The Sydney Olympic Games held in 2000 was perhaps one of Australia’s major investments. The event involved Private, Social and External costs and benefits.
The NSW government experienced the Private costs. Financially, the government spent around $1.7 billion dollars on the event, which included the sporting facilities, advancing the city’s streets, transport organisation and the village. The takings received for the event, however, was around $6 million. The profits are still being made today, as now Sydney is in possession of world-class amenities capable of holding other major sporting events. The government saved on the payment of employees, as most were volunteers. The economy benefited from the spending of tourists attending the Games.
The External costs were the rapid growth of homelessness as the housing market saw prices climb astronomically from all the publicity of the Games. The Games may have created a national debt, which subsequently the taxpayers would have had to subsidise. Due to the government having to concentrate their budget on the Games, less money was put into hospitals and schools, which invited much criticism from the public. The benefits included the availability of jobs. There was estimated to be about 150,000 full-time and part-time jobs created.
The well-being of the environment contributed to the social costs. Toxic waste was being deposited in the adjacent areas, including the bushland and other natural resources were being spoiled. The social benefits far outweighed the costs. The major issue confronting the Olympic Games was concerning the relations between European Australians and Aboriginal Australians. Tension was especially mounted during the Opening Ceremony when the Aboriginal culture was demonstrated in their acts. This was dispelled, however, when Cathy Freeman completed the last leg of the Torch relay and lit the stadium torch. This helped to relieve the hostility between Aborigines and European Australians. Another benefit is the availability of the facilities. The most popular is the International Aquatic Centre that is widely used by the suburban Sydney people and is also admired and used by tourists from all around the world.
Overall, the Sydney Olympic Games was a success and we are still reaping the benefits economically. Thanks to the Games, Sydney is now a desirable and popular holiday destination.