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
 Feb 13 2016 - Saudi Arabia to work on reducing emissionsMENAFN
(MENAFN) Saudi Arabia realizes the importance of renewable energy in the economic and social growth, and all people have the right to have reliable energy sources.Additionally, the fossil fuel will ...

 Feb 13 2016 - Germany to offer USD 566mn in credits to IraqMENAFN
(MENAFN) Germany will offer USD 566mn worth of credit to Iraq in order to help it with the sharp downturn in global oil prices and its will do it best.Furthermore, Germany will stabilize Iraq with ...

 Feb 13 2016 - Qatar's consumption will grow to 39.6 percentMENAFN
(MENAFN) Qatar's investments of its GDP increased to 39.6 percent in Q2 last year from 32.4 percent in 2014 on stable government capital spending.Moreover, the nation's consumption grew to 20.8 ...

 Feb 13 2016 - Suspected jihadist will not recover Swiss passportThe Journal Of Turkish Weekly
(MENAFN - The Journal Of Turkish Weekly) The Swiss Federal Criminal Court has upheld the decision of the Swiss Attorney General’s Office to confiscate the Swiss passport and identifying ...

 Feb 13 2016 - Turkey praises planned Syria cessation of hostilitiesThe Journal Of Turkish Weekly
(MENAFN - The Journal Of Turkish Weekly) Turkey has praised an agreement between major powers to cease hostilities in Syria to provide humanitarian aid as “an important step” toward ...

 Feb 13 2016 - Split over PYD continues between US TurkeyThe Journal Of Turkish Weekly
(MENAFN - The Journal Of Turkish Weekly) The split betweenAnkaraand Washington over the designation of the Syrian Kurdish Democratic Union Party (PYD) continues to rumble on though U.S. Secretary of ...

 Feb 13 2016 - Turkey to provide 1.5 million in health aid to GazaThe Journal Of Turkish Weekly
(MENAFN - The Journal Of Turkish Weekly) Turkey has said it has transferred $1.5 million to the WHO’s Palestine Representation in order to assist health institutions in Gaza. The announcement ...

 Feb 12 2016 - Turkey Iran to boost dialogue says diplomatThe Journal Of Turkish Weekly
(MENAFN - The Journal Of Turkish Weekly) Turkey and Iran have agreed to continue “enhancing dialogue” a Foreign Ministry official told Anadolu Agency on Friday. Umit Yalcin's remarks ...

 Feb 12 2016 - Turkish FM: Russian airstrikes rule out Syria cease fireThe Journal Of Turkish Weekly
(MENAFN - The Journal Of Turkish Weekly) Foreign Minister Mevlut Cavusoglu on Friday said peace could not be maintained in Syria unless Russia halts its airstrikes. Speaking to the media ahead of ...

 Feb 12 2016 - CIA: Islamic State has chemical weaponsThe Journal Of Turkish Weekly
(MENAFN - The Journal Of Turkish Weekly) The director of the Central Intelligence Agency said Islamic State fighters in Syria have used chemical weapons. John Brennan said there are a number of ...

more...


 






Google

Click to Apply

 
 

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