Economic, Environmental and Social Impacts of Hosting a World Cup

This report analyzes the economic, environmental and social impacts of hosting a World Cup. It discusses the benefits and challenges faced by the host and participating countries. The report provides recommendations to minimize challenges and maximize benefits. The subject is Academic and Professional Skills.

Academic and professional skills
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EXECUTIVE SUMMARY:
A world cup is defined as a competition of sports which is held in every 4 years and
internationals teams from all around the world participate in the competition to win the title of
the World Champion.
Hosting these events can have both positive and negative impacts on the host country and
the participating countries in many prospectives. In economic- business prospective, the World
Cup can be used as an opportunity for employment generation and increasing the future trading
between the countries involved. However, the host country can experience the high costs to the
taxpayers of the country which will be a huge challenge to the government in hosting of such
events.
In environmental prospective the World Cup event can be used as an opportunity to
regenerate opportunities like media coverage, increasing goodwill the country and increase in
tourism rates. But, with the opportunities the government also faces the challenge of pollution
and carbon footprint increase in the country
In the Social prospective, the host country can gain various intangible benefits like
improve in standard of living, charity and economic and health prosperity in the country.
Through hosting a World Cup. However, the host country also have to face challenge of policing
and hooliganism, which can only be reduced by asking suggestions from experienced Nations.
To reduce the challenges and increase the benefits, various recommendations are
provided such as using the event as an opportunity for growth of business,employment
generation and creating strong commercial relationships between the countries.
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Table of Contents
INTRODUCTION...........................................................................................................................4
Analysis of the Economic Impacts of hosting a world cup from Business prospective:.............5
Analysis of 2 other perspectives:.................................................................................................7
The analysis of impacts from An environmental Perspective:....................................................7
The analysis of impacts from a Social Prospective:...............................................................7
CONCLUSION ...............................................................................................................................8
RECOMMENDATIONS.................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
In the words of Zimbalist (2020), World Cup can be defined as a competition which is
held in every four years between several countries internationally. In other words, A World Cup
is a competition between national and international teams in various sports specially
football/soccer. The international teams represent their countries in the competition to compete
and win the 'World Champion' title. A World Cup is generally considered as premium
competition in sports, in which the winning team or the winning individual achieves the highest
honour and recognition in that particular sport he won and gets the Best Person title in that sport.
Hosting of such events can maximize the benefits to the host and as well as neighbour
countries in various sectors and aspects like social, environmental, business and economical
prospectives of all the counties involved. The events like World cup are major, so they are
always staged in the countries which are not declared as tourist counties and have significantly
low development rates as compared to the other countries. Major events are hosted in these
counties to generate revenue, opportunities for growth and creating a good image of the country
in the world. Employment generations, future trading, regeneration opportunities and strong
commercial relations are some of the major benefits generated by the governments of different
countries through hosting these events. However, all the involved counties will also have to face
various challenges which can impact the social and sustainable environments of the countries.
Some of those challenges can be carbon footprints, pollution and increased costs to taxpayers.
This repost will analyse the economic impacts of hosting a World cup from the business,
environment and social prospectives that challenges or benefits the governments of host and
participating countries. The report will also be providing various recommendations to minimize
the challenges for hosting World Cup.
Analysis of the Economic Impacts of hosting a world cup from Business prospective:
Hosting a World Cup can have various impacts which can effect the businesses in the
hosting country as well as to the participating countries as well. The impacts from a point of view
of economy and business are
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 Job creation: Hosting of the World Cup can have a positive impact such as job creation
in the host country. The place at which the event will be hosted, will need many basic and
other facilities for which they need huge workforce. This increases the demand of certain
products on a large scale (Perić, 2018). In order to meet up this demand the firms increase
their production. For this, they hire new workforce and employment levels in the country
will starts rising. These opportunities can differ in case of developing, underdeveloped
and developed countries. However, the affect of job creation by hosting World cup will
increase the employment in several sectors. But in some sectors, its impact can be very
small. The employment will rise in several sectors like food services, hotel and hostels
and event management however, the sectors like utility and minings will have no impact
on them. The jobs in infrastructure and construction business will also increase but it will
provide temporary jobs only. Most of these jobs will disappear in long run. These jobs
will be temporary as they will last until the World Cup is hosted.
