Impact of World Cup on Economy and Tourism

This report analyzes the impact of hosting the World Cup on the economy and tourism sector of the host country. It discusses the benefits and challenges of hosting the event and provides recommendations for successful hosting.

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EXECUTIVE SUMMARY
A world cup is an international championship that is held every four years by the governing body
of sports and includes preliminary qualification rounds that lead to the final tournament. This
tournament is regarded as the most watched sporting event in the world. The majority of
countries will compete against one another to host the next World Cup. It is good to the
country’s overall development and economy. Further, the objective of report is to analyse the
impact of any major event over the growth and development of the economy and nation as well.
For this, world cup is considered in order to identify the suitable impact over the enhancement of
economic, tourism and hospitality sector by describing suitable recommendations.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
ANALYSIS......................................................................................................................................4
The impact of tourism, hospitality and event industries..............................................................5
CONCLUSION................................................................................................................................7
RECOMMENDATIONS.................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
A world cup is considered as an international Championship which is organised by the
governing body of sports in every 4 years by considering the preliminary qualification rounds
that lead to the final tournament. This tournament is considered as the most viewed Sporting
event. Most of the countries to bid against each other in order to win the right to host the next
world cup. It is beneficial for the overall development and economy of nation. World Cup is the
chief form of entertainment in most of the countries across the world as it provides the host
country a lot of pride and publicity (de Oliveira Santos and et. al., 2019). Apart from this most of
the companies also fallen into debt traps after holding the world cup. For instance, South Africa
is the prime example that held the Football world cup in 2010.
Apart from this conductor World Cup also include various problems like all the expenses are
incurred including the benefits caused by the world cup. The economic analysis also count for
the opportunity cost as the world cup never takes any opportunity cost into the account. Apart
from this most of the people also spent roughly with the same amount of money in terms of
watching movies leisure activities going for dinner and many more as the world cup merely
diverts expenditure towards the sports activities.
The world cup tournament it is beneficial for the host country as they get junk of profit
which is derived from the sale of tickets and selling televisions after the event but the host
country does not get part of these profits. These are the aspects that belong to the World Cup as
the money is being by the organised agencies where is the expenses which are being passed by
the tax payers of the country. Apart from this, that standards developed by World Cup
tournament are very high that become problem in terms of translating into the high expenses for
the host country.
ANALYSIS
The basic aim of this report is to identify the impact of World Cup over the hosting country
by describing the benefits of it and eliminating the suitable challenges. Hosting a world cup can
prominently impact the various aspects of country including economic health social cultural
tourism and many more. Apart from this hosting the world cup leads to increase the profile of of
the particular City that helps in enhancing economic benefits. For instance, the cities who leads
to host the Olympics must be a short regarding the persistent enhancement in the condition and

tourism. Country like China relies under the controversial Human Rights record in terms of
hosting the major Sporting events in order to gain better way within the international acceptance
(Le, 2020).
It helps in increasing the profile which is important for giving suitable benefits like
attracting tourist and business investment. The prominent significance of this point we depends
on the specific City as the world cup make major difference regarding the perception of the
particular City. Apart from this it is also beneficial considering the long-term investment that
comes from preparing considering the major event as the specific country have The Legacy to
enhance the Sporting venues.
Hosting the world cup event helps in increasing the job opportunities at the duration as the
several years of planning and investment will help in creating job and revitalizing the depressed
cities (Mazibuko, 2017). For instance, it is estimated that after organising world cup in London
gives to create 8000 full time jobs and helps in increasing the economic output approximately 2
billion. It is also quite easy to find several regions for hosting World Cup as it can create
enthusiasm and excitement of particular event.
The impact of tourism, hospitality and event industries
World Cup is considered as the major event that prominently impact the economy off the
host country and also the hospitality sector because this event attracts maximum number of
customers towards the host country and the people come over there regarding their leisure
activities and the arrival of maximum number of visitors is beneficial for the tourist hospitality
and event sector. For this the Government of the host country continuously seeks to diverse the
economic growth for hosting the international event and conference (Jennings, 2016). In regard
of this there are a lot of doubts from that the hosting country should not host the Global event
after the economic blockade.
Along with this the government also rectify the situation and contracted with the other
people and suppliers in terms of continuing the execution of project. It is also expected that the
government of host country will also make significant economic development and profit from
the hosting of the event. After organising the world cup in the specific country, the economy is
expected to enhance by 3% from the side of tourism and profitability over the medium term
which is helpful by continuing the investment which is related to hosting the world cup (Griffin,
2019).

