Beijing Olympic Economy

On July 13, 2001, Beijing delegation of application for organizing the Olympic Game made its last statement in Moscow. Deng Yaping, the image messenger for applying for the Olympic Games and famous Ping-pang player, stated in her report,“in the torch relay in Sydney, a little boy came up to me, when he touched the torch, his eyes immediately became bright. I can feel that at that time his whole life has changedвЂ¦Ð²Ð‚Ñœ

Someone sums up Deng Yaping’s statement as: The Olympic Games can change the whole life of a person.

Someone further inferred: The Olympic Games can not only change the whole life of a person but also can change an enterprise, change a city and even change a country.

The Olympic economy, as its name said, is the economic phenomenon brought by the Olympic Games, and its essence is economic behavior caused by the commercial operation of the Olympic Game and the considerable economic benefits brought to the host city. Thus making the current Olympic Games become the world focus for which many countries, regions and cities are contending. Of course ,the analysis of this economic benefits is not only confined to how much money the host country can make from the Olympics itself, but also refers to the economic development process of the host city or the host country.

I. The economic characteristics of the Olympic Games coverage.

Periodicity

It is generally thought that the periodicity is 7 years, i.e., from the time of successful application to the time of hosting, the period is 7 years, during which the economic phenomena such as influence, focus, development, benefit, etc. have the obvious periodical characteristics.

Effectiveness for a given period of time

Economic development is restricted by the speed factor, the periodicity of the Olympic economy determines its obvious effectiveness within a given period of time, i.e., it is demanded that the fast development space and profits should be gained within a limited period of time.

Stipulating

The operation of the Olympic Games has its commercial operation rules, it uses the method of giving after fetching, mutual reciprocity and mutual benefit; it gives some economic benefits to the host city, at the same time it has strict control on the market development of the host city. Therefore, to develop the Olympic economy, we should not only follow the operation rules of the IOC (International Olympic Committee), but also fully utilize the added value of the rules to develop our own economy.

Demanding

The Olympic economy has the demanding characteristic; its economic phenomenon with clear sector, clear level and clear market is determined by the demand. For instance, the clear sector mainly includes the infrastructure construction, environment improvement, tourism service, electronic information industry, etc. The cleat lever mainly includes those of IOC rules, OCOG administration, the city and the market. The clear market is mainly includes the preparatory market (the space of the service trade), after-match market(the development of tourism, culture and sports industry),etc.

II. Markets demanded by the Olympic Games

It can be inferred from the abovementioned characteristics of Olympic economy that the /Olympic economy that the Olympic business opportunity is determined by the demand .So, if we lay stress on the demand, we can fully realize the business opportunity of the Olympic Games, effectively grasp the business opportunity if the Olympic Games, and consciously develop the business opportunity of the Olympic Games.

Materials and equipment market

The engineering construction and purchasing market of Olympic Games is big, and relate to several fields, such as materials, engineering project, equipment, decoration, furniture, etc. If Chinese enterprises can fully utilize the labor service advantage of our country, they can take the first chance in the competition and can even squeeze into the international market. For instance, the chairs made by Zhejiang Dafeng Industrial Corporation sell well in the market of Athens Olympic Games, and the company has won the bid for a project of more than RMB 20 million, besides, the company many develop more projects there.

Market of environmental protection

This includes the purchase of materials and equipment relating to civil project, irrigation works, power engineering project, environmental protection project, etc. among the 3 concepts of the Beijing Olympics, the one ranked first is “green Olympics”. From this we can see the great importance of environmental protection; and we can also see the enormous opportunity for the environmental projection enterprises.

Tourism market

It is calculated that by 2008 the foreign visitors coming to Beijing will be up to 4.7million and the visitors from other provinces and cities of China will be up to 91 million, this will directly bring vigor to the taxi industry, hotel industry and scenic spots. By 2008, the accommodation demands of the visitors and athletes will reach a very high degree; it is estimated that the number of star hotels in Beijing will reach 800 and hotel rooms will be up to 130,000; many scenic spots in Beijing such as the Summer Palace. The Forbidden City, the Great Wall, etc. will receive a great number of visitors.

Food and beverage market

The food and beverage market of the Olympic Games is surprisingly big; during the 2000 Sydey Olympics there consumed 10,000 cups of beer, 70,000bottles of coke, 2,000pieces of pizza and 3,000 hot dogs in the Olympic Green Park each day, so we can see the great potential of the Olympic food and beverage market.

The food and entertainment market with its own characteristic is the place where visitors like to visit most. Peking Roast Duck and the major Chinese eight cuisines will become the focus for consumers.

Featured commodity market

As per the demand of the Olympic Games and the characteristic