Description
This is a presentation explains economic effect of world cup on South africa.
Economic effect of world cup on Republic of South Africa
CONTENTS:
• • • • • 1. History of fifa world cup 2. Fifa world cup 2010 3. Preparations 4. Problems faced 5. What will the world cup do for south african economy? • 6. Forecast • 7. Event effects • 8. Economic impact
HISTORY
• FIFA’s history began in 1928 when its Jules Rimet decided to stage an international football tournament. • The inaugural event was held in 1930 in Uruguay and 13 teams participated in it. • By the end, the host nation won through and became the first team to lay hands on the coveted trophy, then known as Victory or simply as the World Cup.
HISTORY
• In the second edition in Italy four years later, i Thirty-two countries took part in a qualifying round to determine the 16 finalists – and once again, the hosts carried off the honors. • If all good things really come in threes, hosts France should have won the third FIFA World Cup finals. But it was not to be: the French made it to the quarter-finals but were beaten by holders ITALY.
HISTORY
• The grim events of the Second World War meant a 12-year gap until the cream of the world game gathered again in 1950. • The starting field in Brazil for the 1950 finals again numbered just 13 nations. Following a league-based preliminary round, Brazil, Sweden, Spain and Uruguay played off for the trophy.
HISTORY
• Germans refer to the events of four years later as 'The Miracle of Berne', as West Germany went to Switzerland in 1954 and beat the seemingly invincible Hungarians 3-2 in the Final. • In terms of innovation, the 1954 tournament was the first time fixed squad numbers were assigned to all players.
HISTORY
• The Asian Confederation was founded that very year and entered teams from Japan and Korea, with Egypt representing Africa in the first truly global edition of the event. • Sixteen teams earned the right to compete in Switzerland, and this was the size of the starting field right through until the 1982 finals in Spain, when it rose to 24.
2010 FIFA WORLD CUP – SOUTH AFRICA
2010 FIFA World Cup
• The 2010 FIFA World Cup was the 19th FIFA World Cup. • It took place in South Africa from 11 June to 11 July 2010. • The bidding process for hosting the tournament finals was open only to African nations in 2004, the international football federation, FIFA, selected South Africa over Egypt and Morocco to become the first African nation to host the finals
2010 FIFA World Cup
• The matches were played in ten stadiums in nine host cities. • Thirty-two teams were selected for participation via a worldwide qualification tournament that began in August 2007. • In the final, Spain, the European champions, defeated third-time finalists the Netherlands 1– 0.
2010 FIFA World Cup
• The first time that a European nation has won the tournament outside its home continent. • Host nation South Africa, 2006 world champions Italy and 2006 runnersup France were eliminated in the first round of the tournament.
Preparations
• Five new stadiums were built for the tournament, and five of the existing venues were upgraded. • Construction costs were expected to be R8.4 billion (just over US$1 billion.) • South Africa also improved its public transport infrastructure within the host cities, including Johannesburg's Gautrain and other metro systems, and major road networks were improved.
Preparations
• The country implemented special measures to ensure the safety and security of spectators in accordance with standard FIFA requirements, including a temporary restriction of flight operation in the airspace surrounding the stadiums. • At a ceremony to mark 100 days before the event, FIFA president Sepp Blatter praised the readiness of the country for the event.
Construction strike
• On 8 July 2009, 70,000 construction workers who were working on the new stadiums walked off their jobs. • The majority of the workers receive R2500 per month (about £192, €224 or US$313), but the unions alleged that some workers were grossly underpaid. • The strike was swiftly dealt with and workers were back at work within a week of it starting
Lack of air traffic control
• There may be no greater test of the logistics at South Africa 2010 than those on match day at the airport in Polokwane. • It is an example of how the country has benefited from the World Cup: the main building has been rebuilt, which would not have happened otherwise, but the new building is not remotely large enough to cater for World Cup traffic. • Polokwane, formerly known as Pietersburg
Continue
• At present, the airport's daily traffic involves the arrival and departure of four 30-seat planes. Because airport traffic is counted only one way, Polokwane airport is used at most, therefore, by 120 people. The daily average is 100. • During the World Cup, however, this could increase a hundred-fold. At its peak, on match days, in Polokwane a procession of 20 Boeing 737s will come and go. At a minimum, 7,500 people will disembark every day; at most it will be 12,500.
