WASHINGTON, Aug. 31 (UPI) -- After much fear about stadiums not being completed on time, and buildings falling down as a result of last-minute construction, the Olympic Games in Athens have now come and gone. The International Olympic Committee is now eyeing its next host, Beijing, which is already gearing up to stage in 2008 what many believe will be one of China's biggest international events to showcase their country to date.
Greece is rightfully proud of its role as host this time around, as even the most cynical of observers had to admit that the country put on a good show that did justice to its past as the founding nation of the Olympics.
The problem is, though, that the hefty price tag that came along with staging a memorable opening ceremony, constructing housing for athletes during their two-week stay, and building top-quality sports facility is likely to bog down the Greek government for some time to come. And as construction costs go up ever higher, the margin between expenditure and profits from merchandising, broadcast rights, and other money-making operations continues to shrink, making it less and less financially lucrative for countries to host the games in the first place.
But the Olympics is far more than just a series of sporting events, and for China in particular, the Olympics could be seen as its debut onto the world stage as a major player in sports and culture, rather than projecting itself just as a military or economic power.
"Whatever the costs, China cannot have more lucrative investment" and use the Olympics as a political opportunity to show the world its softer side, said Gregory Payne, professor of organizational and political communication at Emerson College.
Chinese state-owned media report that the Beijing games could cost about $30 billion, while others set the price closer to $40 billion, with $2 billion alone earmarked for building the sports facilities. Meanwhile, Athens ran up a bill of $7.2 billion, according to the Greek government, even though some experts say that the actually costs could be about 50 percent more than that. Greece also saw its public debt rising to 9.8 percent of gross domestic product in the second quarter of this year as it kept piling up costs to foot the bill for the Olympics. But that debt level could actually jeopardize its standing as a member of the European Union, which requires countries to keep its debt-to-GDP ratio under 4 percent.
Of course, it could be argued that much of the money used by the Greek government was well-spent on infrastructure, such as improved roads, better water supply, and good electricity access. Yet much of the money was used to build sporting facilities that will have little or no use from here on out, such as a softball stadium in a country where baseball, let alone softball, is virtually unheard of, and a beach volleyball facility. To be sure, those venues can be converted into something else, and the government is currently trying to figure out what it can do.
At the same time, cities continue to compete aggressively to host the games knowing full well that the financial rewards may be slim or even non-existent.
"Only one Olympic summer games has actually made a profit; the 1984 games in Los Angeles organized by Peter Ueberroth," which made a net profit of $284 million, said John Lucas, professor emeritus of sports science at Penn State University.
"The Olympic Summer Games in Sydney, Australia in 2000 broke even, with total costs and revenues both amounting to $3.4 billion. The local organizers were so pleasantly surprised that they held a big party to celebrate this triumph of entrepreneurial skill. None of the Olympic Winter Games has ever made a profit, although the 2002 Salt Lake City Games did break even with total costs and revenue both coming to $2.7 billion. ... That the Olympic Games can make money at all is attributed first of all to airtight planning that factors in every detail and massive infusions of government money," Lucas added.
Athens wasn't airtight in its planning, and the Greeks could be suffering the consequences of that for some time to come, but most Olympic analysts expect the Chinese to be far more organized, and perhaps even too much so that they actually over-build facilities that could age rapidly as technology advances.
Still, the Olympic euphoria is likely to be strong in China well before the opening ceremony, and the country is expected to take full advantage of being in the limelight four years from now. Just as Greece used the games as an opportunity to promote Greece as a tourist destination -- while countless publications used the Olympics to discover all things Greek, from Greek wines and food to pop culture -- China too will likely use the two weeks to fan interest in Chinese culture.
Moreover, it will be a chance to step up business interest in China even more. Greek Finance Minister Giorgos Alogoskoufis went out of his way to address the Athens Business Club, a group especially set up during the Olympics to encourage entrepreneurs to do business even after the games.
"Multinational corporations like Motorola will work tirelessly to protect their foreign-direct investments in China and will find themselves assisting China in its effort to look good to everyone. China will put on its best face for the world in 2008, and it will get plenty of help from these deep-pocketed outside organizations. I've seen the construction that has been devoted to creating part of China's 'best face.' It's been under way for four years, now," said Joe Arimond, a former Motorola executive managing the telecommunication giant's international public relations and currently a senior strategist at Kelly & LoDestro Global Relations.
There are some downside risks, however. One real fear for the Chinese could be protesters, as those who object to the country's human rights record are already stepping up their campaign to stop China from hosting the games without relaxing its political crackdown and one-party rule. Another issue that the host country will have to contend with is the possibility of a terrorist attack. Greece had to pay well over $1 billion just in security costs alone, according to some estimates.
But whatever the price, the general consensus is China will be ready, and it's likely to be a good game.
