When. the Party s Over

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When Photo: Getty the Party s Over Are major international events worth their high cost in

to promote and rebrand their cities for vacation and bsiness travelers.

1 When Photo: Getty the Party s Over Are major international events worth their high cost in terms of the torist dollars, image boost, and legacy pblic infrastrctre that they generate for the host city? Olympic Games, FIFA World Cp tornaments, and Expo World Fairs are opportnities for governments to promote and rebrand their cities for vacation and bsiness travelers. These mega events accelerate the constrction of mass transit, hosing, and other rban development projects that otherwise might take decades to get done. Text: Chris Kral rbandna Isse 3 / December

s the acceleration of a city s I development agenda, and the pblic spending that goes with it, worth the cost of hosting mega events sch as the Olympic Games?

Bt now, after sterling experiences in cities sch as Los Angeles, Seol, Barcelona, and London, the consenss among economists is that Olympics are catalytic events for their rban hosts as long as they

With the skyrocketing costs attached to the events pwards of US$50 billion in the case of Rssia s Sochi Winter Olympic Games in Febrary 2014 and more than US$45 billion for the Beijing Smmer Olympic

2 s the acceleration of a city s I development agenda, and the pblic spending that goes with it, worth the cost of hosting mega events sch as the Olympic Games? As recently as the early 1980s, when the Olympics movement nearly died after a sccession of Games marred by economic and pblic image setbacks, the answer was a resonding no. Bt now, after sterling experiences in cities sch as Los Angeles, Seol, Barcelona, and London, the consenss among economists is that Olympics are catalytic events for their rban hosts as long as they help a city develop what needs to be developed, according to Holger Press, an economist at the University of Mainz in Germany. With the skyrocketing costs attached to the events pwards of US$50 billion in the case of Rssia s Sochi Winter Olympic Games in Febrary 2014 and more than US$45 billion for the Beijing Smmer Olympic Games in 2008 residents have a right to demand a close acconting of risks and benefits. The Games themselves typically generate no more than US$3 billion to US$4 billion in torism, advertising and broadcast revene over the 17 days they are held, says Alan Abrahamson, a jornalism lectrer at the University of Sothern California and award-winning sportswriter and TV analyst. Therefore, the hge investment in strctres, pblic transportation systems, and other legacy items mst promise a longterm benefit. And while rban dwellers can readily comprehend the vale of new mass transit and expanded airports to ease the path for visitors, they increasingly resist the idea of white elephant bildings like stadims and swimming complexes that fall into disse after the closing ceremonies. The dilemma is that, with competition among cities reaching fever pitch to win host stats, bidders find that Above and previos page: The Colisem, vene of the opening ceremony at the 1984 Olympics in Los Angeles. Olympics serve as catalysts as long as they help a city develop what needs to be developed. promising those glitzy strctres is often what it takes to win, states economist Victor Matheson, a professor at the College of the Holy Cross in Worcester, Massachsetts. Formerly known as the World Fair, the World Expo movement also nearly died bt has been given a new lease on life by the sccess of the Shanghai World Expo 2010, which attracted