2012 London Olympics will exceed 1850 b in Sri Lankan currency

London Olympics will cost a staggering amount of money .The estimate is £9.2 Billion. In Sri Lankan Currency it would be around Rs. 1850 Billion. It is more than our nation’s total budget expenditure for the year of 2012, projected at Rs. 1640 Billion. It is spent on developing sports pavilions, stadiums, developing an Olympic Park well over 2.5 sqr. Km, conducting the game, catering to vast number of participants, security and numerous other expenses related with the games.

The British expect to make a surplus of at least £ 2 Billion in the year 2012 itself and further earn from the facilities in the future events. In addition all other countries will spend enormous amounts of money in training, preparation and travelling to London. This article will attempt to make an observation of the different opinions made by critiques as to hosting mega events of this nature at a time the whole world, especially the Western World having severe financial crisis.

London to focus on gaining lost glory

The camp who supports hosting Olympics in London advocates that staging the Olympic Games and Paralympics Games in 2012 for the UK is an opportunity to bring about positive change on a massive scale. The Games would not only add to British nation’s sporting heritage but also enrich communities, boost its economy and celebrate the diversity of its capital. It is a unique chance to showcase the best of London to the world and would generate huge benefits for all those who live or work in the city. In other words, it is a fine opportunity to bringing back the lost glory the UK.

Major contracts are awarded to UK companies

Thousands of UK companies, small and large will be needed to deliver the Games i.e., construction, manufacturing, catering, merchandise, services etc, creating valuable procurement opportunities. The UK companies have been able to get majority of the contracts and it amounts to well over £6 Billion and would create about 50000 additional jobs.

Boost for Tourism in London

In addition the supporters of the event says that London’s tourism industry will receive a significant boost, not just for the duration of the Games but in the run up to and long after the Games. A London Games would also provide many new learning opportunities for Londoners to train and develop their skills.

British will do well in Olympics

Above all they say that hosting the world’s greatest sporting event – given the passion, excitement and interest likely to be generated – would boost Government initiatives to promote participation in sport and physical activity at all levels.

In support of that they show statistics of medal won by the hosting nations. For example, Korea won 12 gold’s in Seoul 1988; compared with 6 in LA 1984, Spain won 13 gold’s in Barcelona 1992; compared to just 1 in Seoul 1988, Australia won 16 gold’s in Sydney 2000; compared with 9 in Atlanta 1996.

Olympics gone beyond sustainability

On the other hand, critics of such mega events states that the staggering amount of money and huge amount of resources of the world have been wasted for such events mainly when every hosting nation tries to do better than the previously hosted nation to showcase their country and its glory. The wisdom of such spending at a time where the world is having enormous problems to grapple with will pose an important question of sustainability of such events at the levels they are held.

Massive amounts are spent on stadiums, opening and closing ceremonies and most of the money spent will go only to big time construction companies and event management companies.

They do not get distributed to the nation as a whole or at least for all the tax payers who bear the ultimate cost. Further they question about the overall economic benefits that would be gained from such an event although the supporters claim that a surplus would be created from the income. They point out specifically to the experience of other host nations like Canada ( Montreal have suffered financially) and even they say that huge expenditure done on Barcelona Olympics was one of the reasons that has contributed to the collapse of economy of Greece.

Big companies to gain

The major income is expected from sponsors. They in turn will have their products advertised to the whole world and also will have exclusive rights to sell their products in the Olympic venues. For example, it is said that in London Olympics, only certain food and drinks will be allowed. An article in Prospect Magazine in London indicates that “The only water you are allowed to buy is Coca-Cola.

The only food you can buy is McDonalds. These companies will have massive outlets and an extensive distribution system in the Olympic venues. The critics say that it is an irony that a nation fighting obesity and related illnesses will have such products that are proven to be creating obesity.

White Elephants

Many host nations of Olympics have to saddle with huge amphitheatres of sports which cease to have a purpose once the games are over. Except for an Olympian event, such facilities are not required and maintaining them in future would be a real problem unless they are used for commercially viable projects.

Traffic

During the Olympic period, London will definitely have a traffic chaos. There would be major delays on narrow roads in London, in addition the expected 30 miles of game lanes for use by the “Olympic family” will also have big burden on traffic.

The exclusive lanes are supposed to be for Olympics only and it is to be used by 4000 BMw's and 1500 coaches ferrying around Olympic VIPs, athletes, sponsors and the media. It has already created anger among Londoners as it has given preferential treatment for Olympians than the ordinary Londoners.

On top of that any other person using the lane without authorization will be fined heavily as per the media. That would further aggravate the impending problem.

Security

The security issue is unfathomable. From the entry points to London and in and around the city would be a major concern for security in face of world terrorism and other political groups who would attempt to make this event a stage for their terror or political propaganda and activities.

In addition, certain non sponsors also will try to do guerrilla marketing activities to make their products and brands known to the world over the publicity they get by doing some activity within the Olympic venues. So you will expect a heavy handed security in Olympic venues that are not in line with the spirit of sports.

IOC has a responsibility

It is true that Olympics is an event that has to be organized in mega scale as it is a world event where all the nations participate. However, the way that the events are held and the amount of resources such events consume have to be analysed wisely and appropriate action should be taken by the International Olympic Committee as to sustainability of future Olympic events.

They will have to device innovative event holding methodologies to bring down the total cost and pressure on one nation in holding a mega event of Olympian magnitude.

One simple way that IOC can do is holding events in different countries who have had hosted Olympics already.

This would make use of the already created facilities and experience of such host countries and reduce the cost and burden on one country. The world is changing and why not Olympics?