The Olympic Games - Essay Example

?This house believes international sporting events are beneficial to the host country. Introduction The number of cities competing to host the Olympic Games is on an increasing trend and financial investments committed to the event are growing. The expenditure associated with hosting Olympics Games Beijing in 2008 were the highest in the history of the event (ETOA, 2010, p. 14 The event has a global appeal, attracting thousands of participants and billions of viewers across the world (Zhang and Zhao 2007 p. 27). Focussing on Beijing Olympic Games in 2008, this paper affirms that hosting the event benefits tourism, the economy, urban growth and the environment of the host city in measurable ways, before, during and after the event, and brings further intangible and long term benefits to the host population. The most obvious appeal of hosting a large scale sporting event is that it creates a suitable platform for the host destination to market its facilities and culture to the world. The image portrayed during the event creates an influential impression on the viewers, which determines future visits to the destination (Solaf, 1998, p. 44). Since the inception of Olympic Games, the number of participants and viewers has been increasing. In 1984, only 140 countries participated in 221 events at the games. In the 2000 Olympic Games, the number of participating countries increased to 199 while the events rose to 300 (Shaffer, Alan and Celine 2003, p. 83). During the 2008 summer Olympic Games in Beijing, a record 204 nations who are members of National Olympic Committee participated in 302 events (Liauw, 2010, p. 28). These figures show that hosting Olympic Games is one of the largest tourism advertising opportunities that the host country and city can ever have. The wide media coverage of the event promoted the image of the city in the international market by displaying the good infrastructural framework, diverse Chinese cultures and the excellent living conditions in the city (Campanella, 2008). Analysts explain that this effect occurs through the enhancement of both pull and push tourist factors (Hinch, and Higham, 2001, p. 70). According to Kearns and Philo (1993, p. 75), pull factors are the positive and tangible attributes of the host destinations. They include cultural and historical attractions, good infrastructure, security, facilities for leisure activities and other opportunities including favourable shopping amenities, accommodation and other supporting services. China has a rich historical and cultural background that includes the Chinese Great Wall. The media coverage during the event provided a valuable opportunity for marketing such scenic sites to the world. Push factors are intangible tourist motives, associated with stimulating the desire of people to travel to a particular destination for leisure activities (Solaf, 1998, p. 247). Six years before hosting the Olympic Games in 2008, the number of tourists arriving in China increased by about 6 percent annually (ETOA, 2010). In 2007, a year before the event, 132 million foreign tourists visited the country. Moreover, the event stimulated domestic tourism from 644 million in 1997 to over 1 billion tourists in 2007 (Zhang and Zhao 2007, p. 79). Hosting the Olympics games require heavy capital investment and critics argue that the anticipated benefits do not justify the cost. Construction of infrastructure associated with hosting of the event contributes the largest proportion of the costs (Preuss, 2000). There is hard evidence, however, which proves that hosting the Olympic Games does have a lasting and positive effect on the economy of the host region. In 2009, the number of tourist arrivals in Beijing increased and exceeded the 2008 arrivals (ETOA, 2010). The 1992 Olympic Games in Barcelona stimulated tourism industry in the city profoundly. Before the Olympics, tourism accounted less than 2 percent of the city’s gross domestic product (GDP). After conclusion of the event, tourism in Barcelona has been on an increasing trend and currently, it contributes about 12 percent to the city’s gross domestic product (ETOA, 2010). The Sidney Olympics of 2000, increased the number of inbound tourists, who spent over $6.1 billon in the city (ETOA, 2010). From 2001 to 2007, the Chinese economy was experiencing an annual growth of about 14.5 percent. Lee (2008, p. 5) estimated that the Olympic Games contributed to about 1% of the country’s GDP during the period. The domestic and foreign investments committed in preparation for hosting the Olympic Games stimulate the economic development of the host city. In 2008 Beijing Olympic Games, an estimated $42 billion was spent in the city, far exceeding the $15 billion invested in Athens four years earlier (Liauw, 2010, p. 31). This expenditure promoted economic growth, enhanced urban regeneration, and encouraged the development of the tourism industry, while improving the country’s physical environment. The benefits of hosting mega events are therefore demonstrable in all three periods, namely before the games, during the games and after the hosting of the event (Roche, 2000). Economic benefits during pre- game period occur soon after a city is granted the authority to host the event by the International Olympic Committee. During this period, the host city benefits from an increased flow of both domestic and foreign tourists and the construction of infrastructure, such as transport, accommodation, communication and sporting venues and other logistical installations (Boardman et al 2001, p. 26). During the seven years before China hosted the Olympics, the infrastructural framework in Beijing and the neighbouring cities such as Hong Kong, Qingdao, Qinhuangdao, Shanghai, Shenyang and Tianjin was improved through revonation and new building works (Laurence, 2008, p. 52). The Chinese government spent over $ 3 billion to construct an airport terminus and a further $ 500, 000 in the construction of the national stadium christened “the Birds Nest” (Liauw, 2010, p. 58). During the 2008 Olympic Games, Chinese politicians and organizers mobilized funds to improve infrastructure of the hosting city to enhance its attractiveness to foreign investors and stimulate economic growth in the city. According to Lucas (1992, p. 66) investing in the construction of infrastructure and the foreign direct investment stimulates both short and long-term