They are also the perfect showcase for its rich culture and history. Combined with China's ascension to the World Trade Organization (WTO), these global events are set to put the focus on China.

Just this month, Han Zirong of the Beijing Organising Committee announced that preparations for the 2008 Olympics had moved from the strategic planning stage to the implementation stage. Construction of various Olympic venues in the city has begun and all projects are expected to be completed by 2007 so that testing and fine-tuning can be done.

In addition to the start of construction, major sponsors are being picked as well. Last week, China's top white goods manufacturer, Haier - which recently failed in a US$1.28 billion bid to acquire Maytag Corp of the US - was selected as the official home appliance sponsor. This could be the perfect opportunity for Haier for some positive branding in the global media spotlight.

As at March this year, Beijing has secured US$1.7 billion in sponsorship.

Chinese state media also reported that the 2008 Games would be cheaper to run than the 2004 Athens Games. According to Xinhua news agency, Jiang Xiaoyu, executive vice-president of the Beijing Organising Committee, had hailed the 2008 games as 'the frugal Olympics'. He was optimistic that the Games would make a profit of US$16 million.

There will be inflows of money into the local economy of the Beijing region from visitor spending and infrastructure upgrading and development, and, to a lesser extent, the national economy from from broadcast licensing.

The telecommunications sector can look forward to an increase in demand for telecom services and can use the Games as a platform to highlight their services, upgrade their infrastructure, and increase their national and global profile.

Athens 2004 had a global audience of about 4.2 billion people in 220 countries. Each viewer watched an average of 12 hours. Thus, the Olympic Games are the premier marketing opportunity, the FIFA World Cup being the other avidly followed global sports event.

Advertisers can market goods and services to the world's most populous nation and also use their exposure as a worldwide platform to raise their domestic and international profile. This is also a great opportunity for Chinese companies to conduct branding on a global scale.

The indirect branding of the host city and nation by the influx of journalists is not to be discounted.

Beijing is home to six Unesco World Heritage sites: namely, the Peking Man ruins at Zhoukoudian, the Great Wall of China, the Summer Palace, the Temple of Heaven, the Forbidden City, and the Ming Tombs.

The 2008 Olympics are the perfect opportunity to upgrade infrastructure at these famous tourist locations. Hosting the Games also means increasing awareness of these cultural and historical treasures to a global audience.

Beyond bidding for and winning various infrastructure improvement projects, local construction firms can tap the expertise of foreign consultants and partners.

The already rapid infrastructure upgrading and development has been quickened by Beijing's hosting of the Olympics.

The improved infrastructure will add value to Beijing as a business and tourist destination while costs can be kept down by sharing with other institutions - for example, transferring of infrastructure to co-developers (like making university dorms or low-cost housing from the Olympic village).

Upgraded infrastructure will benefit residents and visitors alike, providing F&B outlets, hotels, upgraded telecom networks, roads, public transport, sports facilities, etc.

Australian precedent

One of the most significant effects of hosting the Olympics is an increase in tourism.

Beijing can draw important lessons from Sydney's experience in 2000. According to an Australian Tourist Commission (ATC) report from 2001/2002, the Sydney 2000 Olympics had the largest positive effect on Australian inbound tourism.

Australia enjoyed an additional 1.6 million visitors who spent US$3.5 billion. Hosting the Games hastened the development of Brand Australia by 10 years, media relations and publicity programmes generated US$2.1 billion, and Olympics sponsors spent US$170 million promoting Australia.

The 2000 Games also changed the world's perception of Australia.

It was so significant that the ATC had this to say: 'Australia is a different and an even better place. Australia's national pride skyrocketed and the country has entered the new Millennium with a renewed confidence.'

Other sectors of the Beijing economy can look forward to the Olympics, especially the service sector. Transport, financial services and commerce, consultancy services, professional services, translation services, accommodation and food & beverage should do their best to leave the best impression on visitors.

The human element must not be discounted as well. Organisers will gain valuable expertise in conceptualising, planning, managing and executing large events. Playing host will also mean raising the standards of service and improving customer experience. There is also a peripheral effect of an increase in interest and active participation in sport and physical activity, resulting in long-term health and economic benefits.

From a macro perspective, if Beijing manages to execute the Olympics successfully and can leverage the long-term benefits from infrastructural development, acquired technical expertise, heightened global awareness and management experience, it will attract droves of tourists and investors, and will truly lead China into the new millennium.

The Beijing Organising Committee should use the Games as an opportunity to improve the city. It is also critical that the transfer of facilities to other uses after the Games is well thought-out - otherwise, Beijing might be saddled with more than a few white elephants.

It is paramount that no effort be spared in making the Olympic Games run as smoothly and with as minimal fuss as possible. A bad experience or poorly organised and executed Games will leave a lasting negative impression of Beijing and China in the minds of a global audience.

There will be many journalists watching very closely. A vital long-term strategic goal would be to use Beijing's global exposure to leverage tourism for the rest of the country. There needs to be comprehensive and specific marketing activities in the pre- and post-Olympic period. The organisers need to make sure all stakeholders - from residents and sponsors, to industrial giants - are involved in a coordinated campaign.

Taking place on the heels of the 2008 Beijing Olympics, the World Expo is another opportunity for China to showcase its economy and culture.

Shanghai's hosting of the World Exposition in 2010 will reap similar benefits as Beijing's hosting of the Olympics. The stated aims of the Shanghai municipal government when it chose to put in a bid to host the World Expo were to; first, enhance communications and relationships with other countries to improve China's international position; second, promote the development of the service industry in Shanghai and in the rest of China; third, accelerate the pace of construction for infrastructure in Shanghai; and, last of all, promote the spiritual values of all people.

The World Exposition or World's Fair has always been the showcase of human achievement; for example, the now ubiquitous television was first displayed to an amazed world at the 1939 World's Fair in New York.

Lasting impact

Hosting the World Expo will not only offer opportunities to the exhibitors, but also serve as a medium for open international communication, and cultural and diplomatic exchange, thus hastening economic development.

China can expect the collateral effects of hosting the World Expo to last for a few years. Combined with an astute marketing effort, the direct benefits of inbound visitors cannot be underestimated.

Efforts are being made now to raise the standards of service, even now, five years before the World Expo. Officials are being sent for cultural sensitivity training and are being coached in best practices in service in order to inculcate good service values and open-mindedness. It is expected that service standards will improve across the board as government and private enterprise prepare to host the millions of expected visitors.

One of the direct benefits of hosting the World Exposition for Shanghai is urban renewal. Infrastructure investment will have long-term effects like improved transport efficiency, better land use and larger passenger capacity.

On top of improved infrastructure, venue disposal and reuse also allows the exposition village and site to be recycled.

With China hosting such major events, it is difficult to see it not making them successful and making the most of all the opportunities that come its way. By hook or by crook, China will definitely wow the world when the global limelight is cast upon it.

The writer is an assistant editor with China Knowledge Press, a premier provider of trade and investment information on China. Log on to www.chinaknowledge.com for more information

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