The economic impacts of the 2018 Winter Olympics

The economic viability of the 2018 Pyeongchang Winter Olympics is still being debated. Using the latest available input-output tables and tourism data, this study estimates the short-run impact of the event. The estimated macroeconomic effect shows that tourism spending linked to the 2018 Winter Olympic Games has contributed W1.9 trillion to national output, which is greater than the operational cost of W1.7 trillion. It is estimated that the W11.5 trillion of infrastructural investment may have induced W18.5 trillion of gross domestic product for the national economy, so hosting the 2018 Winter Olympic Games is beneficial to South Korea. The sectoral effect shows that the increase in tourism demand benefits not only tourism sectors but also non-tourism sectors due to significant indirect and induced effects.

Automated summary

This study estimates the short-run impact of the 2018 Pyeongchang Winter Olympics on the South Korean economy using the latest input-output tables and tourism data. The results show that tourism spending linked to the event has contributed significantly to national output, and infrastructural investment may have induced a larger gross domestic product for the national economy.