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Sports are a bigger part of the economy than many people realize. The sports economy includes sports tourism, sports goods, participatory sport and physical activity, and professional sport. It also covers related industries such as gaming, broadcasting and streaming, nutrition, wearables and technology software, and sport services.
The World Economic Forum estimates that in 2025 the global sports economy generated almost 2% of the world’s GDP, or about 2.3 trillion USD. It is expected to grow by 10% per year, reaching 3.7 trillion dollars by 2030 and 8.8 trillion dollars by 2050. In developed countries, sports account for around 2–4% of GDP and create about 1 out of every 25 full-time jobs.
However, physical inactivity and rising climate risks could cause losses of about 517 billion USD by 2030. Hotter weather, pollution, changing seasons, and extreme weather events are affecting global, regional, and local sports events. Between 2004 and 2024, extreme weather disrupted more than 2,000 events worldwide, and one in five of them were sports events.
Climate change has already had a strong impact on major sports events, including the Winter Olympics. The Guardian reported that in February 2026, the average temperature in Cortina was 3.6 degrees Celsius higher than during the Winter Olympics held in Italy 20 years ago. Snow levels were also lower. As a result, four high-altitude water reservoirs had to be built, and water was pumped from local rivers facing drought. About 2.3 million cubic meters of artificial snow had to be produced to cover the ski slopes.
The International Olympic Committee is considering moving the Winter Olympics to an earlier date in the future because of climate change. With less snowfall, only 10 countries may be able to host the Winter Olympics in 2040.
Winter sports are not the only ones affected. Many outdoor sports are facing problems due to rising temperatures. From the Tour de France, where cyclists face challenges from rising temperatures, to Formula 1, where the Singapore circuit is known for its harsh, hot and humid conditions, even the Summer Olympics has raised concerns about temperature and its impact on athletes.
In ASEAN, sports play an important role in both the economy and society. Sports events create economic value through spending, investment, and employment. Major regional sporting events like the SEA Games stimulate the sports economy, contributing to national infrastructure development, boosting local businesses, promoting tourism, enhancing the popularity of host provinces, and distributing prosperity throughout the region.
Furthermore, ASEAN member countries are enthusiastic about hosting world-class sporting events such as motorsports, golf, volleyball, badminton, and esports, which generate revenue for the countries and stimulate tourism and the economy.
At the same time, ASEAN countries face ongoing climate risks, including natural disasters, PM2.5 air pollution, high temperatures, changing seasons, and extreme weather. These issues make it harder to organize outdoor sports events and can even threaten health. This creates more challenges for growing the sports economy. For example, during a recent SEA Games, major flooding forced Thailand to move events from Songkhla to Bangkok and Chonburi.
The economic benefits of hosting world-class sporting events create intense competition among bidding nations. With sport increasingly linked to sustainability, organizing sustainable events has become a key selling point for bids. In the modern sporting world, hosts are judged not only on financial resources and infrastructure but also on climate suitability and sustainability.
To prevent ASEAN’s hopes of elevating itself as a sporting destination from being dashed before they even begin, countries need to prioritize organizing sporting events sustainably, not just for economic benefit, but also to minimize environmental impact and give lasting benefits to the world.
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Tag: Global Warming, Sports Economy, Climate Change, ASEAN, Sustainable Sports
Author:
Ms. Patcha Thamrong-ajariyakun
Senior Researcher
International Institute for Trade and Development (ITD)
www.itd.or.th
Publication: Bangkok BIZ Newspaper
Section: First Section/World Beat
Volume: 39 Issue: 13111
Date: Wednesday, Mar. 4, 2026
Page: 8 (bottom)Column: “Asean Insight”
