Impact of FIFA World Cup 2018 on Russia

The assignment discusses the economic benefits and drawbacks of hosting a mega event like the FIFA World Cup. It highlights how the event can increase employment opportunities, boost local businesses, and enhance the country's image. However, it also touches upon the negative consequences such as pollution, waste management issues, and unemployment after the event is over.

Sustainability Of Mega Events
Is A Myth

Table of Contents
INTROUDUCTION........................................................................................................................1
MAIN BODY...................................................................................................................................1
Positive Impacts..........................................................................................................................1
Negative Impacts.........................................................................................................................3
CONCLUSION ...............................................................................................................................4
REFERENCES................................................................................................................................5

INTROUDUCTION
Sustainability is procedure for maintaining change in balanced environment for meeting
both current and future needs of humans. It has three domains pillars of environment such as
economic, environment and social (Alekseyeva, and et. al., 2014). Mega events are those events
which are conducted at large space and required huge investment. Many countries conduct such
events to provide them long term benefits. This events provide sustainability to host city and
increase their value. The given assignment is based on FIFA world cup conducted in Russia from
14th June to 15th July 2018 which is held once in every four years. The report covers both positive
and negative impact of mega event that is FIFA to Russia city are discussed.
MAIN BODY
Positive Impacts
FIFA world cup 2018 host by Russia city which was biggest mega event. This event has
created many opportunities for this city. It has impact city in both positive and negative way.
The sport eventing is most expensive to execute in country. As per Russian government,
around US$ 11 billion has been spend for conducting event. Out of this budget, US$ 4.22 for

construction of sports infrastructure, US$ 1.18 for support infrastructure, US$ 1.85 for other
operating work and US$ 3.63 for improving transportation facilities (Impact of the FIFA World
Cup on Russian Economy, 2018). The positive impact of FIFA in Russia city are described
below:
Sports Infrastructure- The expenditure made on sport infrastructure is more than 38% of
spend. 12 stadiums has been made with 550000 seating capacity in 11 Russian cities (Diederichs
and Roberts, 2016). The 96 training sites having capacity of 16000 youngsters and children has
developed in country in order to use it beyond world cup tournament. This constructed
infrastructure can be used for national level games and activities in future.
Transportation and Utility Infrastructure- The expenditure made on infrastructure is
US$1.9 that includes 11 airport. This helps in taking care of increased passengers. The new
infrastructure helps in generating additional tax and declining future spending on capital. This
leads to increase in economic of country by charging tax.
Support Infrastructure- Mega events leads to upgrade, build and support infrastructure.
According to report, 13 hospitals, 12 power stations and 29 utility facilities has been
reconstructed and renovated. Also 27 new hotels has been constructed for tourist who visit city
during world cup. There are 10 water supply sewage system and 4 infrastructures has been
upgraded and constructed. Russia has developed more than 800 hectares of green zones and
parks has constructed for various venues. The spends made on support infrastructure provide
long term benefits to Russia economy. US$1.18 invested in renovation, construction of medical
infrastructure, housing and power system. The above constructed infrastructure helps in earning
profit during and after world cup.
Tourism- It is estimated that around 570000 international fans host during World cup.
More than 4.3 million individual visits Russia during FIFA. The arrival of tourist is high to 2
million as per previous data (Hall, 2012). Also more than 700000 Russian attend FIFA which
gives economic impact to restaurants, hotels and retailers. It is estimated that visiting fans spend
US$ 5000 to 8000 which contributes US$2.5-4 to consumption. It is also increasing tourist by
25%.
Job Creation- FIFA world cup has created many job opportunities in Russia. Around
220000 jobs has created in different fields which leads to rise in personal income by US$6.59 bn.
As per government data, 210000 more people required for hosting and preparation of

tournament. Out of these, 79000 people increase competency in construction sector, 18000
individual in communication and transport, 38000 required in hospitality, 18000 upgraded skills
in social, personal, utility, 5000 involved in security & administration and 52000 received
volunteer training.
Economy- Due to world cup, Russia investment bank in Nordic region has grown extra
0.15-0.25%. The government of Russia has estimated impact of world cup on GDP at US$ 13.80
that is equals to 1% of Russia GDP (Liang and et. al., 2016). They also estimated to boost GDP
between US$ 26 and 30.8 over 10 years. World Cup helped in leaving tangible and intangible
legacy that provide benefits to generations of Russia.
Others Benefits- The retail sector get benefits by sales of FIFA world cup in terms of
replica England shirts, merchandise and upgrading large screen televisions. It provide benefits in
term of selling of drink, snack, foods and pubs. When people arise in city for events then hosting
country need to improve their standard and quality to provide them benefits. Thus, in this ways
there are numerous benefits which assist city (2018 FIFA World Cup could have a marginal
positive impact on the UK economy, dependent on England success, 2018).
Negative Impacts
FIFA World Cup 2018 in Russia is the most expensive event which cost 14.2 billion
dollars out of which around 40% funded by outside investors (Tien, Lo and Lin, 2011). The
expenses made in infrastructural projects including construction of hotels, upgrading transport
and extension in transport system. As per Russian Central bank, it provide short term positive
impact on economy that noticed in second and third quarters 2018. The country has faced issue
in terms of corruption accusations, human rights abuse and environmental problems. Though
world cup has provide positive impact to country but also impact in negative way which are
given below.
Price inflation- Due to arrival of large number of people in city for mega events leads to
rise in price of goods and service. It is good for city but for local consumer prices increases.
Thus, it has negatively impact local residents.
Security and crime concern- With increase in population, there is high chance for fraud
and miscellaneous activities. The security of people decline as it is not possible to take care of
large number of people at a time. Due to lack of security and crime increment many people does
not want to come for mega events.

