Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Analysis - IOC in no mood for risks, opts for Beijing's sure bet

Published 31/07/2015, 11:10
© Reuters. Thomas Bach President of the IOC announces Beijing as the city to host the the 2022 Winter Olympics during the 128th International Olympic Committee Session, in Kuala Lumpur

By Karolos Grohmann

KUALA LUMPUR (Reuters) - The choice of Beijing as host of the 2022 Winter Olympics over Kazakhstan's Almaty was a solid vote for the tried and tested, and the financial and organisational security of China.

It will not be the picture postcard Winter Olympics with mountains blanketed in deep white snow, but a fragmented Games split between the sprawling capital city and two mountain venues almost an hour away.

By contrast, Kazakhstan had promised a winter wonderland at the foot of the Tian Shan mountains, but clearly, the IOC was in no mood for any more risks.

China's pragmatic approach of using its experience from hosting the 2008 summer Games and many of the existing venues from those Olympics, paid off as the IOC grapples with problems faced by other Games organisations.

Four of the six initial 2022 Games bidders dropped out mid-race over financial concerns or a lack of support, some scared off by the 2014 Sochi winter Olympics' $51 billion price tag.

The IOC had initially attempted to play down the problem saying two good bids were left, before pushing through a string of reforms in December aimed at making future bidding more attractive and the Games themselves cheaper and a more lucrative prospect for host cities.

ALARM BELLS

The withdrawal of Boston from the 2024 summer Games bid race earlier this week triggered even more alarm bells among the IOC, with president Thomas Bach visibly irritated by the further damage done to his organisation's prime product.

An angry attack on Boston and its "broken promises" on Wednesday hinted at which way the 2022 decision would go, with the IOC desperate for some stability.

With the 2016 Rio de Janeiro Olympics racing to make up for lost time after years of delays, the Pyeongchang 2018 winter Games only now picking up speed and the Tokyo 2020 Games seeing stadium plans binned, the fate of the 2022 Games destination had been sealed well before the vote in the Malaysian capital.

As much as the IOC liked Almaty's compact concept which scored points during a presentation in June, the Olympic leaders were not prepared to go to the central Asian state where the economy largely depends on fluctuating oil prices.

Instead they wanted the solid yet unspectacular Beijing bid and the comforting embrace of China, known for delivering on commitments to the IOC, even if it meant sacrificing some or much of the atmosphere of a winter sports destination.

Beijing is unlikely to be blanketed by snow, nor will the mountains be covered by much of the white stuff when the athletes take to the slopes and sliding centres in the mountains around Yanqing and Zhangjiakou.

"There will be no snow next to the slopes. It will be brown, brown, brown," one senior IOC member told Reuters of what conditions they would encounter in Beijing.

But the IOC is guaranteed another hugely successful Olympics in financial terms while also tapping into a growing Chinese middle class eager to try out winter sports.

© Reuters. Thomas Bach President of the IOC announces Beijing as the city to host the the 2022 Winter Olympics during the 128th International Olympic Committee Session, in Kuala Lumpur

It was also willing to accept what looks certain to be a seven-year barrage of questions and criticism over China's human rights record if it meant delivery and execution of the Games would be guaranteed.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.