Livigno: Calculating the Economic Returns of Two Olympic Winters

Deep News
4 hours ago

As the Olympic flame ignites in Milan, this sporting spectacle not only fuels the competitive spirit of athletes but also energizes the robust vitality of Italy's winter sports economy. According to forecasts from the Italian Federation of Chambers of Commerce, the current Winter Olympics are expected to bring 513,000 visitors to the Alpine region, resulting in 1.8 million overnight stays and generating a total economic impact exceeding 5.3 billion euros.

When the spotlight of the Olympic Games shines on the Alps, a small town named Livigno, with a population of less than 7,000, suddenly emerges into the global view, becoming a prime window to observe the dynamic pulse of Italy's snow economy.

Italians have always held a deep affection for winter sports. Northern Italy borders the Alpine region, which possesses mountain resources, significant altitude variations, and abundant winter snowfall, making it particularly suitable for alpine skiing and cross-country skiing. Countries surrounding the Alps, including Italy, Austria, France, and Switzerland, have hosted the Winter Olympics a total of 10 times, accounting for 40% of the 25 editions held so far.

Livigno, which is hosting the freestyle skiing and snowboarding events for these Games, is nestled in the Rhaetian Alps on the Italian-Swiss border. It is remarkable that this remote town is a renowned European sports destination and a tax-free shopping paradise, as well as one of Italy's highest-income areas.

Livigno's success stems first from its exceptional natural endowment. Situated in the Rhaetian Alps, it boasts 100 kilometers of ski slopes at altitudes between 1,800 and 2,900 meters, with a snow season lasting up to seven months. The high altitude and dry, cold air provide Livigno with a long season and high-quality powder snow, while the low-oxygen environment helps athletes increase their blood's oxygen-carrying capacity. For years, it has been an ideal training base for top global athletes, attracting an average of over ten thousand skiers daily.

The local development philosophy, as stated by relevant officials, is not necessarily about attracting more tourists, but about providing higher quality services for winter sports enthusiasts. Recognizing the high-consumption nature of skiing, Livigno has built comprehensive surrounding amenities with "good value" pricing and excellent service.

Strolling through Livigno feels like stepping into a preserved moment in time. The streets are lined with quaint stone and brick buildings, yet the shop windows display world-class ski equipment, seasonal fashion items, and high-end cigarettes, cigars, and spirits, which are best-sellers here. After the thrills of extreme sports, Livigno allows visitors to relax immediately and enjoy high-quality leisure and shopping. It is this composite experience that makes it an unforgettable, multifaceted cultural and tourism destination.

Livigno's prosperity is a vivid snapshot of Italy's broader winter sports economy. The Italian government views the Olympics as a lever for long-term regional development. Estimates from Banca Ifis, an Italian bank focusing on small and medium enterprises, suggest the Games' comprehensive economic contribution will reach 5.3 billion euros, with the long-term value of infrastructure accounting for approximately 3 billion euros.

The total investment for the Milan Winter Olympics is estimated between 5.2 and 5.9 billion euros, with budget allocation reflecting long-term planning. About 66% of the funds, roughly 4 billion euros, are directed towards the construction and upgrade of transportation infrastructure like railways, roads, and bridges, while only about 34% is allocated for the renovation of Olympic venues. This expenditure structure contrasts sharply with previous Games' emphasis on new venue construction, marking a fundamental shift in strategy from "concentrated venue building" to "dispersed hosting with infrastructure first."

The dispersed hosting model also helps spread tourist spending and economic benefits along the improved transport routes to a wider area, making the gains more lasting and extensive.

Furthermore, Italy's winter sports economy is a vast industry with an annual turnover exceeding 11 billion euros, comprising nearly 900 sports-related businesses and forming a complete ecosystem from equipment manufacturing and tourism services to fashion design.