Apart from this the hosting country is also able to produce suitable GDP considering the
enhancement that include the mean of construction government purchase investment in the net
exports will also increases. Apart from this the average of consumption will also enhances by the
several tourists who attend the event of World Cup. It also leads to attract the international and
local organisations to invest in the new project that provide benefit to them which is used to
finalize the project (Mosime, 2018). Apart from this the government purchase also depict the
enhancement in the profitability by focusing over please paint of more percentage towards the
growth of the related project like hotels events infrastructure stadiums and many more.
The most notable impact of hosting the World Cup is related with the general economic
expansion and enhancement in spending that the host country experiences towards the effective
manner. Hosting the world cup need minimum capacity and facility requirements for the large
stadium that create many short-term jobs within the country for the specific duration. When it
comes to hosting the specific World Cup most of the countries are advised to make a bid
including the evaluation of commercial and infrastructure capabilities of the host country
regarding the project (Humphrey and Fraser, 2016).
The prominent evaluation of the infrastructure considering the quality and capacity of
stadium transport mobility and facilities for the participants and many more. World Cup include
the commercial aspects like predicted cost estimated revenues from the ticket and media in order
to analyse that the particular country can host a world cup or not (Horne, 2017). Hosting a world
cup is just the beginning of the development of this specific economy considering the several
features which are required to allow the country to host the world cup. It also focuses on the
impact of World Cup by considering the event which influence the general global economy.
Apart from this world cup also negatively impact the stock market of us by declining it
around 2.5 % negatively. It is considered as the prominent attribute from the gathering of
negative changes regarding the participating countries and the stock market which originate from
the performance of World Cup. Further higher prices on the airline tickets because of the
distances and the feeling of uncertainty at the time of visiting the new country put off some
tourist from attending (Tella and Labuschagne, 2018). Developing countries who host the world
cup require suitable focus over the market and fewer attendees. Therefore, it leads to an answer
the visit of tourists over the hosting country that increase the economic condition of that
particular country.

World cups and the other Sporting events the present the best young athletes across the
world for which most of them payoff to the host Nation regarding the health concerning physical
activities to the local sports medicine community in order to analyse their potential health risk
considering the mass gathering of people. The public health legacy as an integral component in
order to build the world cup regarding the Expectations of the game that increase the mass
participation in the sports (Gursoy and et. al., 2017). It needs to build myth because there is
insufficient evidence regarding the major multi-sport event that leads to influence help and the
socio-economic determinants considering their health factors.
Apart from this increase participation over the sports is beneficial for the developing
country. Moreover, it does not put major impact over the physical activity and sports
participation over the population of the host country. Besides from this because of the lack of
evidence of the public health benefit does not mean that it has shortage of influence as there may
be another impact of downstream. The infrastructural legacies are not just the facilities for the
stadium but also provide the transport that influence the public health by improving the highway
safety that reduces the road crashes and other injuries and accidents (Lin and Lu, 2018).
Besides from this, the local clinical facilities help in developing the host country by
improving the infrastructure of health sector which is the part of an innovative health and
wellbeing centre for the host of general medical practices. Apart from this the world cup bring
things collectively considering the large group of people over the circumstances by optimising
the transmission of disease that bring health risk to the potential public (Berlin, 2018). Before
organising World Cup, it is also analysed by the host country regarding the spread rate of
communicable diseases that leads towards the advancement of health protection measures
including the food hygiene. Therefore, these are the factors that leads to impact the tourism,
events and hospitality that directly influence the economic factors of nation as well because the
tourism and economy both are interlinked.
CONCLUSION
From the aforementioned discussion, it has been analysed that World Cup is the global level
event that put impact over the host country regarding their economic health and cultural factor.
World Cup is useful for the host country in terms of representing and developing various positive
benefits in terms of increasing their economic growth beneficial for hens and ultimately impact
the enhancement of tourism and hospitality sector. In order to organise the world cup, the

