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I would imagine that it is significantly cheaper to host the Pan-American Games rather than the Summer Olympic Games. The size and scope of each alone would set apart the cost. The depth of media alone would make it significantly cheaper. The scale of the event alone would make it cheaper. The requirements (not as stringent as Olympics) alone would make it cheaper. Add all those things up, it is significantly cheaper.
As for those questioning why should anywhere strive to win the bid to host the Pan-American Games, you think too narrowly.
Obviously it is a sporting and athletic event. It is great to host an event like this and to personally be able to attend some of the competitions. Sports are a world of fun to watch and athletes often make a name for themselves when in competition with others. This would be no exception either.
At worst case scenario, all it really does is bolster your city's portfolio here in the Western Hemisphere. Those that compete represent their respective countries at events like these, theoretically, the host city is automatically known by the global audience. That is press. Plus the more events like these that your city hosts, the easier it is for the United States Olympic Committee to choose your city as the one to represent the country. One of the prerequisites is a city's portfolio on big events that it has successfully hosted.