Paris fails to reap benefits of summer Olympics

The Olympic hosts might have trouble collecting gold this year. Luxury hotel bookings are down more than 20 per cent this July in Paris, despite the allure of the Games at the end of the month. According to the head of the city’s hospitality union, visitors have been deterred by the traffic, increased security and fear of unrest following the decision to call a snap election. Average room rates for the fortnight have fallen since the winter from €738 to €430 for four-star accommodation. Air France-KLM has warned it expects to take a hit from “significant” numbers of tourists avoiding Paris during the Games. As prices spiral downwards, no doubt many will look to snap up a bargain in the next few weeks. But the bigger fear is that the Games aren’t as lucrative as they once were. Costs have overrun for every Games since 1988. The expense of submitting a bid, hiring consultants and organising events consistently falls between $50 and $100 million, according to the Council on Foreign Relations. Sure, the benefits, especially for l’ambiance, can outweigh the downsides. But evidence suggests that the first summer Olympics in France since 1924 will be loss-making.