Before the 1984 Los Angeles Olympics, hosting the Olympics was basically a loss-making process, and the host country regarded it more as an "image project." In 1984, Los Angeles creatively put forward the new idea of ??"using the Olympics to support the Olympics" and made a profit of US$250 million, explaining the new concept of the sports industry to the world. Since 1984, people have paid more attention to the economic benefits brought by the Olympic Games. Over the past 20 years, cities hosting the Olympic Games have developed Olympic real estate with their own characteristics.
1984 Los Angeles Olympics In that era, before 1984, the real estate market in California, USA, was in overall decline. Although the Olympic Games are about to be held, previous losses have affected the downturn in the real estate market. But after the first money-making Olympics in history, the real estate market in Los Angeles bucked the trend. The effect is as obvious as the wind blowing in the valley beside the city.
1988 Seoul Olympics Before the Olympics, the old city of Seoul was very cramped, located north of the Han River. By hosting the Olympic Games, the airport was expanded, roads were renovated, the Han River was regulated, and the urban environment was greatly improved. After the Olympic Games, Seoul's real estate market continued to rise, and the boom continued until 1995. Since a large number of sports facilities for the Olympic Games are located south of the Han River, a large number of supporting athletes' villages, apartments, and news centers have made Gangnam New District a symbol of new life, formed a new residential area, and become a prosperous commercial area, and ultimately made Gangnam a Seoul city. Main residential area. A brand new new district of Seoul was created and the entire urban layout of Seoul was changed.
1992 Barcelona Olympics After the Olympics, people finally began to realize that Olympic real estate was also a bubble. Because between 1986 and 1993, residential values ??in Barcelona increased by 250%-300%, and then fell. It was not until 1998 that the decline was reversed. Such ups and downs of momentum can probably be given by the concept of the Olympic Games. During this period, many people made fortunes by speculating in real estate, but many people who were unable to make a move in time were trapped after 1993. Of course, amidst such ups and downs, there is also something to be proud of. After the Olympics, the city of Barcelona's ranking among European cities went from just over 10 to 7th.
1996 Atlanta Olympic Games The Olympic Games in this world brought two new meanings to real estate: commercial real estate and suburban housing. Although the appreciation of real estate surrounding the Olympic Park generally exceeds 30%. But more importantly, the old part of the city center has been renovated on a large scale, with office buildings and commercial properties booming. At this time, the benefits of investing in commercial real estate are more obvious. The advanced communication equipment and hotels left behind during the Olympic Games have led to the location of many conferences, and Atlanta has become a "convention city". In addition, the follow-up effects after the Olympic Games were very obvious. The economy continued to grow steadily and people's consumer confidence increased greatly. If you bought a house in the suburbs at that time, the result was that this form of living became a local hot spot. In fact, housing in the suburbs of Atlanta has become It has become one of the famous local tourist attractions.
2000 Sydney Olympics Samaranch praised the Sydney Olympics as the most perfect Olympics in history. Sydney's housing prices doubled due to the 2000 Olympics. For seven consecutive years from 1993 to 1999, Sydney's housing prices have maintained a growth momentum. The average annual increase in housing prices in the city has exceeded 10%. The price growth of land and housing in some central areas and important areas of Sydney has even exceeded 10%. 30%, especially the housing prices in areas near the main venue have more than doubled in the past three years, with an average growth of more than 30%.
2004 Athens Olympics The concept of the Olympics has a far greater impact on prices in real estate markets in developing countries than in developed countries. Research by Athens Jones Lane Lasalle Real Estate Investment Company shows that hosting the Olympics will have a long-term and profound impact on residential housing prices near the Olympic venues. “Based on the experience of the host cities of the previous four Olympic Games, the impact of the Olympic Games on residential housing prices in Athens is far greater than the impact on Atlanta and Sydney.
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Beijing Olympic Games
Jiang Xiaoyu, Executive Vice Chairman of the Beijing Olympic Organizing Committee, revealed to the outside world at a recent international media seminar that after adjustments, the Beijing Olympic Organizing Committee has determined the Olympic budget as follows: The total revenue was 19.54 billion yuan (equivalent to 2.363 billion U.S. dollars), the total expenditure was 19.41 billion yuan (equivalent to 2.347 billion U.S. dollars), and the surplus was 130 million yuan (equivalent to 16 million U.S. dollars). In other words, by 2008. On August 24, the 29th Olympic Games comes to an end. When Beijing sits down to take stock of its income and expenditure, it will find that it has earned 130 million yuan.
However, some industry experts believe that 130 million yuan is just a profit. A preliminary expectation is that due to China's rapid economic development and its 1.3 billion people, the enthusiasm for the Olympic Games is higher than that of any country that has hosted the Olympic Games in the past. The market development of the 2008 Olympic Games will be better than expected, so the profits will be greater. . So, how much money can be made from the Beijing Olympics?