Development
• A trust fund is to be formed to oversee the money that FIFA gives to South Africa following its successful hosting of the first FIFA World Cup on African soil, to ensure that the money goes towards football development in the country. • Addressing a media briefing in Johannesburg FIFA secretary-general Jerome Valcke said the fund would be jointly managed by FIFA and SAFA.
Problems faced
• FIFA’s much-criticised policy of creating exclusion zones around stadiums, where only its partners and sponsors could trade, was counterproductive. It created bad feeling among South Africans. • Sao Paulo's stadium troubles - it doesn't have one fit for the World Cup in FIFA's eyes.
Accommodation
• Fans travelling to the World Cup finals in South Africa next year will find that the host nation is so pushed for accommodation that they may be encouraged to base themselves in neighbouring countries. • South Africa's lack of hotels means that a system will also be incorporated whereby fans are billeted in local family homes. • A further plan is to push for use of hotels in tourist areas that are not near World Cup venues and bus in supporters from afar.
Transport issues
• A further plan is to push for use of hotels in tourist areas that are not near World Cup venues and bus in supporters from afar. • Travel information was also woeful, with fans having no idea how to get to and from stadiums. • In the first week of matches, swathes of seats at Soccer City and Ellis Park were left empty at kick-off as supporters struggled to reach their seats – despite turnstiles being opened four hours before games.
Fifa fan fests
• The FIFA Fan Fests dotted around the host cities in South Africa were well organised and well attended. • At the huge gathering points, there was decent catering, themed pre-match entertainment, sponsors tents, official fan merchandise products on sale and a lively atmosphere.
SECURITY
• The problem of outsourcing security to private firms was revealed in the opening week of the 2010 tournament when the company stewarding four of the stadiums was riven by an industrial dispute that saw rounds of plastic ammunition fired at protesters. • After years of bickering with foreign critics over South Africa’s security record as the nation braces for the Africa’s biggest sporting event this summer, the authorities have finally admitted, for the first time, “there are security problems”.
Security
• A Fifa source told APA in London that South Africa has spent more than £100 million on extra security for the tournament, including buying patrol helicopters and water cannon, and equipping police with firearms. • Many have warned that the country cannot go it alone, suggesting a joint effort from the international community to boost safety before the tournament begins this summer.
2010 world cup legacy
While the televised soccer matches will provide the country with unprecedented global attention, what will the tournament mean for South Africa's economy?
Economic effects
• Generally speaking, the World Cup is unlikely to provide a significant immediate boost to the nation's economy. • However, given the massive amount of money the government has spent to build Cup-related infrastructure lasting benefits may accrue – in the form of increased foreign investment and more permanent jobs, among others,- well beyond the end of the games. • UBS research also indicated that the three previous World Cup hosting-countries saw their GDP grow by 1.8% on average during the year of the tournament
Economic effects
• According to Marie Antelme, an analyst for UBS in Cape Town,South Africa emerged from recession in the third quarter of 2009; and real GDP growth accelerated to 4.6% in the first quarter of 2010 from 3.2% in the fourth quarter of last year. • However, unemployment remains high, having climbed to more than 25% in the first quarter of 2010, with over 800,000 jobs lost since the year-ago period. • Antelme notes that the World Cup's economic cost/benefit spans the last 4 years, from when construction started on the first stadium in September 2006. • The government has spend over 40-billion Rand on stadia and associated transport
FORECASTS
• World Cup Impact still MASSIVE – 695,000 Jobs sustained • Staying longer, spending more – 373,000 tourists • Economic growth impact - R93-billion
Event Effects
• • • • • • • Social Resettlement and eviction Economy Broadcasting Filming Video games FIFA Fan Fest
Impact on Economy
Year
Mar
Jun
Sep
Dec
2010
2009 2008
4.60
-7.40 2.50
3.20
-2.80 5.50 0.90 1.30 3.20 -0.70
The World Cup Effect
• • • • • Help in narrowing the deficit Spending Afro-pessimism misplaced WC creates 50 000 permanent jobs South African ad economy gets $200m boost
Problems Faced by the South African Economy
• • • • • • High rate of Unemployment High rate of Poverty Crime Corruption Instability of the domestic currency Influx of refugees
Thank You
doc_941275818.pptx
This is a presentation explains economic effect of world cup on South africa.
