Benefits of hosting the Soccer World Cup
The FIFA World Cup is an incredible international event that takes place every four years. Fans from all over the world arrive in the host country bringing with them an outpouring of colour, passion, energy and culture. The global game is a wonderful compliment to the host country, plus the event holds great promise for global broadcasting, tourism, and injecting millions of dollars into the economy.
FIFA, the international governing body for football (soccer), requires the host nation to comply with detailed regulations and specifications including security, transportation, accommodation, training facilities, opening and closing ceremonies, marketing, promotions, ticketing, insurance and other administrative matters.
Are there financial risks worth organizing such an event? Infrastructure problems (such as airports, roads, stadiums and public transport) to host an event of this type are usually among the main complications. When Athens hosted the Olympic Games in 2004, its budget went from US$1.6 billion to US$16 billion: Beijing in 2008 went from US$1.6 billion to about US$40 billion. London’s price tag for the 2012 games skyrocketed from $5 billion to about $20 billion. So far, it is estimated that South Africa has spent $5 billion and FIFA $1.1 billion in preparations before the start of the 2010 World Cup.
Potentially millions of tourist dollars are pumped into small businesses, hotels, restaurants, souvenir shops, tours and transportation from the FIFA tournament venue. However, the costs associated with a significant influx of visitors are the provision of security for fans and all teams, anti-terrorism activities, policing for racial sensitivities, and the purchase and installation of high-tech monitoring equipment.
Revenue from ticket sales for the games, if not realized, would be counterproductive to the host country, as it can take years to recoup the outlay to host such a global event. History will determine the success of hosting the FIFA tournament. The global exposure of this world event can benefit the host country and its local suppliers/industries for years to come.
An American economist’s study of the historical experience of host nations since 1954 revealed that in 7 of the 13 tournaments since 1954, economic growth has been slower in the World Cup year than in the two years leading up to the event. On the other hand, 9 of the 13 host nations since 1954 have shown faster economic growth in the 2 years after the event.
What the FIFA World Cup does is that it unites the world through competition, fostering intercultural interaction and international understanding. In a world plagued by war, racism and religious intolerance, the FIFA World Cup contributes to universal brotherhood, the benefits of which for humanity are impossible to quantify.
Around 6 billion people watch the Olympic Games, but this pales in comparison to the estimated 26 billion who watch the FIFA World Cup.
South Africa hosts the 2010 FIFA World Cup from June to July. The next FIFA World Cup will take place from June to July 2014 in Brazil, a nation that has been crowned world champion in 1958, 1962, 1970, 1994 and 2002.