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Miguel de Moragas and Miguel Botella, Editors
The Keys to
The social, sporting, economic
and Communications impact of
Barcelona992
entre d'Estudis Olimpios i de VEsport'niversitat Autónoma de Barcelona
Olympic Museum LausanneFundado Barcelona Olímpica
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The Keys to SuccessThe Social, Sporting, Economic
and Communication Impactof Barcelona '92
The Keys to SuccessThe Social, Sporting, Economic
and Communication Impactof Barcelona '92
i
The contents of this book cannot be reproduccd,neither ¡n whole ñor in part, wilhout the previouswritten consent of the authors.
© Centre d'Estudis Olímpics i de l'EsportUniversitat Autónoma de BarcelonaEdifici B. 08193 Bellaterra (Barcelona, España)
© Universitat Autónoma de BarcelonaServei de PublicacionsEdifici A. 08193 Bellaterra (Barcelona, España)
Editors: Miquel de Moragas and Miquel BotellaEditorial coordination: Miquel Gómez, EstherMartí and Nuria GarcíaTranslations: Jcffrcy Swartz, Matlhew TreeCover Design: Josep Maria Trias
First edition: November 1995
Legal Deposit: B. 44.139-1995ISBN 84-490-0450-0Photocomposition: Víctor Igual, S. L.Printing: Dúplex, S. A.Binding: Encuademaciones Maro, S. A.Printed in Spain
Table of Contents
Joan Antoni SamaranchPresiden/ of'the I n t e r n a t i o n a l Olympic C o m m i t t e e . . . 7
PresentationPasqual MaragallPresiden! ofthe COOB '92Mayor of Barcelona 9
IntroductionJosep Miquel AbadCouncillor Delégate ofthe COOB '92A S u m m a r y o f t h e A c t i v i t i e s o f t h e C O O B ' 9 2 . . . . 1 1
O r g a n i z a t i o n o f t h e G a n t e sM i q u e l B o t e l l aT h e K e y s t o S u c c e s s o f t h e B a r c e l o n a G a m e s . . . . 18
SportsEnric TrunoBarcelona, City of Sport 43
Manuel LlanosThe Participaron of the Spanish Olympic Committee inthe Success of 1992 57
MÍISS MediaMiquel de Moragas/Nancy Rivenburgh/ Nuria GarcíaTelevisión and the Construction of Identity:Barcelona, Olympic Host 76
Muriel Ladrón de Guevara/Xavier Cóller/ Daniel RomaníThe Image of Barcelona '92 in the International Press . 107
The Paralympic Games of Barcelona '92Fernand LandryParalympic Games and Social Integration 124
PoliticsJoan BotellaThe Política Games: Agents and Strategies in the 1992Barcelona Olympic Games 139
5
SocietyFaustino Miguélez/Pilar CarrasquerThe Repercussion of the Olympic Games on Labour . . 149
Andreu ClapésThe Volunteers of Barcelona '92: The Great Festivalof Participation 165
John MacAloonBarcelona '92: the Perspective of Cultural Anthropology. 181
Urban PlanningLluís MilletThe Games of the City 188
EconomicsFerran BrunetAn Economic Analysis of the Barcelona'92 OlympicGames: Resources, Financing, and Impact 203
TechnologyJordi Lópe77Ferran PastorBarcelona '92: Strategies of Technology 238
Josep BertránThe Technological Image of the Barcelona Olympic Games 254
EpilogueFidel SustGeneral Director of Sports of the Generalitat of CatalunyaThe Sports Legacy of the Barcelona Games 261
Bibliography of Barcelona '92Dolors Aparicio 266
AppendixCentre for Olympic and Sport Studies.International Olympic Chair.Barcelona Olympic Foundation 276
ECONOMICS
AN ECONOMIC ANALYSIS OF THEBARCELONA '92 OLYMPIC GAMES:
RESOURCES, FINANCING, AND IMPACT
FERRAN BRUNET1
Barcelona is a Mediterranean city, the heart of the indus-trialization and the social, political, and cultural movements ofcontemporary Spain. Like other European and American cities,Barelona must face up to the costs of being a large metrópoliswhile lacking the income deriving from being a political capi-tal. The expansión of the city of Barcelona is tied to its Ensan-che and to the driving forces of the Universal Expositions of1888 and 1929. In 1959 a new stage of economic growth and ur-ban speculation began. The Spanish political transition to de-mocracy inititated in 1975 carne to coincide with the generaleconomic crisis. Barcelona entered into a stage of difficulties,aggravated by the transfer of industry outside of the city, thestagnation of the population, and decreased political activity.
In this context, the best way to revive the city, whichbrought together efforts in urban renovation and external pro-jection, was its nomination in October of 1986 for the organi-zation of the Games of the XXV Olympiad in the summer of1992. Between these two dates, Barcelona would go from de-pression to economic boom.
1. THE ORGANIZATION OF THE BARCELONA OLYMPIC GAMES
1.1. The model of the 1992 Barcelona Olympic Games
The objectives and forms of any Olympic Games are set bytheir model of organization. The goals of Barcelona in organi-zing the 1992 Olympic Games were to become a better forumfor the meeting of athletes from around the world, offer exce-llent competitions in accord with the Olympic spirit, and pro-mote a great urban transformation that would improve the
1. Ferran Brunet i Cid. PhD. in Economic Sciences, University of Barcelo-na. Professor in the Faculty of Economic and Business Sciences in the Autono-mous University of Barcelona.
203
quality of life and attraction of the city. In all probability, dueto its nature and its size, between 1986 and 1993 Barcelona ca-rried out the most important.urban change in Europe. (See forexample HOLSA, 1992b.)
The organization of the Olympic Games was sustained inthree ways:
A. By the inter-institutional agreement between the City ofBarcelona (promotor of the initiative), the Spanish go-vernment, the Generalitat (the autonomous governmentof Catalonia), the Spanish Olympic Committee, and theInternational Olympic Committee.
B. By a joint venture, with agreement and shared adminis-tration of the public sector and prívate initiative.
C. By the creation of special administrative bodies, not as-sociated with the ordinary public administration, with aseparation between investment functions and organiza-tional functions.
Without a doubt, the key to the good work and success ofthe 1992 Olympic Games lay in the strength of the goal (projec-tion and transformation of the city) and in its form of organi-zation (institutional agreement, special bodies and joint ventu-res), all brought together in the great capacity shown by theBarcelona economy to respond to Olympic stimuli and to attractinvestment (see Table 1).
1.2. The budget ofthe COOB '92 in revenue and expenditure
The organizational tasks were entrusted to the Comité Or-ganitzador Olimpio Barcelona 1992 , S.A. (COOB '92) (Barcelo-na Olympic Organizing Committee '92, Ltd.). Upon liquida-ting the budget of the COOB '92 in July of 1993 revenue wasset at 195,594 million pesetas, or US $1,638,000,000. Againstthis there were expenditures of 195,236 million pesetas (or US$1,635,000,000) 42,448 million of which were carried by spon-sors. The difference between revenue and expenditures liquida-ted leaves a positive account of 358 million pesetas (COOB'92,1992).
In relation to other Olympic Games, it could be noted thatin the 1992 Barcelona Games revenue rose sharply, especiallythat generated by the entity, which rose to 75.2% of the total.This is the most notorious characteristic of the organizationalbudget of the Barcelona Games: the high proportion of its ownincome, made up of contributions of the sponsors (58,152 mi-llion, with 42,448 million worth in goods) and televisión rights(54,164 million pesetas).
In the 1992 Games sponsorship reached 30.5% of revenue.
204
TABL
E 1.
