With the Paralympics in Rio coming to an end, Credico UK investigates the benefits businesses receive from the Olympic and Paralympic Games in those countries that host it.
Rio 2016’ became the first games to be held in a Portuguese-speaking country, the first to be held entirely in the host county’s winter, the first since 1968 to be held in Latin America, and the first since 2000 held in the Southern Hemisphere.
There were also first-time entrants to the Olympics this year from Kosovo and South Sudan, plus the Refugee Olympic Team taking part. In the Paralympics, there was the introduction of two new sports into the program: canoeing and the para-triathlon.
One of the main reasons why a country and city will bid on the Olympic Games is to boost the economy of the chosen city. The Olympic Games is a major international sporting event and therefore attracts thousands of visitors, tourists and media attention. Job creation, retail and tourism are the main sectors that get a real boost throughout the journey of hosting the Olympics.
For example, it has been claimed that tourists in London for the 2012 Olympic Games may have helped lift the British economy out of recession, after research and data illustrated that the 590,000 people who visited London for the Olympics spent an average of £1,290 during their visit, compared with £650 by other visitors.
Even before the Olympic events are held, job creation increases because areas around the city begin to redevelop, construct additional venues and improve the city’s infrastructure. The added building and construction can boost a failing economy because it creates a demand for more jobs. During the Olympics, there will be increased revenue in travel sales, hotel, restaurants and shops due to the increase in tourism from all over the world. Nearly every type of retail outlet will benefit from having the Olympic games hosted in their country, and there will still be more employment opportunities from the increase in tourism. After the Olympics, the city can still attract conferences and sporting events to the venue that were built for the games, and the broadcasting of the Olympics on TV will open up a plethora of revenue opportunities for businesses, through marketing and sponsorships. UK tourism hit a record high 12 months after the 2012 Olympics, which proves that a lasting legacy can be forged out of hosting an Olympic event.
Credico UK is an independent field marketing agency that specialises in creating and managing direct marketing campaigns for their clients. With regional offices situated in cities all over the UK, the firm understands the impact that the Olympic Games can bring to the economy of a city.