countries across the world need to bid for the specific event by analysing and examining the
benefit of World Cup by eliminating its challenges.
RECOMMENDATIONS
From the above discussion it has been analysed that World Cup include various benefits for
every country who participate in it and the host country as well prominently for the nation and
overachievers for the tournament considering the level of World Cup in the country that has been
increased prominently. World Cup is beneficial for the host country regarding economic
condition as it is questionable and uncertain in various cases. Hosting a world cup is the great
honour for the in various countries as hosting does not come without their drawbacks but the host
country must know and understand the ways to overcome from the drawbacks.
In regard of this the host country must plan about the suitable requirements by considering
the criteria of Stadium who tells transit communication and other aspects. As the 70% of the
bidding process comes down already by having the infrastructure considering the demonstration
of plans. By undertaking the proper infrastructure is the key success factor of the organising the
event as most of the countries promises to have an updated infrastructure considering the
potential of increased tourism dollar that effectively supported from the locals.
The host country is able to accommodate the temporary demand surge in various cities
considering the passport control Runaway checkpoints showing stations terminals roads and
many more. The requirement is quite adequate in order to efficiently funnel tourist from the
airport to the stadium and also have proper arrangement by which people does not face any sort
of inconvenience as it is beneficial for the host country regarding their long-term development.

REFERENCES
Books and Journals
Berlin, P., 2018. World Cups and Olympic Games: How to stop three weeks of fete from turning
into 30 years of debt.
de Oliveira Santos, G.E and et. al., 2019. Impact of transparency and corruption on mega-event
support. Event management, 23(1), pp.27-40.
Griffin, T.R., 2019. National identity, social legacy and Qatar 2022: the cultural ramifications of
FIFA’s first Arab World Cup. Soccer & Society, 20(7-8), pp.1000-1013.
Gursoy, D and et. al., 2017. Impact of trust on local residents’ mega-event perceptions and their
support. Journal of Travel Research, 56(3), pp.393-406.
Horne, J., 2017. Sports mega-events–three sites of contemporary political contestation. Sport in
Society, 20(3), pp.328-340.
Humphrey, L. and Fraser, G., 2016. 2010 FIFA World Cup stadium investment: Does the post-
event usage justify the expenditure?. African review of economics and finance, 8(2),
pp.3-22.
Jennings, W., 2016. Risk management for the Olympics and football world cup. In Managing
sport mega-events (pp. 51-67). Routledge.
Le, D., 2020. Leveraging the ILO for Human Rights and Workers' Rights in International
Sporting Events. Hastings Comm. & Ent. LJ, 42, p.171.
Lin, H.W. and Lu, H.F., 2018. A longitudinal assessment on the economic effects of hosting
major sporting events. Applied Economics, 50(56), pp.6085-6099.
Mazibuko, V.P., 2017. Towards an index to assess the novelty value of the investment in World
Cup Stadia (Doctoral dissertation).
Mosime, K.M., 2018. The post-event function of world cup stadiums as contribution to the 2010
International Federation of Association Football (FIFA) World Cup legacy. African
Journal for Physical Activity and Health Sciences (AJPHES), 24(3), pp.197-215.
Tella, O. and Labuschagne, P., 2018. Sport, Politics, and Diplomacy: Perspectives on Durban's
(South Africa) Bid to Host the 2022 Commonwealth Games. Politikon, 45(3), pp.408-
425.