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This amount is more than what had been secured in World Cup South Africa shifts into gear Expectations are that there would be more funding than that of the Germany Soccer World Cup. Danny Jordan added that they hope to generate additional revenues by providing all the details of the tournaments on mobile phones. Jordan declared that this World Cup would be organized as a world class event and that the revenues so far realized would be the greatest amongst all the World Cup events that had been conducted till date South Africa shifts into gear The FIFA had already approved ten stadiums for the event.
Officials say that these stadiums would be ready by the year , as an African Confederation Cup is to be conducted there in that year South Africa shifts into gear South Africa has had sufficient experience in hosting international events. Moreover, it has a lot of experience in the planning and hosting of international sporting events.
In the year , it had hosted the Rugby World Cup, which was a huge success. In the subsequent year South Africa emerged the winner in the Africa Cup of Nations football tournament, which it had hosted. During, these major events, South Africa conducted these events without any dispute or conflict. The visitors to those events had acknowledged the extraordinary efforts made by South Africa Football Fever Runs High n. In it hosted the World Cup of Athletics without the occurrence of any untoward incidents.
A large number of foreign visitors attended that tournament. In the year , it hosted the Cricket Word Cup. Although it lost in that event, cricket fans who had arrived there from different countries around the world, acclaimed the efficient manner in which the event had been conducted. South Africa is confident that it would host the FIFA World Cup in a grand manner and make it one of the major events of the century. It had set aside an amount of fifteen billion rand for this purpose. According to the finance minister, Trevor Manuel, 8. The remaining amount would be spent on upgrading the infrastructure Football Fever Runs High n.
Plans are afoot to completely overhaul the public transport system. All the major hotels have already been booked by visitors to the World Cup. The government is making arrangements to provide alternate accommodation facilities to the visitors. The government is planning to sell the tickets in the year and a great demand is anticipated for them. Three million tickets are to be made available for the sixty — four matches Football Fever Runs High n. He also said that South Africa would prove its ability in this regard and it would be a grand platform for it to display its natural beauty to the world.
It can also demonstrate its hospitality, display its diversified cultural heritage to the world and flaunt its expertise in holding such an extraordinary event without any hindrance South Africa shifts into gear According to the custom established by FIFA, nearly one third of the three million tickets are to be made available to the residents of South Africa and one million tickets will be reserved for sponsors, teams and organizers. The remaining two million tickets are to be sold to foreign spectators.
Irrespective of which country emerges the winner in this tournament, the ultimate victor will be South African football Football Fever Runs High n. The authorities responsible for conducting the Soccer World Cup have identified around twenty — two thousand rooms in hotels and around six thousand rooms in other places. This exercise was performed, in order to accommodate the large influx of visitors expected from all over the globe, for this momentous event. Officials of the FIFA, like its President Sepp Blatter, were sanguine that South Africa would prove its undoubted mettle in making this event a grand success Boost for accommodation It goes without saying that an event of this magnitude, involves a gigantic number of vehicles for transporting, the spectators, the players, officials and others to the various stadia.
In anticipation of this huge requirement, Mathabatha Makonyama, the deputy director general of integrated planning and intersphere coordination, divulged that approximately six thousand minibus taxis, two thousand four hundred buses and sixty trains would have to be pressed into service.
Essay on Johannesburg, South Africa: Home of the 2010 FIFA World Cup
The expectation was that all the South African cars for hire would have to be deployed. Moreover, the vehicles belonging to the tourism industry would also be completely engaged. This mammoth event was expected to occur between the months of June and July in the year Soccer World Cup transport problems A very large number of spectators are expected to attend these festivities. Finally, it is crucial to review the work presented by Mathenson and Baade They examined how profitable hosting sport mega-events were for developing countries. They postulated that real net economic impact of these mega-events was significantly smaller in developing countries than it was initially estimated.
A major reason of overestimations is that the researchers often focus on the gross domestic spending when discussing the mega-events rather than on net spending figures. This approach fails to consider the decreased spending of the inhabitants on other products caused by the reallocation of domestic spending as well as to take into account substitution effect due to hosting mega-events.
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Further, they perceived costs of developing infrastructure, opportunity costs as well as utilization of sport facilities after the mega-events as major concerns in reference to hosting these events by developing countries. Additionally, in spite of widely available labour force in developing countries, the quality and skills of them mostly do not meet the requirements.
Hence, developing countries need to import workers from other regions within a country or, more likely, from other countries. The authors concluded that net benefits of hosting sport mega-events by developing countries are largely overestimated and hence, they should not be regarded a profitable investment by developing regions Bohlmann, The impact of hosting the World Cup on South African economy.
In the light of a number of economic impact studies developed over the decades, the World Cup were expected to bring various economic profits to South Africa. On the other hand, Mathenson and Baade warned that hosting sport mega-event by developing country is not profitable. In order to assess which approach is relevant to the South African case it is crucial to analyse estimated economic benefits of the World Cup and to compare them with the real figures. Considering first the costs associated with the World Cups, in Grant Thornton estimated total costs at R2.
