Business/Economic Impact of a Country Hosting the World Cup - Essay Example

Conclusion The assessment of the economic importance of the World Cup to a host its region and country has become a significant feature of the complete estimation of the value or worth of hosting the prestigious event. For instance, the ability of event promoters to obtain public funds often hinges on convincing a sometimes cynical public that hosting the event produces economic profit. It is crucially important therefore that the host city and the organizing committee are knowledgeable of the measure of economic benefits that hosting the World Cup may bring.

The influence of the World Cup on the economy of a host nation has increased remarkably since the global media explosion. The net advantages are observed to be positive and extensive relative to the investment in the bidding process. Many estimates indicate that huge progress in employment and an increase in economic growth result. Globalization has placed considerable stress on the importance of Foreign Direct Investment as well, especially to developing countries. In addition, tourism and advertising revenues created by mega-events such as the World Cup have become a principal expansion to the economies of hosting nations.

The hotel and catering industry have usually seen additional earnings of hundreds of million dollars. Likewise, it is estimated that the previous World Cups created thousands jobs for the host nations, with a huge portion of those remaining after the tournament ends. Hence, cities hosting matches have seen the money, publicity, and fame of the World Cup translate into earnings and improve the actual signs of an economic recovery even farther.However, organizing the World Cup, the world’s second biggest sporting tournament, is a potentially high-priced affair as well.

Interested hosts should consider with caution whether the award of the World Cup is a prestige or a strain. Past experience shows that hosting the World Cup may not immediately be the profitable Holy Grail organizers often anticipate, at least not immediately. The previous experiences of past hosts show that countries are about as probable to see lower economic growth in the year of the World Cup as they are to see higher growth. In the years directly after the World Cup, however, the economies of host countries have performed more advantageously on the average.

There is also sufficient reason to believe that the World Cup might have significant non-monetary benefits to the hosts as well as to the rest of the world. Because soccer evidently is a global sport with global viewers measured in the billions, it is difficult to underestimate the powerful impact of a common experience and the potential for the games to promote cross-cultural interaction and understanding. The vision that each country has an opportunity to participate, through regional qualifiers to perhaps reach the final competition, is one of involvement and respect that can bring nations together through healthy competition.

While the global sport may not have a flawless record, it does remind us that not everything of value can be measured in dollars, yen, or euros.Countries energetically compete to host sports mega-events because they recognize that doing so will boost their image and vitalize their economies. Nevertheless, host cities and countries would be well advised to more carefully assess promises of a financial fortune from hosting a huge sports tournament such as the World Cup before investing significant public resources to such an event.

Works CitedBaade, Robert, Victor Matheson, and James Vail. The Quest for the Cup: Assessing the Economic Impact of the World Cup. Wake Forest, Il.: Lake Forest College, 2003. 10 November 2008 .