 It's more than $6 billion. Of course, one third was from China, from the Chinese response. So everybody, a lot of countries want to have the mega events. But after the second years, the economic growth will be slowed down. So today, we will discuss how to exercise in return the international sports mega events. So I'm so glad to introduce our three guests. And the minister offered the three guests from Japan, Russia, and China. This country, both of them have an Olympic World Cup. So I'm glad to introduce Hayashi. He's very busy, because he is the minister of the education, sports, culture, and science, and technology. A lot of things. So the beautiful ladies from Russia he is a general producer. He is Tina, Tina Kentlake. Kentlake, he is a match TV general producer. And I introduced Mr. Xu Jicheng. He has many people who will know about him, because he is a deputy director of the media and communication department of the IQC, the Republic of China. And the first question I wanted to ask the minister, pardon me, I will ask the question in Chinese. So my question is, after 1964, after the Tokyo Olympic Games, Japan will soon be the host of the next Olympic Games. Just like I said, we do have the valley effect after the event, because some of the short-term benefits will come, for example, construction, communication, tourism. But after the second year of the event, the post-Olympic Games event effect will come out. So there are a lot of concerns of holding this type of mega event, because we are making double-digit dollars to, as the investment, with comparatively speaking, little revenue. However, why the Japanese people decide to have another session of Olympic Games? So let's give him a very warm welcome. Thank you, Ms. Song. And good afternoon, ladies and gentlemen. I'm really delighted to be invited to this summer doubles in Tenshin. And fortunately, much cooler than in Tokyo here in Tenshin. It's 24 degrees centigrade, whereas in Tokyo still, there's a 30 degrees centigrade. So thank you for the nice weather. And 1964, Japanese economy was still developing, like not double-digit, but maybe like China now, like 6, 5, 7% growth. So in those days, the hard legacy, we name it, was very important. So for 1964, we built a super-buret train. And also we built a super-express highway surrounding the Tokyo metropolitan area. And then that has a many, many years effect, and brings so many efficiency for our metropolitan Tokyo. So that was a big legacy. But still, that's a hard way. So in the next 2020, we are seeing more soft legacy than hard legacy, because we have so many infrastructure already. So rather than just having more road or more pure train, we are trying to have what we call the soft legacy. Like inbound, we are seeing the increase of the inbound already. Everybody would like to come to Tokyo to enjoy some sake, and sushi, and tempura, and sightseeing. But the Olympic game will bring more people. And then when they come to Tokyo, there will be maybe not only watching the games, but enjoy all those sightseeing and Japanese cuisine. So that will increase the trend of already increasing trend of inbound to Japan. And also, to aiming in 2020, we are now getting ready for auto-automobile, auto-driving. So maybe you will see in Tokyo Olympic game that some of the taxis and automobiles will be driving without any driver. So those are the one legacy, right? And also for that, we need another infrastructure for auto-drive. So those are the things that we are really aiming for as a soft legacy, less than hard legacy we had in 1964. So in total, Tokyo Metropolitan Government, which is hosting the 2020 Tokyo game, that legacy impact will be $12 trillion, which is about $108 billion. And with that, economic lipo effects estimated by impact output table will be $18 trillion, which is about $161 billion US dollar. So not only those income by TV broadcasting or sales of the goods, we are really looking forward to see all those soft legacy, and not only the Olympic year, but after one, two, three decades after the Olympic game. Am I speaking too quick? Yeah, yes, I'll be able to. OK. Well, however, as you've just mentioned, for the previous Olympic games, you have reached the double-digit GDP increase. However, I believe that currently you are still having a great economic momentum. And I know that after the Olympic games, your property price has been dropped. I don't know if you feel the same. Yeah, we see the bubble days and then bubble bust, so which is maybe one, two decades after the Olympic game. So we will be seeing the forecasting not so much downward trend of the asset, because in those bubble days and bubble bust days, Tokyo especially experienced the downward of the price. So stock price was almost one third or one fourth at the top of the bubble, and then at the dip. And then after oven mix for five years, we came from the bottom to the situation now. And also that applies to the asset price like a land price. So we don't see many room for going down of the asset price even after the Olympic game, because towards the Olympic game, we already have two years only. But there's not such a big boom of the land asset price towards the Olympic game. So that means the land price or asset price is not in the bubble situation for the Olympic game. So that's why we don't see any big reason for bubble bust after the 2020s. OK, so you've just mentioned about the five years. It's a fair price