The federal and Queensland governments have both cited research by accounting firm KPMG,commissioned by the state tourism department,which found the 2032 Games would deliver up to $17.6 billion in benefits to the nation.
But that research,which did not take into account the costs of staging the Olympics,relied heavily on social benefits including “community spirit” and “civic pride” while also claiming they could boost volunteering levels.
University of Western Australia economist Jakob Madsen said despite promises,all Olympics suffered from cost over-runs that left host cities struggling long after the crowds had gone.
“Hosting the Summer Olympics in 2032 is an extraordinarily bad idea and can be a loss making arrangement on a grand scale;just look at Greece’s experience[Athens 2004],” Professor Madsen said.
“From previous Olympics,we know that the net outcome is a large financial loss. So from a public finance perspective,the loss can be enormous.”
Leading independent economist Saul Eslake said Olympics did not deliver the economist boost promoted by supporters.
He said while there may be a short term “sugar hit”,there was no evidence that such large events delivered a lasting economic boost.