South Africa was awarded the honor of hosting the 2010 World Cup six years ago and since the announcement was made South Africans have been working industriously to get ready. Important injections to the infrastructure of the country have seen world-class stadiums being built, promotion of the country’s beauty and culture to encourage tourism and further economic benefits, as well as hope for healing and uniting a nation.
Economic Growth in South Africa
Hosting World Cup has meant the need for 10 new soccer stadiums to be built or renovated in South Africa. The project has been likened to the building of the pyramids, with 11 million bricks, 80,000 cubic meters of concrete and 16,000 tonnes of steel being used. Johannesburg is the country’s hub and the ‘City of Gold’ is home to Ellis Park Stadium which is no stranger to hosting epic sporting events as the final of the FIFA Confederations Cup in 2009 between Brazil and the United States was held at these grounds. The stadium can seat approximately 62,000 fans which is an increase of 9% for the stadium which was first built in 1928 for rugby union. The most memorable game for South Africans would have to be when their rugby team played and beat the New Zealand team in the 1995 Rugby World Cup, not long after South Africa was allowed to compete on the world stage. It was at this game at Ellis Park Stadium that Nelson Mandela proudly held the trophy aloft and the epic moment was cemented in the country’s history.
The Mbomela Stadium in Nelspruit was purpose-built for the 2010 World Cup and acknowledges the safari heritage of the region with jarrah shaped towers and zebra patterned seating. The name of the stadium literally means many people together in a small space but the space is not so small, seating 44,000 people.
The Durban Stadium is also a new structure and takes its design inspiration from the South African flag, as it has a 350 m long arch which represents the unity of the nation, and the two legs of the arch on the southern side of the stadium come together to form a single footing on the northern side which symbolizes the new, united direction of a previously divided country. The 70,000 seat is a multipurpose venue as it also has a cable car which can take visitors to a viewing platform 106 m above the pitch where they can enjoy panoramic views of the city and the shoreline and even take a rope swing back down from the arch.
Port Elizabeth now bears the name of its most famous resident and is now better known as Nelson Mandela Bay. The Nelson Mandela Bay Stadium sits on the shore of the city’s north end late and competes vehemently with its scenic location to catch your eye; the roof design is made up of a series of white petals and though the stadium is the first football dedicated ground in the city or surrounding areas it will host a World Cup games including the third place match and the fourth quarter finals.
The Free State Stadium was originally built in 1952 as a rugby venue but had some major renovations to get it ready for the FIFA confederations cup 2009. The stadium now seats 45,000 people and is the home ground for some of South Africa’s most passionate supporters.
The Loftus Versfeld Stadium it is one of the oldest sporting structures in South Africa, hosting games since 1903. Matches for the 1995 Rugby World Cup and the 1996 Africa Cup of Nations were hosted at the grounds, which have also been performing stages for concerts and stars such as Robbie Williams and Celine Dion.
Rustenburg does not have its own Premier League team at their Royal Bafokeng Stadium has hosted many Premier soccer league games, games for the Confederations Cup and has been upgraded to see almost 45,000 people in time for the 2010 World Cup.
Green Point Stadium is another new venue and is located in Cape Town. If you are able to secure tickets to games at this sought-after venue you will be just minutes from the centre of the city, or the stunning oceans, having the majestic mountain backdrop with you all the way.
The Peter Mokaba Stadium is named for one of the most well-known champions of the country’s struggle against apartheid. A new structure has been built next to the old stadium in Polokwane, to resemble the local baobab tree, having the steel structure which supports the roof pain gathered together at each corner of the stadium and supported by giant trunk like structures. The new stadium now seats over 45,000 people.
National Branding
For the host country the World Cup is about more than just football, it is an opportunity to promote their most important brand to the world, themselves. After the 2006 World Cup in Germany the country’s foreign tourism bookings increased by 31%, unemployment dropped by 29%, consumer confidence was the highest it has been in the country since 1980, investor confidence was also at its highest since the country’s reunification in 1990, Germany’s exports were up 14% putting it into a leading position as an export nation. Chancellor Angela Merkel also benefited from the World Cup as her approval ratings were 79% in September 2007, the highest rating of any German chancellor since the war.
The benefits and accolades for Germany kept on coming as Time magazine titled its August 2007 edition The Second Economic Miracle, which economists had been discussing regarding Germany, and in German’s biggest weekly magazine The Speigel, Germany’s brand image was quoted as going ‘From Humourless to Carefree in 30 Days’. Tony Blair was also quoted in saying ‘a new, positive and more fair image of Germany’ had been presented to the world and Britain’s Times agreed with their Prime Minister saying ‘never mind the final, Germans are the real World Cup winners’.
So what does all of this means for South Africa? The benefits that Germany were not isolated as it has been estimated for each person who attends the World Cup, another 150 people will be indirectly influenced and their perceptions of the host country changed by word of mouth from those visitors when they return home. For Germany who had an estimated 2 million visitors that meant an audience of over 300 million people all being influenced by the most powerful form of advertising there is – word-of-mouth.
Jobs and Economic Growth
In real figures all of this word-of-mouth advertising is expected to generate R93 billion for South Africa and 62% of that is expected to be generated before 2010, and 38% during the course of the year, where foreign tourism will account for 16% of the gross impact. GDP growth for 2010 in South Africa is expected to be around 2 to 2.5% and the net additional economic impact is expected to be 0.54% which is a significant percentage to be attributed to just one event.
Sustainable employment for South Africans has also been measured and the number of annual jobs sustained is 695,000 which is an important figure as this is not just new jobs which have been created but employment which can be sustained in the lead up to the event and throughout 2010. The benefits to employment will also continue long after the World Cup as South Africans are aware that the increase in the profile and the promotion of their country will produce further economic activity in the future.
Tourism
Attracting over 3 million tourists to your country is any promoter’s dream and that is the number South Africa is expecting for the World Cup. This is 40% more than the average annual number of tourists, all of whom are now coming for just one event, giving real hope that all of the money and time being spent to ready South Africa from the World Cup will be justified in follow-on promotions and spending.
However there is only so much that South Africa can do in the lead up to the World Cup because once the tournament begins it is up to their national team to do well, to rally the country, to inspire the people and make sure everyone is invested in their national pride.
This article was written by Timothy Ng who is a regular personal finance writer and part of the team at Credit Card Finder, a 100% free Australian credit card comparison and application service. Visit the Credit Card Finder website for more information, or subscribe to their RSS feed for more practical articles.
 By The Weakonomist |
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