economic growth. Preuss (2000, p. 56) defines economic benefit from hosting a mega event as “the net economic transformation in the community surrounding the hosting destination that arises from the spending associated with the event.” The revenues generated directly include money from the sale of tickets, broadcasting rights and sponsorship contracts. There are also significant numbers of new jobs for the population. During the 1992 Olympic Games in Barcelona, the city witnessed a drastic decline in the rate of unemployment from a high of 18.4 percent in 1986 to about 9.6 % in 1992 (Cashman, 2002). Although the jobs are generally temporary in nature, they increase the purchasing power of populations around the host cities and country. During the 1996 Olympic Games in Atlanta, about $2 billon was invested in various projects from 1990 to 1996. In that period, over 580,000 new jobs were created in the region (IOC, 2003). According to ETOA (2010), the total short-term economic contribution of Olympic Games in Atlanta from 1991 to 1997 was about $1.5 billion in the city and the state. Hosting the Beijing Olympic Games in China occurred at a time when the country was experiencing uninterrupted economic growth and hence the city was strategically placing itself to attract foreign investments through the enhanced media coverage (Lee, 2008). Hosting the Olympic Games stimulates urban regeneration in the host city. Prior to the hosting of 2008 Olympic Games in Beijing, the city underwent comprehensive infrastructural renewal that transformed it from “old to new and modern Beijing” (Liauw, 2010). Before securing the mandate of hosting the games in 2001, the city had hosted two mega events that had initiated urban development process: the Asian Games in 1990 and the 50th anniversary commemorating the creation of People Republic of China in 1999. The Olympic Games built on this foundation and catalyzed the regeneration of the city further. Together, these three events marked an important shift of Chinese economy from a socialist to a market economy, which embraces modern trading practices such global competition. To create this global image, China embarked on a large-scale renewal of Beijing city to eliminate the historical perceptions of the old socialist regime (Anna, 2010). The government refurbished over 15 facilities, and constructed 142 miles of road network that included eight subway roads in addition to two new ring roads. According to Liauw (2010), 22 new stadiums were constructed in Beijing city. Moreover, 252 hotels with excellent global ratings were constructed to provide tourists with excellent accommodation and other hospitality services (Liauw 2010). After the Olympic Games were over, this accommodation was turned into affordable housing for local citizens. The Olympic park in Beijing is perhaps the greatest evidence of urban regeneration in the city and it is now an important tourist attraction in China (Lee, 2008). Benefits extended further afield, encompassing cities in other regions such as Shanghai and Hong Kong, which have also recorded an increase in growth of Central Business Districts (CBDs) (Laurence, 2008). The Olympic Games have provided an impetus for environmental benefits to the host city and the country. During the 2008 Beijing Olympics, the Chinese government committed about $17 billion to “The Green Olympics” (Liauw, 2010). This money was used to reduce pollution in one of the most polluted cities in the world. The country cleaned about 40 kilometres of polluted rivers in Beijing and a campaign to plant a million trees that stretches for a distance of 83 kilometres was launched (Liauw 2010). In addition, the country embarked on remarkable initiatives of reducing carbon emission by relocating industries from the Beijing city, using renewable sources of energy such as solar to heat water and warm buildings. Beijing city also improved its waste management practices, increased energy efficiency and introduced emission controls that improved the quality of air in the city considerably. Campanella (2008) notes that architectural design in the city changed to incorporate modern designs and installations of maintaining clean environment. Besides these very evident and measurable economic benefits to the host country, there are also intangible benefits in terms of cultural capital which can enhance the country’s image in the world, and build self-confidence and pride in the host population (Morris, 2008). In the case of the Beijing the coincidence of several major sporting events, with quite radical political and social reform, brought about a noticeable internationalisation of sport in general for the whole of China, the effects of which are still working their way through the system. Basketball, for example, has become popular as a sport within China, as a career for Chinese athletes, (Benjamin, 2008) and as an investment opportunity for Chinese businesspeople in the United States as well as at home (ESPN, 2009). There are even more international athletes relocating to China to play there. (Gaw, 1998) Conclusion It is clear from the example of Beijing, that hosting the Olympic Games and other major sporting events provides considerable economic, environmental, political and social benefits to the host destination. Urban centres have been regenerated, resulting in the improvement of infrastructure and physical facilities. Although these projects could have been completed without hosting the event, the need to provide excellent services during the games accelerated their completion. The improved infrastructure enhanced domestic and international investments, which in turn promote long-term economic development of the host city and regions nearby. The tourism industry is one of the biggest beneficiaries of the investment which comes with hosting the Olympic Games. The wide media coverage creates global awareness about the city to billions of people across the world, forming an important source of tourism market during and after conclusion of the event. Perhaps the biggest benefit of all is one which cannot be so easily measured: namely the increase in self-confidence and international profile which such events generate. This can galvanize the host country to embrace innovation and renewal in a global arena and lead to further incalculable benefits in future years. References Ann, C. (2010). 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