an astonding 73 million visitors and refashioned the Chinese city s image. Probably as mch as any mega event in recent history, the Expo achieved for Shanghai what most cities target as their Olympics legacy goal the jmp-starting of sstainable energy, rban renewal, and mass transit projects that planners see as shortcts to improved qality of life ( Siemens, in its role as the Expo s Global Partner, contribted more than US$1.3 billion worth of clean lighting, air, and water technology to the exhibition). The debate is heating p in Brazil as the contry prepares for a doble dose of global exposre, starting next smmer, when Rio de Janeiro and 11 other cities play host to the 2014 FIFA World Cp matches. Then, in 2016, Rio goes it alone to pt on the Smmer Olympics, the mother of all sporting extravaganzas. The Games will attract billions of TV viewers and as many as 3 million foreign and domestic visitors, many of whom will be seeing for the first time this gorgeos city, which is synonymos with beaches and bossa nova. The following snapshots of three Olympics host cities and the Shanghai World Expo illstrate past lessons and ftre expectations. Photos: Getty, Arora / José Azel The 1984 Smmer Olympics, held in Los Angeles, USA, were the first Games financed by private fnding. Los Angeles Olympics 1984 Los Angeles won the right to host the 1984 Smmer Olympics by defalt. There were no other bidders, so profond was politicians disenchantment with the event. The 1972 Olympics in Mnich had been stigmatized by a terrorist attack, the 1976 event in Montreal by massive pblic debt, and the 1980 Games in Moscow by the boycott of 45 contries, inclding the USA. The movement was trly in danger of extinction, says Olympics expert Abrahamson. To the resce came California bsinessman Peter Ueberroth, who organized a completely privately financed Olympics. Bt it wasn t easy: The refsal of the LA city concil to accept mnicipal responsibility for ptting on the Games meant the IOC had to change its charter to allow for private management. Ueberroth then signed p 70 companies that paid US$130 million to be sponsors in exchange for Olympics branding and endorsement rights. Except for a velodrome and swimming facility, the 1984 Games sed only existing strctres, many of which, inclding the Memorial Colisem, had been bilt for the 1932 LA Olympics. De to the low overhead and tight prse strings Ueberroth signed off on all expenses over US$1,000 the Games retrned a US$215 million operating srpls, which Ueberroth donated to yoth sports organizations and other charities across the USA. In addition to the corporate sponsorship model that host cities follow to this day, Ueberroth also introdced the concept of Olympic torch relays, a nifying event that bilds fan excitement. If the 1984 Los Angeles Olympics is vlnerable to criticism, it s for the almost total lack of legacy mass transit infrastrctre that Los Angeles was and still is so badly in need of. Bt Abrahamson says that very omission is what made the Games economically feasible. It s misleading to say there is no legacy becase the infrastrctre was already here. The legacy that really matters is that the LA Olympics saved the Olympics movement. Los Angeles Olympics 1984 Jly 28 to Agst 12, participating nations Boycotted by Eastern Bloc nations in retaliation for the West s 1980 boycott of the Moscow Olympics Generated an operating srpls of US$215 million Carl Lewis is most sccessfl athlete with for gold medals in the long jmp and the 100-m, 200-m, and 4x100-m relay races, setting a new world record in the relay. 20 rbandna Isse 3 / December 2013 rbandna Isse 3 / December

