When we heard football first thing that comes in our mind that FIFA. Afterwards, club matches than Ronaldo, Messi and et.al In all the sports football attract lots of people. People love watching 90min game with full of passion, full of zeal. Over that FIFA always draw the attention of people those who know the football or especially who don't know the football. But
Do you ever think that,
Wherever the FIFA Cup going organize, the economics of that territory would always give a suspicious sign. The factor behind is that "Tourism". Many countries in the world try to boost their economy by tourisms. This year (2018) FIFA world cup organised in Russia. According to the Fifa official website, about 1.5 million foreigners came to Russia and around 1.8 million tickets sold for the matches.
Most of the fans came from the USA, Brazil, Colombia and Germany. Russia spent 11.6 billion $ in the first week of the world cup which is 1% of its GDP. 1.5 million foreigners add 3 billion$ to the Russian economy.
Desperately this year as per US rating agency Moody's said that "The effect of the FIFA Cup is less on the Russian economy". This thing they predicted before organizing the season. They figure out the whole situation and the problem is a little bit philosophical is that spending is more but the duration is less.
It was true for Japan, Germany South Africa and Brazil (FIFA held in 2002,2006,2010 and 2014). Generally when FIFA organizes in any country first organizer (Country itself) check an Infrastructure, Homicide rate, Again glance through tourism norms, Flight and Railway connectivity. Such parameter not directly but indirectly affects the national growth and their GDP. This year Russia spent billions of dollar to develop their infrastructure.
Do you ever think that,
How much money required to organize the FIFA cup and what will be the return. ..?
The answer is TOURISM.Wherever the FIFA Cup going organize, the economics of that territory would always give a suspicious sign. The factor behind is that "Tourism". Many countries in the world try to boost their economy by tourisms. This year (2018) FIFA world cup organised in Russia. According to the Fifa official website, about 1.5 million foreigners came to Russia and around 1.8 million tickets sold for the matches.
Most of the fans came from the USA, Brazil, Colombia and Germany. Russia spent 11.6 billion $ in the first week of the world cup which is 1% of its GDP. 1.5 million foreigners add 3 billion$ to the Russian economy.
Desperately this year as per US rating agency Moody's said that "The effect of the FIFA Cup is less on the Russian economy". This thing they predicted before organizing the season. They figure out the whole situation and the problem is a little bit philosophical is that spending is more but the duration is less.
It was true for Japan, Germany South Africa and Brazil (FIFA held in 2002,2006,2010 and 2014). Generally when FIFA organizes in any country first organizer (Country itself) check an Infrastructure, Homicide rate, Again glance through tourism norms, Flight and Railway connectivity. Such parameter not directly but indirectly affects the national growth and their GDP. This year Russia spent billions of dollar to develop their infrastructure.
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| Source:- Hindustan Times published on 16 June 2018 |
Above data shows that in Japan, Germany, Soth Africa and Brazil has organized the FIFA world cup if we take a glance of above statistics it has two different meaning first one is South Africa, Brazil, and Germany(a little bit) spent more money as they predicted. Second is the growth of tourism. What Japan and Germany predicted and what South Africa and Brazil Predicted there is a huge difference in that also it affects their GDP in a corresponding year. One common thing is that South Africa and Brazil both are members of BRICS (an acronym for an association of five major emerging national economies). Even though India, China and Russia part of the BRICS.
High spending on event means a big ticket for an event so it would hike the tourism not a long-term basis but on a short-term basis. Last two FIFA Cup was not given that much success for BRICS emerging country as they had predicted. Now everyone will see how much Russia earn from this cup and how much growth in tourism on a long-term basis in the next few years.
