The pursuit of hosting an international sports event has become increasingly popular among governments worldwide. Some individuals reckon that it would contribute positively to the development of the host country, while others argue that the investments in such events would be detrimental eventually. This essay will examine both viewpoints before explaining why I lean towards the latter perspective.
Granted, investing in major sporting events can bring a huge economic profit for the host nation. By hosting such events, lots of sports enthusiasts will come to the country to watch the competitions. As a result, not only would the government benefit by selling numerous tickets, but many employment opportunities would also be created for local people. With a vast number of people visiting the country, the demand for accommodation would increase, hotel and resort managers need to hire more people to ensure their service would make tourists satisfied. If the nation can make a good impression on visitors, they will want to visit the country again and even recommend it to their friends and families. Therefore, many international tourists would visit the country, leading to a golden chance to raise foreign currency.
Nevertheless, this line of reasoning is not really sound since the enormous amount of investment makes the host country face a financial burden. It is a fact that most countries do not have enough internationally standard sports facilities available, so they are required to invest lots of money in constructing a series of new infrastructures that are rarely used or even unused after these events. This investment can be so overwhelming for these countries that they have to incur debt from international organizations, which could be the primary reason leading to an economic crisis. In the past, there were also many countries facing this problem, typically Greece did. Having hosted the 2004 Olympics, this country’s economy suffered a severe recession because the overspending on the Olympics resulted in the country’s budget deficit in 2004 increasing to 6.1% of GDP, which is twice the limit of the eurozone. Consequently, Greece became the first European country to be placed under the financial supervision of the European Commission. These few instances have bolstered why hosting such events would be unwise for a country to invest.
In conclusion, although hosting an international sports event is a way to promote the tourism development of the host country, I strongly believe that the potential economic risks are so huge and considerable that a country should not do it to ensure the stability of the economy.