Since Tokyo 1964, the Olympic Games have represented a significant economic burden for host cities. A study published in 2021 in "Nature" revealed that, on average, each edition of the Games has accumulated a deficit of $2 billion, an alarming figure that highlights the difficulty of turning these events into financial successes.

Why Tahiti Is Hosting Surfing Events at the Olympics

The analysis of costs and benefits in the Olympics reveals a complex economic reality. While direct expenses such as organization and infrastructure construction are included, the study excludes indirect costs, such as the expansion of transportation networks and accommodation. These additional costs, often exceeding direct expenses, further complicate financial assessments and tend to overestimate the potential profitability of the Games.

Tokyo 2020 stands out as the most deficit-ridden in history, with a loss of $6.8 billion, followed by Montreal 1976 and London 2012. These figures reflect the substantial economic challenge faced by host cities, many of which must shoulder a considerable financial burden to host the event.

The same pattern repeats in the Winter Olympics, where the average deficit is $1.4 billion. Sochi 2014, with a record loss of $11.9 billion, exemplifies the negative impact of the Games on the local economy. 

Although the International Olympic Committee contributes to the costs, the majority of the investment comes from public funds, highlighting the enormous financial strain these events impose on host cities and their governments.