Tapping the Economic Potential Of the 19th Asian Games

By Liu Xueyun

Chinese swimmer Wang Shun and a“Digital Torchbearer”jointly light the main torch tower at the opening ceremony of the Hangzhou Asian Games on September 23,2023.(VCG)

On October 8,the 19th Asian Games closed in Hangzhou,the capital of Zhejiang Province.The most influential sports event in Asia,the Asian Games jumpstarted the economic development of the host city Hangzhou in remarkable ways.

Supporting Sports-related Services

The sports industry is generally green and boosts urban economic growth.Largescale sports events play a multidimensional role for a city’s economy,potentially creating enormous economic and social benefits for host cities such as improving infrastructure,developing tourism,attracting foreign investment,and broadening the consumer market.

According to earlier estimates from the Bureau of Statistics of Zhejiang Province on the significance of investment during the preparation of the 19th Asian Games to GDP for Hangzhou,the event would increase the city’s GDP by 414.1 billion yuan(US$56.70 billion),accounting for 7.6 percent of GDP in the period reviewed.Fiscal revenue in Hangzhou was expected to grow by 103.3 billion yuan(US$14.14 billion),an 8.2 percent share of the total fiscal revenue in the period reviewed.And the event would create 670,000 jobs,2.4 percent of employment in the city in the period reviewed.

The Hangzhou Asian Games improved competition by adding characteristic Asia events and cooperating with other cities in Zhejiang.Competitions in E-sports,Sepaktakraw (kick volleyball),and dragon boat racing were held in the five co-host cities of Ningbo,Shaoxing,Huzhou,Jinhua,and Wenzhou.

At an October 7 press conference,Hangzhou Asian Games chief spokesperson Mao Genhong reported skyrocketing ticket sales with more than 3.05 million sold in total,generating more than 610 million yuan (US$83.51 million).

For Hangzhou,the close of the Hangzhou Asian Games was far from the end of the benefits.Rather,it marked just the beginning of efforts to leverage the economic potential of the event.“The 19th Asian Games created opportunities not only for the development of sports,but also sports marketing,” said Mao.He noted that the event facilitated opportunities for Hangzhou to interact with international sports organizations and plan various sports events for the coming months and even years.The games are encouraging wider engagement.“The share of the sports economy will increase in the future,which will generate a positive spillover effect and boost the continuous development of the sports-related service industry in Hangzhou,” Mao added.

Reports have indicated that during the Hangzhou Asian Games,the city signed Memoranda of Understanding (MOUs)with the Badminton World Federation,the International Canoe Federation,and the International Hockey Federation.Yao Gaoyuan,mayor of Hangzhou,announced plans to establish a sports event system with Hangzhou characteristics by 2025,at which time Hangzhou will host three top-level events supported by international sport organizations,over 10 international and Chinese high-level sports events,and at least six Hangzhoubranded sports events.By 2035,Hangzhou plans to have a sports event system on par with world-class cities and host another high-level comprehensive sports event as well as three to five singlesport competitions such as the World Cup.

For Hangzhou,the close of the Hangzhou Asian Games was far from the end of the benefits.

On September 28,2023,China defeated Uzbekistan 6-0 during the A group of women’s football at the Hangzhou Asian Games.Shown here are fans cheering for the Chinese team.(VCG)

Boosting Tourism and Catering

In addition to pooling resources and stimulating consumption,large-scale sports events also generate a positive impact across multiple industries including tourism,catering,and culture.

The Hangzhou Asian Games coincided with the Midautumn Festival and National Day holidays (dubbed “Golden Week” in China).As a popular tourist city,Hangzhou saw a significant increase in arrivals.

According to the Hangzhou Municipal Bureau of Culture,Tourism,Radio,and Television,as of 4:00 PM on October 6,the city’s various tourist attractions had received a total of 13.01 million visitors during the holidays.Data from UnionPay showed that total consumption related to travel in Hangzhou during the Golden Week reached 193.29 billion yuan (US$26.42 billion).

According to statistics from Qunar.com,a Chinese-language online travel information provider,during the Asian Games (September 23-October 8),hotel bookings in Ningbo,Wenzhou,Huzhou,Shaoxing,and Jinhua all increased fivefold over 2019.Among these cities,Shaoxing saw the highest growth,reaching 7.2 times,followed by Wenzhou with a 6.4 times increase.Hotel bookings around the main venues of the Asian Games,such as the Hangzhou Olympic Sports Center and the Huanglong Sports Center,increased sevenfold compared to the same period of the previous month.

The travel boom during the Golden Week inspired various regions in Zhejiang to upgrade their tourist programs,improve the tourist experience,and create distinctive consumption scenarios.For example,Hangzhou launched a series of high-quality tourist routes themed around the Asian Games including classic Asian Games-themed routes and waterbased night tour routes.Hangzhou Municipal Bureau of Commerce released a night-time consumption guide featuring 10 major night-time consumption scenarios such as night shopping and night markets.Xiangshan Beach Volleyball Stadium in Ningbo was opened to the public for free alongside local markets seeking to attract tourists to the local culture of Ningbo.

Ms.Yang,a tourist from Hunan Province,reported that after attending the sports event,she took a night cruise on a boat named after a famous Chinese ancient painting,“Dwelling in Fuchun Mountain,” to enjoy the scenery along the banks of the Fuchun River.

An abundance of content related to Hangzhou can also be found on social media platforms.Bloggers from Hangzhou shared travel guides on Meituan-Dianping,a popular“l(fā)ocal life” service platform in China,to provide authentic and interesting travel tips for visitors from various places.

