Paris Olympics Are Reigniting Debate on Whether Hosting the Games Is Worthwhile for Cities
Since the pandemic, Europeans have been inundated — and agitated — by hordes of tourists. But this year, the residents of Paris, France, might get a break from the influx of visitors, thanks to the Olympics, kicking off later today. The 2024 Games have set plenty of records with over 10.7K athletes across 329 events and 32 sports and more than 9.7M tickets sold between the Olympics and Paralympics. Yet, the Olympics have been suffering both inside and outside the arenas — with some records proving less impressive.
Wrong place, wrong time: This year’s Summer Olympics are the first since the pandemic’s end — but a bumper few years for overseas travel, sporting events, and the experience economy are not translating in the City of Love. Although ticket sales are record-breaking, the Games also have a record number of resale tickets — over 270K. Gallup predicts that the Olympics will have record-low viewership, leading some to worry whether the Games have lost their appeal.
- Delta’s CEO notes that the Olympics have deterred some travelers from visiting Paris this summer — prompting hotels and airlines to lower prices to meet reduced demand.
- The local economy has also seen a “sharp drop in sales,” indicating that foot traffic has actually declined heading into the 2024 Games.
Ready for the Close-Up
Paris 2024 might fall short on fan engagement, cultural permanence, and local impact compared to previous Olympics. But despite these gaps, it’s still set to rake in billions. Organizers expect over $1.3B from partnerships with more than 60 companies.
- LVMH, Google, and Roblox are among the 250+ brands making a presence at this year’s Games — with Nike marking its “largest media spend” ever for this event.
- NBCUniversal has sold a record $1.2B in ads, including $350M from first-time Olympic advertisers, with coverage spanning 5K hours.
Justifying the cost: The Olympics have come under fire for their high costs relative to returns. However, one thing is for sure: the Games aren’t going anywhere, even after the costly Rio, Sochi, and Beijing Olympics. Instead, Paris’s edition is expected to be one of the cheapest in modern history. This could offer valuable insights for the US, which will host the 2028 Summer Olympics and 2034 Winter Olympics in Los Angeles and Salt Lake City.
