The 1976 Olympics in Montreal, Quebec were an economic disaster. In 1975, with construction over budget and behind schedule, the provincial government of Quebec stepped in to expedite construction. However, Montreal was held responsible for all debts incurred by the provincial government. The hallmark of the games, the Olympic Stadium was functional, albeit incomplete, in time for the games. By the end of construction, Montreal’s debt stood at approximately $1.5 billion U.S. dollars. The city of Montreal would not pay off its debts until December of 2006[i].
After the ruinous 1976 Olympics, Canada appeared to have learned from its mistakes. The 1988 Winter Olympics in Calgary were a financial success. Overall revenues generated by tourism, infrastructure improvements, and the creation of exceptional facilities are estimated at $1.4 billion, and the 1988 Olympics produced a reported $90 million profit. This money was reinvested by the Calgary government in the maintenance of facilities and training for athletes. However, as Thomas Walkom of the Toronto Star discovered in 1999, the recorded profit did not include $461 million in government subsidies[ii]. When this is figured into the cost, Calgary’s profit turns into a substantial loss. Despite the cost of hosting the games, Calgary emerged mostly unscathed. As of 2006, studies estimated that the “total value-added gross domestic product impact of the Calgary legacy facilities since 1989 had been $925 million (adjusted for inflation)[iii].”
With the Winter Olympics again in Canada, many wonder if Vancouver will take after Montreal or Calgary. Like most other Olympic hosts, Vancouver has experienced cost overruns and construction delays. The Athlete’s Village alone has cost $820 million, including $103 million in cost overruns[iv]. Despite its inflated budget, this spending is necessary to house thousands of athletes for seventeen days. Additionally, this housing can be used by new tenants once the Olympics come to an end. More egregious is the $900 million price tag of security for the series of events[v]. For nearly $53 million a day, 15,000 police, security, and military personnel will be charged with protecting athletes and spectators. This spending would appear to be disproportionate to any threat posed to the Olympics. The Canadian government rates the chance of a terrorist attack as low; according to Vancouver officials, political protests represent the largest threat to the games. No one wants to question the chance of a terrorist attack, and the tragedy of Munich persists in the memories of many. However, a $900 million budget for security in Vancouver, Canada, a locale of little significance to any radicals trying to make a statement, seems like overkill. If the Olympics are to be profitable, perhaps those planning the games should take a more measured, rational approach to security.
[i] Canadian Broadcasting Corporation. "Quebec's Big Owe stadium debt is over." 19 December 2006. CBC News. 10 February 2010
[ii] Walkom, Thomas. "Up Front The Olympic myth of Calgary." 8 February 1999. thestar.com. 11 February 2010
[iii] Zimmerman, Kate. Legacies of North American Olympic Winter Games. Research Report. Vancouver: Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games, 2007.
[iv] Associated Press. "Vancouver looks for money to finance 2010 Olympics." 13 January 2009. usatoday.com. 2010 February 2010
[v] Meserve, Jeanne and Carol Cratty. "Canada assembles 15,000 to make Olympics secure." 1 February 2010. CNN.com. 7 February 2010
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