Mega-events as an engine for sustainable development - Analysis and success factors
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Mega-events as an engine for sustainable development Analysis and success factors
Contents Foreword 2 Summary 4 1 The characteristics of a mega-event 8 2 Motives for hosting a mega-event 16 3 The mega-event and its legacy 19 4 Challenges and success factors 24 5 A mega-event as an enabler of sustainable development 28 6 Outlook 33 GIZ profile 36 References 38
Foreword
Foreword
2 3
At the founding congress of the International Olympic Com- former president of Brazil). Whilst, until the end of the 20th to the city’s development. This brings us to the question at
mittee in 1894, its Secretary General Pierre de Coubertin century, mega-events remained the preserve of the indus- the heart of this study: how can we harness mega-events in
suggested as the Olympic motto “Citius, Altius, Fortius” trialised nations, the fact that many newly industrialising order to foster sustainable development?
(faster, higher, stronger). “Faster, higher, stronger” not only countries are now showing an interest in hosting World’s The aim of this study is to show how it is possible for a
describes the ambitions of the competitors but also the Fairs, World Cups and Olympic Games is indicative of a new mega-event to promote sustainable development in its host
standards that govern the organisation of mega-events such political world order. While this opens up attractive new location. The challenge here could be described, in a sense,
as the Olympic Games, FIFA World Cups and World’s Fairs markets for the rights holders – the Bureau International as one of discovering a systematic way of managing the
(Expo). Expo 2010, the World’s Fair held in Shanghai, was des Expositions (BIE), Fédération Internationale de Football extraordinary, since a third slogan for the mega-event could
visited by no fewer than 73 million people,1 a total of 4.7 Association (FIFA) and International Olympic Committee quite easily be “the extraordinary is ordinary”. With their
billion people followed on television the 2008 Beijing Sum- (IOC) – up-and-coming nations have found the mega-event exceptionally high visitor numbers, the glare of the global
mer Olympics and China is estimated to have spent more to be an effective instrument for raising their own profiles, media spotlight, the huge financial sums involved and the
than 40 billion US dollars on preparing and staging this and use it as a highly visible platform for promoting their complex governance structure required, mega-events pose
mega-event.2 Although, in many respects, Beijing 2008 did aspirations on the world stage. truly extraordinary challenges for the host’s policymakers,
indeed scale unprecedented heights, exceptional achieve- Furthermore, the ambitions of host nations are not con- administrators and citizens – challenges that bring great
ments tend undoubtedly to be the norm at mega-events. The fined to the political/PR dimension alone. The staging of a opportunities but also entail equally significant risks. This
endeavours of the competitors to set new sporting records mega-event can also seek to address economic, infrastruc- study, in the spirit of the Olympic movement’s quest to keep
are matched by those of the host cities to achieve record ture, social and environmental goals. “Legacy” is a buzzword setting new records and ever higher standards, focuses on
visitor numbers, build ever more impressive venues and commonly used to justify the huge cost of hosting such an how to make the most of these opportunities in order to
stage perfectly choreographed shows. event. However, it is clear that, on closer inspection, while promote sustainable development.
However, it is not just the official Olympic motto that re- mega-events have often sparked positive developments, in
mains as relevant as ever in the 21st century. The Olympics’ some instances they have also had negative effects. For
unofficial motto “it’s the taking part that counts” very aptly example, the 1992 Barcelona Olympics were a catalyst for
describes how the act of hosting a mega-event like the regional development that is still benefiting the city today,
Olympic Games can serve as a sign that you have joined while the 1976 Montreal Olympics left a gaping hole in mu- Andreas von Schumann
the “club of first-class nations” (Luis Inácio Lula da Silva, nicipal finances without making any meaningful contribution Director GIZ AgenZ, Frankfurt am Main / Berlin
Summary
Summary
4 5
Aims and methodology The investment required to organise a mega-event has risen holders are also aware that newly industrialising countries longer-term development strategy. Finally, the systematic
The aim of this study is to show how a mega-event can substantially over the years. The huge amounts of money and developing nations can be lucrative markets and are international exchange of information and experiences be-
be harnessed in order to drive sustainable development. involved mean that event preparations must be embedded increasingly tapping into the potential offered worldwide tween the host cities of mega-events must be both fostered
The study begins by examining the phenomenon of the me- within a long-term development plan for the host region. by every continent. And not just the hosts themselves but and improved.
ga-event and identifying its specific characteristics in terms Another specific feature of the mega-event is its multi-level a variety of other actors also exploit the mega-event as In its analysis of mega-event legacies and identification of
of structure, actors and organisational parameters. This governance dimension and the wide range of stakeholder a platform where they can set the agenda and get their the key factors of a successful event, this study will employ
serves as a basis to develop a multi-dimensional framework interests that have to be taken into account when staging it. message across to a wider audience. Yet another reason a framework based on five different dimensions:
to analyse its different potential legacies with a view to de- The rights holders (IOC, FIFA, BIE) are one of the key actors for hosting mega-events is the opportunity they can pro-
termining the challenges, success factors and interventions in all mega-events insofar as they impose a myriad of re- vide to implement major infrastructure projects in key areas The political/communication dimension
that can be used to turn a mega-event into an engine for quirements on the hosts. The scope of these requirements such as transport, telecommunications, security and energy Here we seek to explore how host cities can strengthen
sustainable development. This study comprises the review of has widened as time has gone by, and sustainability has supply insofar as they make it easier to justify these large- their administrative capacities to be in a position to or-
the relevant literature and a systematic overview of current been the subject of increasing attention in recent years. scale projects to the public and build momentum for them ganise a successful mega-event and benefit therefrom. We
academic debate and the experience acquired by GIZ. However, no meaningful monitoring or sanction mechanisms in the public arena. further explore the means available to a host nation to
are in place to ensure that sustainability targets are met. bring about lasting changes to its global image and to use
Characteristics of a mega-event The mega-event and its legacy a mega-event for agenda setting purposes.
