The Impacts That Mega Events Have on a Tourism Destination - Essay Example

Critically analyse the impacts that mega events have on a tourism destination Introduction Mega events have a way of impacting on tourist destinations. In so many ways, it is not anymore just about the event, but where the event will be taking place. The effects on these tourist destinations span diverse aspects which range from the economic to the social, the political to the cultural. This paper shall critically analyse the impacts that mega events have on tourist destinations. More specifically, it shall discuss the 2008 Beijing Olympics based on economic, social, cultural, and environmental impacts as far as China, Beijing, and the Chinese people are concerned. It shall also discuss the strategies that the Chinese government used in order to enhance positive impacts and reduce the negative impacts of these mega events on Beijing, China, and on the Chinese people. Beijing Olympics The 2008 Summer Olympics held in Beijing, China is the most recent Olympics conducted. China won the bid in 2001 to hold the 2008 Olympics after two rounds of voting by the International Olympic Committee (IOC). It was China’s second bid to host the international games after it failed in its first bid 8 years before to Sydney, Australia (Longman, 2001). The games were declared a success by the IOC during the 13th Olympic Congress last October. The Olympic Games featured participants from 204 IOC member countries with about 80 heads of state attending (Xinhua News Agency, 2008). The city welcomed thousands of tourists who participated, watched the games, and took in the many sites around the country. It was the biggest influx of tourists the country has ever seen; and considering its closed-door policy for so many years, the Beijing Olympics opened China, on so many levels, to the rest of the world. Discussion: Economic Impact of Beijing Olympics on Beijing and China Mega events have the potential of bringing various economic benefits to the place where the event is to be held. Economic analysts claim that they bring macroeconomic benefits which ultimately mean higher economic growth to the country due to increased spending in relation to the mega event. Economics Help.org (2008) also points out that the extra spending seen in mega events helps fuel inflation and boosts the economy of the country in general. With the increased influx of tourists into China, the exchange rate was also expected to increase. CNN’s Nick Hopkins (2001) also points out how the Beijing Olympics would potentially trigger the entry of major international investments into China. The entry of multinational corporations like McDonald’s, Coca-Cola, and Eastman Kodak into China is already a given because these three corporations already have marketing rights to the Olympic Games wherever they may be held (Hopkins, 2001). Their investments to China would mean increased employment opportunities for the people and increased tax revenues for the government (Getz, 1991, p. 38). As soon as China won its bid to host the 2008 Olympics, sponsors already lined up in order to bid prime spots and opportunities in China. These investors recognized another large market of consumers who would flock to the city during the mega event and the internationally diverse crowd who would be present for the duration of the Olympic Games. A major investor mentioned that the “Beijing games would be a catalyst for a high level of economic activity in this city and whenever you have a high level of economic activity you have business opportunities (Stratford, as quoted by Hopkins, 2001). It cannot be denied how the mega event such as the Olympic Games would offer an opportunity for brisk business for the investors, for China, and for its people. The patronage that would be enticed would include not only international investors, but local businessmen as well. Economists from Goldman Sachs also claim that by hosting the Olympics, China will have a chance to increase its gross domestic product by 0.3 percent annually between 2002 and 2008 (Hopkins, 2001). In order to prepare for the games, the tourist destination sponsoring the mega event – in this instance, China – will have to spend millions of dollars in order to improve its infrastructure and facilities. These new infrastructure would inevitably benefit the people of China as well as the tourists and the athletes who would be attending the games. In the process, companies who were involved in the previous Olympics would also have an opportunity to strike up deals with China in order to provide for and accommodate the staging of the Olympics. These preparations and employment opportunities would involve work related to seating, design, and even environmental planning for the Games (Hopkins, 2001). Locate in Kent (2009, p. 4) made a thorough discussion on the economic impact of the Olympic Games on nations involved. They categorized the impact into short-term and long-term impact, with short-term impact divided into four categories: direct, indirect, induced, and total. Direct impact include spending by the Olympic committee in order to acquire goods and services to prepare for and to use during the games; indirect impact include the share of the visitors who are actually purchasing the goods and services; induced impact would include the multiplier effect of the direct and indirect impact seen by re-spending the money involved in the direct and the indirect impact; and finally, short-term impact would refer to the revenue from related sporting cultural events, media, and other preliminary activities for the event (Locate in Kent, 2009, p. 4). On a longer term, the economic impacts of the Olympics on China would be national and international renown through media exposure; community benefits which include volunteerism, job creation and training, youth and economic education programmes, funding for community economic development projects, and cultural programmes, infrastructure, housing, increased trade, new company investments (Locate in Kent, 2009, p. 4). These economic impacts detail the direct and the indirect benefits of this mega event to the tourist destination – Beijing, China. The discussion that shall follow shall specify more benefits which were actually felt by China from its sponsorship of the Olympics. The Beijing 2008 Olympic Games created huge investments for China. In order to prepare for the games, China was prompted to invest about $40 billion in infrastructure from 2002 to 2006 alone. In the process, China transformed the face of Beijing. The Olympic Games also influenced Beijing’s environment, advertising, television, internet, mobile phone services, clean energy, and sports sectors; improvements were also seen in the refurbishment of its 