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After Olympics, can Sochi survive?

A worker carries supplies to a construction site in the Rosa Khutor Mountain Cluster village ahead of the Sochi 2014 Winter Olympics on January 31, 2014 in Sochi, Russia.
A worker carries supplies to a construction site in the Rosa Khutor Mountain Cluster village ahead of the Sochi 2014 Winter Olympics on January 31, 2014 in Sochi, Russia. Al Bello/Getty Images

With the festivities over and the athletes returning home, the Olympic spotlight is slowly turning away from the city of Sochi.

So what happens to the picturesque village on the eastern coast of the Black Sea?

After pouring a record $51 billion into its Olympic efforts, the Russian government plans to keep Sochi’s sporting venues intact, promoting it as a high-end tourist attraction with world-class ski resorts and elegant accommodations.

But Sochi’s future is still in question after the Paralympics wrap up next month. It could thrive, like Salt Lake City, Utah has since 2002; or its venues could languish, like Athens, Greece following the 2000 Olympic Games. 

“I don’t think it will be a struggle. I think it will be impossible,” said Sufian Zhemukhov, a Russian author and political scientist who has written five books about the Caucasus.

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Construction on the olympic stadium continues at the coastal cluster during the Grand Prix of Figure Skating Final 2012 at the Iceberg Skating Palace on December 8, 2012 in Sochi, Russia.
Construction on the olympic stadium continues at the coastal cluster during the Grand Prix of Figure Skating Final 2012 at the Iceberg Skating Palace on December 8, 2012 in Sochi, Russia. Julian Finney/Getty Images

Shifting plans, displaced population, $51-billion price tag

The $51 billion investment dwarfed any prior Olympic games, and actually cost more than every other Winter Olympics combined. The highway they built leading into Sochi cost more than the entire Vancouver Olympics did four years earlier.

These financial expenditures came with a large environmental price, as well. Water pollution was a significant concern in Sochi, with pictures of yellow and brown tap water shared on social media by journalists, athletes and other Sochi visitors.

Thousands of residents were displaced in order for their homes to be torn down to make way for the sleek new buildings. Many of these residents were moved into newly built apartments, but some of the accommodations are less than pristine.

“The same company that built the figure skating venue also built the new apartments,” said Lisa Delpy Neirotti, Associate Professor of Tourism and Sport Management at George Washington University.

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But Jeff Sahadeo, Director of the Institute of European, Russian and Eurasian Studies at Carleton University says that many of those who have been displaced are now living in worse conditions.

“They’re much smaller than what they had before. Some of them do have apartments in these very ramshackle buildings that were kind of sewn up at the last minute; some aren’t even built yet,” he explained. “They are without any form of heating or have to pay much more for heating.”

Sahadeo also explained that because of the small size of the apartments, many of Sochi’s residents were unable to take all of their belongings with them – including pets, which may explain all of the stray dogs that were present in the streets of Sochi.

Construction continues at the Extreme Park at Rosa Khutor Mountain ahead of the Sochi 2014 Winter Olympics on February 5, 2014 in Sochi, Russia.
Construction continues at the Extreme Park at Rosa Khutor Mountain ahead of the Sochi 2014 Winter Olympics on February 5, 2014 in Sochi, Russia. Cameron Spencer/Getty Images

The community was essentially turned on its head, with major renovations to Sochi’s power grid and airport, as well as the sewage system, which for most residents was non-existent prior to Olympic preparations.

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Part of the chaos could be chalked up to changing plans and sometimes inconsistent execution.

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“I would say that 10 percent of what was promised was delivered, 90 percent of it was failed,” said Zhemukhov. “They were constantly changing their plans for the city. They changed these many times.”

IN PHOTOS: Building the Olympic village

At first the plan was for Sochi to become the southern capital of Russia. Putin wanted to build a major city from the ground up, like Peter the Great did in St. Petersburg, which is now considered Russia’s northern capital.

Prime Minister Dmitry Medvedev also had a plan of putting casinos into Sochi and turning it into a Russian Las Vegas.

“That sounded more like speaking his thoughts aloud, not a firm plan that a leader would come up with,” Zhemukhov said.

Another plan was to build mostly temporary buildings that they could dismantle and either ship to other Russian cities or sell to make some of their costs back. This is something many host cities have been doing following the disaster in Athens after 2000.

But this plan didn’t become reality in Sochi, either. Many of the venues are permanent and cannot be dismantled, which could become a major problem if they’re unable to bring events into the city and fill the seats within these venues.

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The Bolshoy Ice Dome is seen beyond the partially-completed buildings of the athletes village in the Sochi district of Adler, on February 18, 2013.
The Bolshoy Ice Dome is seen beyond the partially-completed buildings of the athletes village in the Sochi district of Adler, on February 18, 2013. LEON NEAL/AFP/Getty Images

Putin built it; will they come?

