World Cup Productivity Lull Could Harm Local Businesses

Some economists are warning that the World Cup may turn out to be an economic drag for some businesses, as crowds and congestion cut into worker productivity during the tourist-flooded event.

This is because of huge challenges to the infrastructure, leading to delays and traffic congestion.

Workers' productivity is also expected to drop as a result of people wanting to watch the soccer spectacle at work.

According to Martin Humphries, the managing director of Executives Global Networking (EGN) - an information network for chief executives - some of the country's top chief executives, financial executives and human resource managers have already begun to assemble under EGN's banner to prepare for the possible disruptions and glean wisdom from their overseas counterparts.

World Cup to hit SA businesses
Fin24
April 18, 2010

Domestic Tourism to Drop During Cup

While foreign tourism is expected to boom during the World Cup, economists and tourism experts say domestic tourism in South Africa will see a lull during the event.

Domestic tourism might take a back seat during the soccer tournament, however. Advisory and research firm Grant Thornton, which recently conducted a study commissioned by the government into accommodation prices during the World Cup, said last month that domestic tourism was likely to be softer over this winter, as foreign fans displaced local visitors during the soccer tournament.

It said business travellers were likely to postpone their domestic travel plans until after the World Cup and families were likely to stay at home during the school holidays, scheduled during the game.

The firm said it expected between 300 000 and 480 000 foreign fans - 151 000 from Africa - to arrive in SA for the tournament, and spend R8,5bn. Early forecasts of up to 750 000 visitors at the World Cup are now considered unrealistic.

South Africa: World Cup Fans Are Doing Some Tourist Research
Business Day
April 1, 2010