they can march our models and see them other countries, vietnam, so sending a submarine, nuclear vote some sort of a, a skirmish ignite of versus the asked us of good, of course joe, by represents the verse. i do not suspect he is going to be allowed to trust grades . i want very interesting and need in the, the way korea has a with neighboring china and russia. well, that's very good question and you're already seeing live pretty so you see rushes med of operations. we will have to provide north korea with defensive, strong wall against the hedge m on and the u. s. knows that as well. so i'm around south trying to see a nation, so i think men been captured as well and buttress each other's independence from being the same time limiting their protection. and their support has

a said to its people in the world. i've been to iran, russia, and other countries. they have no, that is conquered and burned down the world. they hate us. so we have gone traditional family values, entrepreneurship, liberty for them because they were created for that. but the americans got every other nation in the name of this rough child international baby was i'm 52, thanks again for your time. blevins. really with the of the top of the hour. i'm not home mommy wishing you all in the olympics and see for well the top are 2 major scan ticket bands that's going to be broadcasted. billions of the like the world cup in the olympics. and how it really affects the home. the world cup is held every 4 years and is the most travel from all over the world to follow their favorite teams in a month, lou broadcasting right sponsorships, ticket sales, like all the players. and course, as it is such a high viewers, loosen tourism,

which leads to an increase and local economic activity. factors can help to promote the host country brand and attract further investment could tar who host to the 2022 world cup is reported to spend over $220000000000.00 on the construction of a new metro system. roads, a new airport neighborhood, and even an entirely new city and 7 new stadium. for comparison stake, russia spent about $11000000000.00 in 2018 nice countries hosting a world cups, then tens of billions on preparations from building infrastructure, hotels, advertising campaigns, ticket sales, security, etc. and much of that is often not recouped in terms of hard cash. instead, you get tv right, sold to broadcasters around the world, ticket sales marketing,

right. and an influx of tourism over a 1000000 overseas visitors are expected during the month long torment, which increases sales for hotel restaurant tours and over drivers. but these benefits are very short term and often do not outweigh the costs. hotel prices rise during the sell out event. wages of service workers do not necessarily go up by the same amount. this means the returns to capital are greater than those to labor. wholesale world cup is also an exercise in political capital and soft power. it gives the world a window into that country to show off how new its infrastructure is, how lucrative it is in order to attract future business investments. for a whole country, it's about pride and honor and publicity, more than it is about money. and while it welcomes foreign tourism, at the same time they get to spread its own cultural influence around the world to

foreigners, to make them more aware of its traditions and customs. the hope and promise of hosting is that in the long run, the money spent on hosting builds capacity for that country's economy to expand new roads and transport projects will also provide economic benefit. in terms of dollars, guitar has estimated that it will make $17000000000.00 in revenue after hosting the world cup accounting for $1200000.00 visitors and the sale of $3000000.00 tickets for matches. that is a far cry from the initial investment, but it hope that about $40000000.00 people will seek to visit the country in the future after it's heavy media exposure. so now as spring in victor matheson, editor at the journal of sports, economic and professor at the college of the holy cross. so now is hosting the world cup great for the host country or the whole country when it comes to tourism

. so it is actually generally pretty good for your tourism sector and your tourism sector only. so if you want something like cutter cutter certainly had somewhere in the vicinity at least $500000.00 additional hotel room nights because of the world cup. probably a few more than that. we look back to things like rio, rio, had maybe 200000 addition, additional hotel room nights. we definitely see that again, the smaller events here, the us like the super bowl, again, identifiable as big tourism events. the question is whether the tourism is enough to pay for all the other bills that come along with hosting these mega vents. now taxing businesses is a common way to raise funds to help pay for these fee for matches and these taxes will still exist for years after fif was done. so what happens to the businesses after that? can they still survive? right, so it all depends on how much you've spent to do this, right. so cuts are,