Barcelona Olympics 1992 Jly 25 to Agst 9, 1992 170 participating nations Marked the beginning of Barcelona s ascent to become one of Erope s major torist destinations The Games accelerated a

Barcelona Olympics 1992 By all acconts, the Barcelona Olympics in 1992 set the gold standard for a sccessfl event.

Bt the sccess was de in large part to a propitios moment in the city s history and becase the local government had an existing development plan that the Games helped accelerate, says Andrew

3 Barcelona Olympics 1992 Jly 25 to Agst 9, participating nations Marked the beginning of Barcelona s ascent to become one of Erope s major torist destinations The Games accelerated a waterfront development and ambitios architectral program that transformed the face of the city. Long-term benefits inclde constrction of trade and convention center, tram network, and ring road. Barcelona Olympics 1992 By all acconts, the Barcelona Olympics in 1992 set the gold standard for a sccessfl event. The city leveraged its moment in the sn to achieve the prominent position in global torism that it enjoys today. Bt the sccess was de in large part to a propitios moment in the city s history and becase the local government had an existing development plan that the Games helped accelerate, says Andrew Zimbalist, an economist at Smith College in Massachsetts. When Barcelona got the nod to be host city in the mid-1980s, it was still a torism backwater and recovering from 40 years of poverty and dictatorship nder the Franco regime. It was a city of great charm and hidden gems that had not been exploited, Zimbalist says. That was before hndreds of millions of viewers were exposed to the city and its cltre. Now, Barcelona is among the top five Eropean torism destinations. The designation as host city set in motion Barcelona s ambitios rban regeneration plan that has remade the face of the city. The Olympic Village was bilt in a rn-down, 130-hectare indstrial area near the waterfront and became the catalyst for redevelopment of a 5-kilometer stretch of docks and warehoses that opened the city p to the sea. Barcelona commissioned world-famos architects to bild landmark sports strctres that are still in se by locals, as well as a trade and convention center in the port area designed by noted architect I. M. Pei. The Above: The Pez y Esfera sclptre by US architect Frank O. Gehry is a landmark of Barcelona s Olympic Port district at Passeig Maritim. complex has helped make Barcelona become by some measres the world s preferred international convention site. The Barcelona city fathers saw the Olympics as a way of accelerating the modernization they already had in mind, Zimbalist notes, adding that historic zones sch as the then-rndown Gothic Qarter and Montjïc areas were spiffed p to make them torist-friendly. To smooth the flow of visitors, Barcelona modernized its El Prat international airport and bilt a new tram system to connect the redeveloped port area as well as a ring road arond the city to ease congestion. And once the athletes went home, the city didn t drop the ball. It formed the Trisme de Barcelona marketing entity that helped promote the city as a convention and visitor destination even dring the post-olympics doldrms. Photos: Getty, Laif The Montjïc Commnications Tower, designed by Santiago Calatrava, transmitted TV signals from the 1992 Smmer Olympics. 22 rbandna Isse 3 / December 2013 rbandna Isse 3 / December

Shanghai really injected new energy into the Expo movement.

as its target adience. On a national scale, the Chinese got maximm se from the Expo as an instrment of pblic and cltral diplomacy.

All indications are that Shanghai effectively sed the Expo s soft power to convey self-confidence, bsiness friendliness, international cooperation, and environmental awareness.

Holger Press believes Shanghai transformed the centry-and-ahalf-old Expo concept by virte of the sheer dimension of exhibits, its theme of environmental consciosness, and extensive additions to pblic

4 Shanghai really injected new energy into the Expo movement. Shanghai World Expo 2010 If Olympics and World Cps are designed to attract individal torists and sports fans, promoters of the Shanghai World Expo seemed to reach for whole contries and corporations as its target adience. On a national scale, the Chinese got maximm se from the Expo as an instrment of pblic and cltral diplomacy. On a local level, Shanghai s six-month exposition was seen as a coming-ot party for a rapidly growing city of 19 million with ambitions of becoming a global economic hb. All indications are that Shanghai effectively sed the Expo s soft power to convey self-confidence, bsiness friendliness, international cooperation, and environmental awareness. The nmbers tell the story. The Expo lred 192 contries and 50 organizations as exhibitors and a staggering 73 million visitors, inclding more than 1 million on a single day. Holger Press believes Shanghai transformed the centry-and-ahalf-old Expo concept by virte of the sheer dimension of exhibits, its theme of environmental consciosness, and extensive additions to pblic infrastrctre, especially mass transit. It was the largest Expo ever and will remain so for some time to come, Press says. In terms of conceptalization, Shanghai really injected new energy into the Expo movement. As the Expo s Global Partner, Siemens played a central role in conveying the Expo s primary theme of environmental responsibility. Among Siemens More than 200 contries and organizations took part in the World Expo 2010, many of them with their own pavilions. Photos: Getty, Laif, Expo 2010 Press Malawian President Bing wa Mtharika (second from left) views the model of the China Hall of the 2010 Shanghai World Expo in March green contribtions was energysaving technology at the coal-fired energy plant at Waigaoqiao that spplied the Expo with one-third of its electricity. The company also spplied to pavilions a total of 150,000 LED light blbs that consme 80 percent less energy than conventional incandescent blbs. To streamline and economize mass transit for Expo visitors, Siemens delivered key components for 100 high-speed trains rnning on the newly dedicated Beijing to Shanghai line. In addition to the energy-efficient, ltramodern exhibits and pgrades of its two major airports, the six new sbway lines that Shanghai opened between 2006 and the Expo s inagration sent a message that China as a nation is mch more than jst spplier of cheap labor for global manfactrers. It is also a contry that knows how to deal with a rapidly rbanizing poplation. Shanghai World Expo 2010 April 30 to October 31, million visitors from arond the globe, 192 participating contries, 50 participating organizations Over 1.7 million volnteer staff Shanghai experienced a 13 percent increase in torist visits dring the Expo Costs of day-to-day operations: billion yan (US$1.96 billion); operating profit: 1.05 billion yan (US$170 million) Major development projects: airport pgrades, six new sbway lines 24 rbandna Isse 3 / December 2013 rbandna Isse 3 / December

