Since the 1924 Paris Olympics, several Games, including those in Amsterdam (1928), Helsinki (1952), Melbourne (1956), Montreal (1976), Moscow (1980), Athens (2004), Rio (2016), and Tokyo (202O), ended in financial losses. But the Paris 2024 Olympics are poised to significantly influence France’s net national income. With a final estimated budget of €12.8 billion, this global event stands as a monumental economic project for the French government. Originally, in 2017, the budget was projected to be €6.8 billion. The funding is drawn from multiple sources, including €1.2 billion from the International Olympic Committee (IOC), private sector sponsorships, licensing, and ticket sales. Projections suggest that the Olympic and Paralympic Games will generate around €16.5 billion in revenue, potentially culminating in a multi-billion-euro profit, with the exact figure to be determined after the Olympic Games conclude.
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Revenue from broadcasting rights, spanning over 120 countries, is anticipated to bring in approximately €750 million. Meanwhile, ticket sales, having already set records compared to previous Games, are expected to generate around €1.1 billion. Event ticket prices range from €100 upwards, with the cheapest tickets for the opening and closing ceremonies priced at €1,500. It is estimated that over 10 million tickets will be sold for the Olympics and an additional one million for the Paralympics. Furthermore, income from licensing and sponsorship deals with commercial companies is estimated at €1.4 billion. French tourism authorities predict that more than 11 million visitors will flock to Paris during the Games.
THE INCREASE OF BOOKINGS
According to France’s National Institute of Statistics and Economic Studies, ticket sales and broadcasting revenue are projected to impact France’s GDP by about 0.5% from July to September. Prior to the Games, it was anticipated that hotel occupancy would drop by 15% compared to the same period in 2023. For context, during the 2012 London Olympics, hotels experienced a 10% decline in occupancy. However, with the rise of Airbnb, expected to see a 400% increase in bookings compared to the previous year, these statistics may not fully capture the actual scenario.
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The potential revenue from the Games, to be finalized by year’s end, will be divided between the IOC and the Paris Organizing Committee. This committee, formed in collaboration with the French Olympic Committee, will work alongside a state-owned French company responsible for infrastructure. The French Olympic Committee estimates its share could be close to €3.7 billion, with €1.1 billion coming from ticket sales.
€440 MILLION OS SPONSORSHIPS
Additionally, the estimated income from visitors, journalists, and accompanying delegations is around €3.5 million. Broadcasting rights are expected to generate €700 million, and sponsorships another €440 million. The Olympics have 16 global sponsors, including Coca-Cola, Samsung, Allianz, and Toyota. A portion of the revenue directly paid to the IOC will be transferred to the local organizing committee.
Historically, hosting the Olympics has not always been a financial boon. The 2016 Rio de Janeiro Summer Olympics resulted in a $2 billion loss, with the city covering $1.1 billion and the federal government the remaining $900 million. The head of Rio’s organizing committee was later imprisoned for corruption and bribery. The Tokyo 2020 Olympics, delayed to 2021 due to COVID-19, saw costs escalate to $28 billion from an initially estimated $3.7 billion. Similarly, Rio’s costs surged from an estimated $2.6 billion to $13.7 billion, a 302% increase.
The economic outcomes of the Paris 2024 Olympics will be closely watched, with the hope that careful planning and robust revenue strategies will lead to a successful and profitable event for France.