for example, spend somewhere in the vicinity of $200000000000.00 in preparations for this. that's more than not just any other mega event in history. that's more than every other world cup, for example, in history, all put together, it's more than 4 times what the most expensive olympic games ever cost. so this is, this is something that there's no way you can possibly get any sort of reasonable return out of this. on the other hand, the united states, canada, canada, and mexico are hosting the next one. and they're going to spend essentially nothing on new stadiums, at least. so when you keep your costs down, you have the possibility that these can be paid off with reasonable taxes over a reasonable amount of time. but it's impossible when you're spending in the end, the billions of dollars like tokyo spent for the olympics like real spend for the world cup and the rest of brazil spent for the world cup or again in the hundreds

of billions like cuts are spent for the last world cup. now as really remarkable and unprecedented here, why would guitar spend so much money on it? well, certainly for a country, this was a prestige project. nothing, nothing else. it was we have the money and we want to post this event. it's the same sort of thing of why would anyone spend $250000.00 on a gold plated custom lamborghini? well, because you can, there's no of, there's obviously no financial return on that for you. but it's all about showing off your country showing off your wealth more realistically, at least for some, some countries. it is an investment in infrastructure and future tourism. it's a way to advertise your city or advertise your country. and in those cases, it's possible that it can work, but even most of those cases, it's

a pretty big gamble. the event must have worked into something different. i mean, since the country spend so much money and must have been a completely different experience. yes, so i wasn't there for the event i was, i was in the country a few years before that in the run up for this again. what's, what's astounding in cutters case is, this is a country that's roughly the size of the state of connecticut. and in the u. s, with about half the number of people is about the amount of infrastructure. so this is a country with literally one stadium in place when they are awarded the games that was up to the caliber that they needed for the world cup. they were bidding against the u. s. and when the u. s. put in their bid, we have $79.00 different stadiums across the country that we said could be ready for a world class event. within 3 weeks. they had one stadium in the entire country to do this and the course had to build another 9 stadiums from scratch and, and again,

when, when you're doing that sort of spending on things that don't have a long run value for your life, stadium stadiums are not a good long run investment. again, there's just no way that you're doing this for any sort of plausible economic reason. and the economics of hosting things like fi, fi and the olympics are so bad. then why do politicians play such significance on hosting and fight to has the right to host? well, so there's a couple different reasons, right? so 1st of all, just because it's a disaster or can't be a disaster for a city as a whole, or a countries a whole doesn't mean that there's not special interests within the city who could benefit from that. so for example, no, no better time to be a hotel owner than during a mega event. so there's no doubt that certain sectors and of course, so those are the sort of sectors that may have the ear of the president or the mayor, or the prime minister of the heavy construction industry loves these, right? because you have to build all those stadiums and those airports and those hotel,

so they love this. so one thing it can, it can be a giveaway to the special interests, just because it's not good for the country as a whole. doesn't mean that there's not influential people who can benefit. so that's number one. and of course the other reason here is, is it's just a show for ego, right? we've seen this again and again i, china, when they hosted the summer olympics again, this was a way to project power, right? basically soft our were sports washing right? ah, when we have obviously guten, posting both at the winter olympics in sochi, as well as the world cup in 2018. again, this is an a time for hootin to show off of his political power and say, look how important russia is. we're hosting the world's most important sporting events. look at how strong

a leader i am and i can bring these things to you. so certainly up front i'd is an important piece there, as well as sometimes it's not always bad either. so it's, for example, south africa, the 1st big sporting event they did when they, when they emerged from decades, carbide was hosting the rugby world cup. and that was actually a wildly successful and really bringing together whites and blacks in the country. as you know, to be able to refer something, not as a white south african, but as a south african. and the image of nelson mandela handing over the trophy to the white. hampton francois cleaner, is, is really a great image of, of the power and the, and the goodness of sport. unfortunately, others that those sort of images are far too rare and far too often it's, it's just money give away. and looking back to the guitar world cup again,

