Analysing the Economic Impact of the Olympics Using Stock Market Indices of Host Countries

Abstract: Hallmark events are defined as those which promote a host city as an international tourism destination (Hall, 1992). They are on a scale that can produce a high performance in tourism, media coverage and economic impact for the host community or destination (Getz, 1997). Moreover, most hallmark events have substantial government commitment. Mega events include religious, cultural, commercial, political and/or sports events. According to Hall (1992), sporting events are the most notable model of hallmark events. The Summer and Winter Olympic Games are identified as mega sports events. Mega sporting events are the most notable model of hallmark events and they have the characteristics of a festival. Traditional sports events like the Olympics always combine ceremonies and festivals (Getz, 1997). A mega event has two main characteristics: internal aspects and external aspects. The internal aspect is mainly its scale while the external aspect is mostly its attractiveness to tourism and the media, and its economic impact on the host city. (Malfas, et al., 2004). Although mega events have a limited duration, they have a huge impact on the host country in terms of tourist volumes, visitor expenditure, heightened awareness and a positive image of the city. There are also related infrastructural and organizational developments, which increase the destination’s competence and attractiveness (Fayos-Sola, 1997). As the Olympics are mega event and arguably the most prestigious of all sporting events, the Games are hel