A mega-event is a unique occasion of critical importance for Motives of hosts for staging a mega-event A mega-event provides a unique window of opportunity to
policymakers, administrators and the general public in the A crucial factor in motivating hosts to stage a mega-event create a lasting legacy. However, it should be noted that The economic dimension
host country. Its timeline comprises several phases, each is its unique ability to attract world attention. This affords this legacy can be both positive and negative in nature. Here we investigate the economic impact of the mega-event
with its own specific requirements. The entire process – it a huge political significance, since it provides the host This study identifies a number of global interventions to be and its relationship with the cost of staging it. Current re-
from the initial decision to submit an application to the location with a once-in-a-lifetime opportunity to project its employed in order to ensure that a mega-event is effectively search suggests that mega-events are only of limited use
final staging of the event – generally takes upwards of ten desired image and thus influence how it is perceived on harnessed to promote a region’s sustainable development. as a means of promoting economic growth. Nevertheless,
years. Our study has shown that no institutionalised knowl- the world stage. Newly industrialising countries increas- Firstly, the host region must ensure that its application indirect returns, such as increased tourism revenue, will
edge transfer takes place between host cities and that the ingly make use of the public relations potential of the me- is fully consistent with its development goals. Secondly, certainly be of positive benefit to the local economy.
post-event phase is systematically neglected. Both of these ga-event to enhance their image and send out foreign and it should appoint a legacy officer responsible for ensur-
factors have a negative impact on the sustainability of the domestic policy messages to support their claims that they ing on an on-going basis that any measures implemented
mega-event. are a political force with which to be reckoned. The rights for the mega-event are compatible with the host region’s
Summary
6 7
A successful mega-event provides The environmental dimension Sustainability issues must therefore be fully addressed both Outlook
a unique opportunity to deliver There are two aspects to this dimension: the direct envi-
ronmental impact of the staging of a mega-event (e.g. its
before and during the bidding phase by means, for example,
of submitting the “bid-book” to a Sustainability Impact As-
The study concludes with a call to abandon the “one-size-
fits-all” approach imposed upon host nations, not least
overarching development goals. carbon footprint); and the use of a mega-event to raise sessment. Attention should equally be paid to strategies for because of the requirements of the rights holders. If a
(…) In this context, the importance awareness of issues of sustainability and to create a posi- post-event phase infrastructure use. mega-event is to serve as a stimulus for sustainable de-
tive legacy after the event is over. As far as actors are concerned, the potentially wide range of velopment, there needs to be a fundamental change of
of long-term development stakeholders presents a considerable challenge in terms of focus. The post-event perspective is crucial in assessing
strategies cannot be overstated. Challenges and success factors governance. Consequently, for a mega-event to run smooth- the extent to which an event can be deemed a success. The
A successful mega-event provides a unique opportunity to ly there must be administrative capacity building and the focus now needs to shift towards seeing the mega-event
deliver overarching development goals. In the past, hosts provision of relevant advice. This helps ensure that the host as a milestone in the host nation’s long-term development
The infrastructure dimension have often failed to achieve their objectives because of the city is in a position to negotiate detailed contracts with the plan. This approach will enable host nations to harness
Here we address the extent to which a mega-event can form inability of their policymakers and administrators to cope rights holders. the mega-event and use its full potential as an engine for
an integral part of a host region’s long-term development with the sheer scale of such events. Outcomes were there- The importance, in this particular context, of long-term de- sustainable development.
plans and act as a catalyst for large-scale infrastructure fore at best neutral and often negative. An unsuccessful velopment strategies cannot be overstated. The emphasis
projects. A particularly important aspect of this dimension mega-event came to represent a missed opportunity for the must be shifted from the staging of the event itself to focus
is the strategies which are developed for the use of the host nation and region. on the post-event phase, since this is where the long-term
facilities once the event is over. In public relations terms, a mega-event tends to be held in benefits should occur. The mega-event must therefore be
high public esteem. This, along with the attention they at- embedded right from the outset within a long-term devel-
The social dimension tract worldwide and their political significance, makes them opment plan. Failing this, it will not be possible to deliver
A mega-event can provide the opportunity to promote ed- into unique communication platforms. the sustainable legacies outlined under the afore-mentioned
ucational, social and awareness-raising programmes and The timetable for a mega-event, in particular the non-ne- five dimensions.
strengthen social inclusion and citizen participation. Howev- gotiable pressure to deliver by a fixed deadline, poses spe-
er, it is also possible for a mega-event to leave a negative cific management challenges. The process of organising a
social legacy through, for example, the forced eviction of mega-event is extremely lengthy with each phase requiring
local residents. an individually tailored strategy and a variety of different
interventions.
fa ur
Fun festivals Mara sport
ivil
erm
d’s
te s
eli
c Co erma rts
tho
Son
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Hajj
e/R
an IP vi nings
y
Fair
la
Cit
socie
umm
nve n
on
sion
Hor sits /
festiva Biennia
1 The characteristics of a mega-event
Off
nti
V
Cultur
ure
(Expo
it /
Ma roces
icia
ticu
ty
Eurovi
G
ult
rch sions
ls /
l op
p
ltura
of c
/
)
es /
Live Aid
e
Catholi
l Show /
Capitals
Public
1 The characteristics of a mega-event Theme
Mega-events
Special events
Hallmark events
8 s Spor 9
ines t
Bus
/ FIFA
mits Olympic G Wor
O sum its ames ld C
up
WT umm / Ru
G20 s Commo gby
/
1.1 Definition and typology of a (mega-)event forts and infrastructure improvements. and nwe
alth Wo
G8 Africa r
Gam ld C
The term “mega-event” is ambiguous insofar as it has many Time span includes both the duration of the event and the Cup es up
of N / /
different scholarly interpretations.3 In order to arrive at a frequency with which it is held. For the purposes of this ati
Nationa ons
fairs
working definition of this phenomenon it is necessary to study, a mega-event is of fixed duration and may either be / Trade l tou
e
r
s Supe name
enc
vo TB)
Da , IAA, I
Pol
rbo
identify its key characteristics. For the purposes of this a one-off or a recurring event. wl nts /
/
F
Sci
it
WE (Ceb
iti
est
cs /
/
Cli
study, these are the following five features: relevance Content refers to the different sectors of society involved
ont
Wo
ion
/ Amateu
ma
fairs
gC
r
rld
Civi
Mara sport
Ge
(size/importance); exceptional character; time span; con- in the event. The main categories included under this head-
elig
Fun festivals
te s
rm
’s F
c Co erma rts
tho
Son
ns /
l soc
Hajj
e/R
an VIP vi enings
tent and legacy. ing comprise science/culture/religion, sport, business and y
la
Cit
umm
air (
nve n
on
sion
Hor sits /
festiva Biennia
Off
nti
iety
One feature that is key to classifying events is their rele- politics/civil society. This study focuses exclusively on or-
Cultur
ure
it /
Expo)
Ma roces
icia
ticu
Eurovi
G
ult
rch sions
ls /
vance (size /importance). Visitor numbers, viewer numbers, ganised, peaceful mega-events such as World’s Fairs, FIFA
l op
p
ltura
of c
/
es /
Live Aid
investment levels and overall impact on the economy are all World Cups and the Olympic Games.
