France’s court of auditors reports modest economic impact from 2024 Paris Olympics

PARIS (AP) — Hosting the 2024 Paris Olympics generated only moderate revenues for France, with an almost negligible impact on growth, while total public expenditure exceeded six billion euros ($7 billion), the country’s court of auditors reported on Monday.

Public spending linked to the Olympics organization included €3.02 billion for the event organization, and €3.63 billion for infrastructure investment, some €690 million more than the auditors’ initial estimate published in June.

The Paris Games also generated public revenues from taxes and commercial activities, estimated at €293.6 million. According to the Cour des Comptes report released ahead of the 2030 Winter Olympics — also awarded to France — the organizing committee of the Paris Games, funded mainly through private resources, posted a profit of €75.7 million.

“The Games’ impact on annual economic growth in 2024 is estimated at +0.07 percentage point of GDP once indirect effects are factored in,” auditors said. “The benefits have been modest, both in the run-up — when soaring prices limited the real effect of infrastructure spending — and during the Games themselves, as regular tourism was partly crowded out. The medium to long-term economic benefits remain uncertain.”

The Cour des Comptes said security for the Games was largely successful, except for sabotage of high-speed rail lines on the opening day. However, they criticized the under-budgeting of security costs, which ultimately reached €1.44 billion in state spending.

France’s Interior Ministry argued that estimating security costs ahead of the Games was difficult due to the unprecedented urban security measures for the opening ceremony on the Seine and elevated threat levels.

The report came as opponents of the 2030 Winter Olympics and Paralympics in France have launched legal action to demand a public debate on the Games planned for the French Alps. The project is centered on Alpine ski resorts and ice-sport venues in Nice on the Mediterranean coast. The organizing committee has set a provisional operational budget of €2 billion ($2.1 billion) — construction costs, including for a planned ice arena in Nice, will be additional expense.

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AP Olympics: https://apnews.com/hub/2024-paris-olympic-games