It’s a common feeling among people close to the issue that Russian President Vladimir Putin’s priorities included keeping Sochi secure and making the Olympics look good on television – but he failed to consider the aftermath of the massive construction project.

“It seems that they spent 50-plus billion dollars without a plan beyond this broad idea that if you build it, they will come,” Sahadeo said.

Another not-so-hidden objective, Zhemukhov believes, is to underscore Putin’s own legitimacy as a mighty leader.

“He wanted to show that he could deliver the same mega-project that the Soviet Union did in 1980,” he explained. “He kind of saw it as building a new Russian state almost from scratch, and now it matches symbolically the Soviet Union’s accomplishment. I think in his own eyes, he did a great job.”

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And now?

“I think he had a vision that he could turn Sochi into a place that would be a world-class resort. He loves the area, he believes that it could be a place that combines a summertime resort and a winter resort,” Sahadeo said. “I think he had that vision but he didn’t really do much to enact it.”

The score 3-0 is projected on the Bolshoy Ice Dome after the Men’s ice hockey final Sweden vs Canada during the Sochi Winter Olympics on February 23, 2014.
The score 3-0 is projected on the Bolshoy Ice Dome after the Men’s ice hockey final Sweden vs Canada during the Sochi Winter Olympics on February 23, 2014. ANDREJ ISAKOVIC/AFP/Getty Images

If Putin is going to realize his vision, he – and Sochi – need to clear a few hurdles first.

The most obvious is financial – Russia will have to continue pumping money into Sochi for it to continue to function as a world-class winter sports getaway.

“I actually think there is a plan in place,” Delpy Neirotti said.  “Whether the government continues to fund the plan is the big question.”

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An Olympic legacy foundation, much like one created in Utah following the 2002 Salt Lake City Winter Olympics, could also be a great help in Sochi, Delpy Neirotti said, adding that Utah has done a great job of maintaining its Olympic facilities.

“They need to work on the plan of making it a Russian Olympic training centre and also continue to host other events in the facilities,” she said.

Sergei Stepashin, Chairman of the Russian government’s auditing agency, quoted experts who estimated that keeping the venues intact and functioning would cost about 60 billion rubles ($2 billion) a year.

If Sochi struggles to attract tourists, it risks becoming a financial black hole.

A general view outside the Iceberg Skating Palace, the 2014 Olympic venue for the Figure Skating and Short Track Speed Skating during the Grand Prix of Figure Skating Final 2012 at the Iceberg Skating Palace on December 7, 2012 in Sochi, Russia.
A general view outside the Iceberg Skating Palace, the 2014 Olympic venue for the Figure Skating and Short Track Speed Skating during the Grand Prix of Figure Skating Final 2012 at the Iceberg Skating Palace on December 7, 2012 in Sochi, Russia. Julian Finney/Getty Images

Location, location, location (and cost)

Another major issue is the competition. While the city has undeniably turned into a beautiful coastal area and has gained recognition from the Olympics, it will still struggle to compete with other, more practical European skiing destinations for tourists.

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“In Sochi, the weather is unpredictable,” Sahadeo explained. “You don’t know what the weather conditions will be like, you don’t know if they will be good for skiing. Whereas in places like Austria, during ski season it’s a pretty safe bet that conditions will be good.”

On top of this, many outsiders need visas to get to Russia, including countries like Canada, the U.S.A. and the U.K. This adds extra processing and hassle to the trip. Other countries that feature some of the best ski resorts in the world – such as Switzerland, Austria and France – do not require visas from North America or the U.K.

But travel issues aren’t restricted to those who live outside of Russia. Sochi will have to make an effort to attract its fellow citizens, as well.

Historically, Russians who have the financial means to travel have opted to visit other countries instead of Sochi. For Russians living in the two most populated cities, Moscow and St. Petersburg, the flight to ski destinations in Austria is only about 45 minutes longer than a flight to Sochi. To get to Switzerland, it’s only about an hour longer.

At the same time, Sochi isn’t cheap. One-star hotels go for about $140 US per night, which is much more expensive than other ski resorts across Europe. Many people touring Europe – young adults and backpackers, for example – are on much tighter budgets.

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Building accommodations that are affordable for younger people and students is important if Sochi hopes to bring in more tourists, Sahadeo said.

“Train travel in Russia is pretty cheap, so young people can get there,” he explained. “It’s just a matter of being able to afford staying there.”

Sahadeo believes that marketing in Turkey could be a great way to attract visitors, as Turkey is a close neighbour with a thriving economy.

Before the spectacular venues were built for the Olympics, Sochi was mostly barren fields. If it thrives as a high-profile foreign attraction it’ll be thanks to a significant expenditure of money and effort. If not, its shiny venues could revert to a state of ghost town desolation.

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