including the thousands of migrant workers who are exploited, was there a quantifiable benefit that justify this tremendous cost. so, so newer, closer that being said, they are going to be left with some things that are, that are fairly useful, right? so they're going to be it, they're going to be left with a much expanded transportation that works so much that are international airport. now monday, it's an international airport that's built to handle the sort of crowds you get during the world cup. ah, not during regular regular business. right. either gonna have a nice hotel sector that significantly improve the over there old hotel sector about again, that's again a going to be a sector that's rarely used to capacity. and at least in the united states, you need to fill up a hotel room about 70 percent of all nights to make the make it so that that hotel can stay in business. it's unlikely that a bunch of these hotels are going to be having ongoing business sits enough to fill up those hotel rooms night after night after night,

which is what you need to actually have these things makes sense from an economic standpoint. again, additional additional roads, additional mass transit, it again, additional tourist facilities. they're going to be left with a bunch of things, but almost almost certainly of much of it's going to be way outsized for the, for the economy itself. a cutter has been put on the map in a way that wasn't in the past, although again, that's not necessarily good either because a lot of what people know about cutter is that it is a very, very conservative society, repressive towards women, not no alcohol was had serious issues with migrant workers during the building phases. so again, some people say there's no such thing as bad publicity, but it's not entirely clear that that's true. thank you so much back there. make their matheson will stick around with us because after the break we will analyze

how costly it is to organize and execute the winter and summer 11. don't go away. i o. i welcome back to the cost of everything. while the olympic games have become the biggest sporting event in the world, attracting thousands of athletes to come together and compete and win pride for their home country. these games have come under immense criticism over the last decade. for much of the 20th century, the olympics was just a manageable burden for their host countries. games were publicly funded with the advanced countries, better position to bear the costs due to their larger economies. however, once there was a jump in viewership and television broadcasting revenue,

holstein cities began to grow more ambitious, creating more expensive plans to demonstrate their progress on the world stage. host cities organizing the events need to invest millions into creating specialized sports facilities. you limping village and then you large enough to host the opening and closing ceremonies. infrastructure costs range anywhere from hundreds of millions of dollars to tens of billions of dollars, depending on what infrastructure needed to be upgrade or built out. operational costs make up a smaller but still significant chunk of the host, the limping budget, which includes security and what is problematic or the so called white elephants or expensive facilities that because of their specialized nature, have limited posts. olympic, you need often impose costs for years to come, such as the birds and s stadium in from the beijing olympics, which was the $500000000.00 crown jewel center piece of the event that now stands

empty. aside from hosting a few cultural exhibitions and the occasional concert, much of the time this uniform venue stand empty. meeting up to the games. china husband $43000000000.00 under 2008 olympics at the time. more than 3 times more than any other olympic other venues go unused and will likely be demolished. many of the residential developments that were built up to house the extra core them crowds are also standing empty. now these buildings had almost 0 economic long term benefit. pulse olympic financial problems are common for host cities as spending billions to host a 2 week event almost never makes a profit. the city usually spending years paying off its olympic debt and is often left with unused venue and white elephant main stadiums. athens also when billions

over the plan budget of $1600000000.00 for the 2004 summer olympics and the greek citizens were left to pay for everything. in the aftermath, after tourism died down, there just wasn't any use for most of the building stadiums. and course it's these huge abandon investments have been especially painful as they all contributed to greece's financial crisis. gang wong, south korea, which was responsible for the 2018 games is expected to incur $8500000.00 of annual deficit due to the upkeep of unused facility. and now we're going to welcome back victor matheson. thank you so much for coming back selector, how many countries had netted an actual profit from hosting the olympics? and one of the manifest anatomy came from hosting. yeah, so uh the united states as them very well several times when we hosted the world cup in 1094,

i was still to the stay the most successful world cup in terms of average attendance. we didn't build any new stadiums. we spent a little bit of money putting a new coat of paint on, on a couple stadiums. we installed grass in the, in the indoor silver dome in detroit, a. but again, we spent almost nothing on this and yet attracted a tens of thousands of visitors from across the country. i, the, the organizers ended up with a big profit fif, ended up with a bunch of money. the money that of the united states netted on profit from selling tickets is still part of the u. s. soccer foundation that build soccer fields in disadvantage neighborhoods. so that's great. and again, is because the united states was able to host an event without having to spend billions tens of billions or again, hundreds of billions of dollars on new infrastructure. same thing happened in 1984 in an los angeles. when we hosted the summer olympics, there was very unique about that kings, is that when it came time to award, the

