Economic Costs and Benefits of Beijing Olympics 2008 (IB Geography - Leisure, Sport and Tourism)

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SOCIO-ECONOMIC COSTS AND BENEFITS OF HOSTING A SPORTING EVENT

OLYMPIC GAMES

In 2008, they were held in China due to the countrys economic progress from a largely rural society to a more open, wealthy and mainly urban society. Even though the Olympics are about physical competition and heroics and national pride, they also bring about big business. Host cities invest deeply in the Games for example, the ballooning price tag of most Winter Olympics is now estimated to be more than $50 billion with the hope of reaping sizable gains for the local and national economy through tourism, marketing and other means.

Sports: any physical activity that involves a set of rules or customs can be done competitively. 3

ECONOMIC benefits

Long-term investments are made from preparing for the event.

The Chinese government had to invest in infrastructure and transport to cater for the influx of tourists. And now, Beijing can also boast of a legacy of improved sporting venues. There has moreover been significant investment in public transport projects around Beijing.

Controversial human rights record4

Social benefits

Raised profile of China.

Cities which host the Olympics can be assured of a persistent increase in recognition. For a country like China, hosting a major sporting event can be a way to gain greater international acceptance. Beijing has also proven to the world that it is capable of staging an incredible display of sport and culture. It is also considered an honour to host such an event and because the Games were a success, China gained a great reputation.

Raised profile of China and National Pride. Golden opportunity to influence public opinion of your country around the world. The government censors the press, the Internet, print publications, and academic research, and justifies human rights abuses as necessary to preserve social stability. It carries out involuntary population relocation and rehousing on a massive scale, and enforces highly repressive policies in ethnic minority areas in Tibet, Xinjiang, and Inner Mongolia. Though primary school enrollment and basic literacy rates are high, Chinas education system discriminates against children and young people with disabilities. The government obstructs domestic and international scrutiny of its human rights record, insisting it is an attempt to destabilize the country.5

Social benefits

Enthusiasm for Sports.

The Olympic Games held in China created considerable enthusiasm and excitement amongst especially the Chinese. This helped to promote the uptake of sports by a lot more of the Chinese and contributed to lasting benefits for the nations health. Now, we can acknowledge the participation of more of them in World tournaments and games. This was not only limited to the Chinese. Also, the Games led to a rise in local volunteerism which promoted civic virtues.

Gymnastics.6

Social benefitsSkills development.

All the knowledge and skills that have been acquired from the Games preparations and activation still remain fresh in minds and lives. Developed and raised skills in the (amongst others) tourism, hospitality, sport and economic sectors.

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Social benefits

Technological advancement.

Development of new and high technology industries including electronics and information, optical, multi-purpose utilization of resources. Added value of high and new technology industry accounted for 40% of the citys industrial output value.

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Social DISADVANTAGES

Unsolicited dislodgement of people.

15, 000 residents were evicted from public housing projects that were demolished to make way for Olympic accommodation and infrastructural development. Beijing citizenslandlords in particularin villages-in-the-city (known as cheongzhongcun), drawing on their first-hand accounts of the citywide preparations for the Games and the pervasive demolition threats to their neighbourhoods. Spatial separation between rich and poor.

Gymnastics.11

Social DISADVANTAGES

Societal conflict.

The injection of foreign visitors overcrowded Beijing, an already jam-packed city ( 21.2 million). Pollution. Issues of crowding in shops and streets, traffic congestion, and parking problems had a negative impact on the daily routines of the locals and hampered successful tourism as it is heavily reliant on the goodwill and support of the local residents.

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Social DISADVANTAGES

Societal conflict.

The national prestige associated with mega-events such as the Olympics and the use of patriotic sentiment boosted by the national government produced an unfavourable political environment for those expressing dissent or objecting to government policies. Social outcasts such as homeless people or persistent protesters against government policies are often criminalized and kept away from the public.

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Social DISADVANTAGES

Crime.

There was a spike in crime influenced by the large injection of tourists from all over the world. In August (2008), two American tourists and their Chinese tour guide were stabbed at the historic Beijing Drum Tower; one of the tourists was killed. The assailant then committed suicide by jumping from the tower.

Gymnastics.14

Social DISADVANTAGES

Insecurity.

Beijing became a target and attracted worldwide attention. Opportunity for terrorist groups to cause havoc given that a lot of people gathered there. According to the Chinese security ministry, protestors planned suicide bomb attacks on some Chinese cities and kidnappings in Beijing to disrupt the Olympic Games. Hooliganism.

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ECONOMIC benefits

Job creation.

Park guards, hotel chauffeurs, lifeguards etc. With regard to the issue of job creation, undoubtedly a mega-sporting event can generate large number of jobs, not only those directly associated with the organisation of the event itself but also those in the tourism and retail industry due to the increased volumes of spectators/tourists, and in the construction industry especially when the staging of the event requires major infrastructural development, such as in the case of the Olympic Games.

Sustain the livelihood of the local people.18

ECONOMIC benefits

National revenue upsurges.

China saw a surge in visitors (esp. athletes, their supporters and the media). This provided an increase in spending and an injection of money into the local economy.

However, this injection of money will only be short-term and make little overall impact on the wider economy. 19

ECONOMIC benefits

Big boom of small companies.

The Olympic Games was an opportunity for many Chinese companies to present themselves to the world market. Certain unknown companies used it to reach international publicity and took a step into the global market. This automatically strengthened their position on the Chinese market itself. Increased internal and external consumption of goods. More than 1.76 million companies registered for business, an increase of 68 % over the previous year.

Contribute to the nations overall market publicity. 20

ECONOMIC benefits

Infrastructural development.

The Chinese government invested in transport infrastructure to cater for the influx of tourists: a third airport terminal was constructed, the 120km Tianjin intercity railway running high-speed trains (350km/hour) was opened, and the capacity of the subway network was doubled. And now, Beijing can also boast of a legacy of improved sporting venues.

Sped up the construction of infrastructure that Beijing needed to make itself a World Class city. 21

ECONOMIC benefits

Infrastructural development (contd.).

The Beijing National Stadium, also known as the Birds Nest, holds 91,000 spectators. The Olympic Park covers 1,215 hectares and includes an 80,000-seator stadium, 14 gymnasia, an athletes village and an international exhibition centre surrounded by 260 hectares of green belt. Additionally, new hotels were built and old ones refurbished.

Compare to old trafford.22

ECONOMIC disadvantages

Large cost of city branding.

City branding is a common practice adopted by many cities in the context of intensified urban competition for mobile resources, markets, opportunities and attention. The amount of money spent on the opening ceremony alone (the spectacular Beijing showcase) is estimated to have cost well over $300 million. Spent $22.8 billion on Games-related infrastructure. $40 billion est. overall.

Channeling funds into major, mandatory infrastructure projects required for the events. The hosting of such a major sporting event cost very significant sums25

ECONOMIC Disadvantages

Short-term jobs.

The jobs created only last a little after the Olympics when they werent necessary or relevant. As the facilities are not being patronized as much, such large workforces arent needed.

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ECONOMIC disadvantages

GDP decline & Debt Accumulation.

Not only do host countries experience a decline in the GDP growth a year after the games but they also incur debt. At the time the Beijing Olympics commenced, former host cities Montreal (1976), Barcelona (1992), Sydney (2000) and Athens (2004) will still be paying off debt acquired from hosting the previous Games.

Find out what debt you can incur.27

GALLERY

THANK YOU

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