Football championships bring the hype, it brings excitement, and thrill everywhere; and, there are economic benefits of hosting a World Cup. There’s always a question roaming about the benefits of hosting a world cup by a country. I bet you are also a curious mind who wants this question answered. This article will portray the tangible and intangible benefits a country rips off from hosting a world cup. We will discuss it from 2Two different perspectives, 1. From an economic perspective and 2. From a non-economic perspective. Why wait? Let’s get into this thrilling discussion just like a match of your favorite team!
Economic Benefits of Hosting a World Cup
Commission from Ticket Sales
After FIFA fixes a country to be the host they make a deal. In return for all the resources and effort a country puts in, it gets a percentage of the total ticket sales. World Cup is the most awaited event of the entire globe and people prepare to pay a high amount for watching a match live from the venue. Millions of people become the audience of these matches. So the earnings from ticket selling are quite high. Even if FIFA takes most of it, there’s always a lot left for the host country. For example, over 2.89 million tickets were sold for Qatar World Cup 2022. [1] And as a sole host country, Qatar kept the percentage that was promised to them.
Earnings from Broadcasting and Sponsorships
One of the major earning sources is the revenue each world cup generates from broadcasting partners, sponsors, and other partnerships. The title sponsor and brand partners pay a significant amount to FIFA which they share with the hosting country. [2] Is that all? No! A huge portion comes from the broadcasting partners. During every match, millions of people enjoy the thrill of sports. Broadcasting companies from around the world bid for the exclusive rights to televise the matches, bringing the excitement of the World Cup into people’s homes. But FIFA makes contract only with a few and generate a substantial amount which they share with the hosting countries.
The Boost in the Tourism Sector
One of the major objectives the hosting countries keep in their mind is to boost their tourism and hospitality sectors. During the world cup thousands of tourists from all corners of the world the hosting country to watch football matches. So they reside in the local hotels, eat in the restaurants, travel by the local transportation, and roam around the country to see its culture. The increased demand for these services provides a considerable economic boost to the host country, as visitors explore local attractions, experience the culture, and contribute to the overall tourism revenue.
All of the parties involved in the tourism sector get an opportunity to generate income which ultimately contributes to the national economy as a form of taxes. Not just that! The tourism sector gets branded as all the important people visit and things get a lot of media attention from media of the entire world. The entire industry enjoys a significant boost through these world cups. [3]
Earnings from Infrastructure Development
Before every world cup, the hosting country prepares itself by building infrastructures like stadiums, transportation, residence, etc. This enables the country to host the world cup and also develop its overall condition in the sports sector. The income generated by developing this infrastructure directly increases employment opportunities for its people and contributes to the GDP of the nation. And by being more developed in future tournament hosting the earning possibility from the athletic sector increases for the host country. [4]
Attracting Foreign Investment
The visitors of the world cup are from all corners of the world and significant of them are involved in the business and investment sector. The host country creates a positive impression and attracts these individuals to invest in different sectors of the country. For example, if an investor sees the natural beauty and hospitality of the country, he/she might see an immense opportunity in the tourism sector. So they can invest in this sector for their business which impacts the country’s economy. Moreover, the broadcasting of the country’s infrastructure, culture, and other conditions also gives it immense exposure to the entire world.
Non-Economic Benefits of Hosting the World Cup
Better Diplomatic Relationship
During the World Cup, many high-ranking officials and diplomats from different countries attend matches and related events. This presents an opportunity for informal discussions and diplomatic engagements. When a country hosts the World Cup successfully, it impresses the world, creating a positive image that draws people closer to it. Sports have a remarkable ability to bring people together, regardless of their origins, fostering unity and breaking down barriers between nations. The friendships and bonds formed during the tournament, along with the infrastructural enhancements, pave the way for improved relationships and future collaborations between countries.
Branding of the Nation
A nation always wants to get validation and attention from the rest of the world. It is undoubtedly a matter of pride for them. Imagine your country stepping onto the world’s grandest stage, hosting the thrilling World Cup! It’s like throwing open your front door and inviting the entire globe in for an unforgettable party. Not only that but hosting the World Cup sparks a fire in your fellow citizens too. Suddenly, everyone’s sporting fever takes over as they rally behind their national team, igniting a wave of patriotic pride. So, hosting the World Cup is more than just a sports event—it’s like showing the world your best dance moves, dazzling them with your charm, and leaving a lasting impression in their hearts.
Exchange of Culture and Heritage
Imagine a big party where people from every corner of the world gather in one country! It’s like mixing a colorful palette of traditions, customs, and values, making it a fantastic melting pot of cultures. The players and fans dive headfirst into the local culture, enjoying the music, dance, art, and delicious food. And guess what? The locals get to join in the fun too! They get to experience the exciting blend of international flavors, creating a deeper love and respect for the amazing diversity in our world. It’s like a grand celebration of friendship and understanding that leaves everyone smiling and inspired! This vibrant exchange creates a sense of unity and shared experiences, breaking down cultural barriers and promoting mutual respect. The World Cup leaves a lasting legacy of cultural enrichment, as the connections formed during the tournament continue to inspire cross-cultural interactions long after the final match, leaving a positive and indelible mark on the host country and the world.
Boosting the Sports Sector
Hosting the World Cup gives a big boost to a country’s sports sector in simple words. The country builds new stadiums and facilities for the event, which stay even after it ends. The excitement of the World Cup inspires more people to play sports, making the nation healthier and more active. Lots of tourists and fans come, bringing money and attention, and this helps the sports economy grow. Local athletes can learn from international stars, and better facilities help them improve. Even after the tournament, people love sports more, and the country becomes famous for its sporting spirit.
Conclusion
Even though many people wonder about the tangible benefits of hosting a world cup, I believe this is a privilege given only to a few countries. Apart from the economic boost, the host country enjoys serving people from the entire world. It’s an opportunity to open new opportunities, show the world the country’s beauty, and level up its brand image. Hope this article helped you understand the complete scenario or benefits that this host country enjoys.
References
- CNBC:
https://www.cnbctv18.com/photos/sports/over-289-million-tickets-sold-for-qatar-world-cup-2022-check-attendance-of-previous-9-editions-15161611.htm - FIFA world cup news
https://www.fifaworldcupnews.com/fifa-world-cup-2022-sponsors-list/ - Wired
https://wired.me/business/the-fifa-world-cup-is-set-to-boost-tourism-across-the-middle-east/ - Euronews
https://www.euronews.com/2023/01/17/fifa-world-cup-qatar-2022-what-legacy-will-it-leave-for-qatar
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