O
VE
RA
LL
EC
ON
OM
IC I
ND
ICA
TO
RS
OF
BA
RC
EL
ON
A
Ele
ctri
cal
cons
umpt
ion
Inde
x 19
85=
100
Gas
con
sum
ptio
nIn
dex
1985
=10
0
Col
lect
ion
of u
rban
ref
use
Inde
x 19
85=
100
Kil
ogra
ms
per
resi
dent
Pas
seng
ers
Bar
celo
na A
irpo
rt (
in t
hous
ands
)N
atio
nal
Inte
rnat
iona
lIn
tern
atio
nal
as %
of
tota
l
Tel
epho
ne c
alis
(in
tho
usan
ds)
Inte
rurb
anIn
tern
atio
nal
Inte
rnat
iona
l as
% o
f to
tal
1985
100.
0
100.
0
100.
026
2.9
3,67
61,
783
32.7
%
166,
905
7,08
04.
1%
1986
102.
2
97.2
108.
228
6.2
3,87
62.
221
36.4
%
177,
386
8,03
74.
3%
1987
113.
6
102.
9
117.
231
3.2
4,33
52,
345
35.1
%
193,
867
9,73
14.
8%
1988
117.
8
101.
2
125.
834
0.3
4,75
22,
482
34.3
%
210,
798
12,5
245.
6%
1989
126.
3
105.
8
130.
835
8.5
5,14
43,
002
36.9
%
241,
070
16,4
756,
4%
1990
127.
4
108.
1
135.
237
6.3
5,65
43,
388
37.5
%
248,
055
19,0
627.
1%
1991
135.
2
124.
8
141.
939
9.4
5,71
03,
266
36.4
%
229,
393
23,5
939.
3%
1992
145.
5
129.
7
145.
941
0.2
6,12
33,
913
39.0
%
240,
736
28.7
6010
.7%
Var
iati
on19
85/1
992
45.5
%
29.7
%
45.9
%56
.0%
66.6
%11
9.5%
19.4
%
44.2
%30
6.2%
162.
2%
Sou
rce:
The
aut
hor,
fro
m d
ata
wit
h th
e C
ity o
f B
arce
lona
and
the
Sta
tist
ical
Ins
titu
te o
f C
atal
onia
.
o o-
TABL
E 2.
T
EL
EV
ISIÓ
N R
EV
EN
UE
OF
TH
E O
LY
MPI
C G
AM
ES,
196
0-19
92
RE
VE
NU
E O
F T
HE
OR
GA
NIZ
ING
CO
MM
ITT
EE
AN
D T
HE
IN
TE
RN
AT
ION
AL
OL
YM
PIC
CO
MM
ITT
EE
FOR
TE
LE
VIS
IÓN
RIG
HT
SA
ND
TE
CH
NIC
AL
SER
VIC
ES (
IN $
US
)
Zon
eE
ntit
y N
etv.
-ork
R
ome
Tok
yo
Méx
ico
Cit
v M
unic
h M
ontr
eal
Mos
cow
L
os A
ngel
es
Seou
l B
arce
lona
'92
Uni
ted
Sta
tes
AB
C
4,50
0.00
0 6,
500,
000
12,5
00,0
00
225,
000,
000
NB
C
1,50
0,00
0 *t
s 6,
000,
000
+ts
12,
500,
000
22,3
33,3
33
300,
000.
000
401,
000,
000
CB
S
394,
940
*ts
50,0
00,0
00
Can
adá
(CT
V)
CB
C25
0,00
025
7.00
030
0.00
01,
044,
000
3,00
0.00
0 3,
600.
000
16,5
00,0
00
Eur
ope
UE
R66
7,96
71.
000.
000
1,74
5,00
02.
250,
000
25,0
00tt
s 2,
275,
000
+ts
950
,000
4,70
2,50
0 19
,800
.000
28
.000
,000
90
.000
,000
66,3
2030
0,00
0 1,
000,
000
tts
1,00
0,00
01,
500,
000
2,50
0,00
0 3,
000,
000
4,00
0,00
0
Lat
ín A
mer
ica
OT
I2,
500,
000
300,
000
1.06
0,00
0+
ts 3
00,0
002,
150.
000
2,92
0,00
0 3,
550,
000
NH
K
48,4
00A
NB
1,00
0,00
0 1,
000,
000
1,05
0,00
0*t
s 1.
050,
000
150.
000
4,50
0,00
018
,500
,000
52
,000
,000
62
,500
,000
Áfr
ica
UR
TN
A
SA
BC
25,0
00+
ts 2
5.00
025
,000
+ts
25,
000
64,0
00
Oce
ania
Aus
tral
iaA
ust
rali
a an
dN
ew Z
eala
nd
To
tal
righ
tsT
ech
nic
alse
rvic
es (
ts)
CH
AN
NE
L1,
360,
284
10,6
00,0
00
7,00
0,00
0 33
,750
,000
500.
000
Ara
b S
tate
s
Var
iou
s
ASB
U
630
77,7
7899
0,00
0
75,0
00+
ts 7
5,00
0
31,1
00•t
s 31
,000
300.
000
20,0
006.
793.
000
10,6
13,0
0024
,260
,000
1,17
8.25
7 1,
577,
778
9,75
0,00
0 11
,792
,000
17
,581
,100
37
,034
,117
•ts6
,00
0,0
00
+ts
17,
281.
100
+ts
50,
950,
000
Gen
eral
to
tal
1,17
8,25
7 1,
577,
778
9.75
0,00
0 17
,792
,000
34
,862
,200
87
,984
,117
28
8,34
3,00
0 40
7.13
3,00
0 63
5,56
0,00
0
So
urc
e: t
he
auth
or,
wit
h d
ata
from
th
e IO
C a
nd
the
CO
OB
'92
.
O1
Expressed in dollars, and in comparison with the figures obtain-ed in Los Angeles '84, income for sponsorship was 3.7 timeshigher and televisión income 1.9 times higher (see Table 2).Sponsorship was organized according to Collaboraing Part-ners, World Sponsors and Sponsors, Suppliers, Licensers, Sup-pliers of Sporting Material, and Collaborators of the CulturalOlympics (COOB'92, 1991).
The principal programs developed by the COOB '92 andits resources were: installations and preparation of facili-ties (45,866 million pesetas); services to the Olympic Family(37,023 million pesetas); telecommunications and electro-nics (24,791 million pesetas); competitions (14,045 millionpesetas); commercial management (10,681 million pesetas);ceremonies and cultural acts (9,053 million pesetas); image(7,937 million pesetas); and security (4,671 million pesetas).
In classifying the expenditures of the COOB '92 one will seethat the principal item was the acquirement of services (49.9%of the total). The COOB '92 was the axis of the organization ofthe Games, though it was careful to not assume directly the inti-tiative in all áreas. Here then, personnel represented only 11.2 %of expenditure (21,919 million pesetas) and purchase of material5.1%. On the other hand, COOB '92 investments reached 65,931million pesetas (33.8% of the total) (Brunet, 1993b: 42 ff).
The personnel required for the organization of the OlympicGames varied radically from 57 employees in 1987 to 5,965 onAugust 9, 1992. Including indirect personnel, on the closing dayof the Olympic Games the human resources of Barcelona '92included 89,723 people, with 34,548 volunteers, 23,467 emplo-yees of service enterprises, and 21,116 people employed in se-curity (COOB'92, 1992c).
2. THE RESOURCES AND FINANCING OF THE BARCELONAOLYMPIC GAMES
2.1. Construction projects
Barcelona Holding Olímpic, S.A. (HOLSA) integrated theactivity of the Spanish State and the City of Barcelona. HOLSAwas the matrix company of the constructions in the Olympicring, the majority of the 78 new kilometers of roads and theOlympic Village. The work developed represented 275,000 mi-llion pesetas (figure from Jury 1993) (HOLSA, 1992a).
