OLYMPIC OBSERVERS | Student perspectives on the business, politics and culture of the 2026 Milano Cortina Winter Games.
The Olympic torch is burning in Milano-Cortina, but its budget burns even hotter. The Games come with an estimated price tag of 5.7-5.9 billion Euro. Yet, from an economic development perspective, hosting the Olympic Games is a valuable investment for Italy..
The 2026 Olympics are funded on a two-track funding model: Private and public financing. The private organizing committee, Fondazione Milano Cortina 2026, is responsible for operational costs covered by sponsorship, broadcasting rights and ticket sales totals totalling roughly €1.7-€1.9 billion.
The remaining €4 billion comes from three levels of government. These public funds are primarily responsible for infrastructure, including sporting venue reconstruction and non-sporting like new roads and rail upgrades.
Milano-Cortina organizers have attempted to re-use venues from previous games, by refurbishing or upgrading 13 of 15 competition venues, including venues that date back to the 1956 Cortina d’Ampezzo Olympics.
“We’re proud to confirm that 86 per cent of Olympic venues remain in use today – a clear proof of the Games,” said 2026 Olympic Games Executive Director Christophe Dubi, in a news release on October 23, 2025.
Despite this, venue infrastructure for the Game still comes with a hefty price tag. The upgrades to the Eugenio Monti sliding track cost €132 million while upgrades to the ski jump stadium and Olympic village in Predazzo cost €92 million. The new construction of the Santagiulia arena came in at €250 million and Milan Olympic Village at €140 million.
The Italian government is banking on tourism around the Games to help offset public spending. Organizers project two million spectators will attend the Olympics Games, which is and increase from the 1.5 million who attended the 2006 Torino Winter Olympic Games.
The Italian central government has allowed municipalities within a 30km of Olympic venues to raise tourist tax rates in 2026. Under this arrangement, 50 per cent of the revenue from the increased tourist tax goes back to the central government.T he more tourists spend on transportation, restaurants and goods, in the immediate vicinity of the Games, the more the Italian government recoups their costs.
A good public investment delivers value long after the closing ceremonies. This implies that venues are used continually, tourism still generates revenue and the upgraded infrastructure is maintained.
Some people will benefit from improved rail lines, upgraded venues and increased tourism. But these gains come with tradeoffs. Hosting the Olympics temporarily reallocates certain government resources to focus on hosting the Games. This means that some sectors may receive less attention and money than previously. So, Italians working in professions facing reduced funding or living in regions far from the new infrastructure may end up bearing more of the cost than they reap in rewards.
This article is part of a collaborative series produced by students in KPER 4110: The Olympics and the Global Sporting Event within the Faculty of Kinesiology and Recreation Management at the University of Manitoba.
Throughout the Winter 2026 term, students are exploring the complex intersection of elite athletics, geopolitical influences and the socio-economic impact of the Olympic movement. By analyzing the Milano Cortina 2026 Games in real-time, this series provides a hands-on opportunity for students to connect classroom learning and the global sporting reality.
Disclaimer: The views and opinions expressed in this article are those of the student author and do not necessarily reflect the official policy or position of the University of Manitoba or the Faculty of Kinesiology and Recreation Management.
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