to pay, because after the Olympic games, the Japanese people have become more and more focused on the practical increase of the economy. So next the question would be for Tina. So Tina, the question for you. For the World Cup that just ended, what impressed you the most? And also as I just mentioned, we talked about more than $15 billion investment. That is very expensive. So how do you comment on that? How do you comment on this most expensive thing? First of all, thank you very much for having me here. I want to say that Tantun is a beautiful town, really. And if we talk about whether the weather is same in Moscow now, that's unbelievable, because in Moscow now we have 24, 25 degrees. You can't believe in this, because everybody's thinking that Moscow is the cold town. No, same weather here, same weather in Moscow. About atmosphere and about my impressions. Of course, as a Russian, I never be so proud of my country, because atmosphere, attitude, people, smell, singing, everything is still in my heart. And I think that I would remember this experience all my life. But you mentioned a very important thing, like a journalist, numbers. Because atmosphere is very good, whether the oldest question is if this atmosphere costs so much what we can take from this atmosphere, which kind of profit we can make with this atmosphere. And because I was knowing that this question should be appeared on this stage, I prepared some interesting numbers. I think that you never heard about these numbers. But it's the first results that we have in our country. For example, I took, like, example, Moscow, like a capital city. Let's talk about them. For example, for many ordinary Russians, this was something completely new. Many of them never had to meet foreigners. Now if we talk about foreigners, nearly 4.5 million people suddenly arrived only in the capital city. It's only Moscow. They were curious to go out onto the streets and meet with these people. That's a good thing, because now we have this experience. How to meet a large number of tourists. Interesting thing, another one that I want to underline. Look at another things. For example, first and foremost, the infrastructure, just to highlight a few statistics, 20% of the entire land transportation network was updated. It's an amazing thing. In nowadays, everybody who appears somewhere tries to find the Wi-Fi. I want to tell you something. In Moscow, if you should be in the metro, it's the 24-7 Wi-Fi. You can easily connect. And in the metro, not only the station, since you are sitting in the metro and you're using the metro, you can have a Wi-Fi. It's unbelievable thing. I know that it's only in our capital city. And there's some towns that we started to do this project. Another thing, two major hospitals were renovated. Capacity at airports was increased by 50%. When I was coming here, I'm 20 years living in Moscow. I can't stand the crowd. It was incredible. International crowd in the Moscow airport. And I was standing 30 minutes near the exit, not in the airport, near the exit. That's a result, too. 47,000 additional jobs were created. That's important, mainly in construction and services. Two training grounds were built and six more were reconstructed. And what else interesting about, for example, about tourist numbers and about particularly Chinese, I think that you would be interesting. One thing, first of all, let me underline. Who came to Moscow grew the number of the tourists for 56% in comparing with 2017. It's a huge number, 56%. And I told you that 4.5 million tourists visited the capital city. And which were from the beautiful, big part from the beautiful country, China. About China, interesting numbers. For example, it was something of 500,000 people who came from China to Russia. And let's talk about shopping, about numbers, too. Because I was amazed when I get these numbers. Main shopping streets. Chinese people spent over, please careful, spent over around $1 million, only on one street. Not in the Moscow, only on one shopping street. Yes, the next big spenders. How long is really this? Yeah. China Avenue? Let's talk about next big spenders after Chinese. They are Mexicans and Americans. Chinese are the best one. That's why welcome to the Moscow, welcome to the Russia. Another thing, big brands like Gucci and Louis Vuitton, it was interesting because they reported that they sales, they increased in two, three times. Never had been before. Another interesting things, for example, GRP. You talk about GRP and you mentioned the GRP. What about GRP? GRP of Moscow alone increased by 2% while tourism led to increased revenues of over 30%. Moreover, around $3 billion were earned by small and medium-sized businesses because all these businesses, when we start to prepare for World Cup, start to appear. That's why they earned this money. And over then $220 million in additional income for the city of Moscow. And as you know, it was 11 cities, not only Moscow. I take only one example to show you what is this result. Because everybody is scared, it's called the White Elephant. I know that White Elephant after World Cup and big mega-sport events, that country spends a lot of money and then can't make a profit, big profit, to compare with these prices that it spends on these mega-events. And the last thing that I want to say, to answer the question, how we can evaluate the return of investment from international-sport mega-events, our experience