Tourists visit Hubin Pedestrian Street in Hangzhou on October 1,2023.During the 19th Asian Games,people from all over the world swarmed to Hangzhou to visit the old streets and West Lake,savor local foods,and feel the charm and vitality of the city.(YANG BO)

According to Meituan-Dianping,the search volume for “Asian Games”and the tally of travel guides doubled in the past week.The search volume for “Asian Games mascot” increased by 570 percent,while the keyword search volume for “cityboat”increased by 600 percent.On Douyin,the Chinese version of TikTok,many netizens shared encounters with athletes and tourists from foreign countries shopping in malls,which attracted a heavy volume of friendly comments.

Catalyzing the Digital Economy

Empowered by digital technology,“intelligence” was a highlight of the Hangzhou Asian Games.Boasting remarkable advantages in digital technology,Hangzhou featured multiple digitalized and intelligent scenes at the opening ceremony including a digital torch,digital fireworks,and an Asian Games Metaverse.Artificial intelligence (AI)and big data analysis played a critical role in improving the efficiency of competition management and services with visual reality (VR) and AI technology.

Alipay,a third-party mobile and online payment platform established in Hangzhou,launched the miniprogram “Smart Hangzhou 2022,” the first one-stop digital game-watching portal in the history of global major multi-sport events.Hangzhou also established a digital lanecontrol system as well as smart-city infrastructure for the Asian Games,integrating cutting-edge technologies such as AI,big data,the Internet of Things (IoT),and 5G communication into various aspects of the 19th Asian Games and the city.

“We built a massive information system to achieve integration of digital and information technologies to serve the Hangzhou Asian Games,”said Xu Weihua,director of the Hangzhou Asian Games Information Technology Command Centre (ITCC).“The Hangzhou Asian Games is where digital and physical worlds complement each other.”

A picturesque city in southeastern China,Hangzhou serves as a significant hub for the development of intelligent technology.It is currently home to one national laboratory and seven provincial laboratories.The headquarters of Alipay and the Alibaba Group are also located in Hangzhou.Digitalization has become a prominent advantage of the city,and it now has digital technologies woven into every corner.

Chinese locals root for their favorite table tennis players at Gongshu Canal Sports Park Gymnasium at the Hangzhou Asian Games in China on September 25,2023.(VCG)

To prepare for the 19th Asian Games,Zhejiang upgraded its infrastructure with technology.As of the end of August 2023,Zhejiang had built a total of 216,000 5G base stations,and the number of 5G base stations per 10,000 people had reached 32.8.A new supercomputing center was built to enhance computing power support for the Asian Games,which helped upgrade the “brain” of Hangzhou by providing intelligent solutions for urban governance.

The digitalization and intelligence presented during the Hangzhou Asian Games is just a microcosm of the digital and intelligent transformation and development of the economy of Hangzhou City and Zhejiang Province in recent years.

Statistics show that in 2022,the value added by Hangzhou’s core industries in the digital economy reached 507.6 billion yuan (US$ 69.38 billion),exceeding 500 billion yuan(US$ 68.34 billion) for the first time and accounting for 27.1 percent of the city’s GDP.

“The scientific and technological achievements showcased during the Hangzhou Asian Games are becoming a catalyst for the development of the digital economy,” said Xu.“We hope to accelerate the comprehensive application of these achievements by looking for more breakthroughs with new technologies.”

The government of Zhejiang made it clear that it seeks to facilitate innovation in the digital economy in 2023 and build the province into a national leader in high-quality development of the digital economy.

While Hangzhou is the main force promoting the development of the digital economy,the 19th Asian Games was the first “cloud Asian Games” in which 100 percent of core systems were supported by a cloud network.The sports event provided important practice for the city’s digital economic development and demonstrated promising prospects of the digital economy.

Empowering the Private Sector

“The Hangzhou Asian Games provides a platform for the development of the private economy and the sports industry,” said Mao at a press conference summarizing the Games.

This March,the Hangzhou Municipal Federation of Industry and Commerce called on private enterprises and entrepreneurs in Hangzhou to contribute to the Asian Games.Local resources across Zhejiang were coordinated to enable enterprises in various cities to expand the influence of the “Asian Games economy” throughout the province and promote the coordinated development of regional economies.Statistics show that a total of 176 enterprises sponsored the Hangzhou Asian Games,of which 93 were private enterprises in Zhejiang.

The Hangzhou Asian Games provided a platform for private enterprises to expand.Known as the “Mall of the World,” Yiwu City in Zhejiang boasts the world’s largest small commodity distribution center and is a national pilot area for new urbanization.

The three sections of Yiwu International Trade Market have around 600 to 700 sports equipment vendors covering various sports items such as footballs,volleyballs,table tennis paddles,boxing gloves,and trophies.Statistics from Yiwu Customs show that from January to August in 2023,sports equipment exports from Yiwu reached 5.08 billion yuan (US$694.3 million),the highest figure in five years.From January to July,the city’s exports of sports equipment to Asian countries reached 1.42 billion yuan (US$ 194.1 million),a year-onyear increase of 12.7 percent.

The 26 dragon boats used in the Hangzhou Asian Games were donated by a privately-owned enterprise,Fuyang Xiangrui Water Sports Equipment Co.,Ltd.,located in Fuyang District of Hangzhou.The company’s owner expressed great pride in the opportunity to contribute to the Hangzhou Asian Games.

Yao Zhongliang,chairman of Baixiang Food Co.,Ltd.,was a torchbearer for Hangzhou Asian Games.During an interview with local media,Yao expressed excitement for the opportunity to participate and raved about the contributions from Zhejiang entrepreneurs.“The Party and the government recognize private enterprises,so we shoulder great responsibilities to contribute to the development of the private economy,” he said.