Given the model of the Barcelona Games, many projectshad to be completed and many more would end up being gene-rated, the majority of which were not directly necessary for the
208
Games themselves. This was precisely one of the intended im-pacts: leave behind the greatest number of fully useful invest-ments for after the Games.
In this way, beginning with the final results of HOLSA,COOB '92, the City of Barcelona, the Generalitat de Catalunya,the Ministry of Economy and Treasury, and the rest of theagents involved in the Games, we estímate that the direct in-vestments related to the Games of Barcelona from 1986 to 1993reached a figure of 956,630 million pesetas (US $8,012,000,000)(See Table 3).
588,625 million pesetas were designated for civil projects,or 61.5% of the Olympic investments, while construction pro-jects received the remaining 368,364 million pesetas. This con-firms another key aspect of Olympic investments: the structuraleffect on the city. Thus we can deduce that the most importanteffects of the Olympic projects will be long term.
The principal classes of Olympic projects were as follows, inorder of importance:
1. Road and transportation infrastructures.2. Housing, offices and commercial venues.3. Telecommunications and services.4. Hotel facilities.5. Sports facilities.6. Enviromental infrastructures.The construction of the ring roads of Barcelona -key roads
to move around the circumference of Barcelona- the opening ofBarcelona to the sea with the construction of the Olympic Vi-llage, the creation of various new centres and the Olympic zonesof Montjui'c, Diagonal and Valí d'Hebron are the main projectsin the City of Barcelona.
However, the Barcelona Games were characterized by geo-graphical decentralization into a number of towns that wereOlympic sub-sites in the regions of Catalonia, Valencia andAragón. Only 38.5% of the Olympic investments were made inBarcelona. 61.5% of the Olympic projects were carried out inthe metropolitan área (29%), the rest of Catalonia (16%), orwere not limited to a specific location (20%), such as invest-ment in telecommunications.
The importance of the urban transformation of Barcelonadue to the Games is seen in these proportions: in relation to thedimensión in 1989, the new road projects meant an increase of15%, the new sewerage systems an increase of 17%, new greenzones and beaches an increase of 78%, and ponds and fount-ains, an increase of 268%. As for the annual cost of mainte-nance of these roads, sewerage systems, green spaces and addi-tional accessible oastline, it can be estimated in 2,900 million
209
TAB
LE 3
. C
ON
ST
RU
CT
ION
FO
R T
HE
199
2 B
AR
CE
LO
NA
OL
YM
PIC
GA
ME
S
Inve
stm
ent
proj
ecte
d an
d in
itia
ted
betw
een
1986
and
199
3A
ccum
ulat
ed v
alúe
sin
cur
rent
pes
etas
343,
804,
115,
303
77,5
01,5
40,0
0068
,839
,310
,000
2,53
6,39
7,31
615
,848
,662
,684
5,25
0,00
0,00
088
,533
,355
,303
51,7
91,6
00,0
0027
,756
,250
,000
5,74
7,00
0,00
0
212,
681,
960,
000
100,
980,
000,
000
75,2
03,5
60,6
2736
,498
,399
,373
117,
973,
650,
000
58,1
38,0
20,0
00
Dis
trib
utio
n
35.9
%8.
1%7.
2%0.
3%1.
7%0.
5%9.
3%5.
4%2.
9%0.
6%
22.2
%10
.6%
7.8%
3.8%
12.3
%6.
1%
Roa
d co
nstr
ucti
on p
roje
cts
Ron
da L
itor
al a
nd
Ñus
Tri
nita
t (i
nclu
des
land
, se
rvic
es a
nd
faci
litie
s)R
onda
de
Dal
t an
d Ñ
us L
lobr
egat
(in
clud
es l
and,
ser
vice
s an
d fa
cilit
ies)
Ron
da d
e M
ig (
firs
t ri
ng r
oad)
Oth
er p
roje
cts
of in
tern
al c
onne
ctio
ns i
n B
arce
lona
Com
pute
rize
d tr
affi
c co
ntro
l sy
stem
Met
ropo
lita
n co
nnec
tion
sR
egio
nal
conn
ecti
ons
(inc
ludi
ng G
iron
a A
irpo
rt)
Bar
celo
na A
irpo
rtP
arki
ng (
outs
ide
of O
lym
pic
área
s)
Con
stru
ctio
n at
th
e Po
blé
Nou
Oly
mpi
c Á
rea
Oly
mpi
c V
illag
e Pr
ívat
e de
velo
pmen
tPu
blic
dev
elop
men
t in
Pob
lé N
ou Á
rea
Oth
er p
roje
cts
in P
oblé
Nou
Con
stru
ctio
n in
oth
er O
lym
pic
área
s of
Bar
celo
naM
ontju
íc Á
rea
Val
í d'
Heb
ron
Áre
aD
iago
nal
Áre
a
Oth
er P
roje
cts
in B
arce
lona
New
wes
tern
urb
an a
xis
(Num
anci
a-T
arra
gona
Áre
a)N
ew e
aste
rn u
rban
axi
s (N
orth
-Glo
ries
Áre
a)R
emod
elat
ion
of O
íd P
ort
(Pha
se I
)Se
rvic
e G
alle
ries
Oth
er f
acili
ties
(cul
tura
l, sa
nita
ry a
nd o
ther
)Im
prov
emen
t of
hot
el f
acili
ties
Proj
ects
in
Oly
mpi
c su
b-si
tes
Oth
er s
port
s in
fras
truc
ture
pro
ject
sO
ther
CO
OB
'92
infr
astr
uctu
res
Oth
er B
arce
lona
spo
rts
cent
res
Oth
er s
port
s in
fras
truc
ture
s
29,4
25,7
40,0
0030
,409
,890
,000
182,
449,
775,
658
7,97
9,13
0,00
016
,395
,880
,000
6,89
0,00
0,00
010
,071
,325
,658
21,2
29,0
90,0
0011
9,88
4,35
0,00
0
69,9
16,4
20,0
00
29,8
04,1
69,0
3913
,643
,000
,000
1,10
7,16
9,03
915
,054
,000
,000
3.1%
3.2%
19.1
%0.
8%1.
7%0.
7%1.
1%2.
2%12
.5%
7.3%
3.1%
1.4%
0.1%
1.6%
Tot
al95
6,63
0,09
0,00
010
0.0%
Sou
rce:
The
aut
hor,
fro
m d
ata
with
CO
OB
'92,
HO
LSA
, City
of
Bar
celo
na,
and
the
Gen
eral
itat
de
Cat
alun
ya.
pesetas (excluding the cost of the security, cleaning and illumi-nation of the ring roads).
Another revealing apsect is how the projects in sports in-frastructure, conditioning and facilities only represented 9.1%of the total of Olympic investments. This proportion is explain-ed by the great level of overall investment, the principal effectthat the Olympic Games had on Barcelona. (On the urbantransformation, see: IMPU, Ajuntament de Barcelona, 1988;La Vanguardia, 1992.)
2.2. Prívate and puhlic investment
32.7% of the Olympic projects were promoted by prívateinitiative. Prívate Olympic investments from 1986 to 1993 rea-ched 313,017 million pesetas. Of this total, more than a thirdcarne from foreign capital. Basically, the prívate projects havebeen oriented towards the folowing áreas:
1. Housing2. Hotels3. Entrepreneurial centres4. Toll motorwaysThe high degree of prívate investment in the projects related
to the 1992 Barcelona Olympic Games corresponds to the greatexpectation created by the attractiveness of the city of Barce-lona. In spite of this, the immediate context in which these prí-vate investments have come of age is not the most ideal. Ineffect, after the Olympic Games, in 1993, the economic crisiswhich had been visible in many countries in 1990 began toshow itself clearly in Barcelona.