a vent to a ho city was angeles was the only city that was willing to be the host in 1084. and therefore, it could dictate the terms of the event to the i o. c rather than the other way around. and they said, hey, we're not building any new stuff. we're going to use the rose bowl. we're going to use the coliseum stadiums that were had that had been used 50 years earlier at the, at the last time the out with that. los angeles, at most of the games are they didn't build new dorm side any in any athlete. village they built the handed right over to you, c, l, a and you u. s. c. so they ended up having with the entire cost of the games was only about $1500000000.00 in today's dollars. that may seem a lot, but in, you know, in comparison just the stadium for the tokyo olympics that never got her next to coded idea, but just the stadium cost over $1500000000.00. so the entire,

her 1984 summer olympics cost less to host than just building the national stadium for the tokyo games. and when you can keep costs down like that, it's possible to make a profit in, in, in reality, a los angeles actually did come away with a healthy profit in the hundreds of millions of dollars. but that only was the case because they didn't spend multiple multiple billions or tens of billions putting the event on. now how does the government recruit the extra costs from spending on the olympics? i the citizens on the hook for it and do taxes usually go up leading up to these events like the olympics? yes, so the i o c. and certainly people as well require some sort of backup. so even of a private entity says that they're going to put on the olympics, it requires a public backstop that says if there any overruns that the government guarantees

that this will go on. in all cases we have huge over runs and, and we have billions of dollars that cannot possibly be recovered just through things like hotel rentals and ticket sales and merchandise and things like this. so that does mean that the countries are on the hook for that. for example, montreal, which hosted in, in 1976. ah, they took them 30 years to pay off the debts from their stadium building projects. and of course they were going to use their olympic stadium for baseball team. and by the time they actually got done paying for the stadium, that baseball team, the montreal expos had already moved out of town and is now the washington methods, which event has been the most wasteful? it seems like today, every country just keeps on trying to top each other building the biggest, the biggest that just to show off. there's no doubt that the carter said,

every record. i mean, i could have been standing here sitting here in years. is this my again, the opening ceremonies of the, of the olympics tend to be the highest rated sporting event in the united states in any given year outside of the nfl. so that means that they don't draw more than championships at baseball, hockey or basketball or soccer. so you know, this really is a fairly prestigious event and i think that remain so and of course the world cup itself, we don't like people. we don't like what happened in countries, but we all tune in because it's the world sport. and again it showcases the greatest players from. busy all across the country and it's is one great chance to unabashedly route for your country no matter what. right. so it's the one chance we're bands of barcelona and real madrid can come together and root for spain or, or, you know, man, city and man,

united fans instead of being angry with one another on the street can get together in the power of the and toast to the success of england. so, you know, there's, there's nothing like it on the planet. but again, it's, it certainly shouldn't be seen as any sort of great economic driver because in most cases, especially if you've got to build a bunch of stadiums, there's no way you're going to make your money back on this. thank you so much, victor, for your time and insight today. it's been a pleasure. so are hosting cities, the winners or losers in the sporting scheme. i mean, on the one hand, the city gets a temporary boost in tours and recognition. it gets to exports culture out and the city will undergo a major investment to build up the public transport and hotels to house the expected inflow of tourism. but on the other hand, many cities are left with abandoned stadiums and arena's afterwards that were

a complete waste of taxpayer money. the city is left with debt and once a temporary boost and tourism is gone, it's like nothing ever changed. in fact, researchers have found the impact of tourism is mixed as the security crowding and higher prices that the olympic spring dissuade. many visitors, sidney vancouver and barcelona also flight increases and tourism. after they hosted of beijing london and salt lake city, all saw decreases and tourism. after years after the olympics, ultimately there is little evidence for an overall positive economic impact with no long term impact on the hosting countries g d p. so now a consensus has grown amman, economists that the olympic games need reforms to make them more affordable and also less corrupt. i'm christy, i thanks for watching and we'll see you back here next time on the cost of

everything. ah, the ah, the me the course civilians are killed then to others wound it in over.