Mega events cause temporary price surges in industries like hotels and airlines, mainly affecting visitors and tourists.

Mega events like the Olympics and concerts can create temporary demand shocks, leading to higher prices in specific industries like hotels and airlines. However, UBS warns that the cost of living for local populations may not significantly increase. These price surges are often borne by visitors and tourists rather than the local population, and tourism unrelated to the event tends to fall off significantly during these periods.

August 11, 2024
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