Cashing in on the Olympic Village and surroundings

The Beijing Olympic Games will also trigger demand worth 43.2 billion yuan in the logistics sector. Delivery of goods directly linked to the Games will account for 491 million yuan, of which tourism as well as retail and catering will represent 141 million yuan and 350 million yuan respectively.

Ru Yihong, professor at Beijing Jiaotong University, advises all Beijing businesses in the logistics sector to expand their services to cover all areas, hotels accommodating delegates and officials, the press center and the Olympic Village.

Meanwhile, Vice Secretary General of Beijing Leasing Association Yu Xiaomei believes that leasing services is an ideal sector for small businesses to help address the short- to medium-term need for use of goods during the Games period. The leasing market is valued at more than 20 billion yuan, half the size of logistics market but still substantial.

Specialized leasing opportunities include engineering equipment, broadcasting facilities, vehicle chartering, transportation, sports facilities and parking garages.

Insuring the athletes

The IOC, for the first time, took out "Olympics Cancellation Insurance" worth $170 million for the Athens 2004 Olympic Games, which covered the risk of games being postponed due to war, terrorism, earthquake or flood. An even greater opportunity, however, lies in personal accident insurance for athletes and visitors. The latter carries a higher chance of profitability.

National regulations rule that the minimum amount of personal accident insurance per traveler, payable by the travel agency, is as follows: 300,000 yuan per overseas traveler; 100,000 per domestic traveler. Travelers from developed countries tend to have a better grasp on the concept of personal insurance, usually choosing personal accident insurance with high compensation.

(Xinhua Finance)

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