25 historic areas, landmarks, old streets, and four corner residences (Locate in Kent, 2009, p. 5). These developments and ‘make-over’ for Beijing potentially created improved tourist sites for the people and for the prospective visitors who were expected to enter the city before, during, and after the Games. Economic growth in Beijing can be credited to the Games because of the fulfilment of investments in infrastructure which then led to improvements in the overall production for domestic and foreign enterprises allowing investments for private enterprises in Beijing to be more attractive (Locate in Kent, 2009, p. 5). The long-term economic benefits for China in its sponsorship of the 2008 Beijing Olympic Games have yet to be actually seen. Undeniably, some industries in China have been negatively affected by the conduct of the Games when some manufacturing firms were closed because of the government’s efforts to improve air quality in Beijing. All in all, these closings have not benefited the economy, but definite improvements to the environment were actually seen with the closing of these manufacturing firms. These economic developments shall be discussed in detail in later paragraphs. The mega-event also signifies a major point in the economic development of Beijing; it is an opportunity for a shift from an economy based on assembly platform for global manufacturing to an economy focused on goods and services to China’s growing and prosperous middle class (Martin, 2008, p. 2). China has a fond hope of ultimately attracting more tourists, businesses, and investors to China and also to negate the issues surrounding its labour laws and environmental conditions. However, there are various doubts and questions posed by economic analysts on whether or not mega-events really do bring the expected economic benefits to the tourist destination and to the people living in said tourist destinations. Some analysts point out that in previous Olympics big stadiums which were built were not of much use to the people after the Olympics. These stadiums failed to create and generate as much income as they were expected to after the Olympic mega event was staged. Other developments which were also made in order to accommodate the event were also predicted to have been developed anyway – with or without – the conduct of the mega-event. Some critics also point out that finances which were allocated for the building of infrastructures would have – in due time – created more benefits to the tourist destination if they were instead allocated to hospitals or even schools (Martin, 2008, p. 2). Also, in the process of building big stadiums and other big structures in order to accommodate the conduct of the Olympic mega-event, some people and establishments had to be displaced. Analysts, point out that the economic costs to these displaced people and businesses are actually not calculated. There are also questions in the methodology or the conduct of these economic activities in order to implement the activities related to the mega-event. Some of the companies confess that they are actually asked or obliged to “overstate the potential gains and understate the potential costs” (Martin, 2008, p. 3). And these inaccurate accounts make the overall assessment process of the advantages and disadvantages of the mega-event, such as the Olympics difficult to accurately estimate. Nevertheless, to some degree, there are economic benefits which may be seen in the conduct of the mega events in a tourist destination. The amount of these economic benefits, however, will remain a gray area for as long as no true estimate is revealed by investors and by economic enterprises involved. Discussion: Social From the sociological or social point of view, mega events provide an opportunity for the people to socialize and communicate with other people from different cultures and different nationalities. For the Chinese people who are not used to communicating with other people of different nationalities, the Beijing Olympics provided an opportunity for them to finally improve their socialization skills. In an effort to improve their socialization and hospitality skills, Beijing authorities sought to improve their people’s manners and to upgrade the city’s image (Beijing, 2008). They prompted the Chinese people to refrain from using dirty words and to conduct friendly relations with other people; they also encouraged the Chinese people to keep the streets clean, to observe courtesy and rules at the sports venues, and to politely take their places in cues (Beijing, 2008). These are simple, yet important measures that were taken in order to improve the socialization skills of the Chinese people. The city government officials held various cultural and socialization activities before the Olympics in order to “sell new, more polite ways of lining up to the local citizenry” (Beijing, 2008). These activities represent important efforts on the part of the government officials and on the part of the Chinese people to ensure that they project the correct and adequate welcoming attitude towards the thousands of tourists and athletes who would be flocking to the city for the Games. It is also an opportunity for the rest of the world to see the Chinese people in a warmer, friendlier, and more courteous light. Discussion: Cultural Mega events are also another one of the more important ways of showcasing the culture of the people. Mega events almost always expect different cultural activities to be featured in its itinerary. Consequently, “culture is therefore increasingly being included in urban regeneration strategies as a means of stimulating physical development, adding animation to areas of the city and generating economic and cultural benefits” (Smith, p. 13). It is a reciprocal process which is triggered by the need of the people to exhibit their unique qualities, beliefs, and culture. In order to better exhibit these cultural practices, better venues or staging grounds are created. As tourists become more interested in these cultural practices, the more that the locals are encouraged to preserve and rediscover their culture. ‘Tourist spots’ are restored, museums are inundated with the most unique finds, cultural practices – songs, dances, rituals, are revived and re-introduced to a new generation of locals. In the case of the Beijing Olympics, Chinese officials were prompted to restore and renovate many of their tourist and cultural attractions like the “Confucius Temple, the Imperial College, the Imperial Ancestral Temple and 28 other historical or cultural sites” (Beijing, 2008). The renovation of these sites would now be an opportunity for China to exhibit to the rest of the world about their culture and for the younger generation of Chinese people to