BusinessWeek Logo
Beijing

Getty Images

By Tatyana Gershkovich

Beijing

It's no fun to wake up after a party and find that the shindig left you deep in debt. But this phenomenon, dubbed "The Olympics Hangover," is common among host cities of the Games. This summer's Olympics in Beijing will almost certainly set the record for the most expensive Games, and experts have begun to speculate about the long-term economic impact of China's investment. Beijing originally said the Games would cost $14.3 billion, including $1.8 billion for new sports facilities. But rising commodities prices and cost overruns on construction have pushed that well north of $20 billion, with many estimates running twice that high.

The majority of the money was allocated to infrastructure upgrades, including three new subway lines and an immense new terminal at Beijing's airport. Despite the fast and furious spending, though, some analysts argue that China's robust economy—and the Olympic Committee's efforts to diversify funding for the Game—will leave Beijing much better off than the some former host cities.