Nowadays hosting an international sporting events, such as the Summer and Winter Olympic Games, and the FIFA World Cup is a prestige and economic flex for cities around the world. This pride of hosting such remarkable events comes with a cost, a literal cost of millions of dollars with some developed countries spending up to billions. To some, especially big tax payers, this a complete waste of money while others agreed that hosting such popular events is worth the expense as it provides profits to that city and advertised their tourism industry.
Like any other sporting competitions, the goal of hosting such extravagant activities is to create entertainment, and in the world of economics, entertainment is a money making machine as it attracts tantamount of audience. This is mainly because entertainment is a part of the daily lives of people and we pay, to some extent the premium, to experience entertainment in its finest form. For example, the London Summer Olympics in 2012 attracted thousands of people and these people pay tickets to watch numerous top elite athletes at their best, not to mention other sporting fans expenses in foods, accommodations, and other goods and services while being in the city.
Additionally, hosting an international sporting event makes the hosting city being exposed to international viewers thus also giving people a glimpse of the city’s beauty. This is due to the fact that top sporting events being broadcast live to various nations. For instance, the FIFA World Cup is the most watch sporting competition in history, billions of people watch it live on TV or any streaming devices. As a host city, you have the advantage to showcase your place’s infrastructure, natural resources, and top tourist destinations, thus giving viewers a sight of your tourism industry.
In conclusion, hosting such big events may require a city to invest a lot of bucks, but in the long run its gonna benefit them. The profits they will gained in the games and other commodities will eventually pay all those expenses. They will also access an international viewership in where they can advertise their city as a tourist destination.