Risk of disease and pollution- In order to construct stadium, hotel and others
deforestation take place. This leads to increase in pollution and disease. As people does not focus
on taking care of city and through garbage anywhere. This impact Russia adversely and there is
more risk in terms of pollution and disease. Due to increase in population during mega events
leads to rise in diseases to people.
Environment concern- The problems in environmental has grown with growing size of
events. It includes increasing quantities of rubbish, air pollution, building task is carried in nature
reserves, energy and water consumption. Many white elephants (stadium having large capacity
which is not use by local club after world cup) has been constructed which has no use in future.
This has greatly impact climate because of increases in deforestation by constructing houses in
vacant areas.
Change in laws and legislations- Due to world cup tournament leads to change in legal
laws and legislations that provide negative impact including poor working conditions, lost in tax
revenues and forced resettlements (.Ziakas, 2013). Though government provide support to mega
events but it is for short period of time.
Other impacts- The employees working in organisation take more leave which hamper
work and delivery is late that reduces productivity. Hosting such events leads to increase in tax
by local payers. The huge investment is required for mega events which is useless after games
end. The arriving of large people creates problems of convenience to local residents. Many
individual use local transport during their staying which greatly impact host city. Thus, other
impacts in terms of price inflation, staying problems (Ziakas, 2015).
After analysing both impact that is positive and negative it can be concluded that before
such event took place it provide lots of benefits in terms of job employment, increase in GDP
and increase in personal income of people. As soon as event ends, many people lost jobs,
constructed stadium became useless and others. Thus, mega events has both side of same coin
which provide benefits as well as negative impact.
CONCLUSION
From the above report it can be concluded that FIFA world cup 2018 has impact Russia
in both positive and negative manner. This mega events are conducted in different city in order
to increase their GDP (Gross Domestic Product). The positive or advantages impact to Russia are
in terms of increasing employment opportunities to conduct event successfully. Hotels, airways

industry can increase their revenues as large number of people visit city in order to watch match.
Similarly, it has also created negative impact to city as pollution increase due to arrival of more
people which leads to rise in hazardous diseases. The construction large stadium, parks and
others does not provide any use to city in long term. Also, there is high risk of unemployment
after the end of events. Thus, mega events are good as well as bad for host countries.
REFERENCES
Books and Journals
Alekseyeva, A., and et. al., 2014 and the rhetoric of a new Russia: Image construction through
mega-events. East European Politics. 30(2). pp.158-174.
Diederichs, N. and Roberts, D., 2016. Climate protection in mega-event greening: the 2010
FIFA™ World Cup and COP17/CMP7 experiences in Durban, South Africa. Climate
and Development. 8(4). pp.376-384.
Hall, C. M., 2012. Sustainable mega-events: Beyond the myth of balanced approaches to mega-
event sustainability. Event Management. 16(2). pp.119-131.
Liang, Y. W., and et. al., 2016. Mega-event and urban sustainable development. International
Journal of Event and Festival Management. 7(3). pp.152-171.
Tien, C., Lo, H. C. and Lin, H. W., 2011. The economic benefits of mega events: A myth or a
reality? A longitudinal study on the Olympic Games. Journal of Sport Management.
25(1). pp.11-23.
Ziakas, V., 2013. Event portfolio planning and management: A holistic approach. Routledge.
Ziakas, V., 2015. For the benefit of all? Developing a critical perspective in mega-event
leverage. Leisure Studies. 34(6). pp.689-702.
Online
Impact of the FIFA World Cup on Russian Economy. 2018. [Online]. Available through:
<https://techstory.in/impact-of-the-fifa-world-cup-on-russian-economy/>.
2018 FIFA World Cup could have a marginal positive impact on the UK economy, dependent on
England success - EY ITEM Club. 2018. [Online]. Available through:

<https://www.ey.com/uk/en/newsroom/news-releases/18-06-08-2018-fifa-world-cup-
could-have-a-marginal-positive-impact-on-the-uk-economy-dependent-on-england-
success-ey-item-club>.