Exclusive | Paris 2024: A host city's struggle to restore Olympic glory

By Felicia Li 

The Summer Olympics, held every four years, is set to take place in Paris, France. With experience as a host city from two previous Games, can Paris be the magic solution to restore the Olympics' reputation? According to a Wall Street Journal report, an April poll revealed that only 48% of French citizens believe the Paris Olympics can be successfully organized. From venues and transportation to budget management, the Paris organizing committee faces numerous hurdles, making it clear that delivering a successful event is challenging.

In the past decade, organizing the Olympics has become increasingly challenging. The 2016 Rio Olympics faced severe budget overruns, while the Tokyo Olympics 2020 was delayed by a year due to the pandemic. This resulted in a significant loss of ticket sales and tourism revenue, leading to a less-than-ideal experience. The Olympics have also struggled to attract viewers; statistics from ABC show that the Tokyo Games drew only about 15.5 million viewers during prime time in the U.S., the lowest since the 1988 Seoul Olympics.

Paris has put considerable effort into venue selection to make the Games more appealing. They are developing suburban areas, collaborating with the port city of Marseille, moving surfing events to the distant overseas territory of Tahiti, and even creating a beach volleyball court under the Eiffel Tower. However, selecting the Seine River as a competition venue has caused headaches for organizers, as its E. coli levels once exceeded safe limits by 20 times. It barely met the triathlon water quality standards earlier this month, leaving uncertainty about maintaining safety during the Olympics.

Remarkably, 95% of the venues for the Paris Olympics do not require new construction, but completing the remaining 5% faces significant obstacles. The athlete's village is being built in the impoverished Seine-Saint-Denis area in northern Paris, with plans to convert it into affordable housing afterward. This seemingly beneficial plan has faced local opposition, with critics arguing it disrupts the lives of homeless individuals and marginalized groups while encroaching on public spaces, causing dissatisfaction among residents.

Paris residents are also frustrated over travel disruptions: Olympic security zones requiring QR codes for entry, metro ticket prices rising to 4 euros (about 34 Hong Kong dollars), numerous road restrictions, and iconic landmarks surrounded by Olympic branding. Even before tourists arrive, the pre-Olympic atmosphere has led to complaints, with the Paris Mayor admitting that the authorities are unprepared for potential traffic chaos, labor protests, and ongoing security threats.

Union organizations report that businesses like shops, restaurants, bars, and clubs in Paris are experiencing unprecedented declines in customers and revenue, partly due to strict security measures ahead of the Games. Many industry insiders have seen their earnings drop by 30% compared to previous years as tourists avoid Paris amid extreme heat, inflation, political tensions, and stringent safety protocols. The unions describe the cumulative adverse effects as having "disastrous economic consequences."

For instance, restaurants near the Trocadéro Plaza by the Eiffel Tower have seen a 70% drop in foot traffic due to access restrictions. Many picturesque streets are now lined with fences, deterring customers, and small businesses face closure risks, prompting calls for fair and swift compensation from the authorities.

Amid these challenges, the Paris Organizing Committee strives to keep the budget around $10 billion (approximately 78.1 billion Hong Kong dollars), a seemingly impossible task. French media widely believe that the committee's claim of staying within the budget, with 97% of funding coming from private sponsorships, is questionable, as contracts with critical sponsors were only finalized a year before the Games.

The Wall Street Journal notes that cities hosting the Olympics now need help attracting global viewers, creating tourism appeal, and maintaining balance without disrupting the daily lives of local residents.

Interestingly, this year's Paris Olympics has secured sponsorship from 60 French companies, including hotel group Accor and luxury brand LVMH, and numerous international partners like Coca-Cola and Omega, with expected revenue of about $1.3 billion (approximately 10.1 billion Hong Kong dollars). This will be the first Olympics post-COVID without spectator limits, with brands eager to leverage the event for significant promotional opportunities.

In collaboration with Visa, JPMorgan Chase has created an exclusive floating VIP lounge on the Seine River for holders of its premium Chase Sapphire Reserve credit card, allowing guests to enjoy exquisite French cuisine and live music while taking in unique views of Paris.

LVMH has invested $160 million (approximately 1.24 billion Hong Kong dollars) to become the Olympics' first "creative partner," with its brand influence woven throughout the event.