Research On Service Pricing Decision Of Large Scale Stadiums Based On PPP Mode

With the continuous carrying foward of China's national fitness strategy,the general awareness of public fitness,as well as the successful bid for the Winter Olympics and Paralympic Games,it has greatly promoted the vigorous development of the sports industry.The sports stadium is an important platform for the sports career and industry.Its' construction and operation conditions directly affect the level of development of the sports industry,and the large sports facilities supply has become increasingly prominent for the government to improve the public service system,promote the sports consumption,enhance the national fitness level.At the same time,the government encourages social capital to participate in the construction and operation of the stadium to alleviate the contradiction of the government's direct supply shortage.Owing to the huge amount of investment,the long period of construction as well as the slow returns of income,it is not ideal for the government and social capital in cooperation to construct and operate the stadium,social capital side is often reluctant to get involved in this field.The reason is that the actual operating income of social capital and investment costs vary greatly,leading to contradiction between stakeholders caused by the excessive commercialization.Therefore,the key of cooperation between government and social capital(PPP)to build and operate stadiums is whether the stakeholders' interests can be met during the latter stage of operation.For the government,its main goal is to meet the public demand for the stadium and realize the maximum of social benefits for the local region;for the social capital side,its main object is to obtain a reasonable profit under the premise of the taking back of the investment cost;for the public service,its goal is the price level within its acceptable range.So the service pricing issues become a essential focus among all parties,therefore,this study will regard the service price as breakthrough point.Firstly,this paper analyzes the operating characteristics of the stadium from the theory of quasi public goods and its pricing theory,and demonstrates the feasibility of using the PPP model.And then based on summarizing domestic and overseas literatures and field research on the stadium,we identified 18 factors that influenced the service pricing decision combining with the opinions of experts from the perspective of stakeholders.Based on that,a grey-based Decision-Making Trial and Evaluation Laboratory(DEMATEL)method is applied to examine the cause-effect relationships among influencing factors so as to provide reasonable advice for the construction and operation of sports venues between government and social capital.The conclusion shows that the rate of return on investment,government subsidies and public attendance is the most critical factors that stakeholders concerned,and it is also the key point for the government to attract social capital to construct and operate the stadium,on this basis,combined with cause/effect factors we proposed rational suggestion to promote the successful use of PPP mode in the stadium.And the final,considering the key factors of service pricing,we establish the pricing model from the private point of view,taking account the impact of risk factors into the rate of return on investment through the gray-dematel method.Furthermore,whether or not re-price and renegotiate should refer to the public acceptance and the government subsidies.At last,we analysis the feasibility of the service pricing model through “the bird nest” case,it is suggested that the government give subsidies from three aspects: the extension of the concession period,the tax relief policy and the preferential water and electricity fee,and provide a pricing method for the application of the PPP model in stadium.