Financial experts say it is difficult to be sure whether the billions of euros France is spending on the 2024 Paris Olympics will deliver the economic benefits that organizers hope.
France is facing a bill of nearly 9 billion euros ($9.5 billion) for hosting the Paris Olympics, but top officials say the financial benefits of the event could be more "psychological" than economic.
Ahead of the Olympics opening on July 26, ministers and financial observers are crunching numbers to estimate the costs and benefits of the sporting event.
So far, the French government has estimated the cost of the Paris Olympics at nearly 9 billion euros.
The Tokyo Olympics, postponed by a year to 2021 due to the COVID-19 pandemic, cost about $12.9 billion, Japan's Audit Board said.
The Greek Finance Ministry estimated the 2004 Athens Olympics to cost $9.1 billion, although some independent estimates put the figure closer to $15 billion.
The 2012 London Olympics also cost up to 15 billion USD.
According to the Center for Law and Economics of Sport (CDES), which is monitoring the Paris Games for the IOC and the organizing committee, the event will generate between 6.7 and 11.1 billion euros in economic benefits for the Paris region.
But CDES added that these benefits would be spread over 20 years. In February, consultancy Asteres estimated that the Games would generate €5.3 billion in tax and social service revenue.
In a study this month, Deutsche Bank said that “countries that host the Olympics or the FIFA World Cup rarely see economic or even social returns from the often huge investments made with government money in new stadiums and public infrastructure.”
The bank said even the short-term boost to investment and employment would be small, unless the host country was experiencing a recession.
The Paris Olympics will have more of a “psychological” impact than an economic one, according to the governor of the Bank of France, Francois Villeroy de Galhau. But he believes that if France can improve its image around the world through the Games, it can eventually expect new investment.
In the short term, some companies are looking to capitalize on the event.
Lea Marie, CEO of Le Slip Francais, a lingerie maker, said the company is making thousands more pairs of panties, swimsuits, pajamas and other items in the Olympic colors.
This has created jobs at the factories and for the company's 80 subcontractors, she said.
In addition, tourism is expected to earn up to 3.6 billion euros from the 15 million visitors expected to attend the Games, including 2 million foreign visitors.
Financial services firm Oddo BHF predicts media, entertainment, drinks, consumer goods and transport companies will all benefit from the Games.
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