Written by Ashley Slud
2022 has been an unusual year, just as the past two years have been in the ongoing pandemic. This abnormality has continued into the 2022 Beijing Olympic Games, which began on February 4, 2022 and will continue until February 20, 2022 with 2,871 athletes participating. The games host 15 sports including but not limited to figure skating, ice hockey, bobsledding and snowboarding. The Olympic Games are the most viewed international event, showcasing athletes all in one place representing their countries with pride as they demonstrate their extraordinary talent.
Seven years before they take place, the International Olympic Committee meets to decide the location of the Games. Countries are able to submit bids every two years for a chance to host the Games. Not only does hosting have benefits such as boosting morale, national pride and global recognition, but it also has positive economic implications. Typically, the Games attract hundreds of thousands of tourists, but due to Covid-19 restrictions, international spectators are not allowed to attend the Games. Although we do not have the data from tourist spending at the 2022 games, we can utilize data from the past to see just how much revenue was generated by these visitors. At the Rio 2016 Games, tourists spent an average of 424 reals (131.66 USD). According to statistics from Visa, tourists during the Olympic Games period spent twice as much per visit than regular tourists, and 1 in 5 traveled to destinations outside of the host city. Additionally, the games employ thousands of workers and the infrastructure built will continue to provide jobs for years to come even after the games conclude.
Winter Olympic games have always been less widely viewed than the summer games, as people in the summer have more free time, and there are fewer events to watch in the Winter games. Additionally, the United States does not win as many medals in the Winter Games as it does in the Summer Games, and people enjoy watching their country succeed. In the 2020 Summer Games, the U.S won 113 medals, while in the 2018 Winter Games they only won 23. About 200 countries participate in the Summer Games, while the Winter games have about half that. The Winter Olympics do not have as many “superstars” or well-known athletes, making viewers less likely to watch. Primetime coverage of the Beijing Winter Olympics averaged 11.0 million viewers on NBC alone and 13.7 million across NBC’s various platforms, a decrease of 51% and 47% from the Winter Games in Pyeongchang four years ago (Lewis, Sports Media Coverage). The 13 hour time difference between the Eastern United States and Beijing could play a major role in the low views, as many events are over half a day old when people are watching. Thus, many viewers could have already read the results in the news and not watch the actual event. The games are broadcasted by China Media Group in China, Discovery in Europe, CBC in Canada, and NBC in the United States. In 2014, NBC entered into a $7.75 billion deal for Olympic broadcasting rights through 2032 (Wall Street Journal). Now, NBC is promoting Peacock, where people can watch the games, as the amount of people who use cable is currently decreasing. Unfortunately, live coverage of the games is only available on Peacock’s premium tiers, so many are unable to view the Games live. It is difficult to directly track viewership for these games, as now people are watching on different platforms, at different times, and on different devices. After broadcasting rights, brand partnerships are the largest income driver for the International Olympic Committee. Brands such as Coca Cola, Visa and Toyota are able to utilize the Olympic rings in their advertisements, associating themselves with the games hoping for an increase in revenue (The International Olympic Committee). The 100 day countdown until the games is usually a large marketing campaign, but this year companies are not spending as much. Coca-Cola, one of the largest sponsors, decreased marketing outside of China and did not send their executives to the games.
The diplomatic boycott of the Games, which was called for by multiple countries, has impacted ratings and views as well. President Joe Biden called for a boycott by U.S Officials citing China’s “genocide and crimes against humanity.” Great Britain’s Prime Minister Boris Johnson also enacted a diplomatic boycott of the games, partially due to China’s public criticism of Australia’s plans for nuclear submarines (Mather, NY Times). These boycotts, according to government officials and human rights activists, are due to Beijing’s extended campaign of forced assimilation against the Uyghurs and other mostly Muslim minorities in Xinjiang, which constitutes a form of genocide.
2022 was an especially depleting year for the Winter Games, with decreased revenues, views, ratings and diplomatic boycotts. Despite these unfortunate circumstances, the Games have been a tradition for 3,000 years and do not seem like they will be stopping soon. The Olympic Games have both short-term and long-term benefits. Short-term benefits include the added revenue through tourism spending, which unfortunately has not been as prevalent with the pandemic, and long-term benefits include foreign investment and increased trade. In addition, there are intangible benefits, such as increased morale and pride in one’s country. Despite the difference in these 2022 Winter Games, they still have demonstrated the utter importance that we place on this competition. Based on this year’s Olympics situation, what will happen in the future? Will we continue investing billions of dollars into the infrastructure, marketing and other factors for the Games? With the uncertainty that accompanies Covid-19 and new advancements in technology, we will adapt how we orchestrate the games and how we allocate money towards their success for years to come.
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