Annex 4
REGENERATION AND ECONOMIC IMPACT OF THE OLYMPIC
GAMES
A summary of the economic and regeneration effects
of the Olympic Games is listed below. There are limited independent
assessments on the economic effects of the Games and many of the
figures quoted below are either from government sources or from
consultants hired by governments to review the Games.
MUNICH
1972
Costs
Publicly funded.
Regeneration
The Olympic Park with all the sports facilities,
the Olympic Village and the media centre was built on a desolate
3km tract of land four kilometres from the city centre. Munich
previously had no large sports arenas. The buildings were surrounded
by extensive parklands and a man made lake. The Park is used extensively
by the local community and has regenerated what used to be the
neglected part of the City.
The funding was also used for major developments
in roads and the building of a brand new subway system.
The Olympic Village was converted into private housing
and other parts were handed over to the University whose campus
is now on the site further regenerating this desolate brownfield
site.
Munich is one of the few Olympic sites that has made
further constructive use of its facilities. Since 1972 over 7500
cultural and commercial events have taken place in this area.
These include world championships, European championships, German
championships and a variety of cultural events attracting over
130 million visitors.
Economic Impact
There has been a significant economic impact after
the Games. Munich is one of the most affluent cities in Germany
with a significant tourist industry. The Games accelerated the
rebuilding process in West Germany and led to many changes including
the pedestrianisation of the City Centre which has increased consumer
spending.
MONTREAL
1976
Costs
Publicly funded.
Regeneration Impact
A new stadium, a new velodrome and an Olympic Village
used for housing after the Games. New roads and a new airport
Economic Impact
Montreal seems to have received little long term
benefit. The financial deficit from the Games was approximately
$1billion dollars, which its citizens are still paying for. The
final payment for this debt will be in 2005-06.
MOSCOW
1980
Costs
Publicly funded.
Regeneration
The development of the four main areas were located
in poor run down areas. The Olympic village was used for social
housing and the metro was extended.
Economic Impact
No information available but of the 300,000 anticipated
visitors only a quarter attended these Games. It does not seem
that there was any significant impact on the Russian economy.
LOS
ANGELES
1984
Costs
Privately funded.
Regeneration
Renovation of the airport and installation of telecommunications
infrastructure were the main elements of the regeneration impact.
There were only four new athletics facilities built as the Games
relied on existing facilities.
Economic Impact
The Games made a $225 million surplus of which 40
per cent went to the Amateur Athletic Foundation of Los Angeles.
Estimates on tourism increases in Southern California were approximately
$9 billon with $145 million tax revenues going to the local and
state government . There was a counter effect with lower visitors
than normal at Disneyland, Universal Studios and Six Flags Magic
Mountain.
SEOUL
1988
Costs
Forty six per cent publicly funded
Regeneration
The development of the Olympic village was a key
part of the urban regeneration objectives of the Games. A fullscale
urban centre was constructed including housing, retail and other
community facilities. Apartments to house athletes, journalists
and other personnel during the Olympics were constructed for use
as residential units after the Games. These housing projects have
helped to ease the housing shortage in Seoul and the village is
now fully integrated within the city.
The Korean Government used the Seoul Games as the
catalyst to undertake a number of longterm infrastructure
improvements including the expansion of Kimpo International Airport,
construction of new roads and underground stations and telecommunication
improvements.
Economic Impact
The Koreans state that between 1982 and 1988 the
production resulting from Olympic Projects amounted to 0.4 per
cent of GNP and that 336,000 new jobs were created during this
period. In 1988 the Korean economy achieved growth of 12 per cent.
Care needs to be taken with some of these figures,
as they have been not been independently assessed.
The Seoul Olympics, however, did promote the Korean
tourist, sports, leisure, electronics and telecommunications industries.
BARCELONA
1992
Costs
Thirty eight per cent publicly funded
Regeneration
These have been the most expensive Games so far mainly
due to the total transformation of Barcelona. From 1989 to 1992
Barcelona increased its roads by 15 per cent, sewerage system
by 17 per cent, green zones and beaches by 78 per cent, and ponds
and fountains by 268 per cent . Redevelopment of the airport,
new housing, new ring roads, a new Olympic Village and Stadium
and transportation infrastructures for towns that were Olympic
sub sites were other regeneration costs that made these Games
so expensive.
