The FIFA World Cup is an incredible international event that takes place every four years. Fans from around the world flock to the host country bringing with them an outpouring of colour, passion, energy and culture. The global game is a wonderful compliment to the host country, plus the event holds great promise for global broadcasting, tourism, and injecting millions of dollars into the economy.
FIFA, the international governing body for football (soccer), requires the host nation to comply with detailed regulations and specifications including security, transportation, accommodation, training facilities, opening and closing ceremonies, marketing, promotions, ticketing, insurance and other administrative matters.
Are there financial risks worth organizing such an event? Infrastructure issues (such as airports, roads, stadiums and public transportation) to host such an event are often among the main complications. When Athens hosted the Olympics in 2004, its budget went from US$1.6 billion to US$16 billion: Beijing in 2008 went from US$1.6 billion to about US$40 billion. The London price tag for the 2012 games soared from $5 billion to around $20 billion. So far, South Africa is estimated to have spent $5 billion and FIFA $1.1 billion in preparations ahead of the 2010 World Cup.
Potentially millions of dollars from tourists are pumped into small businesses, hotels, restaurants, souvenir shops, tours and transportation from the FIFA tournament venue. However, the costs associated with a significant influx of visitors are the provision of security for fans and all teams, anti-terrorism activities, policing of racial sensitivities, and the purchase and installation of high-tech monitoring equipment.
Ticket revenue for the games, if not achieved, would backfire on the host country as it can take years to recoup the outlay to host such a global event. History will determine the success of hosting the FIFA tournament. The global exposure of this world event can benefit the host country and its local suppliers/industries for years to come.
A US economist’s study of the historical experience of host nations since 1954 revealed that in 7 of the 13 tournaments since 1954, economic growth has been slower in the year of the World Cup than in the two years leading up to the event. On the other hand, 9 of the 13 host nations since 1954 have shown faster economic growth in the 2 years since the event.
What the FIFA World Cup does is it brings the world together through competition by fostering intercultural interaction and international understanding. In a world plagued by war, racism and religious intolerance, the FIFA World Cup contributes to universal brotherhood, whose benefits to humanity are impossible to quantify.
Around 6 billion people watch the Olympics, but this pales in comparison to the estimated 26 billion who watch the FIFA World Cup.
South Africa hosts the 2010 FIFA World Cup from June to July. The next FIFA World Cup will take place from June to July 2014 in Brazil, a nation that was crowned world champion in 1958, 1962, 1970, 1994 and 2002.