Source: China.org.cn Author: Cai Bing Date: 2008.03.27

Hosting the 2008 Beijing Olympic Games is the century-long expectation of the Chinese nation, and a major event for the country. The preparation and organization of the Olympic Games provides a historic opportunity of a lifetime to accelerate the economic development of Beijing and even the whole country. Along with the approach of the Olympic Games, the Olympic economy has become a topic of concern. This article briefly reviews the development of Beijing's Olympic economy in recent years and puts forward future prospects.

One, the connotation of the Olympic economy and the impact on the host site

Generally speaking, the Olympic economy [1] refers to a certain period of time before and after the Olympic Games, the Olympic Games and the organization of the Olympic Games have a link with a variety of activities that have economic effects or economic value pointing. Olympic economy on the economy of the boost is mainly reflected in two aspects: from the initial aggregate demand stimulus to the late supply-driven. Aggregate demand stimulus manifests itself as a direct push, including investment, consumption and government spending, as well as net exports. The supply-driven impact is mainly to enhance the supply factors, including corporate brand enhancement, improvement of international image, efficiency improvement brought by the improvement of economic foundation, and promotion of the growth of new industries. The impact of the Olympics on the economy is mainly realized through two transmission paths, one is inter-industry transmission and the other is inter-regional transmission. Inter-industry conduction refers to the process of upstream and downstream related industry development triggered by meeting the demand of the Olympic Games; inter-regional conduction refers to the process of radiation of the Olympic economy from the hosting place to other regions of the country.

By analyzing the history of different cities in hosting the Olympic Games, we have come to the basic conclusion that the Olympic Games will have a significant pulling effect on the economy of the host country, especially the host city, and that the economy of each host country is at a high level of prosperity during the period of preparation for the Olympics, and reaches a peak in the two years prior to the hosting of the Olympics in particular (see Table 1). At the same time, studies have found that developing countries are more susceptible to the impact of the Olympic economy. Taking the 1988 Korean Olympic Games as an example, the Olympic Games for Korea's construction, manufacturing and tertiary industries created 2.1 billion U.S. dollars, 2.2 billion U.S. dollars and 1.3 billion U.S. dollars respectively, the economic growth rate of the Seoul Olympics from 11.1% before the convening of the Olympic Games, convening the year of the 10.6% to the convening of a year after the 6.7%, it can be said that the Olympic Games led to a round of economic boom for the South Korean national economy with a remarkable pulling The Olympic Games have had a significant impact on Korea's national economy.

Table 1: Changes in GDP growth of host countries before and after the Olympics

Olympic Games

GDP growth of host countries (%)

Previous year

The year of the Olympics

Last year

The 18th Tokyo Olympics 1964

The 24th Seoul Olympics 1988

The 25th Seoul Olympics 1992

The 24th Seoul Olympics in 1992

25th Barcelona Olympics 1992

26th Atlanta Olympics 1996

27th Sydney Olympics 2000

28th Athens Olympics 2004

10.5

11.1

2.5

2.5

4.4

4.6

13.1

10.6

0.9

3.7

3.3

4.7

5.2

6.7

-1.3

4.5

2.2

3.7

Beijing's Olympic economy has the general characteristics of the Olympic economy, at the same time, Beijing's specific stage of development, urban nature and resource advantages, giving Beijing's Olympic economy a new unique charm. It is highlighted in the following: Firstly, Beijing Olympic economy is closely linked with the capital's economy. The strategic concept of "New Beijing, New Olympics" has become a main line running through the capital's development in recent years, and the Olympic economy has become a new driving force for the capital's economic development. Beijing has seized the opportunity of the Olympics and formed a good situation of "promoting development by the Olympics and helping the Olympics by development". Secondly, the mode of promoting the development of the Olympic economy is government-led and market-oriented. The main is to make full use of the market economy, the establishment of socialized investment and financing mechanisms, the effective development of Olympic resources, maximize access to the Olympic economic benefits. For example, in the construction of Olympic venues, government investment is only a part of it, and social investment accounts for more than half of the total investment. This model not only ensures the smooth preparation of the Olympic Games, but also promotes the development of the capital's economy. Thirdly, the three concepts of "Green Olympics, Scientific Olympics and Humanistic Olympics" have been carried through the whole process of the economic work of the Olympic Games. These three concepts are not only the concept of organizing the Olympic Games, but also an important concept and goal of the Olympic economic development, which will have a positive and far-reaching impact on the development of the capital.

