South Africa Sees Small Return on World Cup Expenditures

The South African government is reporting a $500 million return on the $4.6 billion it spent to host the 2010 World Cup.

Marthinus van Schalkwyk, South Africa's tourism minister, said just 309,000 foreign fans attended the tournament, compared to predictions of 450,000.

South African-based companies also failed to reap the benefits of the tournament, according to a study by KPMG. Just 22pc of KPMG's 100 biggest African clients, including several multinationals, said they had benefited from the World Cup, compared to 45pc predicting a boost last year.

South Africa recoups just a tenth of the £3bn cost of staging World Cup 2010
The Telegraph
December 10, 2010

Durban Leads South African Cities As Potential Olympic Host

Durban appears to be winning the race among four South African cities interested in a potential bid to host the 2020 Summer Olympics. The bidding process is expected to begin formally in 2011, and the host will be selected in 2013.

Durban appears to be in the driving seat, positioning itself strongly and developing the Kings’s Park sporting precinct.

The precinct runs from the Moses Mabhida Stadium to the Durban International Convention Centre and provides, among other things, a 76 000-seater stadium, several small stadiums including Absa Stadium, a cycling track and an arena suitable for indoor sports.

A senior city official said the city had already begun its lobbying process, with KwaZulu-Natal’s premier, Zweli Mkhize, notifying the South African bid committee of the province’s willingness to back the city’s bid.

Durban ahead in Olympics bid
Sport 24
December 5, 2010

South African Businesses Missing Out on Possibilities of World Cup Stadia

As venues sit empty and unused, South Africa's World Cup organizer is calling out the business community for missing out on opportunities to use the country's World Cup stadia.

He cited Soccer City's failure to capitalise on the Spanish tourists who flock to the site where Andres Iniesta's solitary strike secured Spain's maiden World Cup triumph.

"What do we offer the many tourists who come to the venue where Spanish soccer recorded its finest hour?" asked Jordaan.

"They come to see the stadium where their team conquered the globe and we offer them nothing. All they can do is just sit on the stands, pose for a picture and that's it.

World Cup stadiums are cash cows
Times
November 27, 2010

South Africa's Lessons for Brazil in Overinvestment and Poor ROI

The economic impact of the World Cup has been mainly a loss for South Africa, according to this piece in the Financial Times -- a reality that the author says Brazil needs to face sooner rather than later.

South Africa had been saying