Catholi
l Show /
Capitals
Public
useful indicators in such a typology. These are the criteria
generally used to subdivide events into “hallmark events”,
“special events” and “mega-events”. “Hallmark events” are
A mega-event is an organised,
regional-level events geared towards promoting tourism, exceptional event of limited Figure 1: Event typology (Source: GIZ AgenZ)
such as fairs or city festivals. “Special events” include, for duration that attracts significant Theme
example, biennial arts festivals or royal weddings. “Mega- environmental impact. study to use a qualitative definition of a mega-event that is
events”, however, are important at international level and
global attention and creates a Basically, a mega-event comprises two components: the
Mega-events
not tied to any particular quantitative indicators in events
Special terms of
involve substantial planning efforts and significant infra- far-reaching legacy. “hardware”, i.e. the construction and expansion of the infra- participant, visitor or viewer numbers and budget resources.
Hallmark events
structure projects.4 structure either required for staging the event or being pro- It is as follows: “A mega-event is an organised, exceptional
Another key indicator in the typology of mega-events is their A mega-event creates a significant legacy involving a wide moted under its auspices; and the “software”, i.e. foreign and event of limited duration that attracts significant global at-
exceptional character in terms of both structure and organ- range of political, economic, infrastructure, social and envi- domestic policy agenda setting or human capacity develop- tention and creates a far-reaching legacy.”5
isation, owing to the high level of international attention ronmental impacts that may, in some cases, last for several ment in public administration and corporate management. The diagram above provides an example of an event typolo-
that they attract. A mega-event represents a “stress test” for decades after the event. Legacies may be positive or neg- In view of the wide variety of events that exist and constant gy based on the dimensions of relevance (size /importance)
the policymakers, administrators and inhabitants of a given ative, or indeed include elements of both, such as when a fluctuations in parameters governing them such as invest- and content.
region. It characteristically requires substantial planning ef- positive legacy for the tourism industry causes a negative ment levels and viewer numbers, we have opted in this
1 The characteristics of a mega-event
10 11
1.2 The time span of a mega-event Once potential candidates have decided to mount a bid, post-event phase, a phase that is often neglected in the plan- funding model with less State involvement and more private
The public perception of a mega-event is heavily influenced they submit the relevant documents to the rights holders. ning and implementation processes. What frequently happens sector involvement emerged. As more newly industrialis-
by the final run-up to the event and by the weeks during Depending on the mega-event in question, the winner is is that organising committees are normally disbanded within ing countries and developing nations have begun to stage
which it is held. However, the organisation of a mega-event selected anywhere between five and ten years before the two years of the event’s conclusion, and post-event manage- mega-events, this trend has been reversed, with events in
actually comprises several phases, each with its own specific event is staged. During the preparatory phase, the contrac- ment is handed over to the public authorities. No institution these countries once again being paid for largely with public
requirements. The actual staging of the event is in fact the tually stipulated terms and conditions for the event are is specifically designated to guarantee sustainable use.6 funds. The 2008 Beijing Olympics, for example, were funded
shortest of these phases. The diagram below illustrates the implemented and the host city’s progress with the prepa- almost entirely by the State, and private sector involve-
different phases: rations is monitored through monitoring missions and in- 1.3 Mega-event funding models ment in the funding of the Rio Games is also minimal. The
The right to hold a mega-event such as a World’s Fair spection reports. Different models are employed to fund mega-events such same can even be said of the 2014 Sochi Winter Olympics
(Expo), the Olympic Games or a FIFA World Cup is awarded The staging phase refers to the relatively short time during as the Olympic Games, World’s Fairs and World Cups. How- – although private investors are supposed officially to be
by the rights holders following a formal bidding process. which the event itself is held. Its duration can be a few ever, one common feature of all these events is that their heavily involved, the State will in fact be picking up most
The entire process – from the decision to place a bid to the weeks, as in the case of the Olympic Games, or several rights holders (e.g. BIE, FIFA, IOC) are exempt from any of the bill. It should also be remembered that whatever the
time when the mega-event is finally held – generally takes months, as is the case with a World’s Fair. The redevelop- financial risk. As far as the split between private and public funding model, it is always the State that is liable for any risks
more than ten years. This is particularly significant because ment phase refers to the post-event period when the event funding is concerned, the models range from 100 per cent or unexpected costs.
it means that the preparations for a mega-event can span facilities are demolished, converted or returned to their pre- publicly funded events to events that are predominantly
several different governments. vious use. This can take up to two years. It is followed by the privately funded.
