● From our sister site, TheSportsExaminer.com ●
The Limoges Center for Sports Law and Economics (CDES) announced in a new study released on Tuesday that the long-term economic impact of the Paris 2024 Olympic and Paralympic Games is estimated in a range from €6.707 billion to €11.145 billion from 2018 through 2034! (€1 = $1.08 U.S.)
The lengthy period takes into account the preparation and staging of the Games, and a 10-year legacy period, and is limited to the Ile-de-France region which includes Paris. Most of the impact comes from the 2018-24 timeframe:
● Lowest: 92% for Games period, 8% for legacy
● Middle: 84% for Games period, 16% for legacy
● Highest: 83% for Games period, 17% for legacy
And the drivers are well familiar to mega-events:
● Lowest: 21% tourism, 31% construction, 48% organizing
● Middle: 30% tourism, 28% construction, 42% organizing
● Highest: 32% tourism, 27% construction, 41% organizing
The study includes all economic centers of the 2024 effort, not only the Paris 2024 organizing committee, but also the government’s SOLIDEO construction agency and related works. It also included a warning about the overall impact of the Olympic and Paralympic Games on the economy of the region. Even at the maximum impact of €11.145 billion over 17 years, it’s essentially a trivial amount compared to even a single year of the Ile-de-France Gross Domestic Product, estimated in 2021 at €765 billion!
The methodology as described is fairly standard, with gross, unduplicated spending with a multiplier taking into account future indirect and induced spending in the Ile-de-France region, with a reduction for displacement of “normal” economic activity – in tourism for example – that was pushed out due to the Games being held. The multipliers for the low-middle-high values were conservative at 1.05, 1.25 and 1.50, yielding the overall impact spread.
An analysis of the Paris 2024 organizing committee’s expenses showed an impressive 75% spent inside the Paris region (Ile-de-France) and 25% outside.
Estimates of visitors to the Games, in part relying on ticket sales, news media and athletes (and families) who will come to Paris showed:
● 2.3 to 3.1 million unique visitors coming to the Games
● 36% foreign spectators for the Olympic Games
● 17% foreign spectators for the Paralympic Games
● 90,000+ athletes, officials, media and volunteers
Careful calculations were made about the number of visitors who actually were accommodated in Paris during the Games and “day-trippers,” who came in to see events, but then went back home. Interestingly, a comparison of the economic impact of news media to volunteers showed:
● News media: 25,045 out of region, spending €119 million
● Volunteers: 27,900 out of region, spending €133 million
The displacement impact – subtracting out normal tourism activities if the Games had not been held – was significant in Paris, at 22%.
An appendix compared the 2016 economic impact projections for 2018-34, reducing the 2024 report numbers for inflation. It’s a mixed result:
● Lowest: €5.3 billion in 2016 vs. €5.69 billion now
● Middle: €8.1 billion in 2016 vs. €7.64 billion now
● Highest: €10.7 billion in 2016 vs. €9.47 billion now
Observed: The takeaway from all the numbers is that the Paris 2024 effort has been fairly successful in maintaining its cost structure and that the total overall economic impact is substantial.
However, it is only a modest contributor to a much, much larger economic engine that is the Ile-de-France region. Having the Games is a net plus for the French, Ile-de-France and Paris economies, but hardly a major driver. That, in itself, is crucially important to remember.
~ Rich Perelman
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