1. Urban infrastructure projects. These include the building of sports venues, the Olympic Village and the World Trade Centre, as well as transportation, environmental protection and telecommunications infrastructure projects, areas where Hong Kong companies have an edge in.
   
   
2. Government-related business opportunities. The Beijing Municipal Government will be stepping up its efforts to attract foreign investment, expand imports and exports, and increase government purchases to meet the needs of Olympic-related construction. Hong Kong companies should strive to play a bigger role in Beijing's economic development in order to secure more purchase orders from the government.
   
   
3. Services and new industries. Beijing will expedite the development of services and non-polluting new industries such as telecommunications, environmental protection, new building materials, high technologies, conventions and exhibitions, tourism, media and advertising over the next few years. Hong Kong companies are strong in these sectors.
   
   
4. Traditional industries. Traditional industries, including the production of commemorative souvenirs, memorabilia and sporting goods, will also benefit from the Olympic boom. Hong Kong companies excel in the production and distribution of these products.
   
   
5. Human resources. In order to make the 2008 Olympics a success, Beijing will need to import foreign talent. In fact, the chief consultant of the Beijing 2008 Olympic Games Bidding Committee is an Australian national. Also, Beijing's environmental protection sector will seek the assistance of Hong Kong advisers, while some Hong Kong experts have already been appointed to senior positions on the China Securities Regulatory Commission. This paves the way for senior management personnel from Hong Kong to enter Beijing's job market in the years ahead.

Hong Kong companies should be able to benefit from Beijing's economic boom and do great business over the next few years if they can seize this gold opportunity.

OCOG Preparatory Task Force

In accordance with International Olympic Committee (IOC) regulations, the city that has won the bid to host the Games must set up an Organising Committee for the Olympic Games (OCOG) within five months. In other words, Beijing must set up the OCOG for the 2008 Olympics before mid-December this year to oversee the preparation for and construction of various sports venues, the Olympic Village and transport facilities, and to implement the relevant marketing plans (including the development of licensed products). To this end, Beijing set up a preparatory task force for the OCOG on August 8. The task force has three main objectives:

1. To map out the overall framework and master plans for the 2008 Olympic Games.
   
2. To propose the composition of the OCOG and incorporate the best international and domestic recommendations into the OCOG proposal.
   
3. To ensure that all reception work is well done.

The Beijing OCOG preparatory task force has its office at the Xinqiao Hotel. Members of the task office include:

Director: Liu Jingmin (Vice Mayor, Beijing) ;
Deputy Director: Tu Mingde (Director, International Affairs Department, State Administration for Sports) ;
Deputy Director: Wang Wei (Secretary General, Beijing Municipal Government).

It is understood that Guangdong has responded most swiftly to Olympic-related business opportunities. It has already identified a number of priorities, including the promotion of Guangdong cuisine in Beijing and bidding for the production of Olympic souvenirs and gifts, and has notified the Beijing Municipal Government of its intention.

Massive Infrastructure Projects for Beijing 2008

The Beijing Municipal Government is preparing to improve and build infrastructure projects to greet the 2008 Olympics. This translates into a host of investment opportunities for the business community. The following are some of the projects.

Advanced Technology

In order to stage a technologically-advanced Olympic Games and to fulfil the digital requirements of the Games, Beijing will be investing Rmb30 billion to upgrade its telecommunications infrastructure and to promote online government services, e-commerce and an information-based community. This means Beijing will witness a substantial enhancement of its telecommunications infrastructure. There are plans to expand fibre-optic networks, including broadband networks, and to build a digital cable TV network capable of high-definition TV transmissions from all Olympic venues. Beijing will also expand its mobile communications network to one capable of handling 500,000 calls, and will install global positioning and surveillance systems on all Olympic and public transport routes.

