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Economic Impact and Revenue Analysis of the Olympic and Winter Olympic Games
Ian Sutherland,Gunhee Lee,Soeon Park 한국관광연구학회 2015 관광연구저널 Vol.29 No.4
Our research sheds light on two aspects of the Olympics. First, our research looks at the direct and indirect economic effects of the upcoming Pyeongchang Winter Olympic Games on the South Korean economy using input-output analysis through inter-industry relation tables. The input-output table used in our study is a reconstruction of a larger table using only industries that are impacted most by the hosting of the Olympic Games. As a result, we found a 2 million dollar increase in production and 0.56 million dollars in supply shortage resulting from hosting the Pyeongchang Olympic Games. Particularly, it is shown that the Olympic industries will grow the Electronics & Electrical Equipment and Real Estate & Business Services industries more than others based on their expected production inducement and supply shortages. The second half of our research uses regression and exploratory analysis of past Olympic and Winter Olympic direct revenue sources to determine characteristics that result in the successful or unsuccessful hosting of the Olympics. When adjusted for event size, two themes appear in classifying the successfulness of hosting the Olympics. The first is a resulting relative increase in licensing and sponsorship revenues by large countries. The second theme is relatively higher revenues from ticketing and broadcasting in countries where the first language is English. Combining these factors, a very rough estimation of $2.6 billion of direct revenues is forecast for the 2018 Winter Olympics in Pyeongchang, South Korea