shows that the economic, social, cultural impacts brings huge benefits to the country. In our case, it gives a much needed boost to our economy. It's the first thing. Second thing, it helped to change people's opinions about Russia and perceptions about Russia because you people, tell me please, who have been in Moscow or in Russia since the World Cup? Raise your hands. Who have been in Moscow? Only you. I think that two persons are from Russia. Are you two persons? Yeah. And please, you have to come to Russia. Now we are unbelievably convenient country orientated on tourism. There is important too, because it's never had been and people saw that there is still snow in Moscow. As I say, same weather in Tianjin and in Moscow. No, you have to come right now, right here after Davos. And in my opinion, it motivated and inspired young people. Young people is our future. They should build new country. They should build future for our country. And it inspired them to do great things in the world. And sport is always what it's important to underline, why it's important for big nations and big countries. It unites people. No matter which kind of religion you support, which kind of nationality you are, how many, how old are you? No matters. Because sport unites all world. That's why we need these mega events. Thank you for your attention. Thank you, Tina. Thank you, Tina. I just want to add something, the passion is still there. That's the sports people. And also that's the change, or the sports can influence the beautiful ladies like us, like Tina. So I think all the statistics, all the numbers just presented by Professor, by Tina, just to show that one of the key points in our topic today is World Cup, an Olympic game. Whatever the big events or major events, it's not a burden of economic. It's a part of the economic. So there's the book written by a German author. It's called Olympic Economy. And the forward, in the forward, the life-honorable president of the IOC, International Olympic Committee, Jacques Roeger, Jacques Roeger, Jacques Roeger, Hayroad, that's an Olympic game, or major sports events, played catalyst to the development and the re-development of the city. It brings not only the income of the money, but also, like Tina just mentioned, inspire young generations, young peoples. And it's just a big promotion of the city, of the country. And especially, tell the world, and what the country, and what Moscow, and what Russia have achieved in the last couple of years. So I covered the Olympic game, Paralympic game, youth game, since 1988, 40 years. So I still remember when Korea, when Seoul, beat for the Olympic games, the GDP of the country ranked 21 in the world. So after the game, within half a year, and it reached to the 12th in the world. So 12 is one of the very important mark lines. That means, originally, the Olympic hosts the city in the country. The country's GDP should be averaged in the top 12 in the world. Or you got the potential to reach the top 10, can host a perfect, a good Olympic game. The economics goes up and down, but the laxity, just like Professor has mentioned, goes forever. That's why in Japan, when the economics goes rapidly, you've got your first game. And now you've got the chance to redevelop Tokyo and to reshape your economy. You've got the chance to host it. You are the first country in Asia, in East Asia to host the Olympic game and a winter game. And Korea is the second to host the Olympic game and the winter game. And China is the third. But, orderly speaking, the economy, the development, is in this ship, is listed. So what we are talking about today is a part of the economy. So that's why we call it sports industry. It's a good thing. It's not a burden. OK. Not a burden. We have three guests today. Indeed. So I think all the three panelists are very optimistic about the overall impact of major sports events on the economy. But internationally, I think the opinions are divided. So my question to Mr. Xu is that we have seen some different opinions on China's very active bidding for hosting international games. So do we have a reasonable return? I should say it was to host it for the third and fourth time. Why? Nowadays, is the Olympic bidding or Olympic hosting came into a very dark age as no city wanted to host it? Is the misunderstanding or is the mislead by the media? I worked as a media. And my job in the Olympic organizing committee is the media operation. So I know the media very much. But nobody just started. It's a deeply, fully about the new normal or Olympic agenda 2020. Olympic 2020 in Chinese is called OUG 2020 Yicheng. And also the new normal. The key things of the new normal is to value or to add the value to flexibility, to a partnership, efficiency, and the sustainability. I don't know why my translators got it right in Chinese. It's called a zheng jia ling huo xing. Ya zheng jia heo zuo xing. Ya zheng jia xiao lv. Ya zheng jia ke chi xu. But what to reduce is to reduce the cost, reduce the complexity, reduce the risk, reduce the waste. So according to the new normal, the IOC will just evaluate the bidding city before the final vote. Because if five cities or more six cities, ten cities to bid the game, there's only one winner. But that means we'll produce the nine losers. So usually it will tell the cities if you are not strong enough in the competition, they will vote over the next time. In this way, they will save huge money for