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The Economic Development and Tourism Effects of the Olympics

Abstract The aim of this paper is to determine if and how mega sports organizations like the Olympics contribute to the countries’ economies, as well as its citizens’ well-being through tourism. The World Bank relevant economic data set from 1990-2012 was used for the paper. Australia, Greece and China’s tourism and GDP figures were analyzed by using the Multiple Linear Regression Model. The Eviews8 program was used for the Chow Breakpoint Test. In addition, Percentage Trend Analysis was also applied to the whole data. When Australia, Greece, and China examples were considered, the researchers found that the Olympics have breakpoint effect on these countries’ economic development and citizens’ well-being but not on tourism except for Greece. The view that mega organizations such as the Olympics will bring automatic, permanent and positive contribution to the economy through image rise and tourism must be reconsidered.