Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Qatar needs to judge economic merits of World Cup  Join our daily free Newsletter

MENAFN - The Peninsula - 17/08/2014
No. of Ratings : 0
Add to Mixx!

(MENAFN - The Peninsula) Qatar needs to judge the economic merits of hosting a major sport event like World Cup in a longer-term perspective. As a host country of 2022 World Cup, Qatar can draw useful lessons from the experience of former host countries like Brazil, QNB Group's analysts noted yesterday.

Available indicators of Brazil's economic activity during the 2014 FIFA World Cup are as dismal as the performance of its national team during the tournament. As a number of Brazilian host cities shut down on the days when matches were played, economic activity fell across the country. As a result, industrial production declined, capacity utilisation fell to near-record lows and inventories soared. The football-equivalent of these statistics is losing 7-1 to Germany (the eventual winner) before millions of global viewers.

"Judging by these short-term indicators, one may conclude that the World Cup was an economic failure. A longer-term perspective, however, is needed to judge the economic merits of hosting a major sporting event. This perspective could provide useful lessons for Qatar, where the 2022 World Cup will take place.", QNB said.

The long-term perspective starts years before the actual event itself. Hosting the World Cup requires major investments, not only in sporting facilities but also in general infrastructure such as roads, transportation network, hotels and services. These investments provide a major economic boost for many years with higher GDP growth. They also generate significant employment opportunities, which the host nation can fill either with their national population or by attracting a large wave of expatriates. Either way, the resulting increase in income provides a second-round boost to growth.

The infrastructure-building stage can help the economy grow faster for a few years up to the tournament. It is important, however, to transform this temporary economic boost into a permanent gain for the economy, lasting well beyond the sporting event. It is crucial in this respect to have a vision for the economy beyond the World Cup. Three issues are paramount in this respect.

First, the World Cup provides a clear milestone for the implementation of investment projects. Typically, the majority of these projects are not directly linked to the World Cup but are needed by the host country irrespective of the event. However, the World Cup provides a focal point and clear deadline for these investment projects to be completed.

Second, hosting an event like the World Cup can transform the image of the country resulting in long-term benefits. The event can increase global awareness of the host country and make it an attractive tourist destination for years beyond the event. The full assessment of the economic benefits of hosting the World Cup, therefore, requires investigating its long-term legacy. One of the success stories is the 1992 Olympic Games where the host city, Barcelona, used the event to transform itself into a major European tourist destination. The number of tourists visiting Barcelona increased from 1.7m in 1990 to 7.6m in 2013. The Barcelona experience clearly shows that a major sporting event can be used as a catalyst for economic transformation.

Third, hosting a major global event involving large projects requires detailed cost-benefit analysis, careful planning and sequencing, appropriate execution and monitoring as well as efficient governance over the projects. This helps avoid inefficient investment spending and cost overruns.

Qatar can draw useful lessons from the experience of countries and cities which hosted major sporting events. Qatar's economy has now entered a new diversification phase driven by large infrastructure spending and rapid population growth in preparation for the 2022 World Cup. This phase is just an interim milestone in the larger vision of establishing a knowledge-based economy as set out in the 2030 Qatar National Vision. In this sense, hosting the World Cup is a means to achieving a longer-term goal of modernising the Qatari economy.


The Peninsula

  MENA News Headlines
 Oct 9 2015 - Qatar- QSE falls 34 points, bullish phase continuesGulf Times
(MENAFN - Gulf Times) Qatar Stock Exchange failed to surpass the 11,800 mark as its key index lost 34 points, after being in a bullish phase for the last three consecutive sessions.Consumer goods, ...

 Oct 9 2015 - Saudi said to order spend curbs amid oil price slumpGulf Times
(MENAFN - Gulf Times) Saudi Arabia is ordering a series of cost-cutting measures as the slide in oil prices weighs on the kingdom's budget, according to two people with knowledge of the matter.The ...

 Oct 9 2015 - KSA- SABB Q3 profit rises 7.7% to $304mnGulf Times
(MENAFN - Gulf Times) Saudi British Bank (SABB), the kingdom's fifth-largest bank by assets, posted a 7.7% rise in third-quarter net profit yesterday, in line with analyst forecasts. The bank, an ...

 Oct 9 2015 - Qatar wealth fund said interested in Glencore agriculture unit saleGulf Times
(MENAFN - Gulf Times) The sovereign wealth fund of Qatar has joined investors expressing an interest in buying a minority stake in Glencore's agriculture business, according to three people familiar ...

 Oct 9 2015 - Almost 300 Europe-bound migrants arrested in LibyaGulf Times
(MENAFN - Gulf Times) Libyan authorities said almost 300 migrants, a third of them from Senegal, were arrested Thursday as they prepared to board boats for the Mediterranean crossing to Europe."After ...

 Oct 9 2015 - Netanyahu moves to lower tensions over holy siteGulf Times
(MENAFN - Gulf Times) Prime Minister Benjamin Netanyahu has banned Israeli cabinet ministers and legislators from visiting a sensitive Jerusalem holy site where rising tensions have spilled over into ...

 Oct 9 2015 - France carries out fresh strikes against IS in SyriaGulf Times
(MENAFN - Gulf Times) France said on Friday it had carried out a second wave of strikes overnight on Islamic State targets in Syria and accused Russia of failing to target the group."Two Rafale jets ...

 Oct 9 2015 - UN envoy proposes Libya unity governmentGulf Times
(MENAFN - Gulf Times) UN envoy Bernardino Leon proposed a Libyan unity government on Friday aimed at ending years of conflict, but the plan was quickly dismissed by members of the country's two rival ...

 Oct 9 2015 - Tunisian dialogue mediators win Nobel Peace PrizeGulf Times
(MENAFN - Gulf Times) Tunisia's National Dialogue Quartet won the Nobel Peace Prize on Friday for building democracy in the country after the 2011 revolution which unleashed the Arab Spring.The award ...

 Oct 9 2015 - Four Arabs stabbed in southern Israel, Jewish suspect heldGulf Times
(MENAFN - Gulf Times) Four Arabs were stabbed in a town in southern Israel on Friday and a Jewish suspect was arrested, police said. The attacks follow a surge in knife violence by Palestinians ...




Click to Apply


Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  

Middle East North Africa - Financial Network

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices


Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks

Saudi Arabia 

Economic Calendar
Financial Glossary

Financial Calculators

RSS Feeds [XML]

Corporate Monitor


Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters

© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help