OLYMPIC GAMES

★ The Sports Examiner: Documenting the significant competitive, economic, and political dynamics influencing elite sports and the Olympic Movement.★

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≡ ANALYSIS & OBSERVATIONS ≡

“The hosting of the Olympic and Paralympic Games in Paris resulted in predominantly favorable impacts on the French economy during the summer of 2024, in contrast to the concerns raised beforehand. According to estimates, the GDP growth for the third quarter of the year was enhanced by approximately a quarter of a percentage point, primarily thanks to ticket sales and broadcast rights.”

This is highlighted in a recent report from the Banque de France, which verifies the positive economic effects of the Olympic and Paralympic Games. The report also remarked (translated from the original French):

“Prior to the event, economic surveys carried out by the Banque de France revealed that companies were apprehensive regarding the potential negative impact of the Olympic Games on their operations. However, these concerns seem to have been exaggerated.

“Only the construction industry appeared to have momentarily decreased its operations. These same surveys concluded that there was a net positive influence on the overall economy. The activity surge was concentrated in three regions: Île-de-France, Centre-Val de Loire, and Provence-Alpes-Côte d’Azur.”

The report noted that while the concentrated activity in the third quarter led to a 0.25% increase in the French GDP for that period, “[t]he impact on quarterly growth is temporary and followed by a retraction in the subsequent quarter.”

The revenue sources included ticket sales, tourism, and event attendance, in addition to the implications of television rights and the broadcasting of the Games. Furthermore, the study indicated that despite pre-Games anxieties regarding business impacts, the surveys revealed a lesser impact than anticipated, and where it was felt, it was limited to a few sectors.

Regarding the bank’s effectiveness in ensuring cash availability, no issues arose:

“In terms of transactions, an increase in cash withdrawals was observed in Paris, attributed to the influx of international tourists. However, these transactions remained manageable and did not create difficulties for the involved cash sector participants. Overall, the Banque de France successfully established a specific organization with all stakeholders to avert any crisis in a high-traffic environment.”

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A particularly intriguing element of the report was the estimation of non-resident visitors to the Paris Games.

A preliminary analysis by the Paris Je t’Aime tourism office, released in August and based on usage of accommodations, estimated that 3.1 million overnight guests passed through Paris during the Olympic timeframe in 2024, compared to 2.6 million in 2023. Thus, the Olympic “impact” was assessed to be around 500,000 visitors over the 17 days of the Games.

The Banque de France study provided a different estimate, based on mobile phone activity (out-of-area SIM cards), suggesting that the additional daily presence of users from outside the local area was 360,000 during the Games period, which is significantly lower. This was reported as a 7% increase from 2023, localized to the Ile-de-France region, where the Games were primarily held.

This measurement is noteworthy, contrasting sharply with the pre-Games expectations of millions of visitors from outside the area. The Banque de France study indicated that approximately 60% of the out-of-area visitors originated from Europe.

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