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Olympics' Impact on China's Economy
    2008-02-12 13:54:39     CRIENGLISH.com

During the Olympic period, it is expected that Beijing's hotels and shopping malls will see rapid increase in the number of customers and fast expansion of their business volumes.

But, at the same time, some experts predict that the tourism peak will come only after the Olympics.

How will China's economy be like after the Olympics? 

While many people think the Beijing Olympics will boost China's economy, there are others who are worried that the country's economy might face a decline after the Games.

But, Wei Jizhong, director of Beijing Olympic Economy Research Association, says such worries are unnecessary as the country will definitely see a tourism peak after the Games.

"We'll definitely receive more visitors from across the world after the Games. Since the country's service industry will be much improved before and during the Games, we should have enough confidence in this regard."

Excess gymnasiums and stadiums pose a common problem for all Olympic host cities.

But Wei Jizhong says Beijing has taken into consideration the utilization of these facilities after the Games when making the construction plans.

"Beijing will complete nearly 20 stadiums and gymnasiums for various Olympic events. After the Games, part of them will be open to the public for cultural and entertainment activities. Some will serve as training bases for athletes, while some other ones will hold sports games."

In fact, in order to guarantee these facilities to be in service for a long period of time, large surrounding areas have been reserved for the building of commercial service facilities in the future.

An increase in unemployment rate is another concern. For those thousands of people who will serve the Games during the competition period, where should they go after the Games?

Here's Wei Jizhong again.

"You see we'll build so many stadiums and gymnasiums for the Games and they'll be in use in the long run. Therefore, lots of personnel are needed to run and maintain these facilities. I think that alone will create many job opportunities."

For thousands of volunteers who will be serving the Games, most of whom are college students, Wei Jizhong says as long as they work hard and acquire relevant work experience during the period; it won't be too much of a difficulty for them to find jobs.

In addition, the public also have much concern about the trend of China's stock market after the Games as most believe that the Chinese market would see significant boost during the competition period.

Dr. Ma Jun is chief economist with Deutsche Bank Greater China.

"A lot of people would believe that before and during the Olympics, the government would have strong interest in supporting social stability and probably even support equity market."

Therefore, the economist said he believes there is a possibly of a mini bubble ahead the Olympics, but he didn't make his predictions concerning the post-Olympic period trend.

But anyway, Dr. Ma Jun said he didn't see much of a fundamental change that the Olympics would bring to China's real economy.

"We calculated the investment related to the Olympics. The amount was equivalent to only 0.3 percent of total Chinese investment over the past seven years. So, even without the Olympics, the Chinese economic growth wouldn't change much."

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