STP is actually not a racket, the way these big events work, I don't know who else has ever been involved in planning a large event but here is how it works when you have an event that has this many people attending:
The competition puts out a bid to the city or cities, as part of the bid they have to guarantee a certain number hotel rooms to be blocked and available for attendees and the event producer must promise to fill those rooms. They bid and negotiate costs such as facility rental, police and security, set up,labor, ads, promotions etc.
The only real way for both the city and the event to track the rooms and make sure the guarantee is met is through something like STP, otherwise we would end up paying a much higher competition fees in order to cover the real cost that go on for putting on an event this size.