Public investment carne to 643,613 million pesetas. It repre-sented 67.3% of the total of Olympic activities. Classifying it bygovernmental levéis, the Spanish State contributed 193,572 mi-llion pesetas, 77,948 million of which were channelled throughHOLSA. Enterprises under the auspices of the central adminis-tration carried out 20.3% of the total of «public» investment. Inthis way, a good part of the «public» investment in Barcelona'92 was made by enteíprises which in spite of being state-owned, operated according to market criteria. In these cases,Olympic investment helped the business strategy of these en-terprises, even though they were public, and was thus benefit-ted from in the same way as other investments.
The municipal administration contributed 100,237 millionpesetas. The concentration in HOLSA of the Olympic projectsof the city of Barcelona and the Spanish state in an originaljoint venture made the investment process more agüe. HOL-SA is an extraordinary example of a joint venture. Of the
212
CHART 1. CONSTRUCTION PROJECTS FOR THE1992 BARCELONA OLYMPIC GAMES
Geographical distribution of construction projects
Regional área
Mi.tmpolil.nl uc i
Barcelc
Types of projects
Roads and Iransport
Communications and services
Enviroment
( Jfl .Muí M ilrilricci i;i s i les
Hotel facilities
Sports facilittos
Other facilities
404,510 M ptas
1123.313 M ptas
160.439 M ptas
1139,741 M ptas
¡119,884 Mptas
• 87,511 M ptas
•1,??9 Mptas
275,000 million pesetas administered by HOLSA, 125,000were designated to projects delegated by other institutions,and 149,546 million pesetas were for projects made by its ownenterprises, 11,722 of these on Montjuic, 67,692 million in theOlympic Village and the coast, and 70,132 million on roads(see Chart 1).
The growth of HOLSA projects in 29,000 million pesetaswas compensated by 14,000 million pesetas in increase income.The recourse of credit represented 131,000 million pesetas onJury 31, 1993. Until the year 2009 the annual payments will beabout 16,000 million pesetas, to be covered equally by theSpanish state and the City of Barcelona. For the city the annualPayment of 8,000 millions that must be passed onto to HOLSAuntil that date represents less than 5% of the budget of 1993(City of Barcelona, 1991: 578-590; 1992b; 1993).
The Generalitat de Catalunya, the regional autonomous go-vernment, contributed to the effort in public investment for theOlympic Games with the significant amount of 22% of the pu-
213
blic investment or 142,726 million pesetas which went basicallyto the Barcelona ring roads, transportation infrastructures fortowns that were Olympic sub-sites, and sports and cultural fa-cilities.
2.3. The dynamic of the Olympic projects
The excess of activity could well have sharpened the imba-lances inevitably produced in some markets of prime materials,and in labour. The Olympic program also could have been hurtby its own success. There was the risk that the Olympic whirl-pool would devour the Olympics themselves.
The main risks were as follows:— Internal prices and costs. The accumulative index,
from its starting point in 1983, shows that in Barcelona therewas an increase in the cost of living 20% above that in the restof Catalonia. (Brunet 1993b: 20-24, 110 ff.) The effect wasclear: from 1986 on the difference in the price index grew,with 1990 and 1991 being the crucial years.
— Exchange rates. It was clear that televisión rights andthe rest of commercial contracts established in foreign cur-rency, with the added inestability of the exchange rate and thedevaluation of the dollar, were a serious risk. To counteract thisrisk, the COOB '92 insured the exchange rate established forthese operations.
— Project Calendar. The calendar was kept without techni-cal or social difficulties.
— Participation and audience. The participation of nation-al committees and athletes evolved in the best way possible, sothat the 1992 Games brought together the greatest number ofcommittees and athletes . The Gulf War, which had broken outin August of 1990, augured badly for the Olympics, but once itwas over the rest of the international factors evolved favourablyfor the development of the Barcelona Olympics. As a result, theBarcelona Games appeared as the first of a new world, withoutconflict between different political blocs.
2.4. Cost of the Olympic Games and the financingof investments
There was considerable sensitivity to questions of «cost»,the necessary resources, and the «financing» of a social eventof the importance of the Olympic Games. Thus a distinctionwas made between organizational expenditures (those for as-pects not usable after the event) and project expenditures (those
214
usable after the event). The expenditures in projects weremade up of direct investments (or those necessary for the de-velopment of the event), indirect investments, and investmentsinduced by the event. The organizational expenditures werethe true «cost», the net cost, of which nothing would remainafterwards. For this reason effort was made to minimize them.On the other hand, the investment expenditures are the legacy,what remains. For this reason the effort was made to maximi-ze them.
In the consideration of these questions a double tendencyappears:
A. If one wishes to establish the cost of the Olympic Games,the tendency will be to minimize the «Olympic» works,reducing them to their strict nucleus and concerningoneself with the upward fluctuations for expansión ofprojects or higher costs.
B. If the goal is to evalúate the impact of the Olympic Ga-mes, the tendency will be to maximize the «Olympic»works, widening this category and making note of theupward variations for growth of projects or the amplifi-cation of their scale.
Also noteworthy was the difference between organizationalexpenditures (162,880 million pesetas) and direct investment(956,630 million pesetas) (see Table 4). Investments represen-ted 85.5% of all Olympic expenditures! A distinction has alsobeen made according to whether revenue had a commercialorigin (investments of prívate and public enterprises, revenueof the COOB '92 itself in televisión rights, sponsorship and li-cences, and lotteries) or a tax origin (from public budgets).
By matching up the origin with the destination various con-clusions can be reached concerning the use of Olympic resour-ces. The «cost» of the Olympic Games was only 162,880 millionpesetas. This true cost is only 14.5% of the resources of Barce-lona '92, in its majority self-financed with the income of theCOOB'92 itself. This entity only received 12,947 million pesetasfrom public budgets, which were the direct cost for the SpanishState of the Olympic Games.
However, the central administration and the remaining pub-lic institutions contributed up to 338,533 million pesetas fromtheir budgets, and until the year 2009 will contribute 112,590million more. As a consequence, if from the 451,000 million pe-setas supplied by taxes we take off the 13,000 million transfe-Ted to the COOB '92 for its organizational expenditures, wearrive at a total of 438,000 million pesetas supplied by the bud-gets of all public adminstrations and applied to Olympic in-vestment.
215
TA
BL
E 4
. O
RIG
IN A
ND
DE
STIN
AT
ION
OF
RE
VE
NU
E F
RO
M T
HE
199
2 B
AR
CE
LO
NA
OL
YM
PIC
GA
ME
S
Per
iod
1986
-199
3ln
cur
rent
pes
etas
Dis
trib
utio
n
A. O
RIG
IN O
R F
INA
NC
ING
OF
RE
VE
NU
E
1. C
omm
erci
al r
even
ueP
ríva
te n
atio
nal
inve
stm
ent
Prí
vate
for
eign
inv
estm
ent
Inve
stm
ent
of s
tate
ent
erpr
ises
HO
LSA
: sel
f-ge
nera
ted
reve
nue
of t
he e
nter
pris
es o
f th
e gr
oup
CO
OB
'92:
sel
f-ge
nera
ted
reve
nue
CO
OB
'92:
con
trib
utio
n of
spo
nsor
s of
mat
eria
lsC
OO
B '9
2: l
otte
ries
2. R
even
ue f
rom
tax
atio
nIn
vest
men
ts i
n pu
blic
bud
gets
HO
LSA
: cre
dit
(con
trib
utio
ns o
f th
e M
inis
try
of E
cono
my
and
Tax
atio
n, a
nd t
he C
ity o
f B
arce
lona
)T
rans
fer
pavm
ents
fro
m t
he C
entr
al S
tate
to
the
CO
OB
'92
668,
386,
640,
000
204,
697,
131,
130
108,
320,
328,
870
130,
416,
240,
000
42,3
05,8
40,0
0012
0,05
5,70
0,00
042
,448
,000
,000
20,1
43,4
00,0
00
451,
123,
080,
000
325,
586,
180,
000
112,
590,
000,
000
12,9
46,9
00,0
00
59.7
%18
.3%
9.7%
11.6
%3.