In fact, South African government announced that the total spending reached R33 billion, while most of the economists postulated that these spending were higher and ranged between R50 and R80 billion Amato, While R8. Deputy President, Kgalema Montlanthe argued that these inflated costs were a major factor responsible for such a massive miscalculation. Between and the costs of construction materials i. However, the report on corruption published in by the Transparency International underlined that global construction sector was the most corrupted sector of the international economy.
Hence, it became clear that the corruption was a major cause of the disparities between estimated and actual expenditures in South Africa, where the Corruption Perception Index, a common measure of national level of corruption, reached 4. Approximately R Indeed, this dynamic development of infrastructure within a country is currently perceived as the greatest tangible long-term benefit of the World Cup in Africa.
Moreover, the amount of money directed on infrastructure investments seems to be insignificant compared to R billion that the national government planned to spend on public infrastructure investment programme Additionally, national and local governments have managed to allocate these expenditure as a part of annual budget starting from Sylvester and Hajru, On the other hand, the critics argue that the infrastructure investments benefited mostly the residents of the cities where the World Cup events were held, the tourists and people of the upper class rather than the whole South African society.
For instance, first high-speed train in South Africa, the Gautrain cost the country approximately R24 billion. The ticket prices R and train route rich areas of the country indicated that the train has mostly served selected rich groups of people.
Taking into account the stadiums, they were the second largest infrastructural investment which costs amounted to almost R12 billion. There are 10 large stadiums, built in South Africa in order to meet the World Cup requirements. Nowadays these stadiums remain largely underused. At the same time, the maintenance expenditures are huge, with the largest cost of R million per annum Appendix 3 , estimated for the Soccer City stadium. These costs still have to be covered by the host cities and national government, and hence by the South African tax payers as the private stadium management companies are not keen to take responsibility for these unprofitable investments Cottle, Taking into account the World Cup contribution to South African economy, in Grant Thornton postulated that this event would add almost R21 billion 1.
In turn, the report published by UBS in suggested that the World Cups would bring between 0.
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In fact, World Cup economic boost reached 38 billion, while the gross impact of the World Cup on the national economy, in the form of production and incomes, was finally estimated at R93 billion Marrs, In fact, the World Cups added only 0. There are two major factors that had an influence on this relatively low contribution to the national GDP.
gboat.vip.avoori.com/fymod-directorio-de.php One of them were high expenditures associated with the World Cup that had to be covered by the national government, as explained above. Second factor regards tourism sector which was expected to be mostly responsible for boosting real GDP Marrs, In it was estimated that approximately , tourist would visit during the World Cup period, who on average would stay 14 days and spend R22, These figures were adjusted in It was announced that , visitors will come to South Africa for the World Cup, staying there 18 days on average and spending R30, In fact, in July there were about , foreign visitors in South Africa.
Additionally, as the World Cup fell on the time of global recession, the football funs reduced their duration of stay in South Africa and cut down their expenses to an average of R15, Marrs, Although tourism sector was one of the major beneficiaries of the World Cup in South Africa, the benefits for the sector and hence, South African GDP were significantly lower than it was assumed.
While the overall economic growth of South Africa as a consequence of the World Cup was rather minor, there were several sectors within the country apart from the construction and tourism sectors that have particularly benefited from the World Cup. One of them was motor vehicle industry. Transportation sector within a country was sharply hit by the global recession, as a number of export markets collapsed. A strong demand for car hiring caused mostly by foreign tourist coming for the World Cup prevented a number of South African car hire companies from going bankrupt.
Similarly, Imperial Holdings, a domestic company which activities included both rental businesses and car dealerships announced that its recovery in new vehicles sales commencing in December was partly associated with the World Cup-related vehicles purchases. Also retail sector became a beneficiary, as retail spending rose by R million 0. Nonetheless these profits were observed in the cities hosting the events while retail businesses in other regions did not note additional incomes Marrs, It is interesting to add that some researchers i.
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Cottle postulated that net income of the national government is not the most accurate measure of the overall profitability of the World Cup due to disparities in estimated gross expenditures associated with the event. Instead, Cottle proposed to use taxation income in analysis.
In taxation income from the World Cup was estimated at R7. In fact, a taxation income amounted to R Although the taxation income was significantly higher than expected, the total expenditures grew at a faster pace.
Hence, the World Cup brought significant financial losses to the national government Cottle, Moreover, immediately aftermath the World Cup, the South African budget deficit started to grow constantly and currently amounts to South Africa belongs to the group of countries with the largest budget deficit, measuring budget deficit as a percentage of GDP. It is crucial to consider the employment stimulation in South Africa as a consequence of the World Cup.
According to the estimations, almost , jobs should be created due to the World Cup what was regarded as a big advantage of this mega event.