The impact of the Olympic economy on Beijing's economy is wide-ranging. From the non-simultaneous period, the impact on the economy is mainly manifested in the following ways (see Table 2):

1. Pre-Olympic period (successful Olympic bidding - 2007). The economic impact of the Olympic Games is manifested in the economic pulling effect of new Olympic investment. Mainly focused on the construction of Olympic venues and related facilities, improve the transportation environment and drive the development of related industries, and through the conduction and radiation effects ripple upstream and downstream related industries and other regions of the country. This part of the economic impact of the entire Olympic economic growth in the largest scale, the longest duration of the stage.

2, the Olympic period (2008). The impact of the Olympic economy is manifested in the increase in external effective demand driven economic development. Mainly refers to the Olympic Games held during the period due to a substantial increase in passenger traffic and make the consumption of agglomeration effect, and thus triggered a variety of economic and consumer activities continue to grow. These additional consumer demand, mainly in the transportation industry, post and telecommunications, health and sports, social services, commerce, catering, education, culture and entertainment, and other areas.

3. Post-Olympic period (2009-2010 or longer). The impact of the Olympic economy is mainly manifested as a result of organizing the Olympic Games caused by the visibility of the promotion of the expansion of foreign economic exchanges and the subsequent sustained development of the economy. The main focus is on the subsequent development of the Olympic industry, the operation of venues and facilities, and the continued development of brands and intangible assets.

Table 2 Impact of the Olympic Economy on Beijing's Economic Development in Different Periods

Benefits

Costs

Pre-Olympic Games

Infrastructure

Improvement of Transportation Environment

Promotion of Industries

Olympic Market Development

Investment Expenditures

Movement Costs Budget ( including preparation costs)

Opportunity costs

In the Olympics

Tourism and related industries

Direct income from the Olympics

Operating expenses related to the Olympics

City congestion

Opportunity costs

After the Olympics

Follow-up of the Olympic industry

Operation of venues and infrastructures

Expansion of foreign exchanges

Maintenance of venues and infrastructures

Opportunity cost

The Olympic economy has had a strong driving force on Beijing's development

(1) Promotion of Beijing's development over the past five years

Since Beijing's preparation for the 2008 Olympic Games, the Olympic economy has been in good shape, with the Olympic economy developing at a good pace. Since Beijing organized the 2008 Olympic Games, the Olympic economy has developed well, and the Olympic economy has become a powerful driving force for the capital's economic development.

1. Driving the rapid development of the capital's economy. The preparation for the Olympic Games has pushed the capital's economy to sustained and rapid development by influencing investment and consumption demand. According to the Beijing Municipal Bureau of Statistics, the five-year period from 2002 to 2006 was one of the most effective periods for Beijing's development since the reform and opening up. The city's economy grew at an average annual rate of 12.1%, 1.3 percentage points higher than the average growth rate from 1997 to 2001, and the city's GDP reached 787.03 billion yuan in 2006, with a per capita GDP (based on the resident population) of 6,331 U.S. dollars, which is 1.9 times that of 2001, and the goal of reaching a per capita GDP of 6,000 U.S. dollars, as set forth in the Ninth Party Congress of Beijing, was achieved two years ahead of schedule. This is two years ahead of schedule. This is not only the performance of the stage characteristics of the capital's economic development, but also the Olympic economy has played a huge role in pulling. The Beijing Municipal Bureau of Statistics predicted [3] that the hosting of the 2008 Olympic Games would generate more than 2% of annual economic growth and keep the city's economy in double-digit growth over the past 10 years. Relevant data show that the Olympic economy will bring China more than 3 trillion yuan of huge business opportunities, forming a huge Olympic economic industry chain, thus boosting the overall economic growth.

Driven by the Olympic factors, the city's demand structure continues to improve, and the role of consumer pull is increasing. Investment and consumption both exceeded 300 billion yuan, reaching 337.15 billion yuan and 327.52 billion yuan in 2006, equivalent to 2.2 times and 1.8 times of 2001 respectively. Over the past five years, social investment in fixed assets has amounted to 142.29 billion yuan, with an average annual growth rate of 17.4%, 1.8 times that of the combined investment during the Eighth and Ninth Five-Year Plan periods; retail sales of consumer goods have totaled 149.38 billion yuan, with an average annual growth rate of 12%, equal to that of the Ninth Five-Year Plan period. Retail sales of social consumer goods totaled 14,938.1 billion yuan, with an average annual growth rate of 12%, equivalent to 2.2 times that of the "Ninth Five-Year Plan" period, and the consumption of culture, tourism, sports, communications and other Olympic-driven items grew rapidly. For example, the number of inbound tourists increased from 2.858 million in 2001 to 3.903 million in 2006. As the Olympic Games approach, the rapid growth of investment and consumption on the economic growth of the pulling effect of the more and more show a strong trend.

