There are always other things that any sum of money could be spent on. Every nation, even ones with large economies and high development standards have other things to spend money on.  The reason why many nations desire to host prestigious sporting events, giving them varying level of government support, at local or national government levels, is to change perceptions of the nation or region by advertising it. It also leads to regeneration and infrastructure investment in the host areas – all things with good long term benefits that can be applied to the entire nation.