Olympic Host City

Olympic Host City
The host cities of the Olympics cannot earn a tremendous amount of money. Conversely, they have to spend much money and time to win the honor of holding the Olympics. Sharda Prashad poses this fact in her article ?Olympic Chill?. For hotels in Vancouver, during the 2010 Winter Olympics, it is not the best way to make a great profit. Since the Olympics are municipal affairs, the provincial government has rights and obligations to participate in the event to make it a successful Olympic Games. The causes for why hotels cannot charge whatever they want during the 2010 Winter Olympics can be examined by looking at the role of government.
In Prashad?s article ?Olympic Chill?, she states that the 2010 Winter Olympics is not the best time for hotels to make great profits. Prashad points out that the Vancouver Organizing Committee (vanoc) uses a proposal to restrict the price of the Olympic hotels and the maximum rate can only be surcharged for 18.5%. However, the author indicates that a few hotels do not book through vanoc can charge whatever they want and the reality is that their prices not deserve the environment and services they supply to the guests. Following this, Prashad describes that global recession is another main reason that obstructs hotels? profits. She notes that the reasons the profits are cut back are the guests and sponsors do not want to spend more money on hotels and local people avoid going out to ski during the Olympics. In addition, the author reveals that hotels have to spend large amounts of money to renovate the environment and services and the renovation makes the hotels have difficulties getting back the money in a short time. Lastly, Prashad concludes that although hotels and other businesses will not earn profits expected during the
Olympics, the city will get the honor and other benefits that money cannot buy.The Olympic hotels during the 2010 Winter Olympics have to follow the principle to set the price is relevant to the role of government. The prices of hotels are ruled by vanoc and ?operators were required to take their average February corporate room rate from 2005, 2006 and 2007, then tack on up to an extra 18.5% to allow for inflation and a premium surcharge for the Olympics.? (Prashad 2009). Although it seems like a valuable chance for hoteliers to make incredible profits, they have no freedom to make the price whatever they want. Nickels, McHugh, McHugh, Cossa and Sproule explain this situation with the idea of the role of government. No matter what system a country has, government has its irreplaceable position. The provincial government can be involved in the areas of ?direct taxation for provincial purposes, licensing for revenue purposes, municipal affairs and labor law? (Nickels, McHugh, McHugh, Cossa and Sproule 2007, p.107). Therefore, the government of Vancouver has obligations to make the 2010 Winter Olympics impressive and successful. The purpose of Vancouver government?s making a cap on the prices of hotels is to avoid the hotels set their prices haphazardly, or it may lead the economy into a complex situation. Nevertheless, there are still few hotels which do not book through vanoc and they may set prices much higher than their environment and services deserve. Although the average price for hotels that book with vanoc is lower than the price in other cities, such as Salt Lake City and Torino, 132 hotels sign on vanoc because the formula made by the government would bring them a long-term benefit. As can be seen, the role of government is important to restrict the prices of hotels during the 2010 Winter Olympics.
As we all know, the Olympics bring a country inconceivable effect. Meanwhile, the host city has to spend a large amount of money to make sure the Olympic Games are successful and distinctive. From this article, I learnt that to earn a lot from the Olympics is not the purpose for the host city, but to get other benefits that money cannot buy is what the city is looking for. In order to reach the goal, government plays an essential role. No city can hold an orderly and special Olympics without the involvement of the government. Therefore, I realize the role of government cannot be contemptuous. It is the strong supporter for a country or city to accomplish every great event. Furthermore, making a rule to help the economy rise gradually is beneficial for the growth of countries. It may cause unexpected result if the economy rises too fast or too slow. Therefore, under the leading of the government will accelerate the speed of a country to become prosperous.
To make sure the Olympics can be held peacefully and impressively, vanoc applied a price cap on how much money hotels could charge during Olympic Games. In other words, the Olympic hotels cannot make the prices by themselves. Therefore, in this way, Vancouver can hold the visitors from all over the world fairly and orderly. The experience of other countries tells us that the host city of the Olympics cannot gain considerable profits, but the other benefits it receives are valuable and priceless.

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