The Economic Impact Of Hosting Large-scale Sports Events On The Host City And Surrounding Citie

National 14 th Five-Year Plan cities strive for high quality development to enhance international competitiveness.In recent years Chinese cities have attempted to host major international sporting events among themselves,and the large amount of resources that go into a city during the preparation of hosting a major international sport directly affects the main host city of the event.For the host city to bring a major economic transformation,including the city’s reception capacity,the local government to obtain special policy preferences,increase financial spending,improve the city construction,the overall improvement of the city’s overall competitiveness,not only advantage to the establishment of infrastructure.However,the economic impact of hosting a major sporting event can be short-lived,whether it still has a positive impact on the city in the long run,and whether the hosting of a major city is a one-off event for the host city,or whether a major city can nourish the effects of hosting the event to the smaller cities around it and become a cluster of cities.In order to investigate these issues,this study has collected a wide range of data on international major sporting events held around the world.The study aims to provide a more comprehensive understanding of major sporting events and the possible economic and social impacts of hosting such events.A panel of 122 cities,including first-and second-tier cities and surrounding cities,were selected to quantify the impact of hosting major sporting events in China since the 2008 Beijing Olympics,as well as the impact of hosting major sporting events on surrounding cities without hosting them.The results of the study show that:(1)hosting major sporting events has a limited impact on the development of the surrounding cities.Apart from the direct impact of hosting a major international sporting event on the host city,the impact on the surrounding cities is less significant.The surrounding cities of the host city cannot indirectly obtain short-term large amounts of money because of the hosting of large events,and promote their own rapid development into a common development of urban clusters.This has led to serious differences in competitiveness between cities.(2)The value of national production per capita is at a low point after the event.The results of the data show that after the event,the huge capital withdrawal and the disappearance of jobs during the preparation period,although the influx of tourists into the city during the event makes the local sports and tourism industry flourish,it is still short-lived,however,after the event is over,there is a slowdown,which can reduce the pressure of inflation that comes with economic growth in time.(3)Hosting events can contribute significantly to the development of a city.During the preparations for the event,the government allocates significant financial resources for the construction and maintenance of the stadiums,the improvement of urban traffic,the maintenance of social security and the maintenance of a good natural environment.The above construction is not only a short-lived benefit for holding the event,but also a new growth point for the city to move towards higher quality development,contributing to the city’s long-term development.(4)There is a significant difference in the impact of land prices during the preparation and hosting of the event.During the preparations for the event,the government had to invest resources in the construction of the stadiums,which led to an increase in the amount of land available for use in the city,and a series of temporary policies were put in place by the local government to address the need for the construction of the stadiums,the addition of new urban facilities and the maintenance of the urban environment.The relevant policies were lifted after the end of the Olympic Games and the opening up of land use led to a rebound in land prices.(5)Real estate investment in residential use declined rather than increased after the event.The huge capital investment during the preparations for the event,the rapid development of fixed assets in the city and the short-lived increase in employment opportunities will attract a large influx of people to the city.There is a psychological expectation that people will want to invest in housing projects in the major cities where the events are held.However,most of the people who enter the city during the event are tourists or foreigners who enter the city to work during the preparations for the event due to the influx of capital and the increased employment opportunities.As the supply of real estate for investment or purchase is not as expected after the event,and as a large number of players’ villages are generally released for public housing after the event,the imbalance in the supply of residential real estate may already exist in major cities that host major international sporting events,and the more pronounced slowdown or decline in real estate investment after the event is an opportune time to correct the imbalance in the supply and demand structure of real estate.This paper examines the economic impact of hosting major sporting events on cities within a theoretical framework,and empirically analyses the specific short-term and long-term impacts of hosting events on host cities,and that there are no significant indirect impacts of hosting events on cities surrounding host cities.Recommendations are therefore given that have important implications for the hosting of major sporting events and the economic development of cities.