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The 19th World Cup has captivated the hearts and minds of people all over the world. In america, the games have drawn the attention of sports lovers - like myself - as well as millions of Americans basically curious about the hype. In fact, the viewership of the first four games this year was double what it was for the last World Cup, which took place four years ago.
South Africa's Downturn
regrettably the FIFA World Cup is being hosted by South Africa while the country is experiencing their first economic downturn in seventeen years. When first proposed, lots of South Africans were hopeful that their economy would see a boost from both the symbolism of hosting the world wide sporting event, as well as the visitors it would bring. However, lots of experts warned that this was wishful thinking, and that sporting events have an inclination to harm the economies that support them, often for the long term. Not only does the preparation that goes in to hosting a massive sporting event cost the hosting government, but also local businesses often lose loyal customers when crowds take over.
New Infrastructure = New Jobs
The creation of new infrastructure to support the World Cup did generate hundreds of jobs in South Africa, although lots of were only temporary. In order to satisfy FIFA officials, South Africa was necessary to refurbish or build 10 new soccer stadiums in time for the World Cup. they also had to repair highways, and take actions to increase security, specifically in the area of transportation. While the stadiums were pricey and the construction efforts were not cheap, these buildings will remain for years to come and ideally bringing additional revenue to the country.
However, Beijing was expecting to reap the economic benefits for years to come after hosting the 2008 Olympics and is now suffering what experts refer to as "post-Olympic blues," due to the shortage of long-term revenue from their significant investment. it's not clear if South Africa will experience the same issue or not, as the amount of money spent to host the World Cup was not on the same level as the investment Bejing made to host the Olympics.
Increased Tourism, Economic Troubles
lots of tourist related businesses, such as hotel chains are profiting off of the large increase in visitors to South Africa because of the World Cup. However, these tourists will leave four times the games are over, and lots of other local businesses aren't as lucky. According to reports, some service based industries offering local services have seen an 80-90% decrease in business since the World Cup began.
Long-Term Implications
In order to reap the long-term benefits of hosting the World Cup, South Africa will wanna use the chance as a launching pad for an ongoing increase in tourism. Sydney could successfully use their hosting of the 2000 Olympics as a world wide branding opportunity, which resulted in significant tourism increases. it's soon to see what the long-term implications of the World Cup will be on South Africa's economy, but they do have a significant opportunity to benefit from the pricey sporting event.
World Economy
Unfortunately, financial experts are split on their predictions regarding the impact of the World Cup on the global economy. An analysis of the world markets during and after the earlier 18 World Cups shows that stocks declined in the course of the games, and four times again in the few months following their conclusion. However, the global economy is showing some signs of recovery from the banking and financial crisis, and it's early to tell if the World Cup will slow down the recovery or not.
South Africa's Downturn
regrettably the FIFA World Cup is being hosted by South Africa while the country is experiencing their first economic downturn in seventeen years. When first proposed, lots of South Africans were hopeful that their economy would see a boost from both the symbolism of hosting the world wide sporting event, as well as the visitors it would bring. However, lots of experts warned that this was wishful thinking, and that sporting events have an inclination to harm the economies that support them, often for the long term. Not only does the preparation that goes in to hosting a massive sporting event cost the hosting government, but also local businesses often lose loyal customers when crowds take over.
New Infrastructure = New Jobs
The creation of new infrastructure to support the World Cup did generate hundreds of jobs in South Africa, although lots of were only temporary. In order to satisfy FIFA officials, South Africa was necessary to refurbish or build 10 new soccer stadiums in time for the World Cup. they also had to repair highways, and take actions to increase security, specifically in the area of transportation. While the stadiums were pricey and the construction efforts were not cheap, these buildings will remain for years to come and ideally bringing additional revenue to the country.
However, Beijing was expecting to reap the economic benefits for years to come after hosting the 2008 Olympics and is now suffering what experts refer to as "post-Olympic blues," due to the shortage of long-term revenue from their significant investment. it's not clear if South Africa will experience the same issue or not, as the amount of money spent to host the World Cup was not on the same level as the investment Bejing made to host the Olympics.
Increased Tourism, Economic Troubles
lots of tourist related businesses, such as hotel chains are profiting off of the large increase in visitors to South Africa because of the World Cup. However, these tourists will leave four times the games are over, and lots of other local businesses aren't as lucky. According to reports, some service based industries offering local services have seen an 80-90% decrease in business since the World Cup began.
Long-Term Implications
In order to reap the long-term benefits of hosting the World Cup, South Africa will wanna use the chance as a launching pad for an ongoing increase in tourism. Sydney could successfully use their hosting of the 2000 Olympics as a world wide branding opportunity, which resulted in significant tourism increases. it's soon to see what the long-term implications of the World Cup will be on South Africa's economy, but they do have a significant opportunity to benefit from the pricey sporting event.
World Economy
Unfortunately, financial experts are split on their predictions regarding the impact of the World Cup on the global economy. An analysis of the world markets during and after the earlier 18 World Cups shows that stocks declined in the course of the games, and four times again in the few months following their conclusion. However, the global economy is showing some signs of recovery from the banking and financial crisis, and it's early to tell if the World Cup will slow down the recovery or not.
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