 Future Trade: The hosting of events like World Cup can increase the exports from
various participating countries in the host country. The products and businesses in host
country will be more visible to the customers than ever. The countries will also be
spending lot on costs on advertisements which will attract more customers. The
advertisements will be creating awareness of their products which allow the customers
from each other's countries to access the markets. It will increase the influences on the
customers made by both the hosting country and participating countries (Domareski Ruiz,
Chim Miki and Dos Anjos, 2019).
The host country can also influence the business opportunities for its
entrepreneurs. The relationships between two countries can get strong during these events, which
can be used as an opportunity for future trade. Although it is assumed that the purpose of World
Cup is to attend the event or games but it can create and improve trading channels and networks
for the entrepreneurs. Potential customers/visitors can be attracted during that event.
International events like World Cup helps the customers and sellers to exchange the information,
cultures, values and markets which will help them in creating strong business relationships.
However, it is also to be noticed that Hosting of world cup can increase trade
liberalization, leaving the host country's government very small control on the trades in country.
It will also increase the negotiation of trade liberalizations.
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 Costs to the tax payers: The money spend by the customers in host country in
restaurants, hotels, visiting and in movie theatres etc. will the main source of income
generated from taxes by the government. However, in the major events like World Cup
the taxes are paid by the locals of the host country. Promoters of such events persuade the
government to cover the costs of these events so that the locals are not burdened by these
costs. But the government already spends a lot in the infrastructure and construction of
places where these events are held. The government cannot not gather all the money that
can cover the costs of its expenditure on these events and the costs of the events. The
Major benefits of the World cup will be to the tourism industry (Weimann-Saks, Ariel
and Elishar-Malka, 2020). It will be generating huge revenues during the event. so the
government will focus on finding the new ways through which the costs incurred by the
government must be placed upon the tourism industry. This will also decrease the tax
costs burden on the locals of hosting country.
Analysis of 2 other perspectives:
The analysis of impacts from An environmental Perspective:
Environment nowadays is crucial part of everyone's life. A World Cup hosted on a big
platform can have its positive and negative impacts on the environment of host country (Chard,
C. and Dingle, 2020). Some of these impacts are: Regeneration opportunities: The cities which are not tourist destinations, are selected for
hosting these events. Those cities gain a new image and opportunities for employment
generation through these events. Hosting the World Cup in the country can provide
various benefits to the government such as huge media coverage, increased attendances,
increased profile of the country and increase in number of volunteers working in the
sports. It can generate huge revenues for the host country. These events will also lead to
increase in number of the visitors in the host country during the World Cup which will
help in developing tourism campaigns after the event (Wise and Harris, 2017). The World
Cup will not only benefit the host country but its neighbour countries will also gain
benefits. Carbon footprint and pollution: Carbon footprint refers to the amount of greenhouse
gases which will be generated by hosting the World Cup. The number of people watching
the World Cup live will be contributing in generation of pollution and massive carbon
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costs which can be estimated to be more than 5 months of a gas and electricity of a
country. Also, the remaining population will watch the event on TV and smart phones
sitting in their homes which will consume huge amounts of electricity which is even
worse than the first scenario. TV and smartphones will double up the amount of these
footprints. The World cup will also lead to wastages of water, food resources, taxi
emissions and air travel emissions too (McCullough, Orr and Watanabe, 2019).
The analysis of impacts from a Social Prospective:
By hosting a World Cup, the host country can affect its social living, standards
and relations between communities (Perić, 2018) such as Intangible benefits: The teams from different countries will be participating in the event
and this will bring social cohesion. This will bring health and economic prosperity of the
countries. The countries hosting World Cups also contribute to the raising money for the
poor/ homeless people around the world. This way it improves the standards of living of
people. Hosting such events can also improve the relations between the countries. Also,
World Cup is a huge source of entertainment for the people around the globe. The event,
at that time will the main headlines of all the media coverage. The host country will also
receive the increase in number of tourism in the country during that event, generating
income for the government. Also, it will also motivate children indulge with sports for
their better futures. The hosting country feels the pride of uniting people from different
countries all together (POL, K.Z.).