Broadly speaking, the Olympic Games were largely publicly
funded up to the 1970s. However, the proportion of private
funding of mega-events rose sharply during the 1980s. In
the case of the Olympic Games, this can be put down to the
Redevelop- disastrous financial losses suffered by the 1976 Montreal
Bid Preparation Staging Post-event
ment
Olympics which had the effect of making other nations very
reluctant to host Olympic Games.7
(3-6 years) (7-12 years) (< 0.5 years) (1-2 years) (open-ended)
Until the 1970s, the organisation of a mega-event was re-
garded as the sovereign responsibility of the State. However,
Figure 2: Phases of a mega-event (Source: GIZ AgenZ) over the course of the 1980s and 1990s, a mega-event
1 The characteristics of a mega-event
10 11
1.2 The time span of a mega-event Once potential candidates have decided to mount a bid, post-event phase, a phase that is often neglected in the plan- funding model with less State involvement and more private
The public perception of a mega-event is heavily influenced they submit the relevant documents to the rights holders. ning and implementation processes. What frequently happens sector involvement emerged. As more newly industrialis-
by the final run-up to the event and by the weeks during Depending on the mega-event in question, the winner is is that organising committees are normally disbanded within ing countries and developing nations have begun to stage
which it is held. However, the organisation of a mega-event selected anywhere between five and ten years before the two years of the event’s conclusion, and post-event manage- mega-events, this trend has been reversed, with events in
actually comprises several phases, each with its own specific event is staged. During the preparatory phase, the contrac- ment is handed over to the public authorities. No institution these countries once again being paid for largely with public
requirements. The actual staging of the event is in fact the tually stipulated terms and conditions for the event are is specifically designated to guarantee sustainable use.6 funds. The 2008 Beijing Olympics, for example, were funded
shortest of these phases. The diagram below illustrates the implemented and the host city’s progress with the prepa- almost entirely by the State, and private sector involve-
different phases: rations is monitored through monitoring missions and in- 1.3 Mega-event funding models ment in the funding of the Rio Games is also minimal. The
The right to hold a mega-event such as a World’s Fair spection reports. Different models are employed to fund mega-events such same can even be said of the 2014 Sochi Winter Olympics
(Expo), the Olympic Games or a FIFA World Cup is awarded The staging phase refers to the relatively short time during as the Olympic Games, World’s Fairs and World Cups. How- – although private investors are supposed officially to be
by the rights holders following a formal bidding process. which the event itself is held. Its duration can be a few ever, one common feature of all these events is that their heavily involved, the State will in fact be picking up most
The entire process – from the decision to place a bid to the weeks, as in the case of the Olympic Games, or several rights holders (e.g. BIE, FIFA, IOC) are exempt from any of the bill. It should also be remembered that whatever the
time when the mega-event is finally held – generally takes months, as is the case with a World’s Fair. The redevelop- financial risk. As far as the split between private and public funding model, it is always the State that is liable for any risks
more than ten years. This is particularly significant because ment phase refers to the post-event period when the event funding is concerned, the models range from 100 per cent or unexpected costs.
it means that the preparations for a mega-event can span facilities are demolished, converted or returned to their pre- publicly funded events to events that are predominantly
several different governments. vious use. This can take up to two years. It is followed by the privately funded.
Broadly speaking, the Olympic Games were largely publicly
funded up to the 1970s. However, the proportion of private
funding of mega-events rose sharply during the 1980s. In
the case of the Olympic Games, this can be put down to the
Redevelop- disastrous financial losses suffered by the 1976 Montreal
Bid Preparation Staging Post-event
ment
Olympics which had the effect of making other nations very
reluctant to host Olympic Games.7
(3-6 years) (7-12 years) (< 0.5 years) (1-2 years) (open-ended)
Until the 1970s, the organisation of a mega-event was re-
garded as the sovereign responsibility of the State. However,
Figure 2: Phases of a mega-event (Source: GIZ AgenZ) over the course of the 1980s and 1990s, a mega-event
1 The characteristics of a mega-event
Stakeholders
12 13
Organising
committee
1.4 Multi-level governance and stakeholder franchise companies that award the right to hold the event
interests and ensure adherence to its corporate design. They also Organisers Rights holders
National, FIFA, IOC, BIE
During the bid, preparation and implementation phases of a take a share of the profits even though the financial risks regional,
mega-event, it is necessary to coordinate a large number of are fully borne by the hosts. In this respect, there is a close local
actors who have, in some cases, very different interests and connection between the rights holders and the sponsors,
who form a complex web of relationships. The chart below who use mega-events for marketing purposes. The priority
Business interests
illustrates the web of actors involved in the organisation of for the sponsors is to ensure that the event runs smoothly
Social interests
a mega-event. and provides them with an exclusive platform for marketing Media Participants
When it comes to analysing the hosts, it is important to dis- their brand. In this context, the emphasis that the rights International, Active participants,
tinguish between national, regional and local levels, since holders place on keeping sport and politics separate should national, regional, support staff
local
their responsibilities and political interests can differ signif- be understood in terms of them seeking to protect the prof-
icantly – for example there can be major discrepancies be- itability of their brand.
tween the ideas of national and local authorities concerning Private investors will be attracted to mega-events if they
levels of political decision-making. The organising commit- are able to achieve a return on their investment. In gener-
tees have primary responsibility for the successful stag- al, investments only start to pay off during the post-event Investors Sponsors
Private sector, Official partners,
ing of a mega-event. The composition of these committees phase. Consequently, investment companies will only invest public sector other sponsors
may vary considerably. For the World Cup, two committees in hotels, for example, if there is a strategy for their use
Audience
are established: a national committee which is responsible during the post-event phase based on reliable projections of Visitors,
for implementation of the bid and the infrastructure re- hotel guest numbers and the extent to which their capacity local population,
quirements; and a FIFA committee which is responsible for will be fully utilised (e.g. by tourists and business travellers). viewers
managing the staging phase of the event. For World’s Fairs, The visitors and viewers, referred to as the “audience” in
on the other hand, it is standard practice to set up private Figure 3, want an enjoyable leisure experience and expect Environ
mental interests
companies with State participation that work closely with the mega-event to run smoothly. The active participants aim
the BIE in Paris. to use the event in pursuit of their own interests and fi-
The rights holders (FIFA, BIE, IOC) are primarily concerned nancial goals and take advantage of the global stage that it
with the successful staging of the event. They operate as provides in order to present themselves in a positive light. Figure 3: The web of actors involved in a mega-event (Source: GIZ AgenZ)1 The characteristics of a mega-event
14 15
Even those members of the public who have no vested applied to the delivery of the Olympic Games, including the rights holders constantly to add new criteria to their mental impact and was staged in a climate-neutral manner.
interest in the event expect it to have a positive impact specific requirements with regard to sporting venues, build- terms and conditions. This strategy allowed Germany to position itself as a leader in
insofar as it will contribute to the common good with as few ings, administration, accommodation for IOC members and The sustainability of mega-events is a case in point. The IOC the organisation of environmentally sustainable mega-events.
