
September 1, 2007
2008 Summer Olympics in Beijing
By: Robert Tuchman
If you live in Beijing, you know exactly how many days remain until the Opening Ceremonies—clocks all over the city tick off the days left until August 8, 2008. But even if you're nowhere near the capital of China, it's hard to avoid the hype surrounding next year's Games.
Combine the capital of the world's fastest growing economy and add the world's most-watched sporting event and what do you get? An opportunity to give your clients or employees an unparalleled experience, a trip that they'll never forget. And one that couldn't have happened before the communist government decided to open up the country to the outside world.
The Summer Olympics always has high motivational appeal, but industry veterans agree that next year's Games have more than usual: It's a quintessential "I was there when…" opportunity.
"These Olympics are going to be a modern-day unification of the world with China playing the key host role," says Robert Tuchman, president of TSE Sports & Entertainment in New York. "I think when you look back and remember Olympic Games in certain cities, this will be one that will go down in the books as one of the all-time great ones."
For many in America and Europe, it's also a chance to see a place that they still have not visited.
"China itself is a fascinating destination," says Dave Guenther, president of Roadtrips, a Winnipeg, Manitoba–based sports incentive specialist. "People are coming for the Games, but they're also interested in learning about the people and the culture." Guenther adds that the interest goes beyond cultural curiosity: "Businesses see it as an opportunity, a jumping-off point for doing business in China, or as the case may be, doing more business in China."
Gabi Kool, managing director, China, for Carlson Marketing, agrees: "Everybody is putting a lot of emphasis on developing their China presence, and certainly sponsors of next year's Games are looking at the event as an important part of building their brands there."
You might think that if you haven't already made arrangements for Beijing, it's too late to bring an incentive group here. Not so, say the experts we spoke to.
Whether you're tasked with bringing a group to the Games, or expect to use Beijing as an incentive destination in the near future, the guide in the coming pages will tell you everything you need to know.
*Red Hot Tickets*
For this once-in-a-lifetime opportunity, you can expect a life-sized price tag. Of the providers interviewed, only Roadtrips offers off-the-shelf packages. Its lowest-priced package, based on single-occupancy, costs $7,500 for five nights at the Tianlun Songhe Hotel, tickets to four events, a city tour, daily breakfast and transportation, as well as some other services and extras.
The Games' hottest ticket is always the opening ceremonies, and that's no different for these Games. But, says SME's Director of Business Development Andrew Bimson, the popularity of most events is increasing for 2008. "In the case of the Beijing Olympics, the interest is far beyond that of any previous Games," he says. "The demand is really incredible." Tuchman says that in his experience, the most popular events for American spectators are basketball, gymnastics, and track and field. Swimming is also popular, adds Bimson, as is any sport with a high- profile personality or good prospects for U.S. success.
At Carlson, Kool and his colleagues counseled their clients, all Olympic sponsors, on ticket purchases several months ago; his experience doing this for past Olympic Games has taught him some things to consider.
"We advise them, first, based on what their guests will enjoy seeing," Kool says. "For example, I'm Dutch and we tend to like volleyball and rowing, because we've had some success in those. Second, we advise them on what's logistically feasible. If you want to see swimming in the morning, you can't get back to the hotel for lunch, and then make it to the baseball stadium in time for a two o'clock game in the afternoon."
Sponsors of the Games get priority on ticket ordering, but tickets are still available. They are sold in waves, with the next one coming in October. In the United States, CoSport is the official ticket agent of the U.S. Olympic Committee; its parent company, Jet Set Sports, can handle arrangements. Tickets can also be purchased at GoTickets.com in the United States, and Sportsworld in the U.K.
*Don't Try This Alone*
Flying blind is not at all recommended for this Olympic Games. Though Beijing is a cosmopolitan city full of foreign investment, rapid development and quickly expanding entertainment and nightlife, it is still the capital city of a developing nation, which has a significantly different culture from the West.
The need for a partner begins in the planning and site inspection stage. Hotels in China have their own star rating system that has little in common with the one U.S.-based incentive planners are familiar with. For global brands, global standards apply, but among Chinese-managed properties, a four-star hotel is more like a two-star hotel in the United States, in terms of accommodations, food and service. If you are considering booking a group at a locally run property, you must either do a thorough site inspection yourself or have a trusted partner perform one for you.
According to Gunther Homerlein, director of product development and event services for Beijing-based destination management company Destination China: "You need someone who is honest enough to say, 'This is marketed as a five-star hotel but it's really a three-star hotel,' or is able to determine, 'This is a five-star hotel, but because of some government regulation it's labeled as a four-star hotel."
You'll also need a local partner for arranging other aspects of the event—from transportation to visiting tourist sites to booking dinner venues. Despite the challenges presented by these Games, from language barriers to long-haul flights, incentive providers and their corporate clients say that participating is well worth the investment.
*Hotel Development*
The approach of the Games has accelerated hotel development in the city's red-hot real estate market (see "Beijing's Boom," page 40).
"A lot has come on line in the last few years, and many more [hotels] will be opening over the next several months," says Homerlein.
All of this development suggests Beijing will meet the demand for high-end rooms during the Games, but experts still express some concern about finding accommodations. While Incentive was told by marketing staff at several properties that rooms were almost fully booked for the Games, people who have been trying to book them told the magazine that the government (which, ultimately, owns most of the hotels) is holding the rooms, presumably so as to sell them in big bundles at premium rates.
"The one major limitation for the Olympics is not what we can do; it is the hotels," Homerlein says. "The hotels are asking for eighteen-night minimum stays—it's not until closer to the date that they will release rooms for shorter stays." The Games last 16 days, from the opening ceremonies on Aug. 8 to the closing ceremonies Aug. 24, but most corporations bring guests for four to six nights.
Sponsors have an advantage over other companies, says Jacques Arnoux, president of Pacific World, a Hong Kong–based DMC. "Sponsors get the rooms from BOCOG [the Beijing Organizing Committee for the Olympic Games] at a very reasonable rate—$700 a night for a four-star hotel, $1,000 for five-star."
Complicating matters somewhat is uncertainty about how many rooms domestic travelers will claim. As DMCs and incentive companies point out, only people who manage to get tickets will book hotel rooms during the Olympic period. "There's not currently that many people out there who want the rooms, because they can't get access to tickets," Homerlein says.
*Dining and Nightlife*
Olympic hospitality usually sticks pretty close to hotels, according to Arnoux. "The reason is because of timing. Evening events usually start at 7 p.m., so rather than a dinner, you have sort of a high tea." He adds that many groups choose to keep a hospitality room open all day, with food, an open bar and a private business center for the group.
But he adds that most groups will have a big welcome dinner, and competition is hot for finding the best venues. Incentive companies like Roadtrips, and their local DMC partners, are "actively involved in sourcing some of the really cool restaurants and clubs," Dave Guenther says. But he and his peers are keeping their finds to themselves, knowing they'll have to compete with crowds for tables at Beijing's hottest restaurants.
What about those attendees that want to keep the good times rolling after the rest of the group turns in for the night?
"The Sanlitun district will be a big party area," Tuchman says of a neighborhood north of the Forbidden City and south of most of the Games' venues, where streets are lined with all kinds of bars and lounges. "There will be a lot of action near the Bird's Nest [National Stadium] and the Water Cube, where the main events will take place. And I think near some of the bigger hotels, like the Grand Hyatt and the China World Hotel, it will be pretty packed."
For the inside scoop on Beijing's food and beverage scene, check out the magazine That's Beijing's Web site, at www.thatsbj.com. But to finalize decisions about where to bring your group, either go see venues firsthand or send a trusted partner.
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