8%10
.7%
3.8%
1.8%
40.3
%29
.1%
10.1
%1.
2%
A =
B
OR
IGIN
= A
PPL
ICA
TIO
N1,
119,
509,
720,
000
100.
0%
B.
APP
LIC
AT
ION
OR
USE
OF
RE
SOU
RC
ES
1. R
esou
rces
app
lied
to
the
orga
niza
tion
Pro
gram
s of
the
CO
OB
'92
2. 2
. Res
ourc
es a
ppli
ed t
o co
nstr
ucti
on p
roje
cts
Inve
stm
ents
of
prív
ate
ente
rpri
ses
Inve
stm
ents
of
Sta
te e
nter
pris
esIn
vest
men
ts o
f th
e C
entr
al S
tate
Inve
stm
ents
of
the
City
of
Bar
celo
naIn
vest
men
ts o
f H
OL
SAIn
vest
men
ts o
f th
e G
ener
alit
at d
e C
atal
unya
Inve
stm
ents
of
the
CO
OB
'92
Inve
stm
ents
of
othe
r pu
blic
adm
inis
trat
ions
162,
879,
720,
000
162,
879,
720,
000
956,
630,
000,
000
313,
017,
460,
000
130,
416,
240,
000
116,
123,
760,
000
22,7
88,5
80,0
0015
4,89
5,84
0,00
014
2,72
6,00
0,00
032
,714
,280
,000
43,9
47,8
40,0
00
14.5
%14
.5%
85.5
%28
.0%
11.6
%10
.4%
2.0%
13.8
%12
.7%
2.9%
3.9%
Sou
rce:
the
aut
hor,
fro
m d
ata
from
the
Min
istr
y of
Eco
nom
y an
d T
axat
ion,
the
CO
OB
'92,
the
City
of
Bar
celo
na,
and
the
Gen
eral
itat
de
Cat
alun
ya.
The previous investments from public coffers were comple-mented by 130,000 million pesetas invested by public enterpris-es (Telefónica, RENFE, and others). Besides, we know that theOlympic Games contributed 313,000 million more in prívateinvestments. Thus the overall direct investments (956,630 mi-llion pesetas worth) and organizational expenditures (162,880million) give us a total of 1,119,510 million pesetas, equivalentto US $9,376,000,000 (see Chart 2).
In the development of the Olympic project the forecastswent from 237,000 million pesetas in April 1985, to an estima-ted 768,368 million in March 1991, to the final figure of1,119,510 million pesetas in July of 1993 (real definitive figures,accumulated to July,. 1993) presented here.
This series of figures indicates a sharp rise, but they do notindícate the «budget» of the Olympic Games, ñor their cost(which would be legitímate to try to minimize). We are speak-ing of «Olympic» investments (precisely what one should try tomaximize). For this reason, the growth of Olympic projectsshould be considered in positive terms.
If we consider the previous figures of the resources of the1992 Barcelona Games as definitive, reflecting «costs» exactly,organizational expenditures, and direct public and prívate
CHART 2
Origin of the economic resources of Barcelona '92
668,387
Commercial
revenue
218
Destination of economic resources of Barcelona '92
956,630
Organizaron Constructionprojects
«Olympic» investments, the impact of all Olympic resources onthe economy and the capacity to genérate additional demandcould be considered.
3. THE IMPACTS OF THE 1992 BARCELONA OLYMPIC GAMES
3.1. The overall economic impact
Direct and indirect Olympic investments (1,119,510 millionpesetas) were really exceptional, as seen by comparing them toother Olympic Games (see Table 5). In effect, direct investmentis exceptional not only in absolute terms (Brunet, 1993: 63 ff.).The induced impact is as well, along with investment demandand the consumption generated by direct investments of theOlympic Games. Barcelona '92 was unusual. As seen in this re-port, only the Tokyo Olympic Games generated more direct in-vestment than those of Barcelona.
The induced impact in the period from 1987 to 1992 wascalculated to be 1,942,000,000 million pesetas (16.6 billion do-llars). Adding the direct impact to this (1,166,000,000 million)the total impact of the 1992 Barcelona Olympic Games could
219
be calculated to be 3,108,000,000 million pesetas (or 26.048 mi-llion dollars) (see Table 6 and Chart 3).
In order to round off this perspective, we should briefly con-sider the estímate of the tax and commercial balances of the1992 Barcelona Olympic Games. Although there are limitationsin the availability of data, certain generally valid conclusionsclearly stand out. Thus a consideration of all revenue and ex-penditures of the public administrations -excluding public en-terprises- whether explicit -with the budgetary designation in-dependent from other State expenditures and revenue- orimplicit -without a sepárate designation-, whether past- corres-ponding to the period from 1986 to 1993- or future -after theevent- as well as direct, indirect and induced -as the permanentincrease of income and capital are deductible- will be illustrat-ive concerning the tax balance for the public treasury of theOlympic Games.
In the área of «Olympic» tax income, there was an accumu-lated total (before and after the Olympic Games) of 889,848 mi-llion and an annual flux after the Olympic Games of 27,500 mi-llion. As for the expenditures for the public treasury, theaccumulated total was 522,569,000 million and the annual fluxafter the Olympic Games some 51,000 million pesetas. As a re-sult, the «Olympic» tax balance for the public administrationresulted in a surplus of accumulated valúes for the period from1986 to 1993 of about 3,1 \,219 million pesetas (+- 100,000 mi-llion) and an annual déficit (from 1993) of 23,500 million(+-15,000 million) (see Table 7).
In spite of the limitations of the sources and estimates, twoconclusions are unquestionable: a) the tax balance of the Olym-pic Games up to 1992 is very positive; and b) the tax balance ofthe Olympic Games after 1992 is slightly negative.
On the other hand, in the estímate of the external balanceof payments or external commercial trade balance and capitalof the Olympic Games, there appeared a negative commercialbalance of 358,210 million pesetas, due to the fact that the ele-vated imported component of direct and induced investmentswas greater than income from televisión rights and sponsor-ship. The capital balance or exterior investment balance waspositive, however, indicating the great attraction of Barce-lona.
The principal spectator of any Olympic Games is in front ofthe televisión. For this reason: a) economic success dependedon the income in this área; and b) the success of the image andthe international impact depended upon the televisión audi-ence and the message that was sent out to it.
It is for this reason that the number of visitors to Barcelona
220
TABL
E 5.
IN
VE
ST
ME
NT
RE
LA
TE
D T
O T
HE
OL
YM
PIC
GA
ME
S
ln m
illi
ons
of S
US
Tok
yo 1
964
Mof
S %
Mon
trea
l 19
76M
ofS
%L
os A
ngel
es 1
984
Mof
S %
Seou
l 19
88M
ofS
%B
arce
lona
199
2M
ofS
%
Dir
ect
expe
ndit
ures
452,
116
2.7%
2,
824,
863
89.0
%
522,
436
100.
0%
1,46
7,85
3 46
.5%
2,
460,
855
26.2
%
Ope
rati
onal
exp
endi
ture
s 16
9,51
0 1.
0%
411,
857
13.0
%
450.
394
86.2
%
478,
204
15.2
%
1,36
1,15
6 14
.5%
Dir
ect
¡nve
stm
ents
28
2,60
5 1.
