Hartcourt Companies (fka HRCT)

[Investorman]

Mark - A temporary increase in tourist related business isn't much of a benefit considering what it costs to host the Olympics. While you are correct that in the US most of the direct costs are privately funded, there are still considerable public costs involved. (Police, fire, roads, medical, infastructure, etc.) I can't really believe that hotel reservations are up 148% since occupancy rates were running over 85% before the Olympics. Utah was hardly unknown as a ski resort. Park City and the other resorts had been expanding at a brisk pace for two decades before the recent Olympics.

I will agree that there is a secondary benefit to Olympic sponsors and advertisers but I'm not even sure that the cost/benefit is justified there. It is mostly an ego thing for the sponsors just like advertising for the Super Bowl. If you pay $1 million + for a 30 second spot, will it generate $10 million in additional revenues? Not likely.