Football World Cup 2006: Economic Impact
Saturday, December 12, 2009
From its humble beginnings in some muddy English field many centuries ago, football is now an undisputed global affair, with money sloshing around it by the bucketful. For the last event in 2002, FIFA took its cash cow to Asia for the first time, where it was co-hosted by Japan and South Korea. While many doubted the ability of the hosts to pull off the event, it was a success at least off the field, generating a $260 million profit for FIFA [Link].
Last time the world paid so much attention to Germany was 16 years ago when the (Berlin) Wall came down. During ongoing World Cup 2006 German government, businesses, economists and politicians are hoping for a kick, to the national economy – let up in tourism with a million soccer coming there, Adidas anticipating {euro} 1.2 billion worth of World Cup related sales, 60,000 new jobs being created and every third job is expected to be a permanent one.
Germany has already spent $5 billion to ready the 12 cities for the event, billed as one of the biggest soccer tournament ever. From 16 finalists in the early years, rising to 24 in Spain in 1982, World Cup 2006 will feature 32 teams (as from the 1998 edition) from all six continents.
Remember the experience the experience of the 2002 World Cup hosts Japan and South Korea. Both the economies were ailing, and had banked on the tournament to help spark a revival and increase their global stature. And this did happen.
Now Germany as the host nation is the main beneficiary with an estimated boost of £7.4bn to its economy. The Centre for Economics and Business Research estimates that the World Cup will give a £13 billion boost to the economies of the 32 countries competing in the tournament. Europe will be the biggest winner, with a £11.3 billion gain, mainly from a surge in consumer spending. The UK's gain is calculated at £1.3 billion, while France will get a £1.2 billion benefit and Italy £700 million.
Impact of Word Cup on economies is being research deeply.
Updates:
World Cup economics on a grand scale
World Cup Soccer Economic Impact
Labels: World Cup Economy
posted @ 9:53 AM,
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