According to the Oxford Olympics Study 2016, Olympic Games incur the highest cost overrun than any other megaproject in the world. About 47% of the games go beyond their budget by more than 100%. As revealed in the study, an average of $8.9 billion is the sport related amount that countries spent on hosting the games in the past ten years. Generally summer games are more expensive than winter games. From 1960 to 2013, the average cost of the winter games stood at $3.1 billion while the average cost of summer games stood at $5.2 billion. The most expensive summer games was the London 2012 costing $12 billion while the most expensive winter games was the Sochi 2014 with a cost of $22 billion.
Most Expensive Winter Olympic Games In History
Sochi, Russia (2014) is by far the most expensive Olympics ever. With its budget set at $12 billion by the Russian government, Sochi fiercely overrun its budget costing Russia $22 billion according to the Oxford Olympics Study. The high cost overrun is thought to have resulted from the drastic measures put in place to ensure there was enough snow on the ground owing to Sochi’s subtropical climate in summer. Besides, a lot of construction was probably needed among them the 31-mile road between Sochi and Polyana. Polyana would host the ski and snowboard events. The high cost is also attributed to security concerns while the rest is thought to have been stolen through corruption.
Torino, Italy (2006) The Torino Winter Olympic Games cost $4.36 billion making it the second most expensive Olympic winter game. This amount includes the sport-related expenses only such as the operational cost and the direct capital costs while excluding the indirect capital cost. Operational costs were the costs of staging the games such as technological costs, transport, labor, administrative, security, and medical and catering costs. Direct capital costs were related to establishment of competition venues, media and press center, international broadcast center and the Olympic village. The total cost overrun for the Torino 2006 was 80% in real terms.
Vancouver, Canada (2010) The Vancouver games are the third most expensive winter Olympics costing $2.54 billion . With an estimated expected cost of $2.25 billion, the games exceeded the budget with a cost overrun of $0.29. The total cost of $2.54 billion encompasses the operational cost that was majorly raised from auction of national broadcasting rights, sponsorship, and taxes as well as security costs.
Salt Lake City, United States (2002) The Salt Lake City games are the fourth most expensive winter Olympics. From an estimated budget of $20.3 billion the games cost $2.25 billion exhibiting a cost overrun of $0.49 billion.
Lillehammer, Norway (1994) The Lillehammer games are notable to mention having cost a total of $2.23 billion, with a cost overrun of $1.64 billion from an expected cost of $0.59 billion.
Indirect Costs Of Hosting The inter Olympic Games
Despite the fact that host countries incur operational costs, direct capital costs and indirect capital costs, the Oxford Olympics Study did not factor in the indirect capital costs related to hosting the Winter Olympic Games. These indirect costs are the most expensive part of hosting the games. However, exact data on indirect capital costs is hard to come across and can be unreliable.