South Africa unlikely to reap reward from World Cup

According to Informante, Dr. Orli Bass from the South African Human Sciences Research Council has highlighted however, that these same promises were made by several national governments in the past, including Spain in 1992, the United States in 1994 and Australia in 2000, in the lead up to hosting their respective sporting events.

Taking a closer look at the economic results of these three countries, it is apparent that barely one of these promises was realised.

In 1992, when the summer Olympic Games took place in Barcelona, transportation costs, food and service prices rose and jobs created in Barcelona as a result were only temporary. The USA placed much concern on their hosting of the World Cup in 1994.

The intended gain was in the vicinity of US$4 billion, however, in reality, the country netted a loss of close to US$9.3 billion. A closer look at the summer Olympic Games in Sydney 2000, shows the event offered temporary creation of employment while inducing several social problems including homelessness.

Housing costs also rose considerably in the months surrounding the event. The foreseen tourism boom in the years thereafter did not come to pass.

Another example of over zealous anticipation was the European Soccer Cup held in Switzerland and Austria earlier this year. The hiring of a single grand stand cost US$70,000.

The expected volume of beer consumption – promised by the government via statistical calculations – did not materialise, resulting in many stall-owners being forced to declare bankruptcy.