The 2024 Paris Olympics kicked off with a spectacular opening ceremony despite the city being lashed by heavy rains. Just before the event, France faced a transportation hurdle due to a coordinated arson attack that disrupted services along high-speed train lines, affecting 800,000 passengers. But as they say, the show must go on.
Nothing could dampen the spirit
The ceremony saw performances by Lady Gaga, Celine Dion and French-Malian pop star Aya Nakamura.
But the star of the show was the River Seine. Athletes arrived via boat and cruised down the river for the Parade of Nations. The ceremony highlighted historic Paris landmarks, including the Notre Dame de Paris Cathedral and the Louvre.
The Opening Ceremony occurred outside a stadium for the first time in history.
Over the next few weeks, the Paris Olympics will be in the spotlight, showcasing incredible human achievements and the friendly competition among countries to win the most gold medals.
But the event comes at a cost
A country hosting the Olympics usually encounters budget overruns, long-term debts, wasteful infrastructure, displacement, gentrification, political issues, and environmental harm.
A 2024 Oxford University study found that five of the past six Olympics had cost overruns exceeding 100%.
Beijing spent over $40 billion on the 2008 Summer Games, Sochi over $50 billion on the 2014 Winter Games, and Rio nearly $20 billion on the 2016 Summer Olympics.
However, sports economists say revenue from the Games typically averages between $6 billion and $8 billion, making it less favorable for host cities. The cost overruns and debts associated with the event forced the International Olympic Committee (IOC) to be cautious.
The IOC, which was also running out of cities willing to host the Games, wants them to use existing facilities or propose what the new facilities will be used for after the Olympics.
The new approach has allowed the Paris Olympics to be the first since the 2000 Sydney Olympics with total costs under $10 billion. Initiatives include using low-impact materials, repurposing temporary structures, and converting the Olympic Village into housing and offices after the Games.
Notably, the private sector is handling more than 90% of the operation cost of the Paris Olympics.
The 2028 Los Angeles Olympics is planning a “No Build” Olympics, using existing facilities, with some events held as far as 1,300 miles away in Oklahoma.
Economists suggest rotating the Olympics between a few permanent host cities in the future to ensure long-term sustainability.