the bidding city, for each of the bidding city, for each bid for the Olympics. It costs about $100 million US dollars. So that's why it's the active ways to reduce the burdens of the bidding city, not just because no city wants to bid the game. It's after the Pingchang game, and within one week. And the bidding city for the next winter Olympics after Beijing has reached to seven. Because Pingchang announced that after the closing ceremony, within five days, said the budget is balanced. That is about $136 million US dollars. The budget is that. The income is all that. So unbelievable. Because Pingchang just reduced all the cost, used a lot of a temporary tent, you see, instead of the large complexity buildings. But to tell the truth, when I came into the Meijiang Convention Center here, I've been in Tianjin many times. But this is the first time I came into the inside of the conference hall like this. It's far more good enough than a host the Olympic game. Trust me. It's even bigger than the Beijing IBC, that means the International Broadcasting Center. Bigger and larger and even more than. So it doesn't mean that you host the Olympic game. The facilities only use the ones for Olympic games. It will stay forever after the game. So during Beijing's bid, when the evaluation committee and to go to Beijing and do the venue tour over there, and when they go to the CCC, China National Convention Center, it was the IBC, I think, many of our media friends who worked there. And they founded the schedule. The schedule is like the backdrop over here. It's all red. That means all occupied. As the customer just ordered and their exhibition to the year of 2032. So they just gave a new name to such a huge building. And they call it the Red Elephant. You know, in the Olympic history, I think Professor knows there's a special term called White Elephant. But it's a turnout in Beijing. It's the Red Elephant. That means fully used. Tell another date to share with our friends. Three years after the Olympic game and the Olympic green. You know the Olympic green with the bird nest, the vertical cube, all the things over there? The yearly income is higher than China's film yearly income. Let me echo with Mr. Xu that the main Olympic stadium in Tokyo, built in 1964, when used, have been used almost half a century. Half a century. Until two years ago, when we renewed for the 2020, it's now being built. But I, as a child, went there and used it many times. So it was used 50 years. And also Pyeongchang's things is a very phenomenal, cost-breaking Olympic game, like Mr. Xu says. So that's why you're Mr. Bach. Pyeongchang set up the new horizon for the Olympics. And horizon should be kept because we had just had a three ministers meeting last week in Tokyo with China, Korea, and Japan for sports minister. So and the Pyeongchang Olympic games, all the lekkos and know-how are getting to one book, which would be like an Olympic fire. That was like a fright. That would be being from Pyeongchang to Tokyo to Beijing. So that we decided to share in three minister meetings. So they didn't go to great pressure. Right, yeah. In the summer, I have a big conversation and an interview with Mr. Gianni Infantino. And there are another thing that, like a person who were in charge with media, you know, the prices on rights, they are increasing every tournament to tournament. Why? Because it's interesting. Yeah, if it's so many things to scare, why the prices are increasing? Because the audience are increased unbelievably. The ceremony of opening and foreclosing attend by one billion people for each. Every game since the World Cup was watching by the 200 million people in the world. That's why the number of sponsors are unbelievable. That's why for the market, because for the TV, for the media, for everybody of us, it's important to have some stage where we can make a presentation for the big sponsors. It's the biggest chance. And I completely agree with you. For some countries, it's always the difficult thing because it's the black elephant. Let's call it because nobody knows what it should bring to country. But for the other countries who can increase all the markers, it's always possibility. It depends on country, it depends on people and depends on people who are in charge. Yeah, so far the Olympic game and I mean the summer Olympic game, mainly, because there are four Olympic games, summer game, winter game, summer youth game and the winter youth game. Summer game and the World Cup are the two unique and matched events in the world. Every penny you put it inside and you invest it inside of the paid off three or four times. It's a big showcase. As you know, one number that I want to mention, I think that you know about this, that Qatar, who should be next country where the World Cup should be happens, they have a budget of $200 billion. I was there, you know, I was there. It's a very interesting experience. They built a town, really a town for the World Cup. They completely changed all infrastructure, starting for the water infrastructure because it's interesting they can move by the water, finishing with the metro. They did the things that they never had did before and they ask them, it's unbelievable budget, can't compare with anybody in the world. And they told me, you know what? Because they start to compete for tourists and you are quite right that if it starts for the long term things, of course, you can attend for the