Olympics will not be a financial burden for Beijing: S&P

Olympics will not be a financial burden for Beijing: S&P
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First Published: Tue, Jun 03 2008. 03 59 PM IST
Updated: Tue, Jun 03 2008. 03 59 PM IST
PTI
New Delhi: The upcoming Olympics Games, considered to be one of the costliest,will not be a financial burden for the Beijing municipal government in the coming years, says a latest report.
The report by global credit rating agency Standard & Poor’s noted that despite being considered as the costliest games ever, Beijing Olympics would not be a “financial millstone” around the neck of the city’s administration.
“Granted the cost of hosting the games is huge, and its importance to China in terms of boosting its international standing is obvious; but it appears the Chinese authorities recognise that the Olympics is not an end in itself,” S&P’s credit analyst Kim Eng Tan said in the report.
Pointing out that many of the projects would have gone ahead whether Beijing had won the Olympics bid or not, S&P said “the authorities’ careful planning of this massive sporting event suggests the benefits of hosting the games will continue long after the closing ceremony.”
The games are scheduled to begin in August.
Titled ‘Beijing Olympics 2008 -- Too Fast, Too Large, Too Costly? Maybe Not´, the report said Beijing Olympics could be compared with the experience of Barcelona, where the 1992 games helped the city to boost its appeal for “visitors and business alike.”
With the advantage of a rich and long history, the boost to tourism for Beijing could be even greater, it added.
“Rather than a financial burden, hosting the Olympics could give a long-term boost to the city government’s creditworthiness,” Tan added.
S&P is a division of The McGraw-Hill Companies.
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First Published: Tue, Jun 03 2008. 03 59 PM IST