In my seminars, giving a (personal) insight on what the 2008 Olympics mean for Beijing, one of the myths I have to correct is the “cost” of the preparation. At times I air some criticism on how Beijing is preparing for this mega event, sure. But I have to defend Beijing on this point. As usual the distorted view is a consequence of the poor PR of the Beijing officials. Every day they come up with other figures according to their mood or the spin they want to give. So one day they talk about 30 billion USD, another day they mention a couple of billions; BOCOG’s budget is an official mystery, less for me as I scan the news very carefully since years. Some people actually printed the updated budget and were promptly reprimanded. The figure then disappeared.
After much digging and checking I stick to my rough estimates as follows:
– Total investment to make Beijing a modern city so it can be a good host for the Games: US$ 35 billion; it includes projects badly needed and overdue since years and we are all very grateful they are being implemented. Just now they are starting the project of Metro Line 9. The more, the better.
– Many venues are NOT paid by the government while the government itself shoots itself in the foot (they are good at that) by claiming they do, and interfere in the project where they have no business. In fact much of the funding is coming from the private sector – whatever that means – but certainly not from government funding. Difficult to put a sticker on it but US$ 2 billion might be a reasonable estimate.
– I estimate the total cost of the Games to be rather something like US$ 5 or 6 billion, that is for all organizational expenses and temporary venues – in other words, that money is spent and gone, and cannot be considered as a long-term investment.
So, if we look at the article dated 15 March 2007 – “Beijing’s Olympic Stadiums May Leave Costly Legacy”, from THE WALL STREET JOURNAL ASIA – by Mei Fong:
BEIJING – China is a land littered with monuments to past grandeur: the Great Wall, the Terracotta Warriors and the Forbidden City.
Now, China’s modern rulers are using the Olympics to reshape Beijing and cement their own legacy.
The nearly $40 billion price tag for the Beijing Games and related infrastructure will surpass that of previous host cities, and even, by the estimates of some Chinese economists, make up as much as 43% of total spending on all Games since the 1976 Montreal Games.
Etc.
Well, I totally disagree with that “price tag” and its interpretation. I don’t blame Mei Fong for it – she just took over the figures that go around… The rest of the article is pretty accurate (so is my quote). I have been warning since long about the high risks for post-Olympic operation of all the venues in Beijing. Not a rosy picture. According to an expert from the General Administration of Sports, Beijing has 6,100 sports facilities, with 41% not being open to the public (mainly facilities on university campuses). I am too convinced about this high figure but for sure after 2008 Beijing will have dozens of venues, all competing for the same customers and events. Coordination: none. Good luck.
Mei Fong has been chasing me regularly. She belongs to the nice category of journalists, checking quotes before publication and sending me the article. See her here after an interview in the European Chamber on 22 September 2006, together with Giorgio Magistrelli, former secretary general of the EUCCC.
