Newswise — The Vancouver 2010 Winter Olympics last just 16 days this February, but the potential negative economic impact on the host Canadian city likely could last much longer.
Emily Sparvero, a sport management professor with the Sport Industry Research Center at Temple University’s School of Tourism and Hospitality Management, focuses her research on how communities can create value from the sports events or teams they host.
Sparvero says the potential benefits for host cities fall into three major categories – economic development, place marketing and social welfare. Unfortunately for Vancouver, problems with all three mean that it will be challenging for the city to recoup its investment.
“In the case of Vancouver, the struggling economy, decreased interest in the Olympics and disputes between social welfare groups and the [International Olympic Committee] and [Vancouver Organizing Committee of the Olympic Games] will make it difficult,” Sparvero said.
The initial benefits of hosting an event like the Olympics are economic, Sparvero said, as visitors spend money in the host community, support local businesses and contribute to the tax base.
The host community can then establish or improve its brand, especially by addressing social issues and contributing the celebrity cache of the Games to specific causes. Vancouver has already done this by reaching out to the aboriginal community for the planning and hosting of this year’s Olympics.
But while this year’s Olympics may benefit social welfare in Vancouver, the economy is unlikely to see a long-term boost.
“When the Games are over, many residents will awake to an uncertain economic climate and the realization that a more than $1 billion investment in the Olympic circus was not justified by the Games’ legacy,” Sparvero said.
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