Economic Overview of the Sport, Social, Urban and Environmental Impacts and Legacies of the Olympic Games

Presentation prepared for the ‘IX Seminario Nacional Políticas Públicas de Esporte e Lazer: Brasil 2016: a Olímpiadae os impactos desejados nas políticas públicas de esporte e lazer das cidades brasileiras’

organized by the Ministério do Esporte do Governo Federal brasileiroe a Prefectura Municipal de São Bernardo do Campo (Estado de Sao Paulo), March 24-27, 2010

An Economic Overview of the Sport, Social, Urban and Environmental Impacts and Legacies of the Olympic Games

Professor Dr Ferran Brunet

Universitat Autònoma de BarcelonaFaculty of Economics & Center for Olympic Studies

TABLE OF CONTENTS

The Key for Olympic Success The Barcelona Model The Barcelona Olympic Areas The Concentric Circles The Economic Impact Scheme The BCN’92 Olympic Accounts The Olympic Employment Barcelona Dynamics: Employment, Works, and Hotels The Olympic Games Resources, 1964-2008 Impacts of the Olympic Games Strategic Position vs. Competitiveness: The Best

European Cities for Business The Olympic Economy Decalogue… and Some

Questions

© Ferran Brunet 2010

Source: © Ferran Brunet (1988 and 1994)

Urban Renewal Capacity

SeparateAgencies for Organization

and for Works

Excellence of Sports

and Urban Program

Mixed Economy

Insti-tutional

Unanimity

THE KEY FOR OLYMPIC SUCCESS

The Barcelona Model


The Barcelona Model

Organization Forms & Aims

Urban Renewal Forms & Aims

Economic Management and Impact Forms & Aims


The Barcelona Olympic Areas

Main Urban Renewal Areas, 1986-1992

Source: © Barcelona City Council (1988)

The Barcelona Olympic Areas

S-W, Montjuic: Stadium, main other sport facilities –Swimingpool…

S-E, Poblenou: Olympic Village, Port

N-W, Diagonal Area: Sport facilities, Hotels

N-E, Vall d’Hebron Area: Sport facilities, Hotels

All the city in works!

Decentralization - Many Sub-sites: all region, all big Spain cities


The Concentric Circles

1. Organization

2. Investments

3. Impact

Concentric circles The organization of the Olympic Games / mega event stimulates investments and these have a strong impact on economic activity, living standards, wages and quality of life. The effect of the OG / mega event has been made permanent thanks to strong investments and the enlarged attractiveness and quality of life in the city.


The Economic Impact SchemeBefore the OG After the OG

Organization Investments Impact

Tem

pora

ry o

ccup

atio

ns

41.45

0 pos

itions

for w

orke

rs du

ring 6

year

s

Organization Period 1986-1993

1364 M $ (162.880 M Pta)

Commercial income 1256 M $

(149.933 M Pta)

Fiscal income

108 M $ (12.947 M Pta)

Investment Period 1986-1992 8012 M $ (956.630 M Pta)

Public 5390 M $

(643.613 M Pta)

Private 2622 M $

(313.017 M Pta)

Perm

anen

t oc

cupa

tions

20

.230 p

ositio

ns

Economic and social impact

Period 1986-1992 16266 M $ (1.942.188 M Pta) and permanent

Urban renovation Greater occupation Major Activity

Capacities olympic organizational Know-how

Culture of excellence, culture of consensus

Barcelona model of event organization, economic impact and urban transformation

Major Government and social capital 5390 M $

Urbanization Houses Collective transportation Ring road Cultural institutions Cleaning sports facilities Maritime facade, beaches, parks

Major private and business capital 2622 M $

Hotels Business locals

Offices Houses

Olympic port Companies

Greater occupation (20.230 positions for work) and major qualifications for work force Better competitiveness (2002: 6th place in the ranking of European cities)

Olympic Rent: 702 M $ per year

Improved and better economic activity, better quality of life major Added Value

702 M $ per year

Improve Strategic Position Social cohesion, improved Rent

and improved Well-being of the residents

Improve Productivity

Improve Competiveness

Fiscal yield 150 M $ per year

Improved and better Attractiveness: more capital, residents and tourism

Source: Brunet (1997 and 2002) and this research.

