The current development of Beijing’s convention and exhibition industry Abstract (1) Overall development situation of the convention exhibition and industry Being China’s political, cultural and international exchange centre, Beijing is the preferred choice of many multinational enterprises, foreign embassies, national ministries and most importantly, the melting pot for information and technology, which naturally contributes to the development of the exhibition industry. In these last few years, Beijing has proved to be the leader in the country as a multi-purpose city with great influence, with the amount, scale, quality and level of the international exhibitions hosted. Various exhibitions, of different types and durations, are properly distributed and a 5 times increased is observed in international conventions hosted in Beijing. Among the large-scale international exhibitions, the more mature fields are automobile, machinery, telecommunications, textile machines, printing, metallic, cooling machines, calculators and garments and apparels. Compared to 2000, the number of conventions hosted in 2002 has increased 125%, while the number of exhibitions increased 57%. Even with the SARS epidemic in 2003, the total number of conventions hosted still maintained a 30% growth. Overview of Conventions and Exhibitions venues hosted in Beijing from 1996 to 2003 Exhibition Proj ect Convention Domestic International exhibitions exhibitions Total Year Total Domestic International 2000 302 115 187 363 306 57 2002 475 84 391 818 528 290 2003 392 82 310 1063 678 385 Source: Statistical Report on the development of Beijing’s exhibition industry (i) The Olympics will enhance the hardware upgrade of the exhibition industry After the Olympics, the large amount of venues can be used for conventions and exhibition purposes. At the same time, facilities like a convention centre will be established in the Olympic Park, which will act as a new city functional zones equipped with various services for business and commerce, exhibition, travel and leisure. To be ready for the Olympics, the 220,000m2 China International Exhibition Centre will soon be established in Beijing. The construction of all these advanced multi-purpose facilities will greatly enhance the supply and improve the quality of existing ill-equipped exhibition and convention facilities. Beijing will also invest a large sum of capital to improve transportation, telecommunication, energy, city infrastructure as well as other supporting services facilities. Bigger will also used efforts be used in handling environment pollution and improving the ecological environment. All these measures are deemed to turn Beijing into a modern city before the Olympics, with a graceful environment, convenient transportation and the communication network and sufficient tourist reception facilities, providing sound hardware conditions for the development of the exhibition industry. (ii) The Olympics will provide Beijing with valuable resources, raising the city’s fame Resources and a city’s fame are key factors for the development of the exhibition industry. The fact that Beijing won the bid to host the Olympics has put the city in the spotlight on the international platform, giving Beijing a whole lot more opportunities to communicate with the world. Due to the new opportunities arisen in the market, increasingly some many domestic and foreign exhibition companies plan to host various exhibitions in the capital city. (iii) The Olympics offers new market and brands to Beijing’s exhibition industry “Green Olympics, High-Tech Olympics, People’s Olympics” are the three main themes of the 2008 Beijing Olympic Games. In order to demonstrate these three Olympic concepts to the whole world, Beijing is currently organizing various conventions and exhibitions related to these themes. It is estimated that conventions and exhibitions on environmental protection industry, people’s culture and sport industry will bring new dimensions to the development of Beijing’s exhibition industry. (2) Factors affecting the development of the sport industry after the Olympics Sporting event industry According to the operation of current Beijing’s sports competition and performance industry, large-scale competitions include Chinese Super League, CBA, China Open (Tennis), Beijing Marathon, China Open (Table-tennis) and Tour de Beijing International Road Cycling Race, etc. After the Game, the huge intangible asset of the Olympics itself coupled with abundant venues facilities will facilitate the development of Beijing’s professional sports industry, attracting even more famous international contests to be held in Beijing. Moreover, with an increase in living standard and health awareness together with the improvement in the construction of venues and conditions of the fitness and entertainment industry, the industry will further developed. As a result, there is a great developing potential for the sporting event industry when the Olympics is over. Sports convention exhibition After 2008, Beijing can count on its modern Olympic stadiums to continuously host the annual China International Sporting Goods Show and gradually convert Beijing’s Olympic Park into an international and the biggest multi-purpose convention and exhibition centre in Asia, so as to turn Beijing’s exhibition industry into a new source of economic growth. (3) The tourism industry development of previous host cities after the Olympics Overlooking the tourism industry development of previous host cities before and after the Olympics, one might notice that the peak number of tourists does not take place during the year of the Olympics. Contribution to the host city came mainly from the hardware upgrade of the tourism industry development and the host city’s image boost after the Game. On the other hand, the government policy of the host country as well as the host city mainly focuses on the development of the tourism industry after the Games. Generally speaking, hosting the Olympic Games contributes to the development of the most host cities’ tourism industry, especially the economic sustainable development of inbound tourism? (i) SWOT analysis of the post-Olympics tourism industry development in Beijing Even though the big wave of tourists brought by the Olympics will disappear when the Game