Over the past 4 years, I have had a chance to witness how Olympics are handled by different countries. I have seen the buildup to the 2008 Beijing Olympics, then over the past couple of years I have visited London couple of times and seen how their preparations are going for next year’s Olympics. Finally, last week I was able to see how Rio is getting an early start to its preparation for the 2016 Olympics.
Based on my experiences with these 3 cities, here are some observations:
1. The PR value of the Olympics to a city and the entire country is huge. Not only do you get a huge influx of tourists who are interested in visiting an “Olympic City”, but the city gets to create major sponsorship and advertisement deals with big multi-national companies. I remember this being very true for the 1988 Seoul Olympics. I was living in Japan at that time and I clearly remember how everyone was saying that South Korea had arrived as a significant member of the international community.
2. Now imagine the PR value if you have 8-10 years to plan for the Olympics. A host can extract a lot of value starting from the day the Olympics are awarded to that host.
3. Olympics is a great catalyst for the entire country to rally around a sinle goal. In a world where most countries are torn apart by internal political conflicts, an event like the Olympics could provide a great burst of nationalism which will continue long after the Olympics are over.
4. Related to the previous observation, Olympics gives the host an opportunity to significantly upgrade existing infrastructure or add new infrastructure. The facelift that East London is getting for 2012 Olympics is amazing. This used to be one of the most rundown parts of London, but next year’s Olympics has been the reason for the significant upgrades in that part of the city. Of course, Beijing’s over-the-top preparations for 2008 Olympics (a new airport terminal that is bigger than 99.9% of the world’s airports, new hotels, new roads, massive stadiums, etc.) was the best example of the host pulling out all the stops with new infrastructure.
5. But, it is not all perfect. In a rush to extract maximum value, often times the organizers cut corners. My few days in Rio provided an example of this. The pacification process was initiated to create a better image of the Rio slums before the Olympics. What is pacification? Well it is the process of sending police forces into the favelas to eradicate problems like gang violence, drugs, prostitution, etc. Of the 1,000 known favelas in Rio, only 17 have been “pacified” thus far. However, it is not clear that the “pacification” process will work long term. Brazilian police are notorious for being corrupt. It is impossible to think that they will have enough forces to be present at every favela at the same time. So, when the police leaves a favela, how will they guarantee that the favela will not revert back to the pre-pacification days?
I had a chance to visit Complexo do Alemao and I felt relatively safe. I did see the military police walking aroud the favela. A quick show of force is not a long-term solution. It needs to coupled with a more holistic approach of providing sustainable and affordable healthcare, education, sanitation and other services to the favela inhabitants.
There have been extensive research done on the impact of Olympics on a city and on a country. These were some of my observations based on my first-hand experience with 3 of the latest Olympics.