The
effects of Fifa world cup to South Africa economics
Summary
The Fifa World has a significant impact on the
global economy.
FIFA,
football’s global governing
body with 204 member countries, is beginning to view itself as a global “big
business”. This self-image is no assumption; it has been proven throughout
various World Cups that this football tournament has a global impact.
Effect
of South Africa GDP
South Africa, a developing economy, has GDP per
capita of about $10,000 per year, 50% of its population living in poverty based
on estimates from 2000 and a 2009 unemployment rate of 24%. The latest reports
indicate that the government of South Africa spent 11.5 billion rand, or $1.48
billion, on new football stadium construction and renovation to existing
stadiums for the World Cup. Five new football stadiums were built to host World
Cup matches, and five existing stadiums were renovated and enlarged. FIFA
regulations require all World Cup facilities to be state of the art, with
luxury boxes and premium seating. The capacity of the new stadiums built for
the World Cup range from 40,000 to 64,000.all the new stadiums
will have luxury boxes and premium seating, clearly a high demand good in a
country with GDP per capita of $10,000. Annual operation and maintenance of a
modern outdoor sports facility can cost $10 million or more in the U.S.,
suggesting that the continuing cost of the new World Cup stadiums in South
Africa could be quite large.
Effect
to the tourism
The 2012 World Cup will clearly leave other economic legacies. Hundreds of
thousands of tourists will travel to South Africa to watch the matches and
spend money in the local economy. For several weeks South Africa will be the
centre of worldwide media attention. This media exposure will reach billions of
people and some of them will decide to visit South Africa in the future.
However, South Africa was already a major tourist destination before hosting
the World Cup, so some of the potential current and future World Cup related
economic benefits from tourism should be offset by the existing economic impact
of tourism in the country.
No comments:
Post a Comment