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 respectto 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
 Jun 28 2016 - US dollar stable against Kuwaiti dinar at KD 0.301, euro rises to KD 0.334Kuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) KUWAIT, June 28 (KUNA) -- The US dollar on Tuesday stabilized against the Kuwaiti dinar at KD 0.301, as the euro rose to KD 0.334, compared to Monday''s trades, ...

 Jun 28 2016 - Kuwait- His Highness Premier Sheikh Jaber Al-Mubarak hosts outgoing Armenian ambassadorKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) KUWAIT, June 28 (KUNA) -- His Highness the Prime Minister Sheikh Jaber Al-Mubarak Al-Hamad Al-Sabah received on Tuesday the outgoing Armenian Ambassador to the ...

 Jun 28 2016 - 8 wounded in Turkey car blastKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) ISTANBUL, June 28 (KUNA) -- A booby-trapped car blew up in Diyarbakr in southeastern Turkey on Tuesday wounding at least eight persons, the Ekhlas news agency ...

 Jun 28 2016 - Juncker calls on Cameron to clarify situationKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) BRUSSELS, June 28 (KUNA) -- President of the European Commission Jean-Claude Juncker said here Tuesday that he will ask British Prime Minister David Cameron ...

 Jun 28 2016 - French shares rebound strongly after early steep lossesKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) PARIS, June 28 (KUNA) -- Share prices on the Paris Stock Exchange rebounded strongly by almost 3.0 percent in morning trading Tuesday, following a lost of nearly ...

 Jun 28 2016 - Kuwait Foreign Ministry condemns bombings in LebanonKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) KUWAIT, June 28 (KUNA) -- The Foreign Ministry on Tuesday expressed strong condemnation of the terrorist blasts that occurred close to the Lebanese custom ...

 Jun 28 2016 - Kuwait's Al-Najat Charity offers Eid aid to Syrian refugees in JordanKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) AMMAN, June 28 (KUNA) -- Kuwait-based Al-Najat Charity on Tuesday started offering relief aid to Syrian refugees in Jordan for the Muslim holy fasting month of ...

 Jun 28 2016 - Jerusalem holy site closed to non-Muslims after violenceThe Peninsula
(MENAFN - The Peninsula) Israeli security forces stand guard at the entrance of theAl-Aqsamosque compound in Jerusalem''s Old City, on June 27, 2016, following a second day of clashes between Israeli ...

 Jun 28 2016 - Suicide bomber kills nine at Iraq Sunni mosque: officialsThe Peninsula
(MENAFN - The Peninsula) Baghdad:A suicide bomber detonated explosives at a Sunni mosque near Baghdad where worshippers were gathered for prayers, killing at least nine people, officials said ...

 Jun 28 2016 - Assad's uncle charged in Paris with corruption: anti-graft groupThe Peninsula
(MENAFN - The Peninsula) Paris:Paris prosecutors have charged the uncle of Syrian President Bashar al-Assad with corruption, an anti-graft group said Tuesday. Rifaat al-Assad, 78, who was ...

more...


 





Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

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

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

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