The Paris Olympic and Paralympic Games have come to a close, leaving France with a bill exceeding €8 billion. The question now is whether the Games will have a positive impact on the French economy, or if the expenses will outweigh any potential gains. Despite the high cost of hosting the Olympics, there is optimism that the event will bring significant economic benefits to the country.
The cost of hosting the Olympics is estimated to be around €8 billion, with national expenses covering about €2 billion. The rest of the funding was provided by the International Olympic Committee (IOC) and private sponsors. Paris stands out as having hosted one of the least expensive Summer Games in recent history, as it relied on existing venues rather than constructing new ones. The Tokyo 2020 Olympics, in contrast, cost over €12 billion. The exact economic impact of the Games is not yet known, but initial data suggests that it will be positive.
According to Alexandra Dublanche, the President of Choose Paris Region, initial data following the Games is promising. The city saw 500,000 more tourists than the previous summer, which has had a positive economic impact. There was also a higher number of international tourists than expected, with tourists mainly coming from the UK, US, Germany, and Asia. The Centre for Law and Economy of Sport (CDES) estimates that the event could generate between €6.7 billion and €11 billion in financial benefits for the Paris region. These benefits are expected to have long-term ripple effects on the economy.
The economic benefits of hosting the Olympics are already being seen, with an increase in airline bookings of 7 percent in October and 6 percent in November compared to the previous year. The Bank of France has confirmed its forecast for the third quarter, with an estimated growth in economic activity of around 0.4 percent, partly attributed to the Olympics. The Paris region spent approximately €500 million in total for the organization of the Games, which is expected to have a positive impact on the economy moving forward.
In comparison, the second quarter of the year saw a 0.2 percent increase in economic activity, showing the potential boost that the Olympics have provided. While the exact figures on the economic impact of the Games are yet to be determined, initial data suggests that the event will bring significant financial benefits to the Paris region. With an increase in tourism and spending, as well as positive forecasts for economic growth, the Games are expected to have a lasting positive impact on the French economy.