negative repercussions as possible. Residents of the host ceremonies.8 The rules for hosting the Olympics remain the was one of the first rights-holder organisations to adopt a FIFA incorporated environmental protection criteria into its
cities are directly affected both as a result of the infrastruc- most comprehensive of their kind to date. Candidates for the stance on the environmental impact of mega-events. Envi- bid requirements for the 2018 and 2022 World Cups. How-
ture projects implemented in the run-up to the events and by 2012 Olympics were required to submit their applications in ronmental criteria were incorporated into the Olympic Char- ever, no monitoring bodies or sanction mechanisms have as
the financial burden placed on the public purse. English and French and provide answers to 228 questions ter as long ago as 1996. A set of criteria was developed yet been put in place by the rights holders, and the only in-
Finally, the media play a central and complex role in the spanning 17 subject areas ranging from entry requirements for the Vancouver 2010 Winter Olympics in an attempt to centive driving sustainability remains the potential damage
web of stakeholders involved in a mega-event. Their priority to the host country to transport and security infrastructure standardise environmental management strategies, focus- to the rights holders’ image.10
is to meet clear commercial targets measured in terms of and how they intended to convey the Olympic spirit. Can- sing on climate change, waste, biodiversity, inclusion and Whilst the IOC has pioneered sustainability, FIFA and the BIE
viewing figures and circulation. They also play a key role didates have to provide financial guarantees for almost all healthy living. have hitherto failed to formulate binding sustainability rules
in disseminating information and news about the event of these different areas. For example, host cities have to for the logistics of staging a mega-event. The “Green Goal
and thus have a huge influence over its public perception guarantee the availability of a specific number of rooms of The Green Goal Strategy for Strategy” adopted at the 2006 World Cup in Germany was
throughout all the different phases. They also contribute to a particular standard.9 the first time that a mega-event of this nature had set itself
the financing of the mega-event by, for example, purchasing As time has gone by, the scope of these requirements has
the World Cup in 2006 allowed the target of being climate-neutral. Since that event, FIFA
broadcasting rights. widened. FIFA now signs contracts with its event hosts that Germany to position itself as has started to pay increasing attention to environmental
All of these different actors are surrounded by organised
social, environmental and economic interest groups. These
are designed to guarantee a smoothly run and well-mar-
keted tournament. By comparison, BIE’s list of conditions
a leader in the organisation sustainability. Meanwhile, the BIE has been exploiting the
future-oriented themes of its events to establish a connec-
range from NGOs to Chambers of Commerce and even or- for World’s Fairs is relatively short. The media presence of of environmentally sustainable tion with sustainability. Under the slogan “People – Nature
ganised street vendors. sponsors is regulated by the rights holders through ever mega-events. – Technology”, Hannover’s Expo 2000 was the first ever
more detailed lists of requirements and contracts with the World’s Fair to champion sustainability, and this was abun-
1.5 Rights holder requirements event organisers. In fact, it has been the hosts themselves The first time that a World Cup had prioritised and imple- dantly evident in every pavilion. Since that time, sustaina-
In their calls for bids, the rights holders stipulate detailed who are at least partly responsible for the increasing num- mented sustainability targets was for the 2006 World Cup in bility has become an increasingly important theme at these
conditions and requirements with which bid committees and ber of requirements. This is because host cities always want Germany. In partnership with the United Nations Environment events (Shanghai 2010: “Better Cities, Better Lives”; Milan
organising committees must comply. Even by the begin- to outdo the previous event, with the result that each new Programme (UNEP) and under the banner of the “Green Goal 2015: “Feeding the Planet, Energy for Life”).
ning of the 20th century, very detailed terms and conditions event has to raise the bar even further. This, in turn, prompts Strategy”, the event was designed to have minimal environ-1 The characteristics of a mega-event
14 15
Even those members of the public who have no vested applied to the delivery of the Olympic Games, including the rights holders constantly to add new criteria to their mental impact and was staged in a climate-neutral manner.
interest in the event expect it to have a positive impact specific requirements with regard to sporting venues, build- terms and conditions. This strategy allowed Germany to position itself as a leader in
insofar as it will contribute to the common good with as few ings, administration, accommodation for IOC members and The sustainability of mega-events is a case in point. The IOC the organisation of environmentally sustainable mega-events.
negative repercussions as possible. Residents of the host ceremonies.8 The rules for hosting the Olympics remain the was one of the first rights-holder organisations to adopt a FIFA incorporated environmental protection criteria into its
cities are directly affected both as a result of the infrastruc- most comprehensive of their kind to date. Candidates for the stance on the environmental impact of mega-events. Envi- bid requirements for the 2018 and 2022 World Cups. How-
ture projects implemented in the run-up to the events and by 2012 Olympics were required to submit their applications in ronmental criteria were incorporated into the Olympic Char- ever, no monitoring bodies or sanction mechanisms have as
the financial burden placed on the public purse. English and French and provide answers to 228 questions ter as long ago as 1996. A set of criteria was developed yet been put in place by the rights holders, and the only in-
Finally, the media play a central and complex role in the spanning 17 subject areas ranging from entry requirements for the Vancouver 2010 Winter Olympics in an attempt to centive driving sustainability remains the potential damage
web of stakeholders involved in a mega-event. Their priority to the host country to transport and security infrastructure standardise environmental management strategies, focus- to the rights holders’ image.10
is to meet clear commercial targets measured in terms of and how they intended to convey the Olympic spirit. Can- sing on climate change, waste, biodiversity, inclusion and Whilst the IOC has pioneered sustainability, FIFA and the BIE
viewing figures and circulation. They also play a key role didates have to provide financial guarantees for almost all healthy living. have hitherto failed to formulate binding sustainability rules
in disseminating information and news about the event of these different areas. For example, host cities have to for the logistics of staging a mega-event. The “Green Goal
and thus have a huge influence over its public perception guarantee the availability of a specific number of rooms of The Green Goal Strategy for Strategy” adopted at the 2006 World Cup in Germany was
throughout all the different phases. They also contribute to a particular standard.9 the first time that a mega-event of this nature had set itself
the financing of the mega-event by, for example, purchasing As time has gone by, the scope of these requirements has
the World Cup in 2006 allowed the target of being climate-neutral. Since that event, FIFA
broadcasting rights. widened. FIFA now signs contracts with its event hosts that Germany to position itself as has started to pay increasing attention to environmental
All of these different actors are surrounded by organised
social, environmental and economic interest groups. These
are designed to guarantee a smoothly run and well-mar-
keted tournament. By comparison, BIE’s list of conditions
a leader in the organisation sustainability. Meanwhile, the BIE has been exploiting the
future-oriented themes of its events to establish a connec-
range from NGOs to Chambers of Commerce and even or- for World’s Fairs is relatively short. The media presence of of environmentally sustainable tion with sustainability. Under the slogan “People – Nature
ganised street vendors. sponsors is regulated by the rights holders through ever mega-events. – Technology”, Hannover’s Expo 2000 was the first ever
more detailed lists of requirements and contracts with the World’s Fair to champion sustainability, and this was abun-
1.5 Rights holder requirements event organisers. In fact, it has been the hosts themselves The first time that a World Cup had prioritised and imple- dantly evident in every pavilion. Since that time, sustaina-
In their calls for bids, the rights holders stipulate detailed who are at least partly responsible for the increasing num- mented sustainability targets was for the 2006 World Cup in bility has become an increasingly important theme at these
conditions and requirements with which bid committees and ber of requirements. This is because host cities always want Germany. In partnership with the United Nations Environment events (Shanghai 2010: “Better Cities, Better Lives”; Milan
organising committees must comply. Even by the begin- to outdo the previous event, with the result that each new Programme (UNEP) and under the banner of the “Green Goal 2015: “Feeding the Planet, Energy for Life”).
