So far this year, it has been all eyes on London with the Queens Diamond Jubilee celebrations and now the Olympics are just around the corner. This is a very exciting time for everyone as athletes from around the world come together to take part and compete in various sporting events.
The Olympics began in 776 BC, when men from different cities in Greece would walk to Olympia with the aim to show off their skills at their chosen events in one venue. The purpose of taking part at the Olympic Games was to compete fairly, and the athletes were motivated by the glory that came from winning an event. Their reward for winning was an olive wreath, which symbolised prosperity and peace across the country, especially during the games.
For the modern Olympic Games, it is a different story. Our experience as Londoners has been far from that. The moment London was announced as the next host city, renovations and heavy duty spending began. We all understand new Olympic venues have to be constructed, improvements on public transport are essential and housing arrangements for the athletes and the large number of tourists will create a large logistical problem. On top of these costs, let’s not forget security, a priority in these times especially. Therefore, the danger costs will escalate is very high.
We have heard the public sector funding package for the Olympics, which covers the building of the venues, security and policing, stands at about £9.3bn ($14.4bn). That figure is an estimate and is likely to grow even more. Knowing the expected cost, it begs the question if this amount of spending is good value for money. A recent survey showed 55% of people asked agreed it was value for money while 59% thought the taxpayer paid too much to cover the cost of the games.
In my opinion, although the cost seems expensive, it is not a waste of public money. According to the UK Prime Minister David Cameron, the Olympics will benefit the UK economy by about £13bn in the years to come. This figure is based on the assumption the infrastructure currently being built to support the Olympics will pay for itself in years to come - the regeneration will add value to the geographic area surrounding the Olympic venues and improve people’s quality of life.
From an accountant’s perspective, accounting for a project like the Olympics will always provide an interesting challenge. I am afraid that, we will never be able to come up with a final figure of the true cost or properly monetize the benefits of the games. We all hope the Olympics will be a success and the city’s residents will be proud to have hosted them one more time.
“Faster, higher, stronger” has always been the Olympic motto but hosting the event has become very expensive and a risky business to be involved with.
Ellie Fanis
No comments:
Post a Comment