2. Promote the optimization and upgrading of industrial structure. The economic development of the Olympic Games has provided a new impetus for the optimization and upgrading of the capital's industrial structure. While the primary industry maintains stable development, the secondary industry is directly and powerfully driven, and the growth speed, scale, total volume and proportion of the tertiary industry in the GDP have been significantly improved, and the industrial structure has realized leapfrog upgrading. 2006, the proportion of the tertiary industry in Beijing reached 70%. In 2006, the proportion of tertiary industry in Beijing reached 70%. The Olympics directly stimulated the development of related industries such as construction, communication equipment, transportation, tourism and exhibition, and at the same time strongly promoted the accelerated development of finance and insurance, information transmission, business services, cultural creativity, etc., and pushed forward the formation of the new pillar industries in Beijing (see Table 3).

Table 3: Share of value-added of major sectors (unit: %)

Industry

Average growth rate during the Tenth Five-Year Plan period

Share of GDP (%)

2004

2005

2006

Construction

Average growth rate during the Tenth Five-Year Plan period

Share of GDP (%) p>Construction

8.1

4.9

4.7

4.7

Transportation, warehousing and postal services

5.8

5.9

5.9

5.8

Information transmission, computer services and software

18.3

7.4

8.5

8.7

Wholesale and retail trade

11.3

9.7

9.5

9.6

Financial sector

11.6

11.8

12.1

12.4

Real estate

18.2

7.2

6.6

7.1

Leasing and business services

13.4

4.6

5.0

5.3

Scientific Research, Technical Services and Geological Survey

15.9

4.6

5.0

5.4

Accommodation and Foodservice

11.6

2.7

2.6

2.8

Culture, Sports and Entertainment

9.1

2.3

2.5

2.4

3. It has expanded the city's openness and international exchange and cooperation. Since the preparation of the Olympic Games, Beijing's foreign cooperation has developed rapidly. in 2006, the total import and export volume of Beijing reached 158.18 billion US dollars, 3.1 times that of 2001; the total amount of actually utilized foreign capital increased by nearly 50% compared with the previous five years. Annual inbound tourists have increased by more than one million. The number of introduced projects about the Olympics at the annual Beijing Science and Technology Fair has increased year by year. Meanwhile, exchanges and cooperation in science and technology, education, culture and sports have been further strengthened, establishing a new image of the capital as a modern international city.

4. Promote the continuous improvement of citizens' life and urban civilization. The development of the Olympic economy has provided a large number of entrepreneurial and employment opportunities, which in turn has promoted the continuous increase of residents' income. Over the past five years, the city has seen an average of about 620,000 new jobs per year, mainly in construction, high-tech, modern manufacturing, social services and other industries, and has played an important role in promoting the transition of the affluent rural labor force, the re-employment of the unemployed, and the absorption of the newborn labor force. In terms of urban development, through the preparation and organization of the Olympic Games, the operation and management, comprehensive guarantee capacity and service level of cities have been continuously improved. In terms of environmental construction, by vigorously implementing the "Green Olympics", the number of blue skies in Beijing accounted for 66% of the total number of days in the year 2006, an increase of 17.6 percentage points over 2000, and the air quality has been improved for eight consecutive years.

(2) Beijing's Olympic economic development entered an accelerated period in 2007

The year 2007 was the decisive year for the preparation of the Olympic Games. As a result of the explosive power of the preliminary investment, the final assault on the construction of facilities and the increasingly fierce commercial competition, the Olympic economy has entered an accelerated and explosive period, and has continued to maintain a strong momentum of development.

In the first half of 2007, the city's GDP amounted to 406.43 billion yuan, a year-on-year increase of 12.1%, and the proportion of the tertiary industry reached 72.5%, an increase of nearly one percentage point compared with that of the same period of the previous year, so that the benefits of the Olympic economy are being gradually realized in Beijing's economic development. The economic benefits of the Olympic Games are gradually appearing in Beijing's economic development.