ning of the 20th century, very detailed terms and conditions event has to raise the bar even further. This, in turn, prompts Strategy”, the event was designed to have minimal environ-2 Motives for hosting a mega-event
2 Motives for hosting a mega-event
16 17
2.1 Global attention aged. This could be the case, for example, if shortcomings there is little, if any, connection between the issues that they ing from the upgrading of venues to the complete rede-
The principal unique selling point of a mega-event is the are noted in the preparations or if there is criticism of a raise and the theme of the mega-event itself. Preparations velopment of entire districts.14 The cost of staging major
international attention that it attracts from around the globe. country’s political regime, as happened in the run-up to the for the event are often linked to other social policy goals events has in any case risen substantially over the past
Visitor and viewer numbers show a continuous growth of 2008 Beijing Olympics when there was widespread public pursued by the host country. In particular, non-governmental few decades. The 2004 Athens Olympics were, at their time,
interest over recent decades. The first ever World’s Fair, held debate over the human rights situation in China. organisations (NGOs) use the well-known global brands of the most expensive Games ever, costing in the region of 10
in London in 1851, received more than six million visitors mega-events to promote their own agendas. For example, billion US dollars. Four years later, this figure was dwarfed
over ten weeks.11 A century-and-a-half later, Expo 2000 in 2.2 Political significance NGOs have repeatedly used mega-events to raise aware- by the estimated 40 billion US dollars spent on the Beijing
Hannover was visited by 18 million people over five months. The political significance of mega-events is closely connect- ness about the working conditions of people employed in the Olympics in 2008.15
The record is currently held by Expo 2010 in Shanghai which ed to the global attention that they attract. Newly industrial- manufacture of sports goods and promotional merchandise. In newly industrialising countries and developing nations in
attracted no fewer than 73 million visitors. ising countries (NICs) increasingly exploit the public relations particular, the lion’s share of the investment is channelled into
Although actual tourist numbers at the venues for mega potential that a mega-event has to offer. On the one hand, this 2.3 Infrastructure measures infrastructure projects. Whilst the 1984 Los Angeles Olym-
sporting events are inevitably lower than at World’s Fairs trend can be attributed to the desire of the NICs themselves The large numbers of participants and visitors from around pics spent relatively little on infrastructure, at the 2010
because of their shorter duration, their TV viewing figures to use mega-events as a platform for creating a positive the world attending these events require a well-functioning Commonwealth Games in Delhi this accounted for 73 per
are no less impressive. The 2010 World Cup in South Africa image and sending out clear foreign and domestic policy infrastructure in key areas such as transport links, telecom- cent of the total budget. Meanwhile, more than 80 per cent
drew a cumulative total TV audience of 32 billion.12 messages. On the other hand, the economic interests of the munications, security, accommodation, energy and health- of the overall budget for the 2010 FIFA World Cup in South
This exceptional interest means that mega-events provide rights holders also play a major role – their primary concern care. Measures taken can, for example, focus on the mod- Africa was spent on the construction of new stadiums and
host nations with a unique opportunity to project their cho- is to market their products globally and they are therefore ernisation of existing infrastructure or serve as a catalyst expansion of local public transport networks and other in-
sen image of themselves and indeed transform their in- keen to tap into the potential of new target groups and mar- for brand-new developments in the host region. A key aim is frastructure. This trend is set to continue as Rio de Janeiro
ternational image. Depending on the eventual success of kets. The 2010 World Cup in South Africa was the first foot- to ensure that both visitors and participants suffer no travel prepares to host the Olympic Games in 2016, with current
the event and how it is perceived on the world stage, the ball world championship ever held on African soil. Moreover, disruptions, and consequently take away good memories of estimates suggesting that infrastructure projects will ac-
change to the host’s image may either be positive or nega- by staging the 1988 Olympics in Seoul, the 2008 Olympics in the event and act as ambassadors who will propagate a count for some 77 per cent of the total budget.16
tive. The effect of the 2006 World Cup on Germany’s image Beijing, the 2002 World Cup in Japan and South Korea and positive image of the host country. One recurring feature shared by virtually all mega-events
as a nation has proven to be extremely positive.13 The World the 2010 World’s Fair in Shanghai, all three rights holders There is much discussion in the literature about exactly is the discrepancy between the projected budget for staging
Cup in South Africa had a similarly positive impact on the (IOC, FIFA and BIE) have now held mega-events in Asia. which initiatives should be included in the budgets for me- the event and its ultimate cost. The 1976 Montreal Olym-
host country’s image. However, if difficulties with the event Actors other than the hosts also increasingly use me- ga-events. This is due to the fact that hosts use the events pics are an often-cited example of how badly things can
arise, there is a danger that the host’s image could be dam- ga-events for agenda-setting purposes. In many instances, to legitimise a wide variety of infrastructure projects, rang- go wrong – the final cost of 1.5 billion US dollars was five3 The mega-event and its legacy
3 The mega-event and its legacy
18 19
times higher than the original 310 million US dollars budget. liver any longer-term benefits. The resulting drain on public A mega-event constitutes both an exceptional situation and 3.1 The political/communication dimension
Similarly, while the original bid for the World Cup in South funds can cause cuts in spending in other areas. It took the a unique opportunity. The host city of a mega-event is sub- The key to staging a successful mega-event lies in the
Africa had a projected budget of 343 million US dollars, the Montreal authorities three long decades to repay the debts jected to a major “stress test”, in the sense that interna- organisational capacity and resources of the host city’s ad-
final cost came to 7 billion US dollars, or twenty times the they accumulated as a result of the Olympic Games.18 tional attention, financial outlay, tight deadlines and huge ministration. Municipal authorities are often overwhelmed
initial amount. Current estimates also put the eventual cost In contrast, the 1992 Barcelona Olympics were an unqual- pressure to succeed all combine to create an exceptional by the unique challenges they face in hosting a mega-event.