7%
2,41
3,00
6 76
.0%
72
,042
13
.8%
98
9,64
9 31
.4%
1,
099,
699
11.7
%
Indi
rect
exp
endi
ture
sIn
dire
ct i
nves
tmen
ts6,
373,
372
97.3
%
350,
012
11.0
%1,
687,
423
53.5
%
6,91
5,27
4 73
.8%
Tot
al O
lvm
pic
inve
stm
ents
16
,825
,488
10
0.0%
3,
174,
875
100.
0%
522,
436
100.
0%
3,15
5,27
6 10
0.0%
9,
376,
129
100,
0%
Sou
rce:
the
aut
hor,
with
dat
a fr
om t
he I
OC
, the
SO
OC
, and
the
CO
OB
92.
TAB
LE 6
. E
CO
NO
MIC
IM
PA
CT
OF
TH
E 1
992
BA
RC
EL
ON
A O
LY
MP
IC G
AM
ES
Per
iod
1986
-199
3In
Mil
lion
s of
curr
ent
pese
tas
Dis
trib
utio
n
Dir
ect
accu
mul
ated
im
pact
Inve
stm
ent
Publ
ic I
nves
tmen
tC
ity o
f B
arce
lona
Cen
tral
Adm
inis
trat
ion
HO
LSA
: in
vest
men
tG
ener
alit
at d
e C
atal
unya
CO
OB
'92:
inv
estm
ent
Oth
er p
ubli
c ad
min
istr
atio
ns
Prív
ate
inve
stm
ent
Con
sum
ptio
n
CO
OB
'92:
cur
rent
exp
endi
ture
sC
onsu
mpt
ion
of v
isit
ors
1,16
5,60
0
956,
630
643,
613
22,7
8924
6,54
015
4,89
614
2,72
632
,714
43,9
48
313,
017
208,
970
162,
880
46,0
90
37.5
%30
.8%
20.7
%0.
7%7.
9%5.
0%4.
6%1.
1%1.
4%
10.1
%6.
7%
5.2%
1.5%
Indu
ced
accu
mul
ated
im
pact
1,94
2,18
862
.5%
Tot
al a
ccum
ulat
ed i
mpa
ct3,
107,
788
100.
0%
Sou
rce:
The
aut
hor,
wit
h da
ta f
rom
the
Min
istr
v of
Eco
nom
v an
d T
axat
ion,
the
CO
OB
'92,
the
City
of B
arce
lona
, an
d th
e G
e-ne
rali
tat
de C
atal
unya
.
CHA
RT 3
. C
AL
EN
DA
R O
F T
HE
EC
ON
OM
IC I
MPA
CT
OF
BA
RC
EL
ON
A '9
2
Yea
rs 1
986,
1987
and
198
81
Yea
r 19
89
Yea
r 19
90
Yea
r 19
91
Yea
r 19
92!
195,
940
M p
tes.
S31
,061
M p
tes.
1,02
5,88
9 M
pte
s.
748,
612
M p
tes.
TABL
E 7.
TA
X B
AL
AN
CE
OF
TH
E 1
992
BA
RC
EL
ON
A O
LY
MPI
C G
AM
ES
A. R
even
ue f
rom
the
pub
lic
adm
inis
trat
ions
(in
mil
lion
s of
pes
etas
)Sy
nthe
sis
Acc
umul
ated
tot
al b
efor
e an
d du
ring
the
Oly
mpi
c G
ames
Ann
ual
tota
l af
ter
the
Oly
mpi
c G
ames
893.
848
27,5
00
Det
ails
of
reve
nue
Cen
tral
Adm
inis
trat
ion
Acc
umul
ated
bef
ore
the
Oly
mpi
c G
ames
Val
ué A
dded
Tax
(a)
Savi
ngs
of u
nem
ploy
men
t be
nefi
ts (
a)Pe
rson
al l
ncom
e T
ax a
nd S
ocia
l Se
curi
ty p
aym
ents
of
supp
lem
enta
ry e
mpl
oyed
(a)
Ann
ual,
afte
r th
e O
lym
pic
Gam
esV
alué
Add
ed T
ax,
Pers
onal
lnc
ome
Tax
, Soc
ial
Secu
rity
pav
men
ts a
nd o
ther
s(c
apita
l an
d th
ose
rela
ted
to p
erm
anen
t em
ploy
men
t)
City
of
Bar
celo
naA
ccum
ulat
ed b
efor
e th
e O
lym
pic
Gam
esIn
crea
se i
n th
e be
nefi
ts o
f th
e E
cono
mic
Act
iviti
es T
axIn
crea
se i
n th
e be
nefi
ts o
f th
e Pr
oper
ty T
ax
Ann
ual,
afte
r th
e O
lym
pic
Gam
esIn
crea
se i
n th
e be
nefi
ts o
f th
e E
cono
mic
Act
iviti
es T
axIn
crea
se i
n th
e be
nefi
ts o
f th
e Pr
oper
ty T
ax
152,
750
212.
098
525.
000
25,0
00
2.00
03,
000
1,00
01,
500
B.
Exp
endi
ture
s of
the
pub
lic
adm
inis
trat
ions
(in
mill
ions
of
pese
tas)
Synt
hesi
sA
ccum
ulat
ed t
otal
bef
ore
and
duri
ng t
he O
lym
pic
Gam
esA
nnua
l tot
al a
fter
the
Oly
mpi
c G
ames
522,
569
51,0
00
Det
ails
of
expe
nditu
res
AU p
ublic
adm
inst
rati
ons
(a)
Con
trib
utio
ns fi
rom
pub
lic b
udge
ts
Cen
tral
Adm
inis
trat
ion
Bef
ore
the
Oly
mpi
c G
ames
, with
out
inde
pend
ent
acco
untin
gSe
curi
ty f
orce
s (a
)O
lym
pic
task
s of
the
adm
inis
trat
ion
with
out
inde
pend
ent
(dip
lom
atic
ser
vice
, Su
peri
or S
port
s C
ounc
il, a
nd o
ther
s)
Ann
ual,
afte
r th
e O
lym
pic
Gam
esH
OLS
A a
nnua
l pa
ymen
t
City
of
Bar
celo
naA
ccum
ulat
ed b
efor
e th
e O
lym
pic
Gam
es. w
ithou
t in
depe
nden
t ac
coun
ting
Var
ious
áre
asD
urin
g th
e O
lym
pic
Gam
es, w
ithou
t in
depe
nden
t ac
coun
ting
Exc
eptio
nal
mun
icip
al s
ervi
ces
Ann
ual,
afte
r th
e O
lym
pic
Gam
es, w
ithou
t in
depe
nden
t ac
coun
ting
Mai
nten
ance
of
civi
l w
ork
and
new
mun
icip
al b
uild
ings
(cl
eani
ng a
nd p
rofi
tabi
lity
of t
he r
ing
road
s, p
arks
, urb
an m
obili
ty.
build
ings
and
fac
ilitie
s)H
OLS
A a
nnua
l pa
vmen
t
Oth
er p
ublic
adm
inis
trat
ions
Acc
umul
ated
, be
fore
and
dur
ing
the
Oly
mpi
c G
ames
Ann
ual,
afte
r th
e O
lym
pic
Gam
es, w
ithou
t in
depe
nden
t ac
coun
ting
338,
533
80,0
00
20,0
00
8.00
0
20,0
00
4,03
6
20.0
008,
000
60,0
0015
,000
A-B
: T
ax b
alan
ce =
Inc
ome
min
us t
he e
xpen
ditu
res
of a
ll pu
blic
adm
inis
trat
ions
Est
imat
e of
acc
umul
ated
val
úes
inth
e 19
86-1
993
peri
od
Ann
ual
esti
mat
eaf
ter
the
Oly
mpi
c G
ames
Tax
sur
plus
of
371,
279
mill
ion
(+/-
100
thou
sand
mill
ion)
Tax
déf
icit
of 2
3,50
0 m
illio
n (+
/- 1
5 th
ousa
nd m
illio
n)
en
Not
e (a
): s
ee th
e te
chni
cal
deta
ils
in B
rune
t (1
994:
184
-186
).
