The Sydney Olympics lost $2 Billion and had a negligible impact on the economy and tourism.
There were some infrastructure improvements however many of the sports facilities ongoing maintenance costs went over budget and the 20 year old Olympic stadium is now considered obsolete and is being torn down and replaced for $1 Billion. They did get a train line to the airport out of it though.
While the Olympics definitely did not "ruin" Sydney the money would have been better spent building hospitals, schools and transportation infrastructure and I believe this city would be more livable for all citizens today if the Olympics never went ahead.
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The masses of humanity have always had to surf.
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