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awareness of minority groups (Aboriginals and disabled) supported
movements against discrimination. There also was an indirect impact on
the living conditions by the economic impulse, e.g. enhancing public
transportation, creating new jobs (or saving them), additional housing and
new recreation areas.
3. Economic Impact of Olympic Games
Up to now, no post-Sydney Games economic study exists. However, the
Games increased the GDP and had a positive effect on employment. The size of
these positive economic impulses is dependent on three factors. First, the money
that flowed from outside into Sydney [exogenous demand] (Figure 2). Second, the
size of the multiplier (Figure 3). Third, the economic situation during the main
investment phase (Figure 4).
Figure 2 shows how the Olympic Games concentrate world-wide and nationwide
consumer expenditures in Sydney. Sponsors and TV stations which are financed
by turnover from consumers pay money to the IOC or the Organising Committee
(SOCOG) when buying rights, paying rents, etc. Additionally, consumers directly
spent money in the city when visiting the Games, buying tickets and memorabilia
(coins, stamps, merchandise). These concentrated autonomous expenditures,
supplemented by public funding through taxes, accelerated urban development.
All construction was organised by the Olympic Co-ordination Authority (OCA).
However, the key factor of the economic impulse was the autonomous
expenditures, which stem from overseas and non-Sydney Australians. In Figure 2,
only the share of overseas and Australian expenditures could be given.
Figure 2: Concentrating money of consumers into Sydney. Sources: Preuss
2000: 89; IOC 1999: 7; IOC 9/2000: 5,6; IOC 5/2000: 10; Crowe 1997: 48.
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