CAT 2017 Slot 1 — VARC Question 23
Answer the following question based on the information given below.
Do sports mega events like the Summer Olympic Games benefit the host city economically? It depends, but the prospects are less than rosy. The trick is converting… several billion dollars in operating costs during the 17-day fiesta of the games into a basis for long-term economic returns. These days, the Summer Olympic games themselves generate total revenue of 5 billion, but the lion’s share of this goes to the International Olympics Committee, the National Olympics Committees and the International sports Federations. Any economic benefit would have to flow from the value of the Games as an advertisement for the city, the new transportation and communications infrastructure that was created for the Games, or the ongoing use of the new facilities.
Evidence suggests that the advertising effect is far from certain. The infrastructure benefit depends on the initial condition of the city and the effectiveness of the planning. The facilities benefits is dubious at best for buildings such as velodromes or natatoriums and problematic for 100,000-seat Olympic stadiums. The latter require a conversion plan for future use, the former are usually doomed to near vacancy. Hosting the summer Games generally requires 30-plus sports venues and dozens of training centers. Today, the bird’s Nest in Beijing sits virtually empty, while the Olympic stadium in Sydney costs some $30 million a year to operate.
Part of the problem is that Olympics planning takes place in a frenzied and time-pressured atmosphere of intense competition with the other prospective host cities – not optimal conditions for contemplating the future shape of an urban landscape. Another part of the problem is that urban land is generally scarce and growing scarcer. The new facilities often stand for decades or longer. Even if they have future use, are they the best use of precious urban real estate?Further, cities must consider the human cost, Residential areas often are razed and citizens relocated (without adequate preparation or compensation). Life is made more hectic and congested. There are, after all, other productive uses that can be made of vanishing fiscal resources.
Sports facilities built for the Olympics are not fully utilised after the Games are over because
Answer & solution
their scale and the costs of operating them are large.
- B
their location away from the city centre usually limits easy access.
- C
the authorities do not adapt them to local conditions.
- D
they become outdated having being built with little planning and under time pressure.
The second paragraph states, “The facilities benefit is dubious at best for buildings such as velodromes or natatoriums and problematic for 100,000- seat capacity Olympic stadiums” … because later they are “doomed to near vacancy.” “Today, the Bird’s Nest in Beijing sits virtually empty and the Olympic stadium in Sydney costs some $30 million a year to operate.” Option 1 is correct. The reason for the facilities not being used is, as the option correctly states, their scale, and the cost of operating them. Retain option 1.
Option 2 is incorrect. The essay does not say that their sustained use is not possible because of their location. Eliminate option 2.
Option 3 is incorrect. The passage implies that their adaptation for future use pose problems because of their scale and maintenance costs. The implication is not that the authorities do not do so. Eliminate option 3.
Option 4 is incorrect. Though the competition makes it impossible for authorities to plan properly, there is no suggestion that the facilities become outdated because of hurried planning. Eliminate option 4.
Hence, the correct answer is option 1.