Do host cities ever gain from the Olympics?

Do host cities gain from the Olympics? The evidence is mixed. Some economists are sceptical about the economic benefits of hosting, emphasising that such "mega-events" often have large costs while yielding relatively few tangible benefits in the long run.

Start with costs. The Oxford Olympics Study found that since 1960 the sports-related costs of a Summer Games averaged US$5.2 billion and of a Winter Games US$3.1 billion. The most expensive Summer Games was Beijing 2008, at US$40-44 billion, and the most expensive Winter Games was Sochi 2014 at US$51 billion. Budgets are also routinely missed: the average overrun since 1960 is 156 percent in real terms, so costs turned out to be on average 2.56 times the budget estimated when the bid was won. The record belongs to Montreal 1976, with an overrun of 720 percent.

Are there gains? Hosting, or even bidding, appears to increase a country's exports, because a bid sends a signal about openness to trade, and research has shown trade is around 30 percent higher for countries that have hosted. Research also suggests that hosting a Summer Games raises philanthropic giving by corporations headquartered in the host city, an effect that begins before the Games and might persist for several years but is not permanent.

And there are costs borne by people. The Centre on Housing Rights and Evictions reports that the Olympics displaced more than two million people over two decades, often disproportionately affecting disadvantaged groups. Some cities have begun to say no: at least four withdrew their bids for the 2022 Winter Olympics, citing the high costs or lack of local support.