In its race to attract visitors and fuel spending, China’s gateway city of Shanghai welcomed a record-high 220,000 spectators for the rip-roaring Formula One Chinese Grand Prix last month.
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Projected to have brought more than 5 billion yuan (US$685 million) in direct and indirect economic benefits to the city, according to the organiser, the prestigious motor race is among the more than 170 international and national sports events that are scheduled to take place in Shanghai this year.
And Shanghai’s fervour for holding large-scale sporting events is being shared elsewhere in China as local-level policymakers increasingly turn to the sports industry to stimulate consumption and drive growth amid a challenging economic landscape.
While the central government has rolled out supportive measures for the industry amid growing public enthusiasm, local authorities are betting on the sunrise sector as traditional growth drivers such as real estate are not the economic engines they used to be.
“Despite an overall slowing economy, the sports industry has stood out in recent years and is becoming a focus for more local governments, particularly in terms of integrating it with other fields,” said Liu Dongfeng, a professor from the School of Economics and Management at Shanghai University of Sport.
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China’s central bank and other financial regulators released a comprehensive plan last week to increase financial support for the sports industry, as part of a broader initiative to create a sustainable, high-growth sector that can be counted on to rev up the economy.