Case Study 3
The International Olympic Committee (IOC) selects a host city seven years before the Olympic Games are conducted. The IOC selected Sydney, Australia to host the 2000 Summer Olympic Games. Information revealed by the Australian Treasury Department estimated an increased gross state product (GSP) of $700 million per year. The GSP represents the sum of value from all industries in the South Wales, which is the state in which Sydney is located. Approximately, 60% of the $700 million stemmed from the construction of Olympic venues in Sydney, increase of about 28,000 jobs non-permanent jobs, increase exports from tourism a year before, during, and four years after the Games had been conducted in Sydney. The Treasury Department also estimated an increase of $1.55 billion dollars generated from interstate travel, TV rights, tourism (hotel, restaurant, apparel stores, etc…) and consumption of Olympic tickets during the Sydney Games. Finally, the Treasury Department estimated that of the 28,000 non-permanent jobs, 7,000 (25%) would be permanent in Sydney two years after the Olympics.
Using the information in this case study, answer the following items:
1. Identify and explain two myths, misapplications, or ethical dilemmas that Crompton (1994) revealed that apply to this case study. For example, you can choose one of the following:
A. Two myths, OR
B. Two misapplications, OR
C. Two ethical dilemmas, OR
E. One myth and one misapplication, OR
F. One misapplication and one ethical dilemma OR
G. One ethical dilemma and one myth
- Explain the difference between economic impact and economic benefits. Which one do you believe applies to this case study? Be sure to use appropriate references for support.
- Define and explain two of the nine types of cost beyond direct monetary costs, the Australian Olympic Committee should have considered.
- Paraphrasing a reference, explain what displacement costs are. Secondly, identify and explain the two most types of displacement costs that apply to this case study.
- Identify and explain two opportunity cost concerns as applied to this case study.