First, from an economic point of view, the cost of preparing for the Olympics is very high, for example, the 2016, 2020 and 2024 Olympics are all cost more than $10 billion. This is a huge expense for the state. Although data released on the official website of the Olympic Committee shows that the income of the Olympic Games is rising, the Olympic Games every four years have brought considerable benefits to the International Olympic Committee (IOC), and the IOC received a contribution of US$1.892 billion for the 2021 Summer Olympics in Tokyo, Japan. However, it is uncertain whether the Olympics will bring about the development of the surrounding economy, such as tourism, and the related benefits in the future. At the same time, the benefits of the Olympic Games are not only uncertain, but also have the characteristics of not being able to be obtained in time, and the income cycle may be long. In the context of economic turmoil and political instability, this undoubtedly increases economic risks.

Secondly, according to historical data, in previous years’ Summer Olympics, most countries ended up in a state of loss, and some even lost a lot. Although the 2000 Sydney Olympics and the 2008 Beijing Olympics were profitable, this was an individual case. Therefore, it is obviously a high risk to make a profit from the Olympics. The economic challenges are not only reflected in the hosting of the event, but also in the early bidding process, which can also incur an application fee of up to US$600,000, which undoubtedly raises the threshold for countries to bid and considers the overall cost of bidding. However, even so, the host country will expand its influence by hosting the Olympics and open up more possibilities for the future.

In addition, more and more countries have hosted the Olympics over time. As a result, the benefits of the Olympics other than the economy, such as social impact, are likely to show a decreasing trend. This is also an important reason for the decrease in the number of bidding countries. However, if this phenomenon becomes a trend and the number of member countries bidding to host the Games decreases to such an extent that it will affect the normal holding of the Games, or even when it is necessary to consider whether the Games need to be held again, the meaning and value of the Games may change. The most immediate economic impact is that the disappearance of the Olympic Games will lead to a stagnation in the development of the related Olympic industry, and at the same time, a large number of workers will lose their jobs, such losses cannot be accurately estimated. The loss is not only economic, the significance of the Olympic Games to mankind is not only a commercial value, but also a cultural spirit. The Olympic Games uphold the concept of building a stage for world unity, competition, and inspiration, and its positive impact on the development of human culture is also incalculable with money.

After clarifying the important value of the Olympic Games, it is necessary to avoid the lack of hosting of the Olympic Games by the host country due to various factors, so as to prevent the termination of the Olympic Games. It is important to focus on the economy to inspire more National Olympic Committees (NOCs) to host the Games and reduce their economic pressure. Therefore, reducing costs and increasing revenue may be an effective way. In the upcoming Paris Olympic Games, by adding sustainable and green development concepts, using existing venues and temporary facilities, to reduce resource consumption and environmental impact, and using green building materials to achieve energy conservation and environmental protection while meeting low-cost needs. It is reported that the cost of the Paris Olympics has been reduced to a certain extent compared with before.

Not only that, but countries also need to be aware that past data is highly subjective and volatile. Because different countries have different plans for the construction of the Olympic Games, for example, the Sochi Winter Olympics hosted by Russia cost as much as 51 billion US dollars, far exceeding other countries. But behind the high cost is Russia’s new $8.7 billion railway in the region. While preparing for the Olympic Games, many countries have also carried out some urban upgrades and transformations, which has increased the cost of the Olympic Games. But the long-term development gains and impacts are significant. Therefore, it is perhaps more important to be clear about the country’s development strategy, rather than focusing solely on current costs. Second, for the issue of revenue, revenue channels should be increased. Currently, the IOC’s revenues include the sale of broadcast rights, the global TOP sponsorship program, and the IOC’s official supplier and licensing program. At the same time, the country’s consumer industry should be strengthened during the Olympic Games.

Eleven regions have reportedly bid to host the 2032 Games, a clear demonstration of the enduring appeal and influence of the Olympic spirit. However, behind the enthusiasm for the Olympic Games, there is a core issue for achieving sustainable development. While the Olympic economy is developing steadily, it is necessary to ensure that the Olympic spirit is effectively inherited. To this end, it is necessary to deeply analyze the nature of the bidding phenomenon in order to identify the key factors that will drive the long-term prosperity of the Olympic Games. Through scientific planning and precise policy, the Olympic Games will achieve a double harvest in terms of economic and cultural inheritance.

By Han Gao