Olympic Games-2024: a controlled bill, revenues undoubtedly moderate

Limited cost for the State

The estimated bill for the Games is close to 9 billion euros, a figure which remains to be confirmed.

The budget of the Organizing Committee (Cojo), supplemented by ticket revenue, sponsors and an allocation from the International Olympic Committee (IOC), reaches 4,4 billion euros. That of Solidéo, the Olympic works delivery company which notably built the village, is also 4,4 billion.

According to the Japanese Court of Auditors, the Tokyo 2021 Olympics, postponed for a year due to Covid, cost 12 billion euros.

A bill similar to that of the Athens 2004 Games (13 billion) or London 2012 (12 to 15 billion according to estimates), even if the comparisons are risky because they are often based on different scopes.

The total bill for Paris-2024 for the public authorities remains dependent on several contingencies: amount of exceptional bonuses granted to civil servants, cost of the police system... The State again announced on Wednesday an extension of 33 million euros for the Games Paralympics, tickets for which are currently struggling to find takers.

To date, the State and communities have committed 2,4 billion euros (in particular via Solidéo). According to the first president of the Court of Auditors Pierre Moscovici, the final bill will reach 3 to 5 billion euros.

For Bruno Cavalier, chief economist of the broker Oddo BHF, “the direct involvement of the State is relatively limited” in organizational expenses. And hosting the Games will not “radically change the situation of public finances in France”, he estimated in April.

Little macroeconomic impact...

According to the Center for Sports Law and Economics (CDES), commissioned by the IOC and Paris-2024 to quantify the additional economic activity linked to the Games, the event will generate between 6,7 and 11,1 billion euros. euros of economic benefits for Paris and its region, where the majority of the Olympic and Paralympic events will take place.

An impact spread over nearly 20 years (2018-2034), in order to encompass the fallout linked to the organization, progress and “legacy” of the Games.

In February, the economic research firm Astères expected that hosting the Games would generate “an increase in tax and social revenue of 5,3 billion euros”.

As Deutsche Bank economists point out, "the host countries of the Olympic Games (...) rarely derive positive economic and social revenue from investments, often public and massive, in new stadiums and infrastructure".

“Even in the short term”, the multiplier effect of investments on employment or income is limited, “unless the host country is going through a period of recession”, they add.

For the governor of the Bank of France, François Villeroy de Galhau, the effect of the Games will be "psychological" before being economic.

But if thanks to the event, "the image of France improves further among the whole world and Europeans, we should benefit in terms of investments", he anticipated in mid-March.

... but a boon for certain sectors

“Briefs, swimsuits, socks, pajamas in the colors of the Olympics”: French Slip has sold “around 20.000” derivative products thanks to the Games, welcomes Léa Marie, general manager of the company specializing in underwear and accessories made in France.

“It generated work in the factories” and for the company’s 80 partners, said the manager on Tuesday during a meeting organized by the Association of Journalists for Small and Medium Enterprises (AJPME).

Like Léa Marie, companies from various sectors involved in the preparation and staging hope to benefit from the Games.

According to the CDES, infrastructure construction and renovation companies can count on benefits of between 2,1 and 3 billion euros.

With 1,4 to 3,6 billion euros in expected benefits, tourism professionals should also benefit from the approximately 15 million visitors expected this summer by the Paris Tourist Office (including two million foreign tourists).

Among other potentially winning economic sectors, Oddo BHF cites “media, leisure, beverages and spirits, consumer goods and transport”.