When all these investment projects are completed, the 2008 Beijing Olympics will be able to transmit the sights and sounds of the Games to the world at the speed of light. According to an engineer from Beijing Telecom, the Olympic "Optical Internet" will be able to provide broadband, multimedia teleconference and other services in all Olympic venues. Reporters, working staff and even spectators at large will be able to log in using terminals such as notebook PCs, mobile phones and PDAs to transmit information from any Olympic venue via the new submarine optical cable, vehicle-mounted satellite dishes and a nationwide digital broadcasting system. Some of the sights and sounds of the Games will also be made into multimedia interactive programmes or games. Beijing's broadband network would be able to transmit high-definition TV signals for live broadcast and entertainment.

The 2008 Olympic Games will make extensive use of smart card technology and e-commerce. Non-contact smart cards issued by Beijing Telecom capable of storing personal data such as the holder's photograph, fingerprints and information related to various activities will allow card-holders to draw cash from banks, seek medical treatment at hospitals, pay fees and gain admission to various venues. In addition, a Capital E-Mall will be set up to provide online shopping and booking services.

Environmental Protection

Air quality -- Beijing hopes to upgrade its air quality to national and WHO standards by 2008. In order to achieve this target, Beijing has already introduced strict exhaust gas emission standards for motor vehicles. Stricter standards will be enforced in 2007 to reduce exhaust gas emission by 60%. At present, gas fuel is used by 60% of public buses and 40% of taxis in the Chinese capital. These ratios will be raised to 90% and 70% respectively by 2008.

Garbage treatment -- By 2008, all garbage in Beijing will be treated, with 30% of which re-cycled and 50% sorted and disposed. All garbage generated at Olympic venues will be sorted and centrally treated with a recycling rate of 50%. Regenerated or recyclable materials will be used as building materials and in the making of temporary furniture and billboards for the Games.

Sewage treatment -- By 2008, Beijing will be able to treat 2.8 million tonnes of sewage daily (the daily treatment capacity was 1.08 million tonnes in 1999). Over 90% of urban sewage will be treated and 50% will be recycled. The quality of drinking water will be improved to WHO standards. Water-saving equipment will be used in the Olympic Village and all competition venues; rain water collection and recycling facilities will be built; and eco-toilets that require no water for flushing will be used.

Energy -- The use of natural gas will be increased by 500% by 2007 and clean energy will be used in all urban households. Wind-generated energy will be used as much as possible in the Olympic Village and all competition venues, geothermal and solar energy will be used in the supply of hot water, and natural light will be utilised to the fullest extent to reduce energy consumption.

Plans for Improvement of Transport Facilities

Olympic Village

The 80-hectare Olympic Village in the Olympic Park will be built as an attractive eco-park with potential for sustainable development, to be turned into a residential area after the Games.

The Olympic Village, covering a residential district in the west and an international district in the east, will have a total construction area of 470,000 sqm.

The residential district will mainly comprise the following facilities:

Athletes' apartments -- These will have a total floor area of 360,000 sqm. The apartment blocks will be no more than six storeys high, and each block will have one elevator serving two units on each floor. Each unit will have a living room, a kitchen, a storeroom and several bedrooms and washrooms. On the average, there will be one washroom (with separate bath and toilet) for every 2.5 persons, and one shower for every two persons. There will be hot water supply 24 hours a day, and each unit has a washroom for wheel-chair users.

Apartments for National Olympic Committees -- There will be about 200 of these units (the final number to be determined by the number of delegations). These will be located on the first floors of athletes' apartments and will have a total floor area of about 20,000 sqm.

General clinics -- These will have a total floor area of about 3,000 sqm.

Canteens -- These will have a total floor area of about 10,000 sqm.

Training grounds -- These include tracks, swimming pools, weightlifting rooms, gyms, football fields, four basketball courts, four volleyball courts, and fitness training centres, with a combined area of about 10,000 sqm.

Storage area for participating delegations -- This will be located in the basement of the canteen in the western section and will have a total floor area of about 10,000 sqm.

Amenities centres -- There will be 20 amenities centres with a total floor area of about 5,000 sqm. The facilities include TV rooms, reception areas and cafes and will be scattered around the Olympic Village for the convenience of athletes.

