China invested US$42 billion in the 2008 Beijing Olympic Games; this figure set a record for the highest investment in any previous Olympic Games, making people wonder whether a developing country like China would invest $42 billion in a sports event that lasted only two weeks. Show whether such a large expenditure is reasonable.
China’s massive Olympic spending—from a $3 billion airport terminal to the $500 million Bird’s Nest national stadium—dwarfs Athens’ $15 billion Olympic budget. Greece has already been saddled with a heavy debt burden due to this budget. London, host of the 2012 Olympics, has also been embroiled in controversy over its expanding Olympic spending.
To successfully host the Olympic Games, Beijing spares no detail. The government spent $30 million to renovate the image of Jingshun Road, a former dusty suburb, planting trees, flowers and building decorative walls. This road is a auxiliary road leading to Beijing Capital Airport and is close to the rowing competition venue. The government also paid small amounts of compensation to residents near the road, forcing them to relocate.