Sour
ce: t
he a
utho
r w
ith d
ata
from
the
Min
istrv
of
Eco
nom
y an
d T
axat
ion,
the
CO
OB
'92,
the
City
of
Bar
celo
na,
the
Gen
eral
itat
de C
atal
unya
, an
d th
e E
urop
ean
Com
mun
ity.
was not the principal effect of the Olympic Games, althoughthe greater attention they received was primordial. There hadbeen great expectations as to the number of visitors, but wasrealite limited by hotel space. As a result of significant prív-ate investment, from 1990 to 1992 hotel space grew 38% in Bar-celona. On July 25, 1992 there were 25,641 hotel spaces in thecity. If to these another 15,000 are added from the área ofOlympic influence, the supplyof hotel space was 40,641 spaces,allowing for a máximum of 422,666 Olympic tourist visits. To-gether with the expenditures of the Olympic family, local con-sumption by non-resident visitors can be estimated at 46,090million pesetas (Brunet, 1993b: 105 ff.).
3.2. The urban transformation of Barcelona
In the analysis of the impact the effects generated by thechange of an element on the components of a system are esti-mated, and the transformation for a specific modification arerecounted. Impact analysis can be preventative, like that in thedossiers of the candidature for the organization of the OlympicGames, or the final dossiers, after the Games. This report hopesto contribute to the final impact analysis of the 1992 BarcelonaOlympic Games.
The impact of the nomination of a city as organizer and thenecessary decisions and investments for its organization, rangefrom the most physical (construction projects) to the most in-tangible (local self-esteem or international impact, one of themost valued effects).
Among the physical impacts —whichper.se can have impor-tant economic effects— is the impact on urbanism. Change inthe urban configuration and potential of Barcelona due to the1992 Olympic Games has been enormous. The Olympic nomi-nation was the spark that lead to the application of a previouslyelaborated urban plan concerning the project of Barcelona. (Seeforexample: Bohigas, 1995; Busquets, 1992.) Beyond the Olym-pic Games there has been a leap forward in the perception ofthe city of itself, in terms of urban planning in Barcelona. Thus,from the perception of Barcelona as relatively uniform, wherethe differences were residual and where there was no signifi-cant differentiation between different districts and streets, thesituation changed so as to promote actions that would make ur-ban spaces specialized.
In this point we would like to point out to the reader an as-pect where the extraordinarily synthetic mode of Barcelona'surban transformation was reflected, as generated by «Olympic»investments: the circulation of motor vehicles. The change in
226
the urban model can be seen immediately by comparing thedensity of traffic in 1990 before the ring roads were built, withthe density of 1993, after the opening of the Dalt and Litoralring roads. The changes in traffic due to the effect of theseroads was one of the most synthetic expressions of the impactof the Olympic Games on the city.
3.3. Construction and housing
The construction sector best reflects the economic boom inBarcelona between 1986 and 1993 (Brunet, 1993b: 85 ff.). Fromthis we might conclude the following:
— The population employed in the construction sectorgrew 72% from 1985 to 1992.
— The peak of construction employment was in 1991.— The consumption of cement rose 74% between 1985 and
1993.— The consumption of electricity in the production of
construction materials rose 55% from 1985 to 1993.— The consumption of electricity in construction rose
142% from 1985 to 1993.Presented by function and specific projects, the construc-
tion that stands out during the years 1988 to 1991 was surfaceárea of parking lots (34% of the total), housing (23%), com-mercial venues (13%), offices (12%) and hotels (5%). In thisperiod in Barcelona, 605,688 square metres of office spacewere constructed, an increase of 21%, which to a large degreecompensated previous unavailability and expense. The dyna-mic of offices construction in Barcelona is important, surpas-sing the construction of offices in Brussels and Madrid al-though not reaching the feverish pitch of London and Paris.As a consequence, the expectation of investment in this sectoris still high.
One of the most notable impacts of the 1992 BarcelonaOlympic Games was the growth in housing, due to the increas-ing attraction of Barcelona, the lack of buildable land, in-creased construction costs, the rise in available family income,and the difference in prices between the Spanish market andthe rest of Europe.
The revival of the real estáte market was rapid and vora-cious, from the Olympic nomination in October 1986 to themiddle of 1990. From that point on, the economic crisis, andperhaps the availability of housing in the Olympic Village, de-pressed the market, especially in relation to housing that wasnot of new construction: the market price of new and pre-
227
viously-built housing between 1986 and 1992 grew, respecti-vely, 240% and 287% (see Chart 4).
3.4. Employment
The nomination of Barcelona as the organizing city for the1992 Olympic Games produced a sharp effect: in December1986 unemployment, which until then had been on the rise, be-gan to fall. The curve of the temporary shifts in unemploymentchanged drastically and began to fall until August of 1992. Thelabour market in Barcelona, all its metropolitan área, and in allof Catalonia improved substantially during the period of prepa-ration for the Olympic Games (Brunet, 1993a).
Synthetically, the number of registered unemployed fellfrom a historical máximum of 127,774 people in November of1986 (the month following the Olympic nomination) to a míni-mum of 60,885 unemployed in July 1992, in the middle of theOlympic Games (see Table 8).
From October 1986 to July 1992, the general rate of unem-ployment in Barcelona fell from 18.4% to 9.6%. In 1986 in Bar-celona, its province, Catalonia, and all of Spain, the unemploy-ment rates ranged from 18.4% and 23.7%. In 1992, the ratesvaried from 9.6% in Barcelona to 15.5% in the rest of Spain.The reduction in half of the number of registered unemployedin Barcelona was even more significant if one considers thatthe number of active employable people in Barcelona in thisperiod grew by 1.1%.
As a complement to this, while unemployment was reducedby half between 1986 and 1992, the number of work contractsrose 2.5 times. Registered unemployment and labour hiringformed an «X»: while the fall in unemployment was sharp, sowas the rise in hiring.
In comparing these figures with the levéis of unemploymentin July 1993 (78,251), one sees that a year after the Olympic Ga-mes there were still 49,523 unemployed less than in Novemberof 1986 (127,774). After the Olympic Games, the economy ofBarcelona showed a greater capacity to resist the economic cri-sis which had also appeared in the city, even though it has onlyappeared since 1993.
Moving from bust to boom, the economic situation in Bar-celona improved notably between October 1986 and August1992. The crisis died down and gave way to a general revivalof activity, and even euphoria in some sectors. In sum, the cri-sis appeared in Barcelona much later than in other places,and the situation the local economy finds itself in is better.
228
Price of new housing in Barcelona (in pesetas/square metres)
228,4741 233.937
191,000203,000,
211,000
146,554
102,713i
67,000
LO00CD
00en
oo00
CTi0001
O <— <\JOí (T)
ooCT)Oí
Price of oíd housing in Barcelona (in pesetas/square metres)
142,310-
93,817_69,295,
214,230 216,754
190,251171,174
CO 0000co
enooOi
en oíen
CHART 4
Preu de les vivendes
229
TAB
LE 8
. A
CT
IVIT
Y A
ND
EM
PL
OY
ME
NT
IN
BA
RC
EL
ON
A
Var
iati
on
Situ
atio
n on
31.
