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The Impact of the FIFA WC on South African Tourism

Essay 2011 10 Pages

Health - Sport - Sport Economics, Sport Management

Excerpt

A. Contents

I. Introduction

II. Importance of tourism for SA economy

III. Experiences from previous FIFA WCs

IV. Direct Effects on SA tourism

V. Indirect Effects on SA tourism

VI. Conclusion and Outlook

B. References

I. Introduction

The FIFA[1] World Cup (WC) is one of the biggest sports events worldwide and the right to host one of them is a highly sought-after. The reasons for that are not only the excitement of the event and the media exposure of the host nation but also the promise of lasting effects on the country´s economy. So, host nations and cities are expecting net gains from events like the FIFA WC (Bohlmann 2006). One important type of these possible effects is the attraction of tourists to the country (Allmers/Maennig 2009). This is especially the case for South Africa whose tourism industry is growing to a cornerstone of the SA economy and to one of the largest employers of the country (Rogerson 2009).

Prior to the WC numerous predictions about the actual effects on the economy and the tourism in special were developed (Allmers/Maennig 2009, Bohrmann 2006). Next to the direct effects respectively the tourists arriving during the world cup some studies also predict a legacy effect of the WC which increases the tourist arrivals afterwards (Fourie/Santana-Gallego 2010). Hence, this essay will analyze the actual effects of the FIFA WC 2010 on the South African tourism industry compared to the predictions during the event and afterwards.

The essay first outlines the importance of the tourism industry for the South African economy. Afterwards it takes a look at the research about the impacts of previous world cups and sports mega events in general before the direct effects of the world cup are examined and compared to the predictions. It is revealed that none of the partially very optimistic predictions could be reached. An analysis of the indirect or legacy effects of the world cup follows. Even if it is too early to measure long run effects it is shown that a strong effect on overseas tourism can be expected.

II. Importance of tourism for SA economy

South Africa enjoys high popularity as a tourist destination. In 2010 more than 8 million tourist[2] arrivals were counted of which 2.2 million were contributed by the highly profitable overseas tourists from Europe, America, Asia and Australia (Statistics SA 2011). The numbers of tourists are nearly consistently rising since the first democratic elections in SA in 1994. The tourism industry contributed R194.5 billion to the country´s GDP in 2009 (South African Tourism 2010) and is one of the most important industries in the SA.

With more than one million direct and indirect employees in 2008 the tourism industry is also one of the country´s largest employers. The government has acknowledged that and especially supports the creation of small, medium and micro enterprises (SMMEs) in the tourism industry because those are supposed to have the largest employment effects (Kirsten/Rogerson 2002). These efforts continued for the WC (Rogerson 2009).

Regarding the ongoing growth of tourist arrivals in SA it can be argued that South Africa has a significant comparative advantage in providing tourism services. This advantage is based on the wide variety of tourist attractions that South Africa offers. It ranges from beautiful beaches over wildlife reserves and magnificent country sides to urban metropolises with wide cultural varieties. Though, tourists from the most profitable developed countries in Europe, North America and Asia have to overcome the geographic hurdle of the long distances to South Africa. So the expense for a flight is a precondition to enjoy SA as a tourist destination and probably holds back a higher potential of overseas tourists.

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[1] Fédération Internationale de Football Association

[2] Tourist defined as a person travelling to a place other than his/her usual environment for a time less than 12 months and staying at least one night in collective or private accommodation in the place visited.

Details

Pages
10
Year
2011
ISBN (eBook)
9783656334774
ISBN (Book)
9783656335245
File size
561 KB
Language
English
Catalog Number
v201890
Institution / College
Stellenbosch Universitiy – Economics
Grade
70/100
Tags
impact fifa south african tourism

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Title: The Impact of the FIFA WC on South African Tourism