The Olympics is an international sporting event which encompasses summer and winter sports competition. The games symbolize a unique venture with an ability to deliver a significant experience which can change a country’s image. It brings together many athletes from different parts of the world and where they participate in various competitions. For a country to host the Olympics, it has to send bids to the International Olympics Committee. Countries bidding to host the 2024 Olympics are Germany, Hamburg, Budapest, Hungary, Rome and Paris. The paper will lay emphasis on the benefits of bidding and hosting for the Olympics as well as the measures taken to prevent Ambush marketing.
Benefits of bidding for the Olympics games
Bidding for the Olympics aids in the provision of major opportunities for positive improvement as well as significant legacy. The resulting perks comprise of economic, social and environmental benefits. The long term economic benefit for a country that bids for Olympic Games regardless of the candidature is a boost in trade. This is because bidding for the event gives an impression of economic stability which is one of the criterions necessary to qualify for the bidding process. Therefore, the Olympic effect on trade is attributable to the signal sent by Paris when bidding for the games as opposed to the actual hosting of the event. However, the boost in trade cannot be compared with benefits that Paris will experience after hosting the actual event.
The other economic benefit will be a boost of infrastructure because Paris ought to have a certain level of infrastructure before qualifying to host the Olympics. In this respect, even if a country does not qualify to host the games, the level of infrastructure will have already been improved. The social benefits of bidding for the Olympics is that a country encourages citizens to take up sports locally and engage in skills training as they look forward to represent their country. The environmental and sporting benefit of bidding for the Olympics is that a country will experience the development of new public areas to ensure that Olympics are etched into the collective memory. Bidding for the Olympics is a powerful city branding strategy because as it takes the opportunity to enrich local endowments and foster multi-scalar effects of image building. Similarly, a country will ensure that its governance structures, legal elements and political support are up to par before bidding for the games. As a result, a country demonstrates a comprehensive approach to integrated and sustainable development. Bidding for Olympics games can also be a signal for trade liberalization.
Benefits of Hosting the Olympics Games
The long term economic benefit of hosting the Olympics games is an increase in national exports trade. This is attributable to the influx of tourists and visitors who purchase commodities from the host country. The higher trade revenue will offset the high costs involved in hosting the mega event. The long term social benefit of hosting the Olympics is that a country will reaffirm its status as a city and showcase its diversity and sporting prowess to the world. A country will also enjoy national prestige and the ‘feel good factor.’
The environmental and sporting benefits that a country will experience pertain to the establishment of new sporting facilities such as stadiums and aquatic centres. The sporting facilities will host various events which are likely to be dispersed throughout the city. Additionally, the facilities will be state of the art and will be efficient and convenient for those participating in sports. Moreover, hosting the Olympics gives a country a platform to develop the country’s brand in upcoming economic powerhouses. This enhances reputational legacy whose benefits can be felt even after the departure of Olympics visitors. Hosting Olympics games also has inherent negative repercussions that can compel a country to withdraw their candidacy and declare motivations for bids drop off. For instance, a country can consider the high costs of hosting the games and the establishment of sporting facilities that won’t be of use in the post games.
Political reasons might also arise where the public opinion has a negative perception towards International Olympics committee (IOC). Other countries might not be willing to go through the process of convincing citizens that the expenses of hosting the games will be covered by raising taxes. Similarly, the massive construction schemes bound to take place will disrupt local communities and people might lose homes or allotments.
Measures to Prevent Ambush-Marketing
Ambush marketing is a technique used to raise awareness of a particular brand in covert ways. This is achieved by capitalizing on the prominence of a particular event. Even though ambush marketing might come in various different forms, its ulterior objective is to draw attention from one brand. In the Olympics, ambush marketing takes place when non-sponsors attempt to benefit from the Olympics without offering any contribution to support the event. The eradication of ambush marketing ensures a protection of the game’s reputation and shows respect to the financial commitment of official sponsors.
A measure that can be taken to protect the rights of IOC’s sponsorship partners is restricting commerce around venues and ensuring that official sponsors access public advertising space. The restriction of commerce revolves around the elimination of temporary advertising structures and removal of counterfeit goods from sale. Officials will also have to stop massive give-aways of items such as pens, umbrellas and t-shirts. Similarly, traders wishing to operate around the revenues will have to apply for authorization. The terms and conditions of the ticket ought to provide information that restricts what visitors can eat, wear and drink at Olympics revenues. This will be effective in restricting the commercial activities taking place in the venues as well as protecting the interests of official sponsors. Unauthorized advertising in the vicinity of the games venues should also be ruled out.
Another measure is the adoption of a more realistic perspective where event owners implement other options such as the reduction of sponsorship categories. This is because there has been an increase in revenue from sponsorship and thus an increase in sponsorships. The measure will increase income for the official sponsors and heightens the chances of rivals securing rights to the event. There has also been the instigation of campaigns that put moral pressure on non-sponsors who attempt to orchestrate ambush marketing. The shaming can be effective in tarnishing their public perception which affects their sales and profits eventually. Another measure is to set restrictions of ensuring that competitors are not given the privilege of sponsoring the event’s screening.
Similarly, non-sponsors should not seek an association with the Olympics by advertising their products during commercial breaks. In fact, there ought to be advertising slots which official sponsors can be allowed to purchase. The Olympic host cities depend on sponsorship partners who raise enough financial resources to host the games. This has led to the instigation of groups such as ODA to ambush marketers and impose heavy penalties on them.
Hosting the Olympics is a defining moment that contains important decisions which will have a long-lasting effect on a country. Other countries believe that the Olympics are meant to serve the interests of IOC and not the needs of the host city or Nation. A country that bids to host the Olympics ought to undertake steps to counteract the monopoly power of International Olympic Committee (IOC). A country also has to prove that it is big enough to handle the Olympics because the games bring a huge number of athletes, politicians and tourists. Similarly, a country has to prove its ability to deliver the optimum security requirements. In regards to ambush marketing, it appears to be an irritation to event owners as well as official sponsors of the events. Therefore, necessary precautions ought to be set in place to protect such sponsors.