Economics of The FIFA World Cup - Africa

Africa

The 2010 FIFA World Cup will be held in South Africa, for the first time in the tournament's history. Even though it may not attract as many foreign visitors as the USA and Germany World Cups, it will still have an economic benefit due to the location and already emerging economy.

Any predictions about the economic impact of the 2010 FIFA World Cup on South Africa have to take into account the present state of the South African economy, which still has one of the largest disparities between the rich and the poor. One main factor for South Africa is attracting international investors. To increase the international trade and foreign direct investment, South Africa must have stability throughout their whole region in their economy and government. If this is achieved then South Africa could be in the top choices for foreign direct investment and collect the potential benefits of the 2010 FIFA games. Because FIFA gathers all of its finances through marketing tournaments such as the World Cup, they aim to ensure the event's success, and assist the hosting country accordingly. Since South Africa is still a developing country, FIFA will have an important role in funding the tournament. Along with other developing countries that host mega-events, the investment of larger capital investment is required.

The projected total direct economic value for GDP is approximately $21.3 billion. Also, 159,000 new jobs are predicted, including full- and part- time jobs, both permanent and temporary. The government also plans to spend millions on upgrading stadiums and building a new international airport. The tournament will host 32 teams with an average of 50 people per team, 14,500 VIPs and dignitaries, 500 officials and 10,500 media. A projected number of half a million foreign visitors (located outside of Africa) are expected and staying an average of 15 days.