Usually, big events like the Olympics and winter Olympics are good for the economy because tourism increases as well as consumption. But this time winter Olympics will only burden China's economy because of the new Covid variant, Omicron. If there are no viewers, it will mean that the tourism will be really low as well as consumption which China usually experiences when hosting these games. Beijing is having increasing Covid cases, which have risen to 96 cases since mid-January. With China's Covid Zero policy, it is likely that this event will bring no economic boom, rather a burden on the economy.
China is requiring its citizens, who want to buy anti-fever medication, to get covid test beforehand. It is also requiring people to test for inbound travels. With such harsh policies, the management of such a big event will be very difficult. Authorities have put a hold on selling tickets to the public and might only allow a few special guests to watch the games. The games are still planned to be held in China and they are not delaying them. The effects may not increase the consumption demand this time but it is thought that the burden on the economy, in the long run, won't be as much as expected. Only time will tell what the effects will be in the long run.
This is an interesting aspect that I have not thought about. I have read about China's Covid Zero policy and I have found it rather harsh, as I believe that the lockdowns and strict travel restrictions will slow consumption and economic growth. It will be interesting to see how the Olympic games effect China and their economy.
ReplyDeleteWith consumer spending on tourism being a main draw of hosting the Olympics, it is interesting to see that in this case hosting will actually not help them much, if at all. Their strict covid guidelines are actually preventing them from an opportunity to make money off of this event, but it keeps their people safe and will be for the best in the long run.
ReplyDeleteIt is interesting to see that the government would entertain the idea of refusing the revenue from these tickets. especially with the long list of expenses associated with hosting the Olympics. Do you think the lack of tourism for the games will be a positive factor from an environmental standpoint?
ReplyDeleteThis Winter Olympic will also be really interesting for one more reason as after a long time USA won't be participating in it. The last time the US fully boycotted the Olympics was in 1980 when former President Jimmy Carter was in office.
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