result like a kid and then and you middle ages, you should be still using this infrastructure and amortization of this infrastructure, that's a very important financial thing that can be count. In Qatar, they're doing it very wisely and that should be next very interesting experience. Okay. I think they are very united as for convincing me. Like I'm questioning all of them. Well, I think still I can recall that we are applying for the Olympic Games back then. We have the slogan of the one world, one dream and China then become more international. But still I believe there are a lot of people are having questions. So now I would like to open the floor to receive questions. If you would like to ask some more questions, take my side for more questionings. Because we know Tina has been always very exciting. She is still in the hot atmosphere as in July. But as for the minister of Ushimasa, you will be in another Olympic Games. So you will be very exciting. And also for Mr. Xu, you have been there for Olympic Games for two sessions of Olympic Games. Therefore, you are very optimistic and very enthusiastic about having the long-term benefit of organizing the mega event. Even if we don't have the balance of investment and revenue for the short time, this would still be a thing worthwhile investing. So let's open the floor. Thank you. It's very interesting to get this panel on basically innovation focused event. So I have a question to Tina. So my name is Yaroslav, I come from Ukraine. And in our country, we were really concerned about what was happening recently, both politically but also in the field of sport. So you mentioned some things like how Russia is great, how many income it generated for the business, and how many people opened your country. But my question is, how ethical is that to your point like having the country involved in war conflict and hosting that major event? Like do you think is it like ethical stuff and do you think like promoting politics under sport is fine? Thanks. Thank you, Yaroslav, for your question. That's a very good question because I heard this question for many Ukrainian journalists a lot of time. And you know what is the big plus of the World Cup? And I think that you have to learn it. Why Olympic Games are a peer, you know, historically? As you know, and all Ukrainian viewers know me, I was the host of the Brainiest. And it was a very good question that I always gave to kids. How Olympic Games are based? You know why they're based? That all wars, all conversation about wars, all conversation about political degrees are stopped in this moment because all big sport events can only unite people. That's why I was always amazed when this fantastic tournament, these questions are appeared because it's the time when people should unite in many different ways. And I think that you have to do it too. That's why I never think about the political disagreement since the World Cup. I only think about political opportunities that World Cup gives Russia and all the world. Thank you. Okay. If I may, I say something about this. And sports is always in the shadow of politics because big events, major events, is such a huge and powerful platform. So some of the times and the people like to talk about the politics with sports. But what we should do is to separate sports and separate the sports with the politics. It's two different things because just like the slogans in Beijing games, one word, one ring, you see. But historically, each of the Olympic Games got some of the politic issues in it. But that never stopped the steps of the major events like Olympic Games or World Cup, just like Tina has just mentioned. Because the same, because the dream is a piece just like in the ping-chong games, you remember, North Korea and South Korea, they matched into the stadium with the same flag, you see, with the Panasoulas flag. And now Olympic Games, one of the big fruit for the ping-chong games is not how much money they earn, not how much money knows the ping-chong is one of the tourists for the snow sports, is about the two sides of Korea. Till this morning, you see, the two presidents meet together. Why don't we look at activity as a positive ways? And sports is the same, but we can use it for different purpose. That's my suggestion, you see. It was a very good example, because I'm so sorry, I can a little bit continue. It was a big fight. If the guys who like boxing know their names. Biggest fighter, Kovalev and Dusik. Dusik was Ukrainian citizen. I was attend to this boxing show. And Dusik win in the center of the Russian, the capital of Moscow, he win and Ukraine and Athens was played in the place where this tournament happened. All Russian citizens stand up and support this winner, because what is important in sport and what possibility sport give us? It's always a little bit up of politics. It's always give us chance. Don't take it, please. Thank you. My name is Bruce Leslie. I'm representing the city of Calgary, past host of an Olympic Games and also potentially a future host of the 2026 Games. Tina, I have to ask a question of you mentioned, first of all, I should mention that our bid as it should have come through is going to be quite a bit more modest than anything that we're talking about here. And I think it's part of that Olympic 2020 that you mentioned. But Tina, you mentioned that Qatar's budget, did I hear you say that it was 200 billion? For Qatar? For