Olympic Legacy

8012 M $


The Economic Impact Scheme

A.Before the OG The Concentric CirclesTemp Employment

B. After the GamesDue to the O Legacy: Investments

attracted, Permanent employment and skills, Income


The BCN’92 Olympic Accounts (I)


The BCN’92 Olympic Accounts (II)


The BCN’92 Olympic Accounts (& III)


The BCN’92 Accounts

A. Source of Funding

Public- Government (40%) / Private-Commercial (60%)

B. Destination of Resources

Organization (14,5%: Technology, Olympic Family) / Investments (85,5%: Roads, Communication, Hotels, Housing, Sport facilities)


EmploymentGenerated by the Olympics

Barcelona Dynamics: Employment, Works, and Visitors


Barcelona Olympic Dynamics

1986-1992-1993-2004-2008-2020

Employment – Unemployment

Concrete – Works – Construction

Hotel The Barcelona Model

Adequate size and situation of Barcelona


The Olympic Revenues

TV

Sponsors

Governments

Merchandizing, lotteries…


The Revenues of the Olympic GamesOrganizing Committees, 1964-2016


The Olympic Expenditures

Organization: Stable, To minimize it

Direct Olympic Investment: Variable

Impact: To maximize it


The Expenditures on the

Olympic Games, 1964-2016


The Olympic Impacts

Hotel offer

Visitors

Seoul, Barcelona, Atlanta, Sydney, Athens, Beijing, London

The adequate size and situation of Barcelona


Impacts of the Olympics

A. Hotel offer: growth before, during and after the Olympic Games

B. Foreign visitors: before, during and after the

Olympic Games

Source: Jones Lang La Salle IP Inc (2002).

Strategic Position vs. Competitiveness: The Best European Cities for Business

Strategic Position vs. Competitiveness:The Best European Cities for Business

Barcelona European City Ranking1990: 11 / 2000: 6 / 2005: 4 / 2010: 4

Evaluation – Feeling Investment Decision

Capacity to Attract

World Regions – Creative Industries

Globalization – Competitiveness

City Strategy: continuity-discontinuity


The Olympic Decalog: Economy, Sport, Urban and Environment

I. The Institutional Agreement.

II. Mixing Economy: Public Direction & Private Management.

III. Separate Organs: to Organize the Games (Sports) & to do the Works and Investments (Stone).

IV. The Concentric Circles Principle. The Olympic Resources are Not cost but Investment.

V. Maximize investment & Minimize costs.

VI. The Excellence Principle: in 2 weeks of Excellence you match the past organizing efforts and specially all your new future.

VII. The first beneficiary of the Games is the State:

at medium term always a fiscal surplus appears.

VIII. From a strategic perspective the more important is not 2012 but 2013 and after!

IX. The Olympic Investments are the Legacy.

X. The Continuity in Investments is needed to maintain and profit of the new Strategic Position of the City and the Country.


…and Some Questions

Global Competition and Mega-events.

Creative Industries.

World Regions.

Competition between European cities and regions.

The current crisis, the depression, and the further Olympics.

A Finished City: What it needs.

The city identity, consensus, identification, attractiveness, design, glamour.

Over-stimulation, over-protection.


Thanks for your kind attention!

An Economic Overview of the Sport, Social, Urbanand Environmental Impacts and Legacies of the Olympic Games

Professor Dr. Ferran BRUNET

Universitat Autònoma de Barcelona

Centre d'Estudis Olímpics

Campus Universitari, Plaça Cívica, Edifici NE-08193 Bellaterra, Spain

Phone +34-93-581-1992 http://[email protected]

© 1986-2010 Ferran Brunet