As I understand it, the International Olympic Committee prefers to keep mixing things up and having the venue encompass different cultures with each event. Europe, as it so happens, has plenty of countries that each possess a unique cultural identity.
Another important consideration is the political stability and the financial support of the chosen host nation. This would explain why they tend to avoid Africa (though there are some exceptions such as Cairo, most of the continent lacks the resources--if not the desire--to be a good host) and the Middle East (political instability). Most of Europe has historically been both politically stable and financially sound, so hosting an Olympics in a European city generally goes off with little trouble.
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