Qatar. Yeah, sure. And you also said in the same sentence that that was a wise investment? In Qatar? Yeah. In my opinion, you have been in Qatar? No. Oh, that's unfortunate. I guess my question is, when does it become unsustainable when you're spending that kind of money and the opportunity costs? We're looking at a maybe $6 billion Olympic Games. Doesn't there have to be a change in the direction of the spending? That's, you know, because I'm a journalist, first of all, it's always a little trick when you ask the person, you know, have you been there? But that's an important K, because if you have been there, you have much more opinion based on facts, not on emotions. I have seen with my own eyes the completely different country. It's unbelievable projects, starting with Zaha Hadid, God raised her soul in the past with unbelievable construction of the studying, finishing with this metro project. And they have a very good formula for how to return their money. If you want to comment this Qatar factor, we have to be deeply in the content based on facts. They, I think that Davos should have brilliant possibilities to have here Hassan Al-Tawadi, the head of the committee of World Cup. He can tell you about which kind of formula they prepare. They are not the people who spend their money easily. They invest in their own country, but with a long-term return. And they know what they do, believe me. You have to go to Qatar. Sir, may I tell some of my own experiences? Yes, for a journalist for the first 10 or 20 years, I just always think the Olympic cost is so big, the budget. The budget is always the top topic. It's the before the game, during the game, and after the game. But till the 2005, I joined the organizing committee. I go to the other side of the river. And from the journalist, from a guy to ask questions, shall I go on there? And from the other side, the cost for Olympic game is very easy to figure out. One day, 100 million US dollars. One day, 100 US million dollars. That is the operation phase for that. It's 70 days. It's very easy to figure out. That is the budget. Olympic games cost. All the others is the relative or non-relative. All the others is the city spent to build the city or redevelop the city. The Olympics used it for Beijing, the airport, T-Sway, Terminal Sway, the highway, and all the new buildings and venues. And after the Olympics, the city was still continually used that part called sustainability. So it's very clear, the two parts of the budget. All right, we've just got the reminder of the last three minutes for this session. So maybe we can invite this lady to ask a question. And hopefully the last question will be a very short question. We're talking about the financial benefit on return on investment, but we haven't really discussed the social impact because Olympic Games or similar Games World Cup promote grassroots sports. I just wanted to ask the three of you that have you seen the real benefit on the social impact and how the Olympics and other big games has helped children with their future, especially with their sports future? Thank you. So last question, maybe I can pop it to the minister. Thank you. Yeah. That's a very good point. I think we already set up the sports plan in preparation for Olympic Games so that the ratio of the adult in Japan playing sports once a week is still 42.5%. So it's less than 50%. So towards the Olympic Games, we are trying to increase this to 65%. And that will help make themselves very healthy, not only the Toppa Street, but everybody including ladies and gentlemen and young and old. And especially for those old people, participating in the sports is very nice because we have a long longevity in Japanese. Women lives up to nine years old and men lives up to 80 to three. But that is the longevity as a life. But you are not healthy last seven years or five years. So we are trying to extend the healthy longevity of Japanese. And to that end, being included in the sports activity is really crucial. So that's one. And another point is the Paralympic effect because the year 1964 is the first Olympic game that went with Paralympic. So that Tokyo is hosting the second Olympic and Paralympic together in 2020. So towards that, we are already starting the inclusive society so that already I see in these one, two, three years that the TV commercial is using not only Olympic histories, but also Paralympic histories. That sells. So the society mindset is changing to accept and not only accept treating equal with the Paralympic and Olympic histories and the concept together. So this is a big social impact, I think. Thank you. Well, thank you. I am sure there are a lot of questions answered and also many exciting insights from the panel. But I apologize for not having enough time to address all of the questions. So we have been doing a lot of math on the stage. How much it costs and how much return it can generate. But I think not everything can be calculated in economic terms. All the major events we have followed in the past decades are just like the girls and boys we chased back in school. They will leave a very deep impression and imprint on our future life and also generate continuous social impact. So thank you all for your attention. Just a quick announcement. If you'd like to continue the conversation about the growth of the sports and e-sports industries in China, I'm hosting an industry session on Thursday morning in Fribourg at 9.30.