Riding the wave of the Olympics, Italian luxury brands like Giorgio Armani and Prada have launched high-end ski wear, goggles, and other winter-themed products. At the opening ceremony, performance costumes designed by Giorgio Armani and volunteer outfits sponsored by Salomon created strong brand associations with the Games while retaining distinct fashion identities. Media analysis suggests luxury brands are expanding into ski resorts, linking their products to the alpine lifestyle. This integrates the winter sports industry into a broader consumer market beyond just athletics.

Italy's development path for its winter industry—using major events as an engine, prioritizing infrastructure, and focusing on industrial integration—closely aligns with the approach of the 2022 Beijing Winter Olympics.

IOC President [Coventry] noted that one of the most valuable lessons learned from Beijing 2022 was the increased use of technology in project implementation and planning for venue construction and master planning, a practice that will continue. This perspective on the "Olympic legacy" is now being passed from Beijing to Milan and is taking root in China itself, propelling its winter sports economy towards becoming a sustainable, trillion-yuan industrial cluster.

Taking the iconic National Ski Jumping Centre, "Snow Ruyi," as an example, its vertical drop from the jump platform to the ground exceeds 100 meters. In terms of utilization, "Snow Ruyi" was initially limited to professional training and competitions, unable to be converted into a public skiing resource. Through adaptive renovations, this and other Olympic legacies have been revitalized.

The top of "Snow Ruyi" now features a café corridor and a German restaurant, with a sightseeing cable car and alpine coaster built on the periphery. Crucially, a new "Snow Ruyi Ski Resort" with 21 trails was constructed on the opposite mountain. The venue has transformed from an isolated competition landmark into an integrated resort combining sightseeing, dining, and public skiing. This move not only revitalized the venue itself but also directly boosted the adjacent Olympic Village, which reported an average occupancy rate exceeding 80% this winter season.

Simultaneously, the concept of "multi-purpose venues and year-round operation" has been fully implemented. Officials from Genting Snow Park stated that post-Olympics, they further developed a year-round operational model featuring "spring hiking, summer escape, autumn scenery, and winter skiing." In 2025, the park hosted events like the Mountain Running World Cup, Spartan Race, and intercollegiate flag football tournaments. The Olympic Park achieved a balanced budget with a slight surplus in 2024, and generated revenue of 169 million yuan in 2025, a year-on-year increase of 24.26%.

It is reported that Chongli received over 10 million tourists in 2025, with total tourism spending achieving leapfrog growth. Notably, during the summer operational period (approximately May to October), it welcomed 5.104 million visitors, generating 4.42 billion yuan in tourism revenue. Summer visitor numbers once again surpassed winter figures, breaking the pattern of winter income sustaining the other three seasons.

Standing at the new starting point of a trillion-yuan scale, the future path for China's winter sports economy can draw lessons from Italy's more mature industry, shifting from scale expansion to a focus on quality and depth.

The success of Livigno lies in building a composite appeal of "skiing + tax-free shopping + vacation." China can learn from this approach to avoid homogeneous competition among ski resorts, deeply explore local culture and natural resources, and create unique experiences like "snow + hot springs," "snow + folk culture," or "snow + music festivals" to shape regional brands and extend industrial chains.

Upstream in the industrial chain, although China has established a complete manufacturing system for winter sports equipment, high-end personal consumer brands remain a weakness. Items like skis, goggles, and ski wear are not just functional products but also expressions of identity and aesthetic taste. Cultivating Chinese brands with international influence requires sustained effort in research and development, design, and marketing, transforming the technical expertise of "Made in China" into widespread recognition for "Brand China."

Additionally, Italy integrates its dispersed Alpine resorts into interconnected tourist destinations through dedicated ski trains and regional passes. In China, the transportation network centered on the Beijing-Zhangjiakou high-speed rail is already established. The next step is to convert this transportation advantage into a systematic advantage by promoting unified service standards and building related cultural-tourism brands.

From Beijing to Milan, the Olympic flame传递的不仅是体育精神,更是关于如何将一场顶级赛事转化为人民长期福祉、区域经济活力的发展智慧。Standing on the solid foundation of the Olympic legacy, China's winter sports industry is forging a development path that integrates international experience with local practice.

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