Olympics = $$$$$$ for the host city?

Other than Vancouver, many events are also held outside of the city. Many of the snow related sports are in Whistler. Recently, Whistler has made the news, not good news unfortunately. Whistler Ski Resort is owned by Intrawest who just ran into financial trouble aka missed a major debt payment. After the news broke, there was an air of panic whoever takes over Whistler was going to interfere with the Olympics only weeks away. Drama!

Before this, the construction of the Olympics village went way over budget by more than $100-million and has had to have its financing taken over by the city.

Is this type of controversy that sparks the debate whether the Olympics was a good idea in the first place? It is like a huge jigsaw puzzles with many uncertainties that has to come together and not to mention, it takes up massive amounts of resources. The cost almost always exceeds revenue.

I believe in Olympics is a good idea and a good financial idea. The key is not to expect the Olympics itself bring Vancouver any significant financial gain. The cost of the Olympics should be view as a marketing expense, a 580 million dollar expense. With revenue, the actual expense will not be as scary which we should be happy about.

As a host city of such massive international gathering, Vancouver is betting on the future. Let's use the Olympics in China as an example who viewed their Olympics as a coming out party for the county. It paid off almost right away. China was about to successfully negotiate with the World Trade Organization two months after it won the right to the 2008 Olympics in July 2001. The Olympics ultimately showed the world China's capabilities, infrastructure and resources which boosted trading and investment confidence the world has for her. During this economy recession, China was the first to bounce back while the rest world is still waiting.

I believe the 2010 Winter Olympics will do the same for Vancouver. More trading opportunities and more investment money will come as the world spot light shines on us for the next two weeks.