The Economic Impact Of The Olympic Games Essay -- Olympics Economy

The Economic Impact of the prodigious GamesMissing GraphsWith the Olympic games being held in Sydney this course, I wondered if perhaps the performance of the economy was being affected in part by the fiscal stimulus provided by Olympic edifice in Sydney and other parts of the country. Australias economy has been performing come up recently, suggesting that there might be some effect. Over the last v yrs, growth in Australias gross domestic product has ordinaryd 4.35%, well-nigh a full point above its thirty year annual average of 3.5%, and the unemployment rate is near a ten year low. According to one estimate, the Olympics will tack on an additional cardinal and a half billion dollars, about 1.6% of the GDP, to Australias GDP all over the 1994-2000 period. A natural question to ask is if this growth is due to begin with to the Olympic preparation, or if, instead, it is a result of some other commute in policy, or perhaps just plain old luck. one(a) way to address this qu estion is to see if other host countries gravel experienced increases in GDP around Olympic years. Below is a represent of one measure of the boost to GDP that countries receive from hosting the Olympics. individually point represents the average, over all of the host countries since 1952, rate of growth of GDP. What this graph suggests is that forward to the Olympics and during the Olympic year GDP growth is higher than average - maxing out at nearly 1.5% above average GDP in the 3rd year before the Olympics. This number seems consistent with the estimates for Sydney - at least(prenominal) prior to the Olympic year. However, the graph also suggests that growth rates be lower in the years after the Olympics, than in the years prior to the games. The economic benefits of the 2000 Olympics can be classified as direct and indirect. orient benefits include the impact of the Olympics on exports, investment and employment. In terms of exports, the important impact will be inbound tourism, sponsorship fees, media publicize rights, and ticket sales. The stage of the Olympics will encourage more world(prenominal) tourists to visit Australia. Sponsorship fees received from internationalistic sources were strong leading up to the Olympics and according to the Reserve Bank of Australia (RBA), broadcast rights, approximately one billion dollars in value, were recorded as exports in September quarter 2000. Ticket sale sold to overseas visitors,... ...tself. Importantly, the benefits will continue well into the new millennium as Australia gets more international exposure for its exports and gains from the transfer of technology and knowledge from the worlds best. opportunity beckons for the athletes, for exporters, for artists, for scientists and for the whole Australian community.BibliographyArthur Anderson / CREA (1999) Economic Impact Study of the Sydney 2000 Olympic Games. January 1999. Arthur Anderson and the focus for Regional Economic Analysis, Universi ty of Tasmania. Dabkowski, S and Ketchell, M (1999) Olympic Dream whitethorn Not Deliver Riches. The Melbourne Age.Gittins R (1999) Swifter Higher Richer? Sadly Not With Our Games. may 8 1999, Sydney Morning Herald.Mules,T The Economic Impact of Special Events . Griffith University, Gold sloping trough Queensland.Olympic Co-ordination Authortiy (OCA) (1999) State of Play A Report to the People of peeled South Wales June 1999, OCA, Sydney.Reserve Bank of Australia (1999) The Economic Effects of Staging the Olympic Games Semi-Annual Statement of Monetary Policy, May 1999, Reserve Bank, Sydney.