The positive influence of the 2008 Olympics to China’s sports tourism industry
The economic development of the Olympics’ host city
Abstract:
A successful Olympic Games can bring enormous economic benefits to the host nation. The
income earned by the host nation can be divided into four aspects: 1. sponsorship from
international enterprises; TV broadcasting rights; 3. sales of tickets; 4. sales of various Olympic
theme-related souvenirs. Moreover, the Olympics does not only attract athletes, officials and
journalists to the city, but also a large amount of overseas tourists.
In the 1984 Los Angeles Olympics, it was originally estimated that USD 500 million will be
spent during the event. In the end, the Games did not post any losses, rather making a USD
250 million of profit. The Games also had a positive impact to the US economy, creating nearly
70,000 job Southern California.
According to the “Olympics Magazine” published by the International Olympic Committee in
September 2000, the income earned by the Sydney Olympics Organising Committee was 80%
more than its expenses. Starting from 1997, Australia made USD 4.27 million of tourism income
in 4 years from hosting the Olympics Games.
The only Asian countries that have ever hosted the Olympic Games so far are Japan and
Korea. Though the Olympics at that time did not bring obvious contribution to the host
countries’ economy, its impacts were long-lasting. In the 50’s, Japan came out from the war,
and the Japanese were disheartened and utterly poor. When the 18th Olympic Games hosted
by Tokyo in 1964 was broadcasted to the world through satellites, Japan’s new image was
beginning to be accepted. Consequently, Japan’s GNP increased from 10.1% annually before
the Game, to an impressive 26.1%.
According to the Korean officials, the 7-year pre-Games preparation for the 1988 Seoul
Olympics has generated production activities that were worth USD 70 billions and USD 2.7
billion national income. In addition, the labour force was soared to 336,000. With the economic
effects given by the Olympics, Korea has become one of the “4 Asian Tigers”, creating a
miracle in the history of global economy.
China benefits from the economic opportunities in hosting the 2008 Beijing Olympics Games.
According to the estimation of the national accountants from the National Bureau of Statistics in
China, hosting the Olympic Games will push up the annual national economic growth to 0.3 to
0.4% in the 7 years to come. The Olympics will bring great opportunities to China and help
facilitate the development of infrastructure (especially those in Beijing), the sport industry and
the tourism industry, etc. Experts have anticipated that during the 6 years of preparation for the
Olympics, inbound visitors will increase 100% each year, and a tourism receipt of USD 5 billion.
The Olympics will also provide business opportunities to other provinces, such as an extension
of the Tianjin airport.
Sources:
Anonymous, “The positive influence of the 2008 Olympics to China’s sport tourism industry”, 11
December, 2006
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