How to calculate the Olympics' account?
Recently, the issue of losses in the Athens Olympics has attracted widespread attention from all walks of life, and public opinion believes that Athens The Olympic Games cost tens of billions of dollars, resulting in a huge deficit. However, industry experts analyzed that a large part of the tens of billions of dollars was spent on infrastructure construction and environmental improvement in Athens, while not much was actually spent directly on organizing the Olympics.
“Urban infrastructure construction and environmental improvement are long-term measures and good things that benefit the people. We cannot simply think that these expenses are also expenses of the Olympic Games. In fact, settlement of the Athens Olympics has been completed, with total expenditure of US$2.4 billion. "Experts said.
Jiang Xiaoyu, Executive Vice Chairman of the Beijing Olympic Organizing Committee, said that the Olympic economy is a big concept that covers many aspects and levels, and there are many "cards" that can be played. The first is " "Sports Games Economy" refers to the investment and consumption directly related to hosting the Olympic Games. The second card is the host city economic card. The third card is the host country card. Hosting the Olympic Games will promote China's economic development as a whole. The fourth card is the China Card and World brand. Including cultural boom, tourism boom, catering boom, etc.
Whether the Olympics can make money, if it mainly refers to the income and expenditure of the Games, is only part of the Games economy. Most of the so-called Olympic economic pie of 280 billion yuan belongs to the cost of urban infrastructure construction, and the organizing committee's funds are mainly used for the organization and operation of the Olympic Games. It is a question for the organizing committee whether the Beijing Olympics can make money. , the focus is to do a good job in the market development work of the Olympic Organizing Committee
What are the market development prospects?
"The Beijing Olympic Organizing Committee has a budget when it bids for the Games. US$1.625 billion, expenditures of US$1.609 billion, and a surplus of US$16 million, or US$16 million. It was like this at the time. After our financial budget adjustment, security and public health will increase accordingly. However, it is expected that our market development revenue will increase significantly compared with the original forecast, so we can still Make sure you have a 'slight surplus'. "Jiang Xiaoyu believes.
The Olympic economy is both an attention economy and a brand economy. The Olympic Games have established a good image for some companies and provided a rare opportunity and stage for their brands to go global. Since September 2003 Since the launch of the "Market Development Plan" for the Olympic Games on March 1, 10 companies including Bank of China have signed contracts to become partners of the Beijing 2008 Olympic Games. The official launch of the sponsor solicitation at the end of March this year has also borne fruit before the working day - UPS. Six companies have already become sponsors of the Beijing Olympic Games. Several companies will also sign contracts with the Beijing Olympic Organizing Committee to become sponsors of the Beijing 2008 Olympic Games.
Jiang Xiaoyu said: “In view of the enthusiasm of corporate sponsorship. Very high. The market development prospects of the Beijing Olympic Games are quite optimistic. "It is rumored that the sponsorship amount of the Beijing Olympic Games' partners even greatly exceeds the sponsorship amount of the International Olympic Committee's global partners (TOP sponsors), which will bring huge benefits to the Beijing Olympic Games.
What is the real profit
In addition to the market development income of the Olympic Games itself, about 50% of the Beijing Olympic Games budget revenue is allocated by the International Olympic Committee, and 1/10 comes from ticket and souvenir revenue. The International Olympic Committee Sponsors provide about US$200 million to US$300 million.
“The Beijing Olympic Organizing Committee’s profit goal of US$16 million is fully achievable.
"Jiang Xiaoyu said, but this definitely does not mean that Beijing can only earn 16 million US dollars by hosting an Olympic Games. This is not the same concept, because the income of enterprises, the income of the government, and the wider society's income are not included in the statistics of the organization.
The 2008 Olympic Games will have a significant impact on the economic development of Beijing and the whole of China. In the seven years after the successful bid, the Beijing Olympic Games will boost Beijing's economic growth by 1 to 2 percentage points every year. It will drive China's economic growth by 0.3 to 0.4 percentage points.
Wei Jizhong, president of the Beijing Olympic Economic Research Association, said that for a big country like us in economic transformation, sports should be considered as a major factor in long-term economic development. Connected with the economy, it not only means commercial benefits, but the economic gains and losses of the Olympic Games are not just the profit and loss of the organizer in one Olympic Games. More importantly, a country's overall economy can achieve sustained and healthy results after the Olympic Games. Development, only in this way can it be regarded as a truly perfect Olympic Games.
Therefore, how much money can be earned from the Beijing Olympic Games? We cannot just focus on the income and expenditure of the Beijing Olympic Organizing Committee, but also look at the entire Olympic Games. The Olympic economy will stimulate the economy of Beijing and the whole country, as well as the advancement of humanistic environment and technological means.