The Beijing 2008 Olympic Games budget is 290 billion yuan, and is primarily being spent on infrastructure. But the Olympic economy means much more than this. The extra demand created by the Beijing Olympic Games across all sectors is expected to total around 600 billion yuan

Real estate and construction

The real estate industry is o ne of the big direct beneficiaries of the Olympic economy. Massive public construction projects such as stadiums, transport networks and environmental construction and improvement act as catalysts for the real estate market. The four most recent hosting cities have all seen price hikes in the property sector. The effect is less noticeable in Atlanta, but post-Olympics market prices in Barcelona, Sydney and Athens are all up more than 50 percent.

The Beijing property sector is currently experiencing a relatively moderate rise in valuations. From January to August, the prices of newly built commercial properties increased by 8.2 percent, while residential rates were up 10.7 percent. But Li Minyi, a professor at the Beijing Technology and Business University, warns against impulse buying in the midst of the Olympics run-up and advises buyers of the possible post-Olympic trough effect that may see property values slide.

Other sectors that are expecting to cash in on the Olympic boom range from hotels and serviced apartments to catering and many other tourism-related ventures. By 2008, it is estimated that Beijing will have 15,000 hotels, of which 800 will be star-rated, with 130,000 available rooms. Budget and theme hotels, as well as home-style hotels located near the Olympic venues, will find extra favor with travelers.

The construction sector is prospering. By 2008, Beijing will have up to seven metro lines plus another line directly servicing the Olympic Park. Businesses dealing in cement, glass and new building materials are set to benefit greatly. Meanwhile, all facilities and air-conditioning units installed in the Olympic Village will be powered primarily by geothermal heat, and hot water for showers and power for lighting will be supplied through solar and wind energy. Many small businesses will be provided with business opportunities in this market.

Tourist souvenirs: a massive market

Trading in mascots and other franchise items at the Sydney 2000 Olympic Games was valued at $500 million; sales of the Athens 2004 Olympic mascots-Athena and Phevos-totaled around $840 million. The sales outlook for the five Fuwa dolls that are the mascots of the Beijing Olympic Games is projected to be no less rosy than that of Athens.

Getting into the Olympic mascot and franchised souvenir business may be difficult for small businesses. But Du Wei, Vice Director of the OERA, advises companies to have a broader vision. In 2008, China will welcome an influx of over 100,000 athletes, officials and tourists, many of whom are likely to journey to the many tourist spots across China and buy local souvenirs along the way.