The 2026 Olympics: To Bid Or Not To Bid

When I'm looking for information on a variety of topics relating to the City of Calgary (the city itself as well as the government entity) www.calgary.ca is a most valuable tool.  Within it's pages are a number of reports, statistics, and documents containing information on a wide variety of topics from services,departments, budgets, contact information, etc.

Among its pages is one dedicated to the 2026 Olympic bid which is sorely lacking in useful information.  It seems to be more of a cheer-leading document, extolling the benefits of hosting the games while glossing over the little things, such as the cost.

It does however have links to reports prepared by outside experts assessing the potential impact of hosting an Olympic games.  I do not find the findings of their economic impact studies to be a ringing endorsement for a bid.


A Review of Two Economic Impact Studies of Calgary Hosting the 2026 Winter Games Trevor Tombe, University of Calgary, Department of Economics and the School of Public Policy

Regarding the use of public funds: Section 3.1
Why does it matter how much public funds are used? Simple: tax revenue costs the economy more than one dollar for each dollar raised, as taxes distort economic activity. Researchers measure the magnitude of this effect in what is called the “marginal cost of public funds” -- if the marginal cost is 1.5, then raising $1 in government revenue costs the economy $1.50. A large empirical literature in public finance consistently finds these costs can be very large. In the 11 latest research available for Canadian provinces, for example, Prof. Bev Dahlby of the University of Calgary -- a leading researcher in this area -- finds a typical dollar raised through corporate taxes costs the economy $3.93 dollars. Personal income and sales taxes have lower costs, at $2.86 and $1.59 dollars, respectively. Provinces differ, and such costs are lower in 12 Alberta, but the general principle is sound: there is a cost of raising public funds.

Final Paragraph: Section 5  Conclusions and Recommendations
In the end, there will be economic costs of hosting the games. If the benefits in terms of civic pride, community engagement, promotion of sports, and so on, is worth the cost, then hosting the games makes sense. But, to claim that GDP and employment will increase -- at all, but especially by the magnitudes suggested in the 3rd-party reports -- is to go far beyond what the evidence suggests.

For me the economic arguments carry more weight than the emotional ones do.  Sometimes it just has to be that way.  There is simply too much at stake.  A 2026 bid is NOT the right decision for Calgary.

For more information Visit the 2026 Olympic Bid webpage at:

http://www.calgary.ca/CSPS/Recreation/Pages/Calgary-2026-Olympic-bid/Olympics-Bid-2026.aspx

D.B.C.