POSTED: January 14th 2013

NewsUpdate

2020 Games: Sizing up the Olympic budget plans for Istanbul, Madrid and Tokyo

CHAD WISE / Sports Features Communications

January 14 – The Madrid, Istanbul, and Tokyo bid committees submitted their Candidature Files to the International Olympic Committee last week, and each has a varying view of the cost to host the 2020 Summer Games.

As reported in Sportinglife, Istanbul has benefitted from Turkey’s strong economy in the past decade, evidenced by its organising committee budget of £1.2 billion and a £12 billion construction budget. In comparison, London’s 2012 Games had a £9 billion construction and security budget and an operations budget of £2 billion.

“This is the reality,” Hasan Arat, Istanbul’s bid chairman, said. “We have had an average growth rate of 5.2% between 2002 and 2011, 3.5 times the European average.”

Madrid 2020’s bid outlines a plan for a low-cost Games, with most of the Olympic venues already built. Its construction budget is just £1.2 billion, while the organising committee budget is £500 million.

However, Spain’s economy is not in the same state as Turkey’s; the unemployment rate is 25%. This is also the third consecutive time Spain has bid for the right to host the Games.

Tokyo 2020’s organising committee budget is £2.7 billion and its construction budget is £2.2 billion. Naoki Inose, Tokyo’s new governor, stated the metropolitan government’s annual financial base was 12 trillion yen.

“That’s quite big,” he said.

Tokyo 2020 plans on the IOC seeing the Japanese city as the safe bet, with the capital city’s financial power outweighing that of its competitors. Like Madrid, however, Tokyo has lost out on hosting the Games in the recent past. Tokyo and Madrid each failed in their bids for the 2016 Games, awarded to Rio de Janeiro of Brazil.

While budgets have not consistently been a major factor in the IOC’s decision-making process when it comes to choosing a Host City, the on-going financial crisis and economic climate in the world may cause that to change.

The IOC will vote on the three potential Host Cities of the Games of the XXXII Olympiad and XVI Paralympic Games in 2020 on 7 September 2013 in Buenos Aires.

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Keywords · 2020 Olympics · Olympic bidding · economy · budgets


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