12 1
986
1987
19
88
1989
1
99
0
19
91
1
99
2
1986
-199
2 19
91-1
992
Act
ive
707,
772
743,
348
728,
704
734,
746
741,
662
722,
870
715,
774
1.1%
-1
.0%
Em
ploy
ed
582,
078
624,
946
631,
697
664,
104
675,
424
656,
575
645,
833
11.0
%
-1.6
%
Une
mpl
oyed
12
5,69
4 11
8,40
2 97
,007
70
,642
66
,238
66
,295
69
,941
-4
4.4%
5
.5%
Sour
ce: T
he a
utho
r, w
ith d
ata
from
the
City
of B
arce
lona
and
the
INEM
(Nat
iona
l Em
plov
men
t Ins
titut
e).
Thus the 1992 Barcelona Olympic Games were a protectivebuffer against the economic crisis that affected Europe (seeTable 9).
Relevant conclusions can be made concerning employmentfrom the data obtained. Thus in comparing July 1992 with July1993 one can observe the «Olympic» effect of 17,366 fewer jobs,a figure cióse to the annual employment of the COOB '92. Herewe might conclude that the jobs lost corresponded directly tothe organization of the Olympic Games. Other jobs appeared toresist this change (see Chart 5).
On the basis of various analytic procedures (analysis of em-ployment, production, investment and income), the followingcan be concluded:
— There was annual average employment (1987-1992) rela-ted to direct expenditures (organization by the COOB '92plus direct public and prívate Olympic investments) of35,309 people.
— There was annual average employment (1987-1992) rela-ted to the induced impact (generation of the induced de-mand) of 24,019 people.
— There was a permanent effect of the Olympic Games (ad-ditional employment arising from capitalization andchanges in economic structures) that could be calcula-ted to be 20,000 people (Brunet, 1993b: 74 ff.).
In sum, the annual average effect of employment for the pe-tiod 1987-1992 from the economic impact of the Games was59,328 people. The result was that the drop in unemploymentin Barcelona between November 1986 and July 1992 in 66,889people was due (at least 88.7% of it) to the impact of the orga-nization of the Olympic Games of 1992.
3.5. The confidence of citizens, the opinión ofvisitors,and the attraction for investors
The confidence of Barcelonans in the 1992 Games was al-most unanimous, and many visitors were surprised by the una-nimity and passion the city showed for the Olympic Games.The projects in the streets were so numerous that it wasthought that the situation had to lead to improvements. Sur-veys showed this tendency both before the Olympic Games andafterwards.
In 1987, 61.4% put the urban changes in first place amongthe perceived benefits the Games would bring the city. 81.7%believed that there was enough time to develop the Olympicproject, while 38.0% expected that it would result in benefits. Ahalf a year before the Olympic Games, this optimism not only
231
TA
BL
E
9.
UN
EM
PLO
YM
EN
T R
AT
E I
N B
AR
CE
LO
NA
, C
ATA
LON
IA A
ND
SPA
IN
Reg
iste
red
unem
ploy
ed a
s a
Situ
atio
n on
31/
12
Bar
celo
na
Pro
vinc
e of
Bar
celo
na
Cat
alon
ia
Spa
in
% o
fthe
ac
tive
pop
ulat
ion
1986
18.4
23.7
21.0
20.9
1987
17.4
19.3
18.3
20.9
1988
14.3
16.0
15.2
18.8
1989
10.4
12.0
11.6
16.2
1990 9.
7
11.3
10.9
15.6
1991 9.2
11.0
10.7
15.4
1992 9.
6
11.7
11.2
15.5
1986
-199
2
-47.
8%
-50.
6%
-46.
7%
-25.
8%
Var
iati
on
1991
-199
2
4.2%
6.0%
4.5%
0.6%
Sou
rce:
the
aut
hor,
fro
m d
ata
wit
h th
e C
ity o
f B
arce
lona
and
the
IN
EM
(N
atio
nal
Em
ploy
men
t In
stit
ute)
.
GRAFIC 5. TOTAL EMPLOYMENT GENERATEDBY THE 1992 BARCELONA OLYMPIC GAMES
92.570
66,497
1986 1987 1988 1989 1990 1991 1992
remained intact but had even increased. 87% of all Catalans be-lieved that Barcelona would come across well during the Olym-pic Games. 55% felt that the construction projects would be fi-nished on time, although 48% were afraid that the city wouldbecome apathetic in 1993.
Immediately after the Olympic Games the average mark giv-en of those questioned was 8.78 out of 10. 23% had attendedsome Olympic event. The King of Spain, the Mayor of Barcelo-na, and the President of the International Olympic Committeereceived the highest evaluations of all leaders. The aspect of theOlympic Games that received the highest qualification was se-curity (8.9), followed by street atmosphere (8.7), access to faci-lities (8.2), public tranportation (7.9), and traffic (7.6%). 39%felt that Barcelona would become apathetic after the OlympicGames had ended, 9% less than half a year earlier.
A year after the Olympic Games, the positive evaluation ofthe Olympic Games shown by the citizens before and immedia-tely after the event held up, in spite of the fact that the econo-mic crisis of the 90's had arisen in Barcelona as well. The de-gree of satisfaction of living in Barcelona was 7.9 out of 10.Only 47.7% believed that after the Olympic Games Barcelonahad become apathetic. Thus the positive evaluation of the citi-zenry towards the 1992 Olympic Games not only held up, but infact grew.
Another aspect to keep in mind is the impression from theoutside. Visitors to the Olympics gave a very high evaluation to
233
the 1992 Games, especially for the Olympic events, the Olympicatmosphere, Olympic facilities, and Olympic signage (Brunet,1993b: 109-110).
It is felt that the preference of enterprises to lócate them-selves in Barcelona is an excellent synthetic indication of its at-tractiveness, the availability of services (offices, industrial land,housing, and so on) and labour, its market, and overall compe-tivity. In 1991, in midst of the pre-Olympic boom, the excellentexpectation for Barcelona was already felt, reaching the eighthposition in the ranking of European cities. In contrast, by 1992it had fallen to 13th due to the rise in rental prices and the costof office space (Maragall, 1993-1994).
In 1993 Barcelona rose again to the tenth position, due tothe Olympic effect and the lower price of office space. In thisyear, the other 9 preferred cities in terms of location of enter-prises were London, París, Frankfurt, Brussels, Amsterdam,Zurich, Glasgow, and Manchester. The strongest aspects ofBarcelona were quality of life of employees (5th in Europe), of-fice prices (6th), availability of directors and their cost (8th),proximity and accessibility to the market (lOth), transportationinfrastructures (15th) and telecommunications (19th).
3.6. The legacy of the Olympic Games and the strategicperspecdves of Barcelona
The direct and indirect investments of the Olympic Gameswere seen in civil construction projects and infrastructures, aswell as building and installations. Significant public and prív-ate capital that had come together during the preparatory effortof the Olympic Games, together with permanent employmentcreated, constitute the legacy of the 1992 Barcelona OlympicGames.
This legacy is synthesized in the urban transformation ofBarcelona and in the economic structure (greater capitaliza-tion, growth of the service sector, internationalization, attract-iveness, centrality, productivity, competivity).
European integration strengthens the Western Mediterrane-an región, as a bridge between the centre and the south of Eu-rope. In this context, Barcelona also has another powerful at-traction: its metropolitan área, found in a central axis ofEuropean Communications. Barcelona is thus an excellent loca-tion for head offices and its metropolitan área excellent for theintroduciton of their plants. The possibilities of capitalizing onthe Olympic impulse, consolidating its new role as a service cen-tre specialized in activities with high surplus valué, seems clear.
234
The organization and development of the 1992 OlympicGames could be considered to have been an exceptional and fa-bulous experience. During the Games an excellent forum forathletes from all over the world was provided, a great spectaclein tune with the Olympic spirit, strengthening both new and oídattractions of the city of Barcelona.
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237