Economic effect of world cup on Republic of South Africa
CONTENTS:
• • • • • 1. History of fifa world cup 2. Fifa world cup 2010 3. Preparations 4. Problems faced 5. What will the world cup do for south african economy? • 6. Forecast • 7. Event effects • 8. Economic impact
HISTORY
• FIFA’s history began in 1928 when its Jules Rimet decided to stage an international football tournament. • The inaugural event was held in 1930 in Uruguay and 13 teams participated in it. • By the end, the host nation won through and became the first team to lay hands on the coveted trophy, then known as Victory or simply as the World Cup.
HISTORY
• In the second edition in Italy four years later, i Thirty-two countries took part in a qualifying round to determine the 16 finalists – and once again, the hosts carried off the honors. • If all good things really come in threes, hosts France should have won the third FIFA World Cup finals. But it was not to be: the French made it to the quarter-finals but were beaten by holders ITALY.
HISTORY
• The grim events of the Second World War meant a 12-year gap until the cream of the world game gathered again in 1950. • The starting field in Brazil for the 1950 finals again numbered just 13 nations. Following a league-based preliminary round, Brazil, Sweden, Spain and Uruguay played off for the trophy.
HISTORY
• Germans refer to the events of four years later as 'The Miracle of Berne', as West Germany went to Switzerland in 1954 and beat the seemingly invincible Hungarians 3-2 in the Final. • In terms of innovation, the 1954 tournament was the first time fixed squad numbers were assigned to all players.
HISTORY
• The Asian Confederation was founded that very year and entered teams from Japan and Korea, with Egypt representing Africa in the first truly global edition of the event. • Sixteen teams earned the right to compete in Switzerland, and this was the size of the starting field right through until the 1982 finals in Spain, when it rose to 24.
2010 FIFA WORLD CUP – SOUTH AFRICA
2010 FIFA World Cup
• The 2010 FIFA World Cup was the 19th FIFA World Cup. • It took place in South Africa from 11 June to 11 July 2010. • The bidding process for hosting the tournament finals was open only to African nations in 2004, the international football federation, FIFA, selected South Africa over Egypt and Morocco to become the first African nation to host the finals
2010 FIFA World Cup
• The matches were played in ten stadiums in nine host cities. • Thirty-two teams were selected for participation via a worldwide qualification tournament that began in August 2007. • In the final, Spain, the European champions, defeated third-time finalists the Netherlands 1– 0.
2010 FIFA World Cup
• The first time that a European nation has won the tournament outside its home continent. • Host nation South Africa, 2006 world champions Italy and 2006 runnersup France were eliminated in the first round of the tournament.
Preparations
• Five new stadiums were built for the tournament, and five of the existing venues were upgraded. • Construction costs were expected to be R8.4 billion (just over US$1 billion.) • South Africa also improved its public transport infrastructure within the host cities, including Johannesburg's Gautrain and other metro systems, and major road networks were improved.
Preparations
• The country implemented special measures to ensure the safety and security of spectators in accordance with standard FIFA requirements, including a temporary restriction of flight operation in the airspace surrounding the stadiums. • At a ceremony to mark 100 days before the event, FIFA president Sepp Blatter praised the readiness of the country for the event.
Construction strike
• On 8 July 2009, 70,000 construction workers who were working on the new stadiums walked off their jobs. • The majority of the workers receive R2500 per month (about £192, €224 or US$313), but the unions alleged that some workers were grossly underpaid. • The strike was swiftly dealt with and workers were back at work within a week of it starting
Lack of air traffic control
• There may be no greater test of the logistics at South Africa 2010 than those on match day at the airport in Polokwane. • It is an example of how the country has benefited from the World Cup: the main building has been rebuilt, which would not have happened otherwise, but the new building is not remotely large enough to cater for World Cup traffic. • Polokwane, formerly known as Pietersburg
Continue
• At present, the airport's daily traffic involves the arrival and departure of four 30-seat planes. Because airport traffic is counted only one way, Polokwane airport is used at most, therefore, by 120 people. The daily average is 100. • During the World Cup, however, this could increase a hundred-fold. At its peak, on match days, in Polokwane a procession of 20 Boeing 737s will come and go. At a minimum, 7,500 people will disembark every day; at most it will be 12,500.
