Beijing maps out 'blueprint' for Olympic economy
(China Daily)
Updated: 2004-04-19 09:14

[The author is the director of the Beijing Municipal Development and Reform Commission. This is an abstract of his speech on the Market Promotion Conference on Olympic Economy.]

As Wang Qishan, mayor of the Beijing municipal government pointed out, from the day Beijing won the right to host the 2008 Olympic Games, we have mapped out a strategic blueprint of "New Bejing and New Olympics."

At the same time we have been sparing no efforts to prepare for this historical event.

Up until now, we have achieved much, which is well known through the world.

And we believe the additional achievements in this field will be marked as the market of the Olympic economy grows.

Here, I want to explain the main target of the Games, its huge market opportunities and how to explore its market.

Huge market potential

The Olympic Games will accelerate the formation of the huge market up until 2008. It is estimated that the overall investment demand will exceed 1,500 billion yuan (US$181.4 billion).

Building Olympic stadiums will cost 22 billion yuan (US$2.7 billion). The city's infrastructure and service industry will demand up to 280 billion yuan(US$33.9 billion).

The city's new expressways will reach 400 kilometres, costing 31 billion yuan (US$3.7 billion).

Investment in the city's public transport system and road construction will be 55 billion yuan (US$6.7 billion).

The reallocation of the resources demands 55 billion yuan (US$6.7 billion) worth of investment.

Environmental protection will cost 36 billion yuan (US$4.4 billion).

Developing modern manufacturing and high-tech industries demands 150 billion yuan (US$18.2 billion).

The development of the finance, trade, logistics, exhibition and tourism sectors will total 200 billion yuan (US$24.2 billion ) to 300 billion yuan (US$36.3 billion).

The development of new urban areas will cost up to 800 billion yuan (US$96.8 billion).

Education, culture, healthcare, community services and public security investments are expected to be 80 billion yuan (US$9.7 billion) to 100 billion yuan (US$12.1 billion).

As a city with a population of 14.56 million, Beijing is a large consumer.

Last year, the total social retail consumption volume exceeded 190 billion yuan (US$22.9 billion).

With the growth of citizens' incomes, the consumption structure is being upgraded. Demand will keep increasing rapidly over the next seven years.

In Beijing, the annual consumption of automobiles is expected to be 2.45 million.

Annual expenditure on housing is expected to hit about 50 billion yuan (US$6.1 billion).

The total expenditure on food and clothing is expected to be 500 billion yuan (US$60.5 billion) to 600 billion yuan (US$72.6 billion).

Expenditure within the service sector keeps growing rapidly. Consumption within the sector accounts for 60 per cent of Beijing's total consumption.

The citizens' spending on education, culture and entertainment will reach 150 billion yuan (US$18.2 billion).

Their healthcare costs will exceed 70 billion yuan (US$8.5 billion) and they are expected to spend 110 billion yuan (US$13.3 billion) on telecommunications.

In 2008, it is estimated that Beijing's pillar industries will contribute 630 billion yuan (US$73.2 billion) to the city's economy.

The industries include information technology (IT), automobile and auto parts, petroleum and oil, machinery and biological pharmaceuticals.

Among them, the IT, auto and auto parts sectors will yield 150 billion yuan (US$18.2 billion) and 140 billion yuan(US$16.9 billion), respectively.

The Olympic economy will also highlight the city's tourism industry. Every year, 3 million foreign tourists come to Beijing, and the city's annual tourism income is about US$3 billion.

The city also receives 110 million domestic tourists annually, who spend up to US$90 billion.

The tourism market still has a huge, untapped potential.

Our commitment

We are committed to providing optimized services to investors, pushing for deeper reform within and the opening-up of the market, and accelerating the readjustment of the city's social economy.

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