1984 Los Angeles Olympics In those days, before 1984, the real estate market in California was in an overall decline. Although the Olympic Games were about to be held, the previous successive losses affected the real estate market downturn. But after the first lucrative Olympics in history, the Los Angeles real estate market bucked the trend. The effect was as pronounced as the kind of wind blowing in the valley on the edge of town.
1988 Seoul Olympics Before the Olympics, the old city of Seoul was very constricted, located north of the Han River. By hosting the Olympics, the airport was expanded, highways were refurbished, the Han River was managed, and the urban environment was greatly improved. After the Olympics, the real estate market in Seoul kept going up, and the hot situation lasted until 1995. As a large number of sports facilities for the Olympics were located south of the Han River, the construction of a large number of athletes' villages, apartments, and press centers made the new Gangnam District a symbol of new life, formed a new residential area, became a bustling commercial area, and eventually made Gangnam the main residential area of Seoul. It created a brand new new district of Seoul and changed the entire urban layout of the city.
1992 Barcelona Olympics After this Olympics, people finally began to realize that Olympic real estate is also a bubble. Because in 1986-1993, Barcelona residential values increased by 250%-300%, and then turned down until 1998 to reverse the decline. Such a downward spiral is probably what the concept of the Olympics can give. During this period, many people got rich because of real estate speculation, but there were also many who could not get out in time were trapped after 1993. Of course, in such a fall, there are also let feel proud of, Barcelona, a city in the Olympic Games after the ranking of European cities at once from 10 or so to No. 7.
1996 Atlanta Olympic Games This sector of the Olympic Games, to the real estate brought two real estate new meaning: commercial real estate and suburban housing. While the real estate around the Olympic Park appreciated, generally by more than 30%. But more importantly, the old downtown area was extensively remodeled and office and commercial properties flourished. At this point in time, the benefits of investing in commercial real estate are even more pronounced. The advanced communications equipment and hotels left behind during the Olympics led to the location of many conferences, making Atlanta a "convention city". In addition, after the Olympic Games, the follow-up effect is very obvious, the economy continues to grow steadily, people's consumer confidence increased, if you then buy real estate in the suburbs, the result is that this form of residence has become a local hotspot, and even, Atlanta suburban homes have become one of the local famous tourist attractions.
2000 Sydney Olympics Samaranch hailed the Sydney Games as the most perfect Olympics in history, and house prices in Sydney doubled as a result of the 2000 Games. In the seven consecutive years from 1993 to 1999, Sydney's house prices have maintained the momentum of growth, the city's house prices increased by more than 10% per year on average, the city of Sydney, individual central areas and important areas of the land and housing prices increased even more than 30%, especially close to the main stadium around the area of the house prices more than doubled over the last three years, an average increase of more than 30%.
2004 Athens Olympics The concept of the Olympics has had a far greater impact on developing country real estate markets in terms of prices than in developed countries. Research by Jones Lang LaSalle Real Estate Investments in Athens has shown that hosting the Olympics will have a long-term profound impact on the price of residential housing near Olympic competition venues. "With reference to the experience of the previous four Olympic host cities, the impact of the Olympics on residential housing prices in Athens is far greater than the impact on Atlanta and Sydney."
Beijing Olympics
Beijing Organizing Committee Executive Vice President Jiang Xiaoyu told a recent international media seminar that, after adjustments, the Beijing Organizing Committee has determined the budget for the Olympics as follows: a total revenue of 19.54 billion yuan ($2.363 billion), a total expenditure of 19.41 billion yuan ($2.347 billion), and a The surplus was 130 million yuan (equivalent to US$16 million). In other words, by Aug. 24, 2008, when the 29th Olympics are over, Beijing will sit down and take stock of its income and expenditures and realize it has earned 130 million yuan.
But some industry experts say the 130 million yuan is just a preliminary estimate, and that because China's economy is growing so fast and its 1.3 billion-strong population is more enthusiastic about the Olympics than any of the other countries hosting the games, the market for the 2008 Olympics will develop better than expected, and the profits will be even bigger. So how much money will the Beijing Olympics make?
How to calculate the account of the Olympic Games
Recently, the loss of the Athens Olympics has attracted a lot of attention from all walks of life, and public opinion is that the Athens Olympics cost tens of billions of dollars, creating a huge deficit. But some industry experts say that a large part of the tens of billions of dollars belongs to Athens' infrastructure construction and environmental improvement expenses, while not much is really spent directly on the organization of the Olympic Games.
