The impact of the Paris 2024 Olympic Games on the French economy

The Olympics effect on the French economy is not a myth, but a reality. Although forecasts set the possible impact of this prestigious competition on the host cities at a minimum of 6.7 billion euros, expectations were largely met.

THE Paris Olympic Games took place from July 26 to August 11, 2024 in an excitement that was felt in sports betting which broke a record never before reached. Indeed, the National Games Authority (ANJ) estimated the fallout from the games at 360 million euros. sports betting made during the competition, including 5.5 million euros in the swimming discipline alone. That is six times more than the sports bets executed during the Tokyo 2021 Olympic Games. This shows how great the impact of these Olympics in Paris was on this indicator alone. Even if some fans preferred to place sports bets outside of ARJEL during matches.

Furthermore, the Bank of France estimates the impact of the Paris 2024 Olympic Games on the French economy at 0.25%. According to the financial institution, this impact is supposed to manifest itself from this second side of the year and will help to boost the GDP up to 0.45%.

Despite this, some hotel establishments say they are disappointed with the figures they achieved during the Olympics. If they admit to having had a plus of 85%, they say that this percentage must be taken with a grain of salt, because it is divided in two. That is to say a 60% occupancy in July and another 45% during the period of the Paralympic Games in August. Thus, taken separately, these rates appear inconsistent and low.

An allegation that is not shared at all the Deputy Minister of Business and TourismOlivia Gregory. It estimates the impact of the Paris 2024 Olympic Games on the country’s economy at 9 billion euros within 15 years. In addition, she specifies that the warning signs are already perceptible with a general increase of 16% in the number of nights recorded in the cities which hosted the event. The same goes for museums, whose attendance increased by 25% over the same period.

Other telling facts, INSEE assessed the impact of the Paris 2024 Olympic Games on the construction sector at more than 0.3% growth. In addition, the spinoffs from broadcasting rights and ticketing should bring in no less than 0.25% for the country. Furthermore, the unemployment rate in France fell by 7.3% during the Olympics. And it must also be said that anyone of good faith will notice the excess activity that there was in hotels and restaurants in Île-de-France during the Olympics. Likewise, event promoters and security services have made big money profits.

However, it is appropriate to put the results into perspective to obtain better perspectives. THE catering sector in particular has been experiencing a slowdown for a while and the holding of the Olympics has not changed much. In addition, sports economists like Luc Arrondel estimate the impact of the Olympic Games in the short term at 4 billion euros, even though the cost to the taxpayer is estimated at practically the same amount (3.2 to 4 billion €). For him, the Olympic Games are not intended to propel the growth of a country. He thus wants to protect public opinion from disillusionment even in the long term.

However, the General Directorate of Enterprises developed an action plan in advance to guarantee the impact of the Olympic Games on the French economy. This plan focuses on four strong points, namely:

• Promote the destination of France.
• Promoting the best French companies.
• The internationalization of the best French consortia.
• Promote the sports economics branch.

Thus, the Olympic Games were an opportunity to promote the heritage tourist, sporting, environmental and cultural of France. The sports sector in particular must be transformed after the holding of the Olympics. A new roadmap has been drawn up for 2026. This is based on elements as important as the development ofeSports (and therefore sports betting), the development of a sustainable practice, training, support for sports economic models and internationalization. The sports industry, which has 600 players in France, could thus be completely transformed at the end of these Games.