of the 2014 World Cup in Brazil at 40 billion US dollars, far ified success. Investment in infrastructure projects formed confluence of circumstances that unleash powerful forces Consequently, it is even more important to develop the ca-
in excess of the original 15 billion US dollars budget. an integral part of a long-term urban planning strategy and in all areas of society (politics, business, civil society and pacities and resources of local authorities through, for ex-
This problem is by no means confined to newly industrialis- successfully stimulated urban development. Money was in- public administration). ample, exchange programmes between previous and future
ing countries and developing nations. Even the London 2012 vested in the road and rail networks, seaports and airports, The legacy of a mega-event can be tangible or intangible, host cities. Importantly, such an approach also empowers
Olympics cost more than three times as much as originally telecommunications, new metro and tram lines, an upgraded intentional or unintentional and can entail both positive and the host city and allows it to articulate its interests vis-à-
projected.17 In addition, there is frequently a failure to ad- sewage system and the revival of run-down parts of the negative effects, often both at the same time. To facilitate vis the rights holders.
dress the running costs for facilities during the post-event city. Barcelona claims that in the space of eight years it the analysis of the different legacies that a mega-event can The international attention provides a unique opportunity to
phase, with the result that that they end up falling into was able to implement an infrastructure programme that bequeath, they have been classified, in this study, under the get across a political message (agenda setting). Such mes-
neglect once the event is over. This was the case of the would have taken fifty years to deliver without the incentive following five dimensions: sages may be aimed either at a domestic or an international
Olympic venues for Athens 2004 and the site of the Seville provided by the Olympic Games.19 audience. The 1995 Rugby World Cup in South Africa was
Expo 1992. 1. The political /communication dimension a case in point. The image of the nation’s black president,
The huge amounts of money involved mean that it is cru- 2. The economic dimension Nelson Mandela, wearing the jersey of the team’s white
cially important for infrastructure projects to be properly 3. The infrastructure dimension captain, François Pienaar, was a gesture of reconciliation
planned and form an integral part of a long-term develop- 4. The social dimension addressed to a divided society. However, a mega-event can
ment plan for the host region. If the financial resources are 5. The environmental dimension also engender negative communication legacies. The debate
employed prudently as part of a long-term strategy, host surrounding China’s policy on Tibet, the forced evictions pri-
cities and countries will then be in a position to launch In the ensuing analysis, we shall demonstrate how, with or to the Seoul 1988 and Beijing 2008 Olympics and, in
development initiatives that will continue to benefit them for proper planning and implementation, a mega-event can have particular, terrorist attacks such as those perpetrated at the
decades to come. If, on the other hand, the interventions are the potential to deliver positive outcomes under each of Olympic Games in Munich in 1972 and Atlanta in 1996, all
not integrated into (urban) development strategies, there is these five dimensions. However, it can also potentially be- damaged the images of the respective host nations.
the danger that costly infrastructure projects will fail to de- queath a negative legacy. By engaging civil society interest groups in the planning3 The mega-event and its legacy
3 The mega-event and its legacy
18 19
times higher than the original 310 million US dollars budget. liver any longer-term benefits. The resulting drain on public A mega-event constitutes both an exceptional situation and 3.1 The political/communication dimension
Similarly, while the original bid for the World Cup in South funds can cause cuts in spending in other areas. It took the a unique opportunity. The host city of a mega-event is sub- The key to staging a successful mega-event lies in the
Africa had a projected budget of 343 million US dollars, the Montreal authorities three long decades to repay the debts jected to a major “stress test”, in the sense that interna- organisational capacity and resources of the host city’s ad-
final cost came to 7 billion US dollars, or twenty times the they accumulated as a result of the Olympic Games.18 tional attention, financial outlay, tight deadlines and huge ministration. Municipal authorities are often overwhelmed
initial amount. Current estimates also put the eventual cost In contrast, the 1992 Barcelona Olympics were an unqual- pressure to succeed all combine to create an exceptional by the unique challenges they face in hosting a mega-event.
of the 2014 World Cup in Brazil at 40 billion US dollars, far ified success. Investment in infrastructure projects formed confluence of circumstances that unleash powerful forces Consequently, it is even more important to develop the ca-
in excess of the original 15 billion US dollars budget. an integral part of a long-term urban planning strategy and in all areas of society (politics, business, civil society and pacities and resources of local authorities through, for ex-
This problem is by no means confined to newly industrialis- successfully stimulated urban development. Money was in- public administration). ample, exchange programmes between previous and future
ing countries and developing nations. Even the London 2012 vested in the road and rail networks, seaports and airports, The legacy of a mega-event can be tangible or intangible, host cities. Importantly, such an approach also empowers
Olympics cost more than three times as much as originally telecommunications, new metro and tram lines, an upgraded intentional or unintentional and can entail both positive and the host city and allows it to articulate its interests vis-à-
projected.17 In addition, there is frequently a failure to ad- sewage system and the revival of run-down parts of the negative effects, often both at the same time. To facilitate vis the rights holders.