Development
• A trust fund is to be formed to oversee the money that FIFA gives to South Africa following its successful hosting of the first FIFA World Cup on African soil, to ensure that the money goes towards football development in the country. • Addressing a media briefing in Johannesburg FIFA secretary-general Jerome Valcke said the fund would be jointly managed by FIFA and SAFA.
Problems faced
• FIFA’s much-criticised policy of creating exclusion zones around stadiums, where only its partners and sponsors could trade, was counterproductive. It created bad feeling among South Africans. • Sao Paulo's stadium troubles - it doesn't have one fit for the World Cup in FIFA's eyes.
Accommodation
• Fans travelling to the World Cup finals in South Africa next year will find that the host nation is so pushed for accommodation that they may be encouraged to base themselves in neighbouring countries. • South Africa's lack of hotels means that a system will also be incorporated whereby fans are billeted in local family homes. • A further plan is to push for use of hotels in tourist areas that are not near World Cup venues and bus in supporters from afar.
Transport issues
• A further plan is to push for use of hotels in tourist areas that are not near World Cup venues and bus in supporters from afar. • Travel information was also woeful, with fans having no idea how to get to and from stadiums. • In the first week of matches, swathes of seats at Soccer City and Ellis Park were left empty at kick-off as supporters struggled to reach their seats – despite turnstiles being opened four hours before games.
Fifa fan fests
• The FIFA Fan Fests dotted around the host cities in South Africa were well organised and well attended. • At the huge gathering points, there was decent catering, themed pre-match entertainment, sponsors tents, official fan merchandise products on sale and a lively atmosphere.
SECURITY
• The problem of outsourcing security to private firms was revealed in the opening week of the 2010 tournament when the company stewarding four of the stadiums was riven by an industrial dispute that saw rounds of plastic ammunition fired at protesters. • After years of bickering with foreign critics over South Africa’s security record as the nation braces for the Africa’s biggest sporting event this summer, the authorities have finally admitted, for the first time, “there are security problems”.
Security
• A Fifa source told APA in London that South Africa has spent more than £100 million on extra security for the tournament, including buying patrol helicopters and water cannon, and equipping police with firearms. • Many have warned that the country cannot go it alone, suggesting a joint effort from the international community to boost safety before the tournament begins this summer.
2010 world cup legacy
While the televised soccer matches will provide the country with unprecedented global attention, what will the tournament mean for South Africa's economy?
Economic effects
• Generally speaking, the World Cup is unlikely to provide a significant immediate boost to the nation's economy. • However, given the massive amount of money the government has spent to build Cup-related infrastructure lasting benefits may accrue – in the form of increased foreign investment and more permanent jobs, among others,- well beyond the end of the games. • UBS research also indicated that the three previous World Cup hosting-countries saw their GDP grow by 1.8% on average during the year of the tournament
Economic effects
• According to Marie Antelme, an analyst for UBS in Cape Town,South Africa emerged from recession in the third quarter of 2009; and real GDP growth accelerated to 4.6% in the first quarter of 2010 from 3.2% in the fourth quarter of last year. • However, unemployment remains high, having climbed to more than 25% in the first quarter of 2010, with over 800,000 jobs lost since the year-ago period. • Antelme notes that the World Cup's economic cost/benefit spans the last 4 years, from when construction started on the first stadium in September 2006. • The government has spend over 40-billion Rand on stadia and associated transport
FORECASTS
• World Cup Impact still MASSIVE – 695,000 Jobs sustained • Staying longer, spending more – 373,000 tourists • Economic growth impact - R93-billion
Event Effects
• • • • • • • Social Resettlement and eviction Economy Broadcasting Filming Video games FIFA Fan Fest
Impact on Economy
Year
Mar
Jun
Sep
Dec
2010
2009 2008
4.60
-7.40 2.50
3.20
-2.80 5.50 0.90 1.30 3.20 -0.70
The World Cup Effect
• • • • • Help in narrowing the deficit Spending Afro-pessimism misplaced WC creates 50 000 permanent jobs South African ad economy gets $200m boost
Problems Faced by the South African Economy
• • • • • • High rate of Unemployment High rate of Poverty Crime Corruption Instability of the domestic currency Influx of refugees
Thank You
doc_941275818.pptx