What factors contributed to the lower cost of the Paris Olympics compared to previous host cities such as Rio, London, and Tokyo?

The Olympics, with 10,000 athletes, 8.6 million tickets sold, and billions of television viewers worldwide, will commence in Paris on Friday.

The summer Olympics, which attracts huge crowds and top athletes worldwide only once every four years, is an extremely expensive event for the host city. According to an Oxford University study, every city hosting the Olympics has consistently exceeded its initial budget by a significant amount since the 1960s.

The 2024 Paris Olympics are projected to cost less than $10 billion, which is only 25% over the initial budget, according to an S&P Global Ratings report. In stark contrast, the 2016 Games in Rio de Janeiro and 2020 Games in Tokyo exceeded their original budgets by more than 350% and 280%, respectively, the report stated.

The main benefit this time can be described in two words: existing infrastructure.

According to the S&P Global Ratings report, only three of the venues scheduled for use during the Paris Olympics were constructed after the city won the bid to host the Games. These include the $1.6 billion Olympic Village, the $190 million Aquatics Centre, and a $150 million gymnastics and badminton venue.

Paris is set to host one of the most affordable Olympics in recent history.