Rio de Janeiro Olympics 2016 Rio de Janeiro Olympics 2016 Agst 5 to 21, 2016 The 34 event venes are located in for main Olympic clsters: Barra da Tijca, Copacabana, Deodoro, and Maracanã.

5 Rio de Janeiro Olympics 2016 Rio de Janeiro Olympics 2016 Agst 5 to 21, 2016 The 34 event venes are located in for main Olympic clsters: Barra da Tijca, Copacabana, Deodoro, and Maracanã. Opening and closing ceremonies to be held at the Maracanã Stadim, the largest Olympic vene with a capacity of 90,000 spectators Several of the venes will also host events at the 2014 FIFA World Cp and the 2016 Smmer Paralympics. As host of the Smmer Games in 2016, Rio de Janeiro is following the sccessfl playbook established by Barcelona in 1992 in pshing forward long-deferred mass transit and rban development projects, Mayor Edardo Paes freely admits. The overriding prpose of having the Games is ltimately to make Rio a more livable city for cariocas, as local natives are called, and if the mega event fails to accomplish that goal, the Games will not have been worth hosting, he said in an interview. Barbara Kotschwar, a research fellow at Peterson Institte for International Economics in Washington, is convinced the World Cp and the Olympic Games will promote Brazil s new statre as a regional power and emerging economy that by 2020 cold be the world s fifth largest. Bt to join the global elite, Kotschwar says, Brazil mst improve its pblic infrastrctre, and the pressre on the government created by the Olympics may help. Brazil s airports rank 134th ot of 142 contries in terms of efficiency and its road system ranks 123rd ot of 142. In both categories, Brazil falls short of what yo wold expect of a contry that wants to be an inflential global player, she notes: If the infrastrctre development that s being sprred by the Olympics allows people in Rio to get to their jobs faster and less expensively and with less congestion, that cold be a real boost to Brazil s overall economy. The city is placing big bets on improving mass transit by the time the Games open in Jne Projects inclde a new sbway line and three new Bs Rapid Transit (BRT) rotes set to open before the opening ceremonies. The bs lanes will ease visitors access to for Olympic event nodes and ease Rio s crshing traffic problems in the longer term. BRTs are dedicated bs lanes for highcapacity vehicles rnning on cleanbrning fels and carrying p to 200 passengers. They have become highly favored answers to rban transportation problems across Latin America. Rio is jst one of 26 Brazilian cities that operate BRTs. Rio is also taking Barcelona s port redevelopment scheme as the template for its own harbor-side renewal project Porto Maravilha. The 1,200-acre area that once consisted of grimy warehoses and abandoned factories is being converted into a mltise hosing-office-msem district in hopes of drawing bsinesses, torists, and more residents. A 5-kilometer overhead viadct that ct off the port zone from the rest of the city is being torn down and replaced with a tnnel. Connecting the redevelopment area with the nearby commter airport will be a Eropean-style light rail tram. The city is also poring money into improving living conditions at Rio s 60 favelas in hopes of redcing the segregation of low-income residential districts and better integrating residents from vastly differing socioeconomic backgronds. p Photos: Rio 2016, Erica Ramalho Above left: Model of the renovated Maracanã stadim, site of the opening and closing ceremonies. Above right and below: 3D renderings of the Olympic Village. 26 rbandna Isse 3 / December 2013 rbandna Isse 3 / December

Learning from experience: How hosting the Olympics can leave a positive legacy

F E B R U A R Y 2 0 17 Learning from experience: How hosting the Olympics can leave a positive legacy Bill Hanway Careful planning and an eye on the future can help the cities that host them. Deciding