The financial winners and losers from the World Cup
The 16 host cities in the U.S., Canada and Mexico are welcoming an influx of fans and tourists, boosting hospitality, hotels and local businesses.
But while Scots are drinking up Boston and winning the hearts of the city and its people, experts say the long-term economic benefits are minimal.
FIFA estimated that approximately $41 billion would be added to the global economy, $17 billion of which would stimulate the U.S. economy alone and create 185,000 jobs, mostly in the hospitality and accommodation sectors.
But Alexander Budzier, an expert in management practice at the University of Oxford and managing director of project management firm Oxford Global Projects, says the long-term economic benefits of hosting such a major sporting event have yet to be realised.
Host cities often see a big drop in visitors, he says, as many people try to avoid tournament chaos.
He argues that while there has been an increase in hiring, this generally applies to low-wage jobs in the hospitality industry. “It creates jobs, but it doesn’t create wealth,” he says.
Official figures show hiring at bars, pubs and restaurants in the US increased ahead of the tournament in May, but the uptick was short-lived.
The only “valuable” economic benefit, according to Budzier, is the regeneration projects that could be built, such as the redevelopment and housing built in Stratford in London following the 2012 Olympic Games.
But “there will be no economic benefit from the development” as much of the World Cup will use existing stadiums, hotels, training complexes and travel infrastructure.
