Can Italy Actually Make Money Hosting the Olympics?

Why It Matters

A profit‑making, low‑cost Olympics would reshape host‑city expectations and demonstrate how sporting events can deliver lasting economic and soft‑power benefits.

Key Takeaways

• Italy's 2026 Winter Games budget set at $6.2 billion.
• Over 85% of venues repurposed from existing infrastructure.
• Projected revenue of $6.3 billion barely exceeds the costs.
• Post‑Games village will become affordable student housing for locals.
• Tourism spikes: flights up 160%, hotel searches up 400%.

Summary

The 2026 Winter Olympics in Milan‑Cortina have launched with a headline‑grabbing promise: a $6.2 billion budget that could actually turn a profit, a rarity in modern Games.

Organizers plan to lean heavily on existing venues—more than 85% of facilities are already in place—cutting construction costs dramatically. A study projects $6.3 billion in direct economic gains, just enough to eclipse the budget, while tourism metrics have already surged, with flight bookings up 160% and hotel‑search activity climbing 400%.

Giorgio Malone frames the event as a spotlight for Italy’s soft power, noting mascots Tina and Milo embody cultural branding that can drive merchandise sales, echoing Beijing 2022’s “Bing Dwen Dwen” craze that emptied gift‑shop shelves. The legacy plan also converts the Olympic Village into affordable student housing, echoing concerns over post‑event maintenance costs seen in Sochi.

If revenue holds, Italy could prove that a lean‑budget Olympics is financially viable, offering a template for future hosts. The legacy housing and heightened global visibility may boost Italy’s tourism and innovation sectors, but any cost overruns could quickly erode the narrow profit margin.

Original Description

The Winter Olympics started last weekend in Milan and Cortina d’Ampezzo, Italy. Recent Games have cost host countries $20-50 billion, including massive infrastructure investments that rarely pay off. But Italy is trying something different: utilizing existing infrastructure and converting the Olympic Village into affordable housing after the Games. With a budget of just $6.2 billion—one of the lowest in recent decades—and projected revenue of $6.3 billion from tourism, Milano-Cortina 2026 could prove the Olympics can actually turn a profit.

Learn more about the economics of hosting the games: https://www.cfr.org/backgrounders/economics-hosting-olympic-games

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