rediscover their traditions and their historical sites. All in all, the Beijing Olympics as a mega event is a big boon to the culture of the people because these mega events, festivals or activities “can be seen to minimise negative impacts of mass visitation and foster better host-guest relations. Festivals can lengthen tourist seasons, extend peak season or introduce a ‘new season’ into the life of a community” (Yeoman & Robertson, p. 33). The Beijing Olympics is the perfect stage for to counter the negative connotations of China and to ease its prohibitive and rigid positions on issues. Discussion: Environmental China, most especially Beijing, is notoriously known for being one of the most polluted nations/cities in the world. In 2001, when Beijing made its bid for the 2008 Olympics, it was vying with Mexico City as the most polluted capital in the world (Turner & Ellis, 2007). One of the conditions which Beijing agreed to in its being granted the Olympic bid was for it to implement measures in order to make the city environment friendly. The staging of a mega event can spur government officials into doing something about the environmental problems plaguing their area or the tourist destination. Bhatia (2001, p. 382) points out some factors or aspects which have to be taken into consideration before any major tourist development plans can be set into place. These aspects mostly involve the carrying capacity of the tourist destination involved. There is an important need to consider the level of visual impact and congestion; the point at which ecological damage may be seen; conservation of wildlife and natural vegetation of both land and marine environments; and the acceptable levels of air, nose, and water pollution (Bhatia, 2001, p. 382). With proper handling and management mega events can have a positive impact on the environment, if the previous measures are undertaken before the conduct of such mega event. However, if no environmental protective measures are undertaken, the mega event can serve to worsen the environmental conditions in the tourist destination involved. Beijing soon started taking major steps to improve its environment by investing in environmentally friendly construction materials and sustainable energy for the Olympic Village and efforts were also taken in order to clean its water and air. About 200 manufacturing companies were also shut down or retrofitted in order to minimize emission of pollutants (Turner & Ellis, 2007). Many businesses and agencies have already come up with plans in piloting environmentally clean technologies in Beijing, especially those in the transportation and water sectors (Turner & Ellis, 2007). The ‘Blue Sky Program’ is one of the programs launched by Beijing in order to clean up its air. This included the use of cleaner fuels for the buses and taxis plying the city routes. It also launched pilot programs which eventually mean cleaner air for the city in the long-term. These include: “14 electric buses, 50 lithium-ion battery powered buses and a fuel cell project supported by the Global Environment Fund and the United Nations Development Program” (Turner and Ellis, 2007). In the Olympic village, more environmentally friendly measures have also been set in place in order to ensure that the village would not greatly impact on the pollution in Beijing. In this regard, 27 percent of the two million square meters of buildings which would be used for the Olympics were powered by clean energy, solar generators, and Beijing’s first wind power plant (Turner & Ellis, 2007). Such measures are just some of the view implemented by the government officials in China, especially in Beijing, in order to ensure that pollution is kept within acceptable standards. Discussion: Government strategies to enhance positive impacts and reduce negative impacts. Government strategies taken by China in order to enhance the positive impact of the Olympics on Beijing were to allocate billions of dollars for the construction of various infrastructures around the city in order to accommodate the games and accommodate the different athletes and tourists expected to attend the games. In order to reduce the negative impact of these substantial allocations in the Chinese coffers, investors were called in and invited to bid and to participate in the economic build-up before the games. From a sociological point of view, in order to enhance the impact of the mega event on the people and on the tourist destination, “the government not only launched etiquette campaigns forbidding spitting, smoking, littering, and cutting in line, but also introduced programs to teach English to cab drivers, police officers, hotel workers, and waiters” (Premo, 2008). The government also made a more conscious effort in not suppressing the media. However, some media reports still point out that some politically-related news in the Chinese publications was suppressed. Nevertheless, the Chinese government was less restrictive of the international media outlets like CNN and BBC; visitors were now given access to these news outlets during the Olympics and even after (Premo, 2008). In order to reduce the cultural and social impact of the mega event on Beijing and in other parts of China, it must be mentioned that China took on a very restrictive policy. China restricted travel to destinations “such as Tibet, parts of Sichuan, Qinghai, and Gansu provinces...” (Premo, 2008). And in order for China to maintain a semblance of control on travel to its territories, it limited its visa issuances. Many view this as moves by the government to control and suppress human rights and political protests. China also issued restrictions on the practice and display of religion in the city during the conduct of the Games. Finally, to reduce environmental impact of the event on Beijing, thousands of dollars were spent by the government in order to reduce its air pollution and to adapt and implement more ‘green’ or more environmentally friendly products and services. The Beijing Olympics, as a mega-event has had a significant impact on Beijing and on China in general. First and foremost, it has triggered economic spending and growth in infrastructures in Beijing; in the process, the credibility of Beijing as a premier tourist destination in Asia has been enhanced. The world’s general perception of China has changed – it is no longer as reclusive as it once was. They have also managed to share with the rest of the world their unique and mysterious culture. Although, many more improvements need to be undertaken with regard to other issues which still plague its territories, the doors of this nation, which were once tightly closed, are slowly opening. And it took an ‘Olympic’ will to do it. 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