One is the role of Olympic investment continues to increase. 2007, the Olympic venues project construction into a decisive stage, the government investment is mainly focused on ensuring that the Olympic Games related projects construction [4]. So far, the Olympic project construction is progressing well. In the first half of the year, the Olympic Games and related facilities construction completed investment of 5.53 billion yuan, an increase of 26.3% over the same period of the previous year, of which 1.94 billion yuan was completed in the construction of venues, related facilities completed 3.59 billion yuan. The city completed infrastructure investment of 40.9 billion yuan, an increase of 31.9%, contributing 54.9% to the growth of social investment. Driven by the construction of Olympic venues and urban infrastructure, Beijing's urban infrastructure continues to improve, driving the rapid development of related industries, especially the tertiary industry, and playing a positive role in raising the economic aggregate and promoting industrial restructuring. In the first half of the year, the tertiary industry completed investment (including real estate development) of 122.89 billion yuan, an increase of 16.5%, an increase of 1.6 percentage points higher than the city's average growth rate of investment. Among them, the transportation, storage and postal industry, information transmission computer services and software industry, culture, sports and entertainment industry completed investment of 24.11 billion yuan, 3.35 billion yuan and 4.67 billion yuan, an increase of 51.9%, 39.7% and 69.9% respectively.

Secondly, the three concepts of Green Olympics, Science and Technology Olympics, and Humanistic Olympics have contributed to an important shift in Beijing's economic development model. 2007, Beijing closely followed the concept of Green Olympics, actively developed high-end industries, accelerated the withdrawal of high-energy-consuming, high-polluting, and low-value-added industries, and conscientiously carried out the tasks of energy-saving, consumption reduction, pollution reduction, and initially formed a low-consumption, low-emission growth model. 2006 saw the reduction of energy consumption of 10,000 yuan of GDP by 1.4 billion yuan. In 2006, the energy consumption of Beijing's 10,000 yuan GDP dropped by 5.25%, and in the first half of 2007, the energy consumption indicator continued to maintain the momentum of decline, maintaining a leading level in the country. Beijing has actively implemented the concept of Scientific and Technological Olympics, and the level of independent innovation has been continuously improved in the preparation for the Olympics. In order to make the concept of scientific and technological Olympics a reality, the Ministry of Science and Technology launched the implementation of the "Olympic Science and Technology (2008) Action Plan" after Beijing's successful bid for the Olympic Games in 2001, and over the past six years*** arranged for the support of more than 1,209 projects, with a total investment of 3.195 billion yuan, of which 931 million yuan was invested by the financial sector, and the scientific and technological personnel involved amounted to more than More than 35,000 scientific and technological personnel have been involved. Up to now, the number of domestic and foreign patent applications for the projects (topics) has exceeded 320, and more than 180 patents have been authorized, playing an important role in promoting the development of the capital. In the construction of Beijing's Olympic venues, especially the 11 new venues, many key technologies have been independently innovated, from structural design to new materials, from construction technology to quality inspection standards. The Olympic economy has brought new development opportunities for Beijing, promoting an important change in the mode of economic development, but also for the future of Beijing's sustained, stable and healthy economic development has created the conditions.

Thirdly, the effect of Olympic market development is remarkable. The market development of the Beijing Olympic Games has two main goals, one is to raise funds, materials and related services for the organization of the Olympic Games, and the other is to promote the development of domestic and foreign enterprises.

The market development of the Olympic Games has continued to be carried out intensively in 2007. So far, the Beijing Olympic Games market development program has been basically completed, and 56 domestic and foreign enterprises, including 12 IOC global partners,*** have provided sponsorship for the Beijing Olympic Games. Lenovo was the first Chinese company to join the IOC Global Partner Program. since 2004, the overall recognition of Lenovo's brand has increased from 62% to 68%, and its reputation has increased from 53% to 62%. The implementation of the Olympic Games market development program has further raised the awareness of society as a whole in protecting intellectual property rights and created a favorable market atmosphere for the sponsoring companies.

Fourth, the rapid development of Olympic industry. Along with the approach of the Olympic Games, the Olympic industries directly related to the Olympic Games, such as tourism, culture and sports, have gradually become the pillar industries of the capital's economy. The construction of Beijing Olympic Functional Zone has been fully launched. As one of the six high-end industrial functional zones, the Olympic Center Area is in the comprehensive construction stage, with traditional service industry as the main focus, sports and leisure, culture, Olympic tourism, exhibitions and performances, and other high-end Olympic economic forms have taken shape.

