On the Way to Olympics
Russia ready to ensure safe Olympics in Sochi - Medvedev
Russia is ready to ensure security at the 2014 Winter Olympic Games in Sochi, Prime Minister Dmitry Medvedev confirmed in an interview with CNN. Earlier President Putin said Russia's authorities know perfectly well what measures should be taken to parry threats during the Sochi Olympics. Large sums of money are being spent to ensure the security of the Sochi Olympics.
Official assessments have not yet been given but it is well known that the RZhD Company alone is going to spend 6.5 billion roubles (nearly 200 million dollars) for these purposes. As you might remember, nearly 3 billion dollars will be taken from the Russian budget to ensure safety at the Sochi Olympics, as official reports say. As one can see, spending for the upcoming Olympic Games in Sochi is bearing fruit: experts are sure that the economic benefits of hosting the Olympic Games in Sochi will not be long in coming.
One of the leading rating agencies in the world - Moody's - says that the Games will not only be helpful in restoring the economy of the Eurozone but will also add nearly 50 percent to Russia's GDP growth this year. Hence, Moody's forecasts were recalculated - from 1.5 to 1.9 percent of the GDP growth in 2014. Russia's Ministry of Economic Development is more optimistic on that score because its forecasts are 2.5 percent. One way or another, Sochi's hosting the Olympics will give a boost to the national economy. For example, Moody's emphasizes that revenues in all segments of the Russian sports industry market will jump. Moreover, the Olympic infrastructure will promote an increase in the inflow of tourists to Russia, Moody's experts say. The authorities of the Krasnodar Region expect that approximately 3 billion visitors will attend the Sochi Olympics. Commenting on the situation, Chief Economist with the Otkritiye Financial Corporation Vladimir Tikhomirov says.
"Of course, a positive impact is evident here. The number of tourists to visit Russia will grow. The volume of both services and trade in the Krasnodar Region and in Russia at large will grow as well. Meaning first of all the sector of transport and hotel management."
History knows the examples of Olympics which proved to be an economic failure and which were successful. For example, the Athens Olympics proved to be failures, which - of course, coupled with other things - triggered the Greek crisis. The London Olympics, on the contrary, added one percent to Britain's growth. Assessing the impact of the 2012 Summer Olympics in an interview for the Russian television, Chief Executive of the London Legacy Development Corporation Dennis Hone said that taking into account tourism revenues and business investments, the government's report offered proof that the economic benefits had exceeded the volume of state investments in the Olympics. Hosting the Olympic Games was beneficial to London, Dennis Hone said. I am sure that the Sochi Olympics will enable all visitors to learn more about the region and will increase the flow of investments in it - real estate namely, and that this would undoubtedly give a boost to the regional economy, Dennis Hone said in conclusion.
Another positive factor linked with Sochi's hosting the Olympic Games is hard to estimate in figures. What is meant here is the business image of the host country. Dennis Hone is sure that Russia has reason to believe that after the Olympics, foreign investors will show a great deal of interest in its economy.
"Russia is a big country. Many people have visited Moscow and St. Petersburg but investors need to learn more about the Russian regions. I believe that the Olympic Games in Sochi will provide an insight into the Russian culture and sports, which will have a good impact on tourism and that they will provide something to Russia's interaction with the rest of the world. And this will be beneficial to the Russian economy.
It is clear today that Sochi's new infrastructure built for the Olympics will be widely used in the future. In autumn this year Sochi will host Formula One racing and in 2018 – the FIFA World Cup. Thus, the Olympic facilities will give a boost to the city itself, to the region and to the country at large. And one more thing of importance here. The Central Bank of Russia expects that Russia will improve its balance of payments, which, in its turn, will support the ruble's exchange rate.
Source: voiceofrussia.com
Official assessments have not yet been given but it is well known that the RZhD Company alone is going to spend 6.5 billion roubles (nearly 200 million dollars) for these purposes. As you might remember, nearly 3 billion dollars will be taken from the Russian budget to ensure safety at the Sochi Olympics, as official reports say. As one can see, spending for the upcoming Olympic Games in Sochi is bearing fruit: experts are sure that the economic benefits of hosting the Olympic Games in Sochi will not be long in coming.
One of the leading rating agencies in the world - Moody's - says that the Games will not only be helpful in restoring the economy of the Eurozone but will also add nearly 50 percent to Russia's GDP growth this year. Hence, Moody's forecasts were recalculated - from 1.5 to 1.9 percent of the GDP growth in 2014. Russia's Ministry of Economic Development is more optimistic on that score because its forecasts are 2.5 percent. One way or another, Sochi's hosting the Olympics will give a boost to the national economy. For example, Moody's emphasizes that revenues in all segments of the Russian sports industry market will jump. Moreover, the Olympic infrastructure will promote an increase in the inflow of tourists to Russia, Moody's experts say. The authorities of the Krasnodar Region expect that approximately 3 billion visitors will attend the Sochi Olympics. Commenting on the situation, Chief Economist with the Otkritiye Financial Corporation Vladimir Tikhomirov says.
"Of course, a positive impact is evident here. The number of tourists to visit Russia will grow. The volume of both services and trade in the Krasnodar Region and in Russia at large will grow as well. Meaning first of all the sector of transport and hotel management."
History knows the examples of Olympics which proved to be an economic failure and which were successful. For example, the Athens Olympics proved to be failures, which - of course, coupled with other things - triggered the Greek crisis. The London Olympics, on the contrary, added one percent to Britain's growth. Assessing the impact of the 2012 Summer Olympics in an interview for the Russian television, Chief Executive of the London Legacy Development Corporation Dennis Hone said that taking into account tourism revenues and business investments, the government's report offered proof that the economic benefits had exceeded the volume of state investments in the Olympics. Hosting the Olympic Games was beneficial to London, Dennis Hone said. I am sure that the Sochi Olympics will enable all visitors to learn more about the region and will increase the flow of investments in it - real estate namely, and that this would undoubtedly give a boost to the regional economy, Dennis Hone said in conclusion.
Another positive factor linked with Sochi's hosting the Olympic Games is hard to estimate in figures. What is meant here is the business image of the host country. Dennis Hone is sure that Russia has reason to believe that after the Olympics, foreign investors will show a great deal of interest in its economy.
"Russia is a big country. Many people have visited Moscow and St. Petersburg but investors need to learn more about the Russian regions. I believe that the Olympic Games in Sochi will provide an insight into the Russian culture and sports, which will have a good impact on tourism and that they will provide something to Russia's interaction with the rest of the world. And this will be beneficial to the Russian economy.
It is clear today that Sochi's new infrastructure built for the Olympics will be widely used in the future. In autumn this year Sochi will host Formula One racing and in 2018 – the FIFA World Cup. Thus, the Olympic facilities will give a boost to the city itself, to the region and to the country at large. And one more thing of importance here. The Central Bank of Russia expects that Russia will improve its balance of payments, which, in its turn, will support the ruble's exchange rate.
Source: voiceofrussia.com
