The Paris 2024 Olympics are fast approaching, bringing with them the question of the cost of this large-scale event. While the initial budget was estimated at €6.6 billion in 2017, the figures have quickly evolved. According to the latest reports, the total budget for the Games currently stands at €8.8 billion, representing a 10% increase. However, this figure does not include all the costs associated with the event, making it difficult to assess the precise final cost.
In this article, we will examine the factors that have contributed to the budget increase and the remaining challenges in cost management.
A 10% increase in the budget:
The increase in the budget of the Paris 2024 Olympics was approved by the board of directors of the Paris 2024 Organizing Committee (Cojo). The total budget has risen from €3.98 billion to €4.38 billion, representing a €400 million increase. This 10% increase is partly explained by inflation, which accounts for nearly half of the rise. Additionally, certain sectors, such as security and the opening ceremony, have seen their costs increase more than initially anticipated.
Unforeseen expenses and more expensive contracts:
In addition to inflation, several factors have contributed to the increase in the budget for the Paris 2024 Games. Some sectors, such as security, have required additional funding. Security costs have increased from €195 million to €320 million, primarily due to the growing scale of the security measures. Moreover, certain contracts with external suppliers have been more expensive than expected, resulting in additional expenditures.
Adjustments to offset expenses:
Faced with these rising expenses, Cojo has worked in collaboration with the International Olympic Committee (IOC) to find ways to offset the costs. Several adjustments have been proposed, such as delaying the opening of the Olympic Village and training sites, reducing the number of seats for officials and media, and increasing ticket revenues. Commercial revenues from sponsors have also increased, surpassing the set targets by €127 million.
Public funding and contributions from local authorities:
Although the Paris 2024 Olympics are primarily funded by private sources such as sponsors and ticket sales, public contributions are also planned. Local authorities, including the Grand Paris Metropolis and the City of Paris, will provide approximately €111 million in public funds to the Cojo budget. This represents about 4% of the total budget. Overall public spending, including that of the state and local authorities, could reach nearly €3 billion.
Remaining challenges and associated risks:
Despite efforts to control costs, challenges remain in organizing the Paris 2024 Olympics. Security is one of the main concerns, requiring the mobilization of significant personnel from both the internal and private security forces. Additionally, certain transportation infrastructure projects, such as the extension of subway and RER lines, need to be completed within the scheduled timeframe to ensure efficient management of spectator and user flows.
The final cost of the Paris 2024 Olympics is still uncertain, but current figures indicate a 10% increase compared to the initial budget. Unforeseen expenses, necessary adjustments, and challenges to overcome have all contributed to this rise. Despite this, efforts are underway to offset these expenses and ensure a successful organization. As the event draws closer, it will be important to closely monitor the budget's evolution and the measures taken to control costs to ensure the success of the Paris 2024 Olympics.
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