Economic Impact
From October 1986 to July 1992 the general rate of
unemployment in Barcelona fell from 18.4 per cent to 9.6 per cent,
whereas in the rest of Spain in 1992 the rate was 15.5 per cent.
In 1993 there were still 50,000 fewer people unemployed than in
1986. The longer term impact has not been estimated. It is calculated
that the total impact of the 1992 Barcelona Games could be around
$26 billion (1992 prices) over the period 198792.
Barcelona is now regarded as one of the most beautiful
cities in Europe and is also one of the most visited by tourists.
ATLANTA
1996
Costs
Fifteen per cent publicly funded
Regeneration
There was limited urban redevelopment with a new
Olympic Stadium and the regeneration of Centennial Olympic Park.
Most sporting facilities were upgrades rather than new builds.
Over $600m was spent on infrastructure projects. Hosting the Games
helped land one of six federal empowerment zones designations.
Overall the city's efforts to use the Olympics to revitalize urban
neighbourhoods fell short
Economic Impact
The Games brought in two million tourists and a £5
billion tourism boost. However the Games left a legacy of ill
will in the neighbourhoods that bore the brunt of lost housing
and dislocation. The negative media on accommodation, transportation
and the bomb blast in Centennial Olympic Park did not help Atlanta's
image. Overall the games probably raised Atlanta's profile as
a tourism destination in the longer term.
SYDNEY
2000
Costs
Approx 30 per cent publicly funded
Regeneration
The brand new Olympic Stadium was located in the
run down area in the heart of Sydney. The 770 hectare site was
previously an abattoir and light industrial area.
The Athletes village housed 11,000 competitors and
a further 4000 team officials. The village is now a new suburb
of Newington with 6000 residents. This part of Sydney was wasteland
before the Games and the Olympics has clearly been very effective
in the regeneration of the area, with the rail line giving easy
access to the city.
There was clearly a need for the city to improve
its central road and rail links and the Games gave the impetus
for this to happen. The Games were seen as a vehicle for change
in this respect and some of the changes brought in for the games
have remained in place afterwards (eg limiting deliveries in the
city centre at certain times).
Economic Impact
The following has been stated as being the economic
impact of the 2000 Games:
- $3 billion in business outcomes
- over $6 billion invested in the NSW infrastructure
- $1.2 billion on convention business for NSW between
1993 and 2007
- over $6 billion in inbound tourism during 2001
- enhanced business profile for Sydney, NSW and
Australia.
ATHENS
2004
Costs
Approx 73 per cent publicly funded
Regeneration
This is an important reason for staging the Games
in Athens. The Department of Labour is using a public housing
organisation to build the Olympic Village. After the Games these
apartments/housing will be used for social housing and be sold
off with low interest rate mortgages by the public housing organisation.
The same will apply to some of the media sites currently
under construction. The main media village will be in the refurbished
Ministry of Education building. After the Games it will be sold
off as an office block.
Many of these Olympic sites, including sporting sites,
are being located in poor areas and their redevelopment is intended
to bring about their regeneration.
The Faliron Olympic Site is located on the coast
in an area which was first reclaimed from the sea in 1972. It
is a rundown area with a main road running separating the poor
housing stock from the reclaimed land. The current programme is
the largest regeneration programme in Europe and is aiming to
leave a legacy of reduced flooding risk, new housing stock, environmental
improvements, a water park and excellent sports facilities.
Economic Impact
Athens's view is that the Games will once again put
them on the world map and as a result lead to increased tourism
and increased investment.
BEIJING
2008
Costs
Approximately 90 per cent publicly funded at this
moment in time.
Regeneration
This is one of the main aims of Beijing. £20
billion is available to make Beijing a worldclass city to
upgrade medical facilities, relocate people from central Beijing
to the suburbs, build a new airport terminal and a high tech underground
system.
Beijing has promised to reduce the severe pollution
levels currently affecting the city and has set aside £5.7
billion for environment protection as part of its capital investment
for the Olympics.
Economic Impact
Beijing's economy has been growing at over 17 per
cent per year over the last decade and likely to increase once
it joins the World Trade Organisation. With the added investment
in the Olympics interest from outside is likely to increase and
thereby increase the growth rate.
Other key aims beside increased business investment
is to put China as a whole on the tourist map. Hotels rooms are
being increased to deal with the Olympics with the aim that after
the Games tourism will increase and use this excess hotel capacity.
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