The 2014 Sochi Winter Olympic Games have brought a lot of attention to Russia, specifically Sochi, over the past week. I recently came across an article in the International Business Times that aimed to forecast and analyze the economic impacts of this year’s Winter Olympics on the surrounding area of Sochi, Russia. The article also stated some interesting historical facts pertaining to the Olympics’ impact on its host cities.
The Olympics kicked off in style last Friday with an elaborate opening ceremony. This glorious start to the winter games gave a prelude to the expectation that this year’s winter Olympics would be the most expensive in history, costing in excess of $50 billion. A majority of this cost was borne by 235 projects that were undertaken in preparation for the games.
Thirty-seven of these projects pertained to developing the roads in Sochi. Sochi benefits from these renovations with a better environment for commerce and commuting. The athletes’ quarters are supposed to be turned into affordable housing for local residents as well. These impacts on Sochi are especially important due to the nature of Sochi’s emerging economic condition. Areas that have emerging economies tend to spend the most in preparation for the games, and also benefit from its lasting effects.
A report by the European Bank for Reconstruction and Development states that the huge cost of this year’s games may create a “lasting legacy” for the city of Sochi, and the southern Krasnodar region of Russia. This legacy will be represented by the benefits of improved services that may attract future business.
Jobs that are created from hosting the Olympics may last well after the games have ended, improving the business prospects of the population in the region. Now you will be able to watch the rest of this year’s games with a renewed perspective.
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