The economic analysis of beijing 2008 olympic games

Introduction

China’s successful bid for 2008 Olympic Games has realized the dream of Chinese people of several generations. Staging and organizing the games will not only generate great impact on China’s society, politics and culture but also leave great economic impact in Beijing.The economic impact of major sports events is the general effect generated by investment or expenditures from outside of host city in pushing the growth of local economy, people’s income and employment opportunities. These effects include direct and indirect economic impact, induced economic impact and total economic impact.

Method

1. Literature review: We have comprehensively studied the documents, articles, reports and accounting statistics from 1972 Munich Olympic Games till 2008 in rearch for the rule and mechanism of Olympic Economics. 
2. National Accounting System and Input and Output table have been adopted.

Result

The overall investment in staging and organizing 2008 Olympic Games will total $16 billion dollars (approximate RMB 132 billion dollars), of which the budget of the organizing committee covers $1.8 billion dollars and the expenditure for infrastructure construction will exceed $14 billion dollars. Staging 2008 Olympic Games will attract investment of $9 billion dollars from outside of Beijing, of which over $1.8 billion dollars comes from the IOC from it marketing revenue. The above investment will give great impetus on economic development in Beijing. In the next ten years from 2002 to 2012, the new investment and the growth of consumer demand will add at least 1 percent GDP growth in Beijing. Staging the Olympic Games will also promote the adjustment and upgrade of industry structure in Beijing, which will result in the a more vigorous and competitive economy in Beijing. The concept of Green Olympic will speed up the development of environmental protection industry and ecotypic agriculture industry. The adoption of high tech will promote the upgrade high tech industry. And Human Olympic Games will speed up the tertiary industry. 2008 Olympic Games will create 7450000 full time employment opportunities in Beijing.

Discussion

The economic activities driven by Olympic Games are typical attractive economy. The investment began five years prior to the Olympic year but the multiplier effect lasts 4-5 years though investment ends one year after the Olympic Games. Also the Olympic investment generates economic impact on great many industries which can’t be match by any other cultural activities. Therefore Olympic Games provide an unique opportunity for the upgrading of industry structure in host city even in the country