, BOCOG and China International Airlines signed a cooperation agreement. Air China became the fifth official partner of BOCOG after China Mobile, Bank of China, China Netcom and Volkswagen.
However, people in the industry also have their own views on the initiative of enterprises to sponsor the Olympic Games. Jian Chen, secretary-general of Beijing Olympic Economic Research Association, said in an interview with China Economic Times that sponsoring the Olympic Games is still risky for enterprises.
Jian Chen believes that both the TOP sponsorship plan of the International Olympic Committee and the sponsorship plan of BOCOG are relatively high. For enterprises, they should consider their own affordability and make reasonable sponsorship or investment related to the Olympic Games.
Beware of the economic trap
Today, when it comes to bidding for the Olympic Games, all cities will feel excited. But before the 198s, few cities hosting the Olympic Games could get out of the cycle of losing money. One of the most striking is the 1976 Montreal Olympic Games, in which there was a huge deficit of more than 1 billion dollars. The 15-day Olympic Games made Montreal in debt for 2 years, which was called the "Montreal trap".
Montreal has applied for the Olympic Games for many times since 194, and finally won the right to host the 21st Olympic Games in 197. In order to run this Olympic Games well, the Organizing Committee opened the Olympic Center, built large stadiums, swimming pools, cycling fields, Olympic Village and other facilities, and adopted many high-tech achievements. However, due to the economic depression in Canada and poor management, the cost of these projects has been increased again and again. The original planned $2.8 billion main stadium cost a huge $5.8 billion, and the organization cost has also increased from the original planned $6 million to the actual $73 million. This caused the Montreal Olympic Games to be heavily in debt, which not only affected Canada's economic development, but also dealt a heavy blow to the Olympic movement, which seriously affected the bid for the 1984 Olympic Games in that year, and made countries that had originally planned to bid withdraw.
Jian Chen told reporters that the difference between the initial budget and the actual investment of the Montreal Games was too great-almost 1 times, which caused the host city of the Olympic Games to fall into an economic trap. This has also sounded the alarm for the host city of the Olympic Games in the future. The host city must consider clearly in advance to make rational use of Olympic resources and avoid blind investment.
Jian Chen believes that the investment in this Athens Olympic Games is relatively too high, and it will definitely lose money in the short term. However, with the success of the Olympic Games and its economic growth, it is still difficult to say whether it will be a loss or a gain in the long run.
The "Montreal Trap" really makes people turn pale, but the success or failure of the Olympic Games often does not depend on its profit or loss. For the purpose of profit, excessive commercialization has also added a disgraceful stroke to the Olympic Games. The painful lesson of the 1996 Atlanta Olympic Games brought us another extreme example.
Excessive commercialization has seriously interfered with the normal running of this Olympic Games, which has distorted and alienated the Olympic purpose.