Olympics in China Could Mean Winter Sport Bonanza

(ATR) A Winter Olympics in Beijing in 2022 could be economically stimulating at home and abroad for the winter sports industry.

The bid from Beijing fits the goal of President Xi Jinping to encourage 300 million Chinese to take up winter sport. Even if only 30 million were to heed his call, it could have ripple effects felt around the world with increased demand for apparel, gear and venues.

Xinhua news service reported China’s sports industry was worth about $177 billion and grew nearly 12 percent over the previous year. In October, the State Council made it a priority to further develop the sports business and raise revenue to RMB 5 trillion by 2025 by cutting red tape, encouraging foreign investment and building more sport facilities.

Figure skaters Zhao Hongbo and Shen Xue won one of China’s five record Winter Olympics gold medals at Vancouver 2010, spurring Chinese to lace up skates at newly built ice rinks in shopping malls or temporary outdoor surfaces.

Last year, state broadcaster CCTV carried 87 National Hockey League games. This season, the regular season schedule features 119 matchups from Canada and the United States. There are 97 youth hockey clubs in Beijing, according to 2022 bid officials. Many more could be inspired to pick up a stick and chase a puck at the outdoor rinks beside MasterCard Center at Wukesong.

As for snow sports, China has come along way since Yabuli opened in 1957 in Heliongjiang province. Yabuli and Inner Mongolia’s Alshan are remotely located national ski team training bases.

Closer to Beijing is Saibei in Zhangjiakou, which opened in 1996, laying the foundation for the region that is now part of the Winter Olympic bid.

Malaysian-financed and Canadian-designed Genting Secret Garden Resort, the proposed freestyle and snowboarding venue, is part of a $6 billion, four-season development. In 1980, there were only three ski resorts, but at least 76 were operating in China by 2012.

According to the China Ski Association, the country had just 10,000 skiers in 1996, but five million in 2010 with an estimate of 10 million by 2015. By the end of this year, the ski industry could be worth as much as $629 million, according to CI Consulting.

By 2013, there were more than 10 million skier visits at Chinese resorts, but money was also flowing out of the country to Japan and South Korea where experienced and wealthy Chinese visitors went skiing. The inflow of Chinese ski tourists are said to have helped several Japanese resorts stem a domestic decline.

Despite the expanding middle class, skiing remains a luxury for the few in a country of 1.3 billion. Most rent their equipment and ski only once a year. A 2012 report by Harris/Decima for the Canadian Tourism Commission said a day of skiing (lift pass, equipment rental, etc.) cost about $60. The report said the market may have been "overstated and oversold," as many resorts haven’t met projections and many developers haven’t seen a return on investment.

Fabio Ries, co-founder of the Dolomiti Mountain Resort, admits "Chongli is not the Alps" and its five major resorts are still facing an uphill battle to cultivate repeat visitors. There is, however, an undeniable opportunity for the area’s five major resorts with Beijing just over an hour away.

"It’s a really huge population in a very close distance which makes (Chongli) a perfect holiday resort for weekends or for short escapes," he said. "Connectability and infrastructure and so on are good and will be perfect to host a big event."

Reported by Bob Mackin

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