is over, the Olympics will still leave Beijing abundant Olympic “heritage”, namely a comprehensive upgrade in the city’s infrastructure, tourism reception facilities and tourism services standard, which in turn will increase the competitiveness of Beijing’s tourism industry. However, there is also the risk of idling the large number of reception facilities after the Olympics. SWOT analysis of the post-Olympics tourism industry development in Beijing Strengths Abundant tourism reception facilities Weaknesses Monotonous tourism products; after (e.g. hotels, roads, airports, public the Game, international visitors’ toilets, etc.). travel expenditure will mainly Increasing the high-class tourism concentrate on cultural sightseeing reception facilities (e.g. large scale tourism products. convention and exhibition centre, The integration of travel agencies, world-class hotels, etc.). hotels, scenic spots; low quality of Better tourism services standard. chain stores services; large gap Increasing the quality and quantity of between tourism services standard tourism resources (e.g. Olympics and international standard; all these heritage, etc.). are unlikely to be improved after the Improving the city’s infrastructure Olympics. and natural environment. Opportunities The city image boost brought about Threats by the Olympics is likely to last long. The good economic development Post-Olympics supply of tourism reception facilities exceeds demand. Origin of tourists being diverted by situation after the Games will drive the Shanghai World Expo. (Shanghai the development of domestic travel is located at the Yangtze River Delta. and outbound tourism. With the rich tourism resources and economic development in Jiangsu and Zhejiang, there is no doubt that a significant group of tourists will be diverted to Shanghai. (ii) Estimation of the number of tourists and their origin after the Olympics Inbound Tourism In 2005, the total number of inbound tourists received by the city is 3.629 million, representing a 15% increase. The total revenue from tourism amounts to USD 3.62 billion, up 14% compared to the previous year. Estimation of inbound tourists to Beijing after the Olympic Games Year 2008 2009 2010 Estimated number 4.13 4.339 4.547 of tourist (Million) Since this estimation did not take into account the effects Olympics has on Beijing’s tourism industry, the numbers shown is a very conservative estimation. According to the target set by the Beijing Tourism Administration, the number of tourists Beijing will receive in 2008 reached 4.63 million, while the figure for 2009 and 2010 will be similar to that of 2008. In scale, the Asian tourism market is the largest. In 2005, the number of Asian tourists received by Beijing amounted 1.113 million, which is 43.4% of all inbound tourists. The European, American, Australasian and African market takes up 29.5% , 18.7% , 3.4% and 0.7% respectively, with the remaining 3.9% from other regions. (ii) Overview of scenic spots after the Olympics In order to improve the quality of Beijing’s scenic spots prompted by the Olympics, the Beijing Tourism Administration has started to modify, renovate and repair a lot of existing historical and cultural tourist attractions, creating numerous unique travel routes with rich cultural value. Furthermore, the city will develop a series of new natural scenic sports such as Jingcheng Shuixi and natural garden so as to improve the natural environment in the suburban area and bring new dimensions to the tourism industry. After the Olympics, the number and quality of both historical and cultural attractons for international and non-Beijing tourists as well as natural attractions and facilities for citizen’s recreation and entertainment will be improved. Below is a list of changes in the provision of attractions with the Olympic Games. Olympics related attractions The newly-built National Centre for the Performing Arts, the National Art Museum of China Phase 2, the China Science and Technology Cultural tourist attractions Museum Phase 3, the Capital Museum, China, the new CCTV Building, the new BTV Building and other important cultural facilities. Modified classic tourist spots such as Liuli Factory, Dazhalan and Qianmen Pedestrian Walk. Renovated historical relics such as Zhongzhou Road, Old Imperial City, Chao Fu Road, Guozijian Street, Shichahai, the ruins of the Old Summer Palace and the Beijing City Wall relics of the Ming Dynasty. Olympic heritage attractions such as the newly-established Olympic Natural attractions Village, Beijing National Stadium and Olympic Museum The construction of tourist facilities in scenic attractions like the Longqing Gorge and the Kangxi grassland. The establishment of Jingcheng Shuixi, natural garden, theme parks and agricultural park. (iii) Supply of tourism products after the Olympics Games Being the national cultural and political centre, Beijing has an impressive historical and cultural heritage as well as modern cultural scenic spots. This is why cultural tourism has long been a significant tourism product in Beijing and its status is believed to remain unchanged after the Game. However, owing to the increase in the city’s fame, as well as the improvement in infrastructure and tourism reception facilities, especially when it comes to large-scale convention and exhibitions, convention facilities and world class hotels, Beijing’s competitiveness in hosting large-scale sports events, conferences and exhibitions has also been enhanced. As a result, Beijing will be more likely to host such events and the number of tourism products in the field of exhibitions and conventions, as well as sports tourism will also soar. Furthermore, due to the Olympic Games, many Chinese people, especially Beijing citizens, will be more interested in sports. Some recreational events and leisure tourism events are expected to become new attractions for domestic tourists and Beijing’s residents. The Olympics will also attract a huge number of foreign investment opportunities for Beijing. With the business opportunities brought about by the investment, business tourism will enter a whole new era after the Olympics. Sources: Beijing’s Prospects, “The sustainable development of important service industries after 2008”, 6 November 2006 http://big5.bjoe.gov.cn/hayjj/wz/200705/t176957_3.htm