Runaway Prices Threaten The Games Future

Is it all smoke and mirrors? The IOC is seeking to ensure that there are fewer empty seats at the 2012 London Games.

Interesting.

You could see a large number of empty seats during athletic events in Beijing. Organizers even resulted to having volunteers occupy the seats. The IOC is not sure why or how this occurred and are investigating the matter.

We’ll wait on that results of that investigation. In the mean time, what happened? Exuberant hotel prices and bad publicity dampened tourism-that is what happened.

Standard hotel prices in Beijing were going for $700 a night, to then learn just weeks before the games that a high demand did not materialize at the Beijing Games. And at the last minute hotels dropped prices but well beyond the realistic possibility of fans booking an international trip at the last moment.

So what about the fans?

Sure the Olympics have not been cheap in decades but during an economic crisis that officially started in December 2007 - those prices are hubris - smacking of being out of touch with current circumstances.

The lack of foot traffic at their Olympic exhibit was one major reason cited by Johnson & Johnson as a reason for dropping as a major corporate sponsor.

To be fair, the hotel prices have surged in Olympic host cities and prices are set by the independent owners and operators of the respective hotels. However, the slow economic down and the lackluster performance is the opportunity for the IOC to reign in hotel operators of host cities during the bidding process.

Massively inflated prices and lower than expected turn out ultimately diminishes the appeal Games and organizers had better get them under control if they want to save their golden goose.

Jay Hicks for Prerace Jitters.

Novel Concept Adopted By London Olympic Committee

Either by choice or necessity, most people in the world live on some form of a budget. The sports chiefs have decided to scale back the Olympic Park and Olympic Village in order to stay within the overall budget.

The decision was based in part on the tightening credit market which has made financing nearly impossible without paying near loan sharking rates.

British Olympic Association are shuttering at the thought of athletes sharing flats during the 16-day competition.

Instead of 4,200 flats, as first configured, it is expected to contain 2,700 flats. The flats would be sold on the open market after the Games to recoup partially the significant public investment in the construction.

Officials told the Timesonline:

“Room configurations will be developed and finalised in accordance with IOC regulations, taking into account the experiences in the Beijing 2008 Games and the requirements of national Olympic committees and national Paralympic committees.”

The urge to keep up with the Beijing Games is a natural one. British officials should erase the memories of Beijing out of their mind completely.

The Beijing Games were financed in a much different environment. London officials will come to regret their actions to over spend to keep up with Beijing, especially if the later on in the project the government is forced to nationalize the project.

Jay Hicks for Prerace Jitters.com.

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