World Cup 2010 Blog

The 2010 World Cup is set to contribute R55bn to the SA economy and create 415,000 new jobs, according to a study by Grant Thornton Strategic Solutions.

The contribution to SA’s gross domestic product (GDP) is made up of the R33bn in direct spending on stadiums and infrastructure, the spectator trip expenditure of R8bn, ticket sales of R6bn, and sponsorship deals of R750m. The expected tax income to government is around R19bn.

The study estimates the contribution of the World Cup to South Africa by predicting figures in every area from contribution to GDP and jobs created, to tickets sold and number of tourists expected using the information generated from previous international tournaments and from local and world tourism statistics.

“The biggest benefit is going to be in tourism,� said Gillian Saunders, a Director at Grant Thornton Strategic Solutions. “South Africa is conducting the right sort of marketing abroad, and can look forward to a fantastic tourism impact.�

The amount of money to be spent by African nationals and foreign tourists is projected to be around R8,5bn. “These numbers are conservative; the economic benefit could be even greater,� Saunders said.

The number of foreign tourists expected to travel to South Africa for the World Cup is estimated to be around 480,000 people. These include foreign nationals, who will travel from around the globe to support their team, and 150,000 African neighbours who will come over the borders for the fan-fare appeal of host cities such as Polokwane and Nelspruit.

In addition there are the eyes of 35-40bn TV viewers from around the world watching a World Cup happen within South Africa. To facilitate this large viewership, there are 18,000 expected media personnel, broadcasting content on the tournament, the host cities and the country. “Although the World Cup is only 96 hours of football, it is actually 4-6 solid weeks of tourism,� Saunders said.

Already, in a peak summer month, South Africa hosts almost 870 000 foreign tourists, so the country should be able to handle the influx of tourists for the World Cup during the slower winter month of June and July.
The resulting tourism legacy, according to Grant Thornton, will be two-fold. Crucially, the event will make South Africa a better, more widely known and understood destination, with - barring major problems - an enhanced reputation for service and a quality travel experience.

But the World Cup will also leave behind a greatly improved tourism infrastructure, in the form of increased accommodation (about 35 new hotels will have been built); improved public transport; bigger bus, coach and hire car fleets; better tourism information and destination management; and more efficient tourism industry supply chains.

South African tourism will benefit for years to come, Grant Thornton predicts - basing its forecasts on the experiences of other countries that have hosted major events - with between 130 000 and 290 000 extra foreign arrivals a year from 2011 through 2015 expected on account of the World Cup effect.

Source: SouthAfrica.info and SAGN

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