Press conference: Beijing Olympics and economy

Related story: Beijing Olympics and economic development go hand in hand

Date/Time: 10:00 a.m., Thursday, August 21

Venue: Main Press Center (MPC)

Wang Hui, the host of the press conference

Wang Hui

Good morning, friends from the press. Welcome to the press conference at the MPC. As you all know, the very successful holding of the Olympic Games in Beijing is attributed to the economic growth in Beijing. In other words, we believe the Olympics has contributed to the economic growth and vice versa.

The relationship between the economy and the Olympics is a subject for the media. For that purpose, we set up this press conference that is to deal with the relationship between the Olympics and the economy. The speakers for today. Mr. Chen Jian, executive president of Beijing Olympic Economy Research Association (BOERA), Beijing, Mr. Du Wei, vice president and secretary general of BOERA, and Mr. Li Geng, vice president of BOERA. They have been doing economic studies in Beijing focusing on the Olympics and the economic growth. First, I would like to give the floor to Mr. Chen Jian to speak on this subject.

Chen Jian gives the speech at the press conference.

Chen Jian

Good morning. This association was established in November 2003. It is the only institute that specialized in the relationship between the economy and Olympics. Every year, we had great publication and we had done studies with a great number of papers. The international Olympic Committee has spoken highly of the work we have done so far. Regards to the relationship of the economy and Olympics in Beijing, we have done a number of studies. We believe the Olympics has indeed propel the economy in Beijing.

1. I want to say the Olympics has indeed promoted the economic growth in Beijing by 1%. Between 2002 and 2007, the annual economic growth rate is 12.1%, increased about 1.8% than that before the Games. According to our studies, we believe 1% is contributed by the Olympics.

2. Secondly, because of the Games, we have given the city a lift. We have shortened the gap between Beijing and world class cities. In 2001 the GDP per capita in Beijing is only 3,262 dollars while as 2007 it reached in 7654 dollars, doubling the amount in 2001. We have invested a great number of resources in the infrastructure and the city. The city has been greatly improved. For example, the terminal, the facilities, as well as in the investment, in the environmental protection, all have indeed shorten the gap between Beijing and other world class cities.

3. The Olympics has promoted the infrastructural development as well as economic development in Beijing. In 2006, the energy assumption by every year per unit of GDP in Beijing reduced 5.25%. Beijing was the only city that accomplished the mission of the "11th Five-Year plan".

In 2007, the energy assumption by per unit of GDP reduced by 6.04%. By the first half of 2008, the percentage of the increased value of the third industry in the GDP of Beijing raised from 61.3% in 2002 to 73.7%. The Olympics has indeed increased the regional development and increased the infrastructure of Beijing. It has lifted the infrastructure adjustment of Beijing. It increased the cooperation between Beijing and other cities and regions.

Thanks to the Olympic Games, many Chinese enterprises have being participating in the Games, in terms of their brand names, such as Sohu and Yanjing Beer. These enterprises have been taking the advantage of the Games to publish and promote the culture of the Games as well as the enterprises.

Another thing I want to tell you is that we have been promoting the new zones. These new zones could likely become economic legacy by the end of the Games. And after the Games, they will become a site for sports and activities. We believe these new zones are Olympic venue that is from Lishuiqiao to Tiantongyuan, at Madianqiao, etc. They have been doing a good job of road planning to reduce the post-Olympic risks. They have formulated the plans and directions for the Games. In terms of realization of the venues, at the beginning when it came to the site selection, we have taken into account the possible post-event utilization.

Indeed the venues will be used after the Games. In the post-Games period, we have two results after the Games.

1. The capital economy will not be subjected to fluctuation. To us, we believe the most important thing after the Games is that there will be many new centers of investment, and Beijing economy will be formed with high-tech industry and financial industry, service industry as well as cultural, and etc. The cultural industry has a growth rate of 23% in the first half of this year. In terms of civil construction, the track construction is about 200 kilometers by this year, after the Games, we have another 50 kilometers of tracks increased every year. The total will be 561 kilometers in 2015. The industries related to this will also be positively impacted by the Games. This indeed helped Beijing in terms of the fame and many industries grow quickly such as tourism, convention business, sports recreation, telecommunication, real estate, etc. as well as financial industry.

This will all face rapid development. These industries may benefit from great demand after the Games. The rest of the industry will indeed improve further because of the great demand. And in addition, the per capita GDP will reach 8,000 US dollars by the end of this year. We believe the economy will indeed continue growth after the Games.

Wang Hui

Thank you so much Mr. Chen. Now it is time for questions.

Beijing Youth Daily

I am from Beijing Youth Daily. Mr. Chen, would you please elaborate on one point about the post-Olympic real estate price. You said there was a short period of re-adjustment, and the downward trend is very limited. Can you elaborate on this?

Chen Jian

Personally I believe the real estate price is controlled by two factors. One is the face based economic development. As we know, the GDP is increasing more than 3,000 dollars to 8,000 dollars which is a very big lift. Secondly, it is related to the supply demand relations in the preparation of the Olympics. For example, there was a huge demand for real estate. In the past 7 years, the net increase of the population of Beijing is about 2.1 million, so the Olympics has the relation with real estate prices because the Olympic Games preparation improved the infrastructure such as the rail transportation. Where the rail transport goes, where the prices of the housing go up, so it is a very positive relations, there is a fluctuation. If the fluctuation is beyond the rational scope we call it bubble. I think in general the price of the housing in Beijing is good, rational. But in the first half of this year, I believe the housing prices is in the period of readjustment. I believe this readjustment period is almost over. After the Olympic Games, there might be some great adjustment. But as I said, the price is closely linked to many other factors. I think the foundation of the housing is in all parts of the country. Many people wanted to buy housing in Beijing. That is a demonstration of the reputation of the success in the career. Beijing is becoming like internationalized. The city has a huge demand supporting the price of the housing in Beijing. That is why I believe after the Games the price of the housing will go up. Thank you.

Foreign reporter

About the non-economic legacy of the Olympics. I'm interested in how you think Beijing has changed, if you can give me some specific examples.

Wang Hui

Thank you very much for your question. As to the legacy of the Beijing Olympic Games to Beijing or to China, I think it's too early to answer this question. As long as the time is going, you will see one of the legacies left on Beijing by the Olympic Games. Right now, we can feel there are many legacies from the Games. Personally, I believe Olympic Games make China open to the world and we know the ways to communicate with the world. We get to know the way to hold such a very important Games. Also, the Games has left China a lot of talent. The success for holding the Games can be attributed to large amount of talent people, from all walks of life. Of course, that promotes the economic development in Beijing, and people in Beijing and in China all benefited from the Games. Everyone can see that clearly. Of course it is a rough and general explanation. As long as time is going on, you will see more of that. Thank you, next question.