"The construction of urban infrastructure and environmental improvement is a long-term initiative, but also a good thing for the benefit of the people, can not simply think that this part of the cost is also the Olympic Games expenditure. In fact, the Athens Olympics has completed the settlement, *** spending 2.4 billion U.S. dollars." Experts said.
Beijing Olympic Organizing Committee executive vice chairman Jiang You said, the Olympic economy is a big concept, covering a variety of aspects, multi-level content, can play the "card" quite a lot. The first is the "Games economy", is directly related to the hosting of the Olympic Games investment and consumption. The second is the host city economy card. The third card is the host country card. Hosting the Olympics will promote China's economic development as a whole. The fourth card is the China card and the world card. These include cultural fever, economic fever, tourism fever and restaurant fever.
Whether the Olympics can make money, if it mainly refers to the organizing committee's income and expenditure, is only a part of the Games' economy. Most of what we usually call the 280 billion yuan Olympic economic cake belongs to the cost of urban infrastructure construction. And the organizing committee's funds are mainly used for the organization and operation of the Games. Whether the Beijing Olympics can make money or not, the focus for the organizing committee is to do a good job of developing the market for the Olympics.
How is the prospect of market development
"The Beijing Olympic Games Organizing Committee's finances, in the bidding when there is a budget, income of $ 1.625 billion, expenditure of $ 1.609 billion, a surplus of $ 0.16 billion, that is, 16 million U.S. dollars. At that time, we are now after the financial budget adjustments, security and public **** health, etc. will correspondingly increase some, but it is expected that our market development income will be a more substantial increase than the original forecast, so we can still ensure that 'a slight surplus'." Jiang Hao-yu opined.
The Olympic economy is both an attention economy and a brand economy. The Olympics provide a rare opportunity and stage for some companies to build up a good image and bring their brands to the world. Since the launch of the Market Development Plan for the Olympic Games on September 1, 2003, 10 companies, including the Bank of China, have signed up as partners of the Beijing 2008 Olympic Games. The call for sponsors, which was officially launched at the end of March this year, has also borne fruit recently --- six companies, including UPS, have become sponsors of the Beijing Olympics. In the near future, several other companies will sign with the Beijing Organizing Committee of the Olympic Games to become sponsors of the Beijing 2008 Olympic Games.
Jiang Xiuyu said, "Given the high motivation of corporate sponsorship, the prospect of market development for the Beijing Olympics is quite optimistic." Rumor has it that the amount of partner sponsorships for the Beijing Olympics even greatly exceeds the amount of sponsorships for the IOC's global partners (TOP sponsors), which will bring huge revenues to the Beijing Olympics.
What's really winning
In addition to market development gains from the Games themselves, about 50 percent of the Beijing budget revenue is allocated by the IOC, 1/10th comes from ticket and souvenir revenues, and about $200 million to $300 million is provided by IOC sponsors.
"The Beijing Organizing Committee's goal of winning $16 million is completely achievable." Jiang Xiuyu said, but that definitely does not mean that Beijing can only make $16 million by hosting an Olympics. It's not the same concept, because corporate earnings, government earnings, and the wider earnings of society are not tallied on the organizing committee's books.
The 2008 Olympics will provide a significant boost to the economy of Beijing and China as a whole. During the seven years after the successful bid, the Beijing Olympics will boost Beijing's economic growth by 1 to 2 percentage points a year, and China's economy by 0.3 to 0.4 percentage points.
Wei Jizhong, president of the Beijing Olympic Economy Research Association, said that for a big country in economic transition like us, it is more important to calculate the big account of long-term economic development. Sports and the economy are connected, which means more than just commercial interests, and the gains and losses of the Olympic economy are not just about what the organizers make or lose at an Olympics. More importantly, a country's overall economy can be sustained and healthy development after the Olympic Games, only then can be considered a truly perfect Olympic Games.
So, how much money can the Beijing Olympics earn, we can not just focus on the income and expenditure of the Beijing Organizing Committee of the Olympic Games, but also to see the entire Olympic economy in Beijing and even the country's economic pull as well as the human environment and technical means of progress.