Inuit Games are compact for the simple reason that they are indoor sports. The Games were what you did to pass the time when the blizzards hit and you couldn't see to hunt. Igloolik has no sports arena or landscaped playing fields. This is less a matter of funding than of geology. Grass won't grow.
Buildings have to be set on posts to keep from sinking in the thaw.
I saw a picture of it in winter. It looked like inside my freezer. The official motions for quiet. As the crowd numbers fewer than 100, this is not hard to achieve. However, as many are children, it is somewhat hard to maintain.