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Eye of The Argus
PyeongChang Winter Olympics:
Profit or Loss?
ByByunHee-jin
Editor
T
he test events for the upcoming 2018 PyeongChang Winter Olympic Games are in progress, the first one to
kick off on Feb.3. The PyeongChang Games, which most Koreans have long anticipated, remain less than a
year away. South Korea won the “Grand Slam in Sports” by hosting both the summer and winter Olympics,
theWorldCup,theWorldChampionshipsinAthletics,andFormulaOne.Thereareonlyfivecountriesintheworldto
haveachievedthat.ByholdingtheOlympicsinKorea,thereisspeculationthatthenumberoftouristswillincreaseand
Korea’seconomywillgrow.Butisthattrue?
The argument that international events will attract tourists is false. In Busan, the number of tourists, which was
1,630,000 in 2000, jumped to 2 million in 2002 due to the World Cup and the Asian Games. However, it fell to 1.47
million in the following year and 1.41 million in 2006. There was no ‘Asian Game effect;’ rather, it went backwards.
Tourism in Daegu, which also hosted the World Cup and the Universiade in 2003, decreased after the competition.
ThereisnocitywheretouristshaveincreasedbecauseoftheOlympicsortheWorldCup. Inshort,tourismeventsdo
notattracttourists.
In addition, the economic effects are temporary. The huge investment put into the infrastructure such as stadium,
streets and accommodation is packaged as a beneficial economic effect. It is a strategy that ignores the calculation of
costandbenefit.Intheend,theresidentsforgetthefactthattheymayhavetopaymoretaxes.Infact,Montreal,which
had hosted the 1976 Olympics, paid off about $1.5 billion in debt in 2006, which was 30 years after their Olympics.
Nagano, which hosted the Olympics in 1998, poured in $19 billion but suffered a severe depression after the closing
ceremony.Intheend,theJapanesegovernmentowed$11billionindebt.Itiscalled“thecurseofNagano.”
Likewise, the problem starts after the closing ceremony. Gangneung, a city with five stadiums, has voiced related
concern. There are too many facilities for a city with 210,000 citizens. Maintenance costs are made because there is
a demand for facilities. However, the maintenance cost is estimated to be about 10 to 20 billion Korean won per year.
Similarly,PyeongChang’sdebtwillbetakenoverbythestate,andthedebtwillultimatelybeshoulderedbythecitizens’
tax.Thatiswhyestablishingplansfortheuseaftertheclosingisimportantaswellaspreparation.
For the success of PyeongChang, it has to be reborn as a world-class winter sports attraction based on existing
infrastructure, with its natural beauty and Olympic promotional effects. Unfortunately, this kind of dream does not
happenovernight.NaganoandVancouveralsodreamedofWinterOlympicsjackpots,buttheresultswereterrible.As
longastheOlympicsareorganizedwithlong-termpolicies,thejoyofattractionwillleadtonationalprofit.Letusopen
upatrue“NewHorizon.”
hjbandi@hufs.ac.kr
27
MARCH 2017
PyeongChang Winter Olympics:
Profit or Loss?
ByByunHee-jin
Editor
T
he test events for the upcoming 2018 PyeongChang Winter Olympic Games are in progress, the first one to
kick off on Feb.3. The PyeongChang Games, which most Koreans have long anticipated, remain less than a
year away. South Korea won the “Grand Slam in Sports” by hosting both the summer and winter Olympics,
theWorldCup,theWorldChampionshipsinAthletics,andFormulaOne.Thereareonlyfivecountriesintheworldto
haveachievedthat.ByholdingtheOlympicsinKorea,thereisspeculationthatthenumberoftouristswillincreaseand
Korea’seconomywillgrow.Butisthattrue?
The argument that international events will attract tourists is false. In Busan, the number of tourists, which was
1,630,000 in 2000, jumped to 2 million in 2002 due to the World Cup and the Asian Games. However, it fell to 1.47
million in the following year and 1.41 million in 2006. There was no ‘Asian Game effect;’ rather, it went backwards.
Tourism in Daegu, which also hosted the World Cup and the Universiade in 2003, decreased after the competition.
ThereisnocitywheretouristshaveincreasedbecauseoftheOlympicsortheWorldCup. Inshort,tourismeventsdo
notattracttourists.
In addition, the economic effects are temporary. The huge investment put into the infrastructure such as stadium,
streets and accommodation is packaged as a beneficial economic effect. It is a strategy that ignores the calculation of
costandbenefit.Intheend,theresidentsforgetthefactthattheymayhavetopaymoretaxes.Infact,Montreal,which
had hosted the 1976 Olympics, paid off about $1.5 billion in debt in 2006, which was 30 years after their Olympics.
Nagano, which hosted the Olympics in 1998, poured in $19 billion but suffered a severe depression after the closing
ceremony.Intheend,theJapanesegovernmentowed$11billionindebt.Itiscalled“thecurseofNagano.”
Likewise, the problem starts after the closing ceremony. Gangneung, a city with five stadiums, has voiced related
concern. There are too many facilities for a city with 210,000 citizens. Maintenance costs are made because there is
a demand for facilities. However, the maintenance cost is estimated to be about 10 to 20 billion Korean won per year.
Similarly,PyeongChang’sdebtwillbetakenoverbythestate,andthedebtwillultimatelybeshoulderedbythecitizens’
tax.Thatiswhyestablishingplansfortheuseaftertheclosingisimportantaswellaspreparation.
For the success of PyeongChang, it has to be reborn as a world-class winter sports attraction based on existing
infrastructure, with its natural beauty and Olympic promotional effects. Unfortunately, this kind of dream does not
happenovernight.NaganoandVancouveralsodreamedofWinterOlympicsjackpots,buttheresultswereterrible.As
longastheOlympicsareorganizedwithlong-termpolicies,thejoyofattractionwillleadtonationalprofit.Letusopen
upatrue“NewHorizon.”
hjbandi@hufs.ac.kr
27
MARCH 2017
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