Rest areas for service attendants -- These will be located in the basement of the canteen in the western section and will have a total floor area of about 8,000 sqm (for service attendants to rest, change, shower or take meals).

Entertainment centres -- The facilities include games rooms, meeting rooms, TV rooms, cinemas, theatres, libraries and conference rooms.

Religious service venues -- Places where believers of different religions can perform religious ceremonies.

As for the 20,000-sqm international district, it will comprise the Olympic Square, entertainment centres, shopping centres, restaurants, logistics centres and fire stations.

Competition Venues

In hosting the 2008 Olympics, Beijing will need 37 competition venues for various events. Of these, 10 are existing venues requiring no modifications and five require some renovation. The remaining 22 will be completely new facilities, eight of which will be built specially for the Olympic Games. Beijing will strictly comply with IOC standards and the standards of international organisations for individual sports in the building of new venues and the renovation of existing ones. It will also have to meet digitalisation and environmental protection requirements.

Tourism and Olympic-Related Sectors

Yu Changjiang, director of the Beijing Tourism Administration, said Beijing's successful Olympic bid has opened huge prospects for foreign investment in the tourist industry. In fact, many foreign firms have already expressed keen interest in investing in this sector.

Foreign companies can invest in Beijing's tourist and Olympic-related industries in the following ways:

1. Setting up joint-venture travel agencies. In the past, foreign-invested travel agencies were only allowed to recruit inbound tourists from abroad and had to refer them to Chinese operators on their arrival. Also, foreign-invested travel agencies were not allowed to organise tours for outbound tourists from China and could not operate tours in China. Today, they are allowed to form joint ventures with their Chinese counterparts. There are already three such operations in Beijing.
   
   
2. Development of tourist resources. Foreign investors are beginning to play a part in developing tourist resources. Some have contracted the construction, operation and management of tourist spots. The general practice is to set up joint ventures and share the profits in proportion to one's investment.
   
   
3. Hotel construction. Foreign investors can participate in the construction of hotels. Several project proposals have already been submitted and more are on the way. In addition to big hotels, Beijing also needs small to medium-sized hotels with 30-100 rooms.
   
   
4. Re-development of tourism products. Beijing and in fact China as a whole are trailing far behind international standards in the design, practicality and appearance of tourism products, and there is an urgent need to develop souvenirs, travel games and travel guides that meet the needs of foreign tourists. Thus, Beijing welcomes foreign investors with expertise in these fields.

Protection of Olympic Symbol

China has promulgated the Sports Law, Law Against Unfair Competition, Patent Law, Trademark Law, Copyright Law, and Regulations Governing the Management of Special Symbols in accordance with the Olympic Charter and the provisions of the IOC concerning the protection of the Olympic symbol. Article 35 of the Sports Law clearly stipulates that the name, emblem, flag, mascot and other symbols of major sports events held in China are protected by relevant regulations of the state.

In line with the Regulations Governing the Management of Special Symbols, the symbol of the Beijing 2008 Olympic Games Bidding Committee has been registered with the State Trademark Administration and given adequate legal protection. The Chinese government will formulate specific rules and regulations for the protection of the symbols of the 2008 Beijing Olympics and the Olympic Games. The director of the State Administration for Industry and Commerce has already signed a letter guaranteeing the protection of the Olympic symbol.

Exclusive Sponsorship

The Beijing 2008 Olympic Games Bidding Committee has reached a preliminary agreement with the advertising authorities of the Beijing Municipal Government under which the OCOG will be exercising control over advertising in the air space above the Olympic sites on behalf of the IOC during the period of the Games. Through the signing of agreements and other means, the OCOG will oversee billboards around the competition venues, on public means of transport and in the airport, as well as outdoor advertising and publicity activities to ensure that the sponsors will have exclusive rights to these sites. The OCOG will also make sure that there are no commercial advertising in the competition venues and that the interests of the sponsors are not infringed upon by third parties.