Seven of the hurdles that need to be examined, in a management sense, are:
1. Cost overruns How much will they actually be and who will pay for them? Past experience says there will be cost overruns; moreover, many of those extra costs are often hidden from the public by being shifted to other budgets. Infrastructure costs are but one example of this. It is important that a tight rein on costs be initiated from the outset and that oversight be put in place. Scrutiny of estimates and the awarding of contracts by outsiders are essential. Another aspect of the issues in this area is determining how to ensure transparency.
2. The future use of sporting venues Using these venues once the games end can pose many problems; for example, some are so large that they will have to be reduced in size if they are to be profitable. Others are specific to sports that may attract little attention. There is a history of Olympic ‘white elephants’ that stand empty for years. Can someone find a way to move these elephants toward social benefit or commercial profit? 3. Transformation of Olympic housing to public housing Questions abound. What planning needs to be done to ensure that the housing constructed for the athletes actually will be used as mixed or affordable housing after the events? Will the housing for the athletes who participate in the Paralympics be set aside as housing for the elderly and disabled? What will be done with the massive cafeterias set up to feed those involved in the Games? Can they become restaurants? Can hotels be devised from some of the housing near or attached to the cafeterias? 4. Security issues The need to secure a huge influx of people, both the participants in the games and spectators, in a world that has seen so many terrorist attacks can lead to actions that go beyond the usual powers allotted to the police and other security personnel. In Sydney, temporary legislation was passed to give these forces greater ability to search and question people anywhere in the city. How can cities ensure that this type of legislation is indeed temporary? How much surveillance equipment put in place should remain once the games are over? 5. Infrastructure improvements The transportation industry tends to benefit greatly from hosting the games. Even though Athens found itself in severe debt after the games, it gained new suburban rail and light rail systems along with a new international airport. Barcelona’s transportation improvements were, in truth, spectacular. Cities need to know what it takes to ensure such positive outcomes, including projections about such things as how much of the new systems will provide real gains if the venues linked by the new investments aren’t repurposed to beneficial uses. 6. Impacts on tourism Some cities, particularly Barcelona, have been the recipients of increased tourism because the media coverage (as well as word of mouth) improved shaky reputations about safety and beautiful sights to see. For others, the response has been different. In calculating the gains from hosting the games, cities that already are tourist attractions may find that projections based on cities without such a reputation are far from accurate. The London 2012 games will surely attract many new tourists; but, in 2013, will a higher level of tourism be sustained or will it revert to what London traditionally encounters? 7. Marketing merchandise Some may see all the Olympic-stamped merchandise that is sure to be sold for London 2012 as, well, gewgaws with little value. But whatever their intrinsic value, such memorabilia is more than just a way to help people retain or refresh fond memories. All the marketing merchandise related to the event is also being sold to offset costs. In today’s new world of marketing through social media, what steps should be taken to ensure the greatest return? What can be learned from product tie-in in the case of television shows and movies? With the first and second round of ticketing sold out, the level of attendance is assured. But how are those in charge of London 2012 handling the rest of the many marketing challenges?