France bets billions of euros on Paris 2024 Olympics

Financial experts say it is difficult to be sure whether the billions of euros France is spending on the 2024 Paris Olympics will deliver the economic benefits organizers hope.

The Olympic symbol is erected on the Eiffel Tower in Paris, France, on June 7, 2024.

France is facing a bill of nearly 9 billion euros ($9.5 billion) for hosting the Paris Olympics, but top officials say the financial benefits of the event may be more "psychological" than economic.

Ahead of the Olympics opening on July 26, ministers and financial observers are crunching numbers to estimate the costs and benefits of the sporting event.

So far, the French government has estimated the cost of the Paris Olympics at nearly 9 billion euros.

The Japanese Audit Committee said the Tokyo Olympics, postponed by a year to 2021 due to the COVID-19 pandemic, cost approximately $12.9 billion.

The Greek Finance Ministry estimated the 2004 Athens Olympics cost $9.1 billion, although some independent estimates put the figure closer to $15 billion.

The 2012 London Olympics also cost up to 15 billion USD.

According to the Center for Law and Economics of Sport (CDES), which is monitoring the Paris Olympics for the IOC and the organizing committee, the event will generate between 6.7 and 11.1 billion euros in economic benefits for the Paris region.

But CDES added that these benefits would be spread over 20 years. In February, consultancy Asteres estimated the Games would generate €5.3 billion in tax and social service revenue.

In a study this month, Deutsche Bank said that "host countries of the Olympics or FIFA World Cup rarely see economic or even social “returns” from the often huge government-funded investments in new stadiums and public infrastructure."

The bank said that even the short-term boost to investment and jobs would be minimal, unless the host country is experiencing a recession.

The Paris Olympics will have more of a "psychological" impact than an economic one, according to the governor of the French central bank, Francois Villeroy de Galhau. But he believes that if France can improve its image around the world through the Games, it can eventually expect new investment.

In the short term, several companies are looking to capitalize on this event.

Lea Marie, CEO of Le Slip Francais, a lingerie maker, said the company is making thousands more pairs of panties, swimwear, pajamas and other items in the Olympic colors.

This has created additional jobs at the factories and for the company's 80 subcontractors, she said.

In addition, tourism is expected to earn up to 3.6 billion euros from the 15 million visitors expected to attend the Olympics, including 2 million foreign visitors.

Financial services firm Oddo BHF predicts media, entertainment, drinks, consumer goods and transport companies will all benefit from the Games.

Source: https://baolaocai.vn/phap-dat-cuoc-hang-ty-euro-vao-the-van-hoi-paris-2024-post386121.html