 Policing: The major events like World Cup are carried out on an international level which
means it needs more security than a regular event. If the hosting country is already facing
high level of violence or crimes in the country, then the government and the country both
will face a major challenge of policing. It will create a negative image of the government
around the world regarding the safety of the tourists/visitors. In most of the sports the
players, officials and fans face hooliganism (Domareski, Miki and Anjos, 2019). It can
planned or unplanned and the locations can be stadiums, clubs, changing rooms or even
the different countries too. This requires huge assistance and advices from foreign
agencies who have experience in dealing with those violences.
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CONCLUSION
It can be concluded that the World Cup is a competition of sports held between the
international teams which represent their countries. It is held in every 4 years and teams from
different countries participate to win the Title of World Champion. The best performer is given
the Best Person Award. Hosting of such events can benefit and challenge the host country of the
event and the countries participating in various prospectives like economic aspects, social aspects
and environmental aspects of both the countries. The host country in employment generation,
international trading, regeneration opportunities and strong commercial relationships between the
host country and the countries involved. But hosting of the events like World Cup will also
create challenges to the host and participating country in various aspects. Such events can impact
the environment of the country as it will increase pollution and carbon footprints in the host
country.
RECOMMENDATIONS
The recommendations for hosting a World Cup can be
 World Cup can create strong commercial relationships between the counties which can be
used as an opportunity for growth of business on international level by the governments
of the host and participating countries. The import-export between the countries increase
due to the attractive advertisements and tourism in the country.
However, the government bears all the costs on construction of staging of these events
which generates higher tax cost to taxpayers. But the government can minimize this challenge by
shifting the burden upon the tourism industry which is generating huge revenues from these
events.
 Hosting a World Cup will provide various regeneration opportunities in the country
which can be used as an opportunity to generate employment, technology advancement
and increasing the profile of the country. It can also be used as a tool for developing the
infrastructure and growth opportunities for the country.
However, the World Cup is carried out on an international level which results in
generation of pollution and carbon footprints. The country can use various environmental
friendly products to minimize this challenge for the government of host country.
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 Hosting of World cup gives various tangible benefits like social cohesion, charity
donations and strong relationships among the countries. The World cup can be used as an
opportunity for the government to bring social cohesion, improving standard of living of
its people and economic prosperity of the country. It can also be used as a tool to
motivate the population of the different countries to indulge in sports activities.
However, These events can create hooliganism which can create negative image of the
country. The host country can take suggestions from experienced nations to deal with this issue.
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REFERENCES
Books and journals
Chard, C., Dolf, M. and Dingle, G., 2020. Safeguarding the natural environment in event
management.
Direction, S., 2020. Creating a positive legacy: When opportunity knocks for hosts of mega
sporting events.
Domareski Ruiz, T.C., Chim Miki, A.F. and Dos Anjos, F.A., 2019. Competitiveness, economic
legacy and tourism impacts: World Cup.
McCullough, B.P., Orr, M. and Watanabe, N.M., 2019. Measuring externalities: The imperative
next step to sustainability assessment in sport. Journal of Sport Management. 34(5).
pp.393-402.
Perić, M., 2018. Estimating the perceived socio-economic impacts of hosting large-scale sport
tourism events. Social Sciences. 7(10). p.176.
Perić, M., 2018. Estimating the perceived socio-economic impacts of hosting large-scale sport
tourism events. Social Sciences. 7(10). p.176.
POL, K.Z., TANGIBLE AND INTANGIBLE ECONOMIC IMPACT OF HOSTING MEGA
SPORTING EVENTS. Olympic Studies. p.147.
Weimann-Saks, D., Ariel, Y. and Elishar-Malka, V., 2020. Social second screen: WhatsApp and
watching the World Cup. Communication & Sport. 8(1). pp.123-141.
Wise, N. and Harris, J., 2017. Introduction: Framing sport, events, tourism and regeneration
(pp. 1-8). Routledge.
Zimbalist, A., 2020. Circus maximus: The economic gamble behind hosting the Olympics and
the World Cup. Brookings Institution Press.
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