Strategic Development of Beijing 2008 Olympic Games

- From Hospitality Industry Perspectives

Dr. Wei Chen

Students team:Yaotiao WangChenlu Duan

Hong Zhu

W.Chen@shu.ac.ukTel: 0114 2252949Sheffield Hallam University

• Beijing and its strategic development for 2008

Olympic Games

• The impacts of Olympic Game on China hotel industry.

• Key issues related with Olympic host cities' hospitality industry

Contents

The 2008 Olympic Games will be held in China, The 2008 Olympic Games will be held in China, The 2008 Olympic Games will be held in China, The 2008 Olympic Games will be held in China,

the largest country on earth in terms of population, the largest country on earth in terms of population, the largest country on earth in terms of population, the largest country on earth in terms of population,

a milestone event in more than 100 years of a milestone event in more than 100 years of a milestone event in more than 100 years of a milestone event in more than 100 years of

Modern Olympic history.Modern Olympic history.Modern Olympic history.Modern Olympic history.

Figure 1: Share of World GDP* (*At Purchasing Power Parity)

Figure 2: FDI inflows in Asia

China development“NO COUNTRY in history has sustained such a blistering rate of growth over three decades as China. Its economy grew by a staggering 11.9% in the year 2007 to the second quarter. Since 1978 it has grown by an average of almost 10% a year—more than Japan or the Asian tigers achieved over similar periods when theeconomies took off.”

(The Economist, Sep 27th 2007, page 78)

2008 Olympic host cityBeijing – a city full of

cultural heritages

3000 Years’ History852 Years’ History As the Chinese Capital3500 Historic Cultural Relics

BeijingBeijingBeijingBeijingBeijingBeijingBeijingBeijing

Forbidden City

Zhoukoudian the Pre-historical Homo-sapien Archeological Museum

Summer Palace

Temple of Heaven

Ming Empire Tomb

Great Wall

1980s: Beijing

Video

Beijing under construction

• Beijing – modern

2008:Beijing – a modern city

1990: the Asian Games

Challenges for 2008 Olympic Games

Success Stories

Barcelona 1992, (Sydney 2000)

• urban transformation of an area of the city

• Generated £17b (2.9% of GDP) to Spanish economy between 1986 and 1992

• Moved from the 16th most popular tourist destination in Europe to 3rd

most popular in 1999

• Lead city in the short break market

Horror Stories

(Atlanta 1996), Athens 2000

• Huge construction delays

• Massive increase in cost original estimate $4b, actual $14b

• Minimal legacy planning for facilities – venues now empty and decaying

Progress in Venue Construction

• Engineering work of venues proceeding well

• All Competition Venues to be completed by the end of 2007

• All existing venues under renovation and expansion

Beijing 2008 Olympic Games Hall of Drawings

Other Constructions

• All non-competition venues to be in place by the end of this year

2008s: Olympic Village - Landscape

Olympic Villagewith Chinese cultural flavour

2008 Beijing Olympic Village - Internal features

The impacts of Olympic Game on China hotel

industry

China Hospitality Industry Development

• China's star-rated hotel scale is increasing fast .

• Economy and budget hotels have become a hot spot for investment and development.

• International hotel management groups have sped up their expansion in China.

Speed up the development of hotel industry in China

There are 800 star-awarded hotels provide 130,000 rooms in 2008 Olympic Games, except Beijing neighbouring cities Qingdao & Dalian undertake sport events.

There are 782 hotels under construction and planning to build, which obtain 220,000 rooms

Hotel revenue during Olympic Games

• The lodging price is growing during Olympic Game.

• It is estimated that the income of starts hotels rise 5 times and economy hotels rise 10 times.

Hotel brands development in Beijing

• All the top hotel brands have entered China and Beijing (33 brands from 22 hotel groups)

• It is an opportunity for Chinese hotel groups to promote their own hotel brands to the world.

Hotels of Beijing 2008 Olympic Games

Hotel Hotel Hotel Hotel Revenue per Available Room((((RevPARRevPARRevPARRevPAR) in Past Host Cities ) in Past Host Cities ) in Past Host Cities ) in Past Host Cities

Hotel Rooms Supply in Past Host Cities

Hotel Rooms Demand in Past Host Cities

The hotel industry after the Olympic era

• During the Olympics host city for the supply of rooms

• City hotel during the Olympic Games in yield

The Olympic Games

• The Games have always brought people together in peace to respect universal moral principles.

• It give the host city and country a best showcase to reveal its culture and heritages.

• It also present superb commercial opportunities to host country. Hospitality industry will be a major sector which can benefit from Olympic Games.

Thanks you!

Any question?