Hosting a major event like FIFA world
cup is an incredible achievement for any country. Every event of such stature
is capable of creating a difference in economical, social and psychological
terms.
Let us find out some very
important impacts that FIFA WC would make on Brazil:
FIGURES THAT MAKES AN IMPACT:
-Economy will produce an additional
of R$ 142 billion (Rs. 3862962146106.80) between 2010 and 2014.
- 3.63 million jobs per year between 2010
and 2014 and R$ 63.48 billion of income for the population.
-The production will result into
tax collection of R$ 18.13 billion by Govt.
-Brazilian Gross Domestic Product
(GDP) is estimated at R$ 64.5 billion for the period 2010-2014 – an amount equivalent
to 2.17% of estimated GDP for 2010, namely R$ 2.9 trillion.
A BIG OPPORTUNITY i.e. TOURISM:
-The other impact Brazil would
see is TOURISM INFLOW. Increased no. of tourists will boost spending. An event
with such profile attracts tourists’ inflow; not only directly, with fans who
will watch the games, but also indirectly, as a result of the international
media exposure.
Brazil has not exploited the
tourism adequately due to its declining quality of facilities and stagnated inflow
of tourism. Hosting world cup is an opportunity to provide the adequate and
attract the tourism with a fresh bow.
As per some studies, the event
may result in an increase of up to 79% in the international tourist inflow to
Brazil in 2014, with even possibly higher impacts in subsequent years. In the
period 2010-2014, that figure should be as high as 2.98 million additional
visitors. The tourist inflow directly
and indirectly induced by the World Cup is expected to account for additional
income up to R$ 5.94 billion for Brazilian companies.
Here is graph depicting the tourists
spending between the period 2010-2014
The World Cup may put an end to Brazil’s five-year stagnant foreign
tourist inflow, from current 5 million to 7.48 million until 2014 and 8.95
million in 2018.
Here are some investments that
Brazil has made for the event to run it smoothly, which may uplift the socioeconomic
status of workers.
- Building and renovation of sports stadiums
-
Expansion and adequacy of the hotel
complex
-
Investments in media and
advertising
-
Investments in information
technology
-
Implementation of media and broadcasting
centers (IMCs and IBC)
Some economists are not sure
about the immediate impact of world cup on BRAZIL’s economy. But they are convinced
about its long term impact. Brazil is set to host 2016 OLYMPIC GAMES as well,
so it is win-win situation for the country.
"The net gains… will be substantial, but they are unlikely to be
realized during the event; the gains will come in the years following the event
and will be indirect," said Walter Boettcher, chief economist at Colliers
International.
"Playing host will immediately raise the global profile of a country and
might even change perceptions of the host nation, resulting in increased
tourism and political benefits and alliances, but accrue over many years,"
said added Boettcher.
"The World Cup will act as a giant advertisement for Brazil and its host
cities, showcasing them as places in which to invest, visit and live,"
he added.
CHALLENGES FOR BRAZIL:-
- Energy
- Arterial transport (highways, airports etc.)
- Event infrastructure (stadiums, IBC/IMCs,
Fan Parks)
- Hospitality system
- Safety
- Urban planning (public utility services, urban operations, quality of
city streets, public transportation, operations under adverse conditions)
- Support services (food, taxi, communications, health and retail)
-To sustain the success of an
event means development of people, communities and result into social
integration. Brazil is struggling of many social threats like hunger, child
prostitution etc. Making better use of opportunity to eradicate such treats
will be a challenge.
- According to the criteria adopted by the United
Nations Environment Program (UNEP), the economic, social and environmental dimensions
must be integrated to meet the challenges of six priority areas: climate
change, disasters and conflicts, ecosystem management, environmental governance,
harmful substances and efficient use of natural resources.
An event such as the World Cup, which
has the provision of services as one of its central pillars, cannot ignore its
responsibilities in relation to these issues. The socio-environmental aspect permeates
all of its activities. For example, in directly performing or subcontracting
services, it is important to identify criteria that ensure workers’ health and
safety, working conditions, payment of rights and benefits, quality of life, strengthened
learning systems as well as post-event employment and sustainability.
In relation to the public, it is essential
to ensure urban quality, accessibility, security, access to information,
environmental education and usefulness of facilities, as well as urban interventions
after the event. The government agencies and private entities involved with the
World Cup should be required to ensure the responsible use of natural and
economic resources, and responsible sourcing of acquired raw materials,
products and services. The goal is to reduce carbon dioxide (CO2) emissions from
burning fossil fuels, as this is one of the major causes of the greenhouse
effect.
Time to wait and see
the most popular game of Planet!!
Source: ERNST & YOUNG TERCO