Three, 2008 Beijing Olympic economy development prospects

2008 is the year of the Beijing Olympic Games, due to the large increase in the number of tourists from home and abroad, there will be a passenger flow, logistics and information flow of the agglomeration of the typical consumer peak effect, the Olympic economy development prospects are good.

1, Beijing Olympic Games direct income is abundant. According to the financial budget of the Beijing Organizing Committee of the Olympic Games, the hosting of the 2008 Beijing Olympic Games will have a budgeted income of 1.625 billion U.S. dollars, the expenditure of about 1.609 billion U.S. dollars, and after the balance of income and expenditure, it can make a profit of 16 million U.S. dollars (about 120 million yuan), which will be the direct economic benefits brought by the Olympic Games. In this, the income from the Olympic TV broadcasting rights becomes the main part of the Olympic income, and the Beijing Olympic Games will get a share of 833 million U.S. dollars from the income from the broadcasting of the Olympic Games.

2. The benefits of continuous market development are obvious. The Beijing Organizing Committee of the Olympic Games market development is second only to the television transmission income of a source of income, this income was initially budgeted at 400 million U.S. dollars, due to the enthusiasm of corporate participation, market development more than expected, the Beijing Organizing Committee of the Olympic Games is expected to exceed the Sydney Olympics and the Athens Olympics, market development income will exceed 2 billion U.S. dollars. Especially with the approach of the Olympic Games, Olympic products will also be more and more favored by consumers, the Olympic commodities market contains huge business opportunities, including the Olympic Games mascot, Olympic licensed souvenirs, including all kinds of Olympic product sales business opportunities are unlimited. At the same time, the development of Olympic advertising, lottery sales will also bring considerable income.

3, the Olympic Games tourism revenue will realize substantial growth and drive the development of related industries. The economic benefits brought by tourism is one of the most important components of the Olympic economy. 2008, tourism spending will reach its peak, almost the sum of the pre- and post-Olympic Games. At the same time, tourism consumption will drive the rapid development of commerce, catering and accommodation, social services, and cultural and creative industries. During the Beijing Olympics, about 10,500 athletes and 4,000 disabled athletes will participate in the games. More than 20,000 registered media reporters and tens of thousands of non-registered media reporters will come to cover the Olympics, and more than 20,000 members of the Olympic family, dignitaries of various countries' heads of state and sponsors will come to participate in the Olympics. According to the experience of previous Olympic Games, these people, while participating in and watching the Beijing Olympic Games, will surely visit the tourist attractions around Beijing and other famous tourist destinations in the country, which will bring about an increase in tourism revenue. It is predicted that in 2008, Beijing will receive 4.6 million to 4.8 million overseas tourists, with tourism foreign exchange earnings of 4.8 billion to 4.9 billion U.S. dollars, and 101 million to 102 million domestic tourists, with domestic tourism earnings of 143 billion to 149 billion yuan.

4. Beijing's economy will realize steady development after the Olympic Games.

After the Tokyo Olympics in Japan and the Seoul Olympics in South Korea, the economies of Japan and South Korea have continued to develop at a high speed. what will be the trend of Beijing's economy after the 2008 Olympics? We believe that Beijing will realize a stable and rapid economic development. The main reason is that, on the one hand, Beijing is now in a period of great development, and the development has maintained a good momentum, even after the Olympic Games, there is still a lot of room for development. On the other hand, as the Olympic Games have raised the popularity of the host city and the country, the economic scale and the soft and hardware infrastructure of the host city have jumped to a new level, coupled with the valuable Olympic spirit formed during the preparation of the Olympic Games and the accumulation of rich management experience, all of which have injected new vitality into the sustainable development of Beijing's economy in the following years.

Of course, drawing on the lessons learned from the previous Olympic Games host city, after the Olympic Games in order to avoid the possible "trough effect". We should strive to do the following: First, we should start studying the post-games utilization of Olympic venues, give full play to the advantages of the venues, facilities and talents formed by the Olympic Games, and plan the depth of excavation, development and utilization of the Olympic resources in an integrated manner. Secondly, we should rationally guide investment, continue to promote the construction of major public **** facilities, and start the construction of key new cities in Tongzhou, Shunyi and Yizhuang as soon as possible. Third, we should maintain the momentum of sustained growth in consumer demand, improve the consumer environment, and actively guide consumption. Fourth, vigorously develop sports, exhibition, tourism, information and other modern service industries, and actively cultivate new economic growth points and key pillar industries