The cost of hosting the 33rd Olympic Games in Paris in 2024 is estimated at over 14 billion Australian dollars.
So what do the French get out of it?
Will this oldest of all sporting events be a highlight for them or will it, like some previous Olympic Games, prove to be a useless endeavour?
The power of the five rings
The Olympic brand has enormous impact and provides the host country with a global platform to strengthen its international reputation and prestige.
The Olympic brand’s tradition goes back 2,800 years to southern Greece, where games were held in Olympia in honor of the Greek god Zeus. Starting in 776 BC, these ancient games took place every four years and lasted for over 1,000 years.
The modern Olympic Games began in Athens in 1896. Since then, the games have been held in 23 cities and 20 countries.
Paris 2024 will welcome around 10,500 athletes from more than 200 countries competing in 32 different sports, with around 4 billion people around the world watching.
The five rings of the Olympic Games (designed 110 years ago by Frenchman Pierre de Coubertin) are one of the most famous logos in the world.
It represents the unity of all five continents (Africa, America, Asia, Europe and Oceania).
Some argue that this familiarity and the positive associations with the Olympic brand – which include excitement, fairness and eliteness – justify the billions spent.
The host countries hope that the Olympic glamour will rub off on their country’s reputation – but that is not always the case.
Benefits of hosting the Olympic Games
Broadcasting rights, sponsorship and advertising from organizations that want to be associated with the Olympic brand can generate enormous revenue streams.
The Olympic brand offers significant added value to sponsors and advertisers, and France (and the world) will benefit from it long after the events have taken place.
Responsible marketing and attracting sponsors that complement Olympic brand values can encourage positive, sustainable attitudes and behaviors. Examples include promoting unity, national pride, and the social and health benefits of increased sport participation.
The event also generates huge revenue from domestic and foreign tourism – 15 million spectators are expected for Paris 2024. Most of these are locals and domestic day-trippers, but around 3 million additional visitors are expected in Paris during the Games.
Improved infrastructure and modern construction as a city prepares for the Olympic Games will bring many lifestyle benefits: a revitalized host city can benefit from improved transportation, accommodation and hospitality, improved sports facilities and a better streetscape.
Other important benefits come from strengthening the host country’s geographical and cultural brand. For France, this means strengthening and promoting many of its registered geographical indicator products, mainly related to wine, agricultural products and food, as well as spirits and beer.
Champagne is perhaps the best-known geographical indication product, illustrating how the connection to its place of origin conveys to consumers regional and French cultural values as well as the characteristics and quality of the products.
And what are the pitfalls?
Many Olympic Games have not been profitable, leaving countries and citizens with debt repayments decades after the event (examples: Rio, Montreal, Beijing and Athens).
In addition, many cities have infrastructure that was built specifically for the Games but remains unused afterwards, including accommodation for the athletes, swimming centers and large stadiums.
What will determine the success of Paris 2024 and justify the huge investments in hosting the event?
The success of the Olympic Games for the host is often determined by the financial revenue they can generate. The Olympic brand plays a significant role in generating this financial support.
However, problems before and during the Games can damage the brand’s reputation and reduce its positive impact.
The reputation of the Olympia brand can be affected by the following factors:
-
Cheating or doping among top-class athletes and national teams
-
Global sports federations impose restrictions on participants based on gender and status
-
incompatible sponsors jumping on the Olympic bandwagon. For example, manufacturers of harmful products whose negative brand associations could damage the Olympic brand, such as sponsors of soft drinks and alcohol
-
negative publicity related to unethical practices of host and participating countries with human rights problems. This includes others who use the event to publicize these
-
Politicization of the event – including sportswashing, protests, boycotts and image protection, as seen in China, the United States and Russia
-
Unforeseeable events – the COVID pandemic delayed the Tokyo Games and increased costs to A$18 billion.
-
other related negative risks to the host city such as terrorism, heat waves and social unrest.
We keep our fingers crossed for France
With almost half the world watching the Paris 2024 Games, the French National Olympic Committee is eagerly hoping for positive results to ensure a good return on the 14 billion Australian dollars invested. But since Sydney 2000, virtually every Games host has suffered significant financial losses.
For the sake of the Olympic Games and their reputation, let us hope that the Paris Games are a complete success. Otherwise, we may be left with only a very limited number of potential future hosts with very deep pockets.
