Thursday, July 7, 2016
Olympics can affect local and global industries
There is even a course at Michigan State's Broad College of Business on the business of Olympics. The students go around the world to Oly sites. This year--it's Sydney, which hosted the 2000 Summer Games.
The Olympic Partners Programme, for one, agrees to high-level partners including Visa, McDonalds, Dow Chemical, and Coke. Other companies sponsor athletes and teams.
But not all local businesses prosper. A local bar may plan for many more patrons and not get them. Food trucks are another example. The coming of the Olys may cause new regulations to be placed on them as the area moves into the international spotlight.
Cities are must remodel or take care of infrastructure deficits it has had for years. But the construction can also hurt local businesses for months or years.
When the Olys start local people and businesses often cannot get tickets--which are scooped up by the big boy sponsors.
What about Rio? Well, the city has already declared a state of public calamity--and wanrs that it might not be able to keep it's Oly commitments. "This is huge," the Michigan State people say.
Not only is the Zika virus lurking, there are other issues with health and sanitation, as well as financial issues. The metro will provide only limited service. The Rio govt can't pay it's bills. Hospitals have limited supplies. Security is worrisome. Violent crime is up.
The city will be hard pressed to jump THESE hurdles.