dress the running costs for facilities during the post-event city. Barcelona claims that in the space of eight years it the analysis of the different legacies that a mega-event can The international attention provides a unique opportunity to
phase, with the result that that they end up falling into was able to implement an infrastructure programme that bequeath, they have been classified, in this study, under the get across a political message (agenda setting). Such mes-
neglect once the event is over. This was the case of the would have taken fifty years to deliver without the incentive following five dimensions: sages may be aimed either at a domestic or an international
Olympic venues for Athens 2004 and the site of the Seville provided by the Olympic Games.19 audience. The 1995 Rugby World Cup in South Africa was
Expo 1992. 1. The political /communication dimension a case in point. The image of the nation’s black president,
The huge amounts of money involved mean that it is cru- 2. The economic dimension Nelson Mandela, wearing the jersey of the team’s white
cially important for infrastructure projects to be properly 3. The infrastructure dimension captain, François Pienaar, was a gesture of reconciliation
planned and form an integral part of a long-term develop- 4. The social dimension addressed to a divided society. However, a mega-event can
ment plan for the host region. If the financial resources are 5. The environmental dimension also engender negative communication legacies. The debate
employed prudently as part of a long-term strategy, host surrounding China’s policy on Tibet, the forced evictions pri-
cities and countries will then be in a position to launch In the ensuing analysis, we shall demonstrate how, with or to the Seoul 1988 and Beijing 2008 Olympics and, in
development initiatives that will continue to benefit them for proper planning and implementation, a mega-event can have particular, terrorist attacks such as those perpetrated at the
decades to come. If, on the other hand, the interventions are the potential to deliver positive outcomes under each of Olympic Games in Munich in 1972 and Atlanta in 1996, all
not integrated into (urban) development strategies, there is these five dimensions. However, it can also potentially be- damaged the images of the respective host nations.
the danger that costly infrastructure projects will fail to de- queath a negative legacy. By engaging civil society interest groups in the planning3 The mega-event and its legacy
20 21
process and adopting an approach based on transparency a mega-event will always serve as a valuable vehicle for planning and implementation. This is partly due to the fact is only of limited use as a means of promoting economic
and participation, it is possible to promote internal poli- communicating social and political issues. that there is no institutionalised knowledge transfer be- growth. Nonetheless, a mega-event is able to deliver in-
cy goals such as strengthening democratic processes and Ideally, the event will become a kind of brand that shapes tween previous and current host cities. The host’s lack of direct economic benefits through, for example, increased
achieving public identification with the host city. The prepa- the image of the host location for many decades to come. experience in organising a mega-event means that problems tourism revenue.
rations for the London Olympics have provided the most The Eiffel Tower in Paris is a striking example of this phe- in planning and implementation come to constitute a recur-
recent example of how to engage successfully large sectors nomenon – it was built for the 1889 World’s Fair and was ring theme that ultimately drive up the cost of such events. 3.3 The infrastructure dimension
of the host city’s population. In London, forums were set up originally scheduled to be demolished once the event was Nevertheless, there are also examples of mega-events that A mega-event requires wide-ranging modifications to infra-
so that citizens could receive comprehensive information over. Today, it has become an iconic symbol of Paris and a have had a positive economic impact. According to a study structure. This in turn necessitates well-structured planning
about any measures or changes that had been proposed and major tourist attraction. carried out by PricewaterhouseCoopers AG, the hosting of and enhanced administrative capacity. Infrastructure pro-
then discuss them with the event organisers. It is impor- a mega-event such as the Olympic Games or a World Cup jects have had a significant positive impact on some host
tant for host cities to carry out similar consensus-building 3.2 The economic dimension generates a sustained 30 per cent increase in exports.20 cities, leading to the revitalisation of entire regions. One
processes with other actors in order to facilitate a type of In virtually every case, hosts envisage that a mega-event Another study identifies a positive economic impact based successful example of a sustainable event venue can be
multi-level governance model as described above to seek will provide a positive economic impact. They use this as on the reaction of share prices to a country being awarded seen in the “Arena auf Schalke” which was redeveloped for
agreement for and implementation of the goals of a par- an important justification of the high costs involved in its the Summer Olympics.21 the 2006 World Cup. Although this versatile venue is still
ticular event. organisation. They often highlight its long-term benefits The 2006 World Cup in Germany provides a positive ex- used as a football stadium, its combination of a retractable
One striking feature of the political/communication dimen- in terms of enhancing their image (as described above), ample of how to successfully market a particular venue roof and other multi-functional elements mean that it can
sion is that there is a significant difference between the promoting tourism and improving infrastructure in the host and improve its image. Positive perceptions of Germany in- also be used for other events. Moreover, a number of ener-
public perception of a mega-event during the preparatory region. However, several studies provide evidence of only creased significantly after the World Cup, and the follow- gy-saving measures have been implemented that generate
phase, which tends to be characterised by negative report- a limited economic impact. Some even argue that a me- ing year Germany’s national brand rose to number one in annual savings of 58 000 euros.23
ing (covering, for example shortcomings in event prepara- ga-event tends to bequeath a negative economic legacy. the Anholt-GMI Nation Brands Index. The German National A mega-event is often used to legitimise the implementation
tions and doubts over the suitability of its location), and There are several examples of this type of outcome – the Tourist Board (Deutsche Zentrale für Tourismus) described of large-scale infrastructure projects. The 2010 World Cup
the staging phase, where positive reporting tends to pre- afore-mentioned Montreal Olympics are one instance there- the benefits to the country’s image at home and abroad as in South Africa, for example, provided the justification for
vail. Consequently, it would take a major disruption to the of, and the high cost of the Athens 2004 Olympics is thought “invaluable”. It has been calculated that the World Cup led finally building a long-planned rail link between Johannes-
event itself (such as a terrorist attack) to create a negative to be partly responsible for Greece’s sovereign debt crisis. to an increase in Germany’s GDP of 3.88 billion euros up to burg and Pretoria.24
legacy as far as the political/communication dimension is One explanation for this phenomenon is that the host city the end of 2008.22 However, there is also no shortage of negative examples.
concerned. Accordingly, irrespective of its thematic content, frequently lacks the capacity to deliver adequate event In summary, current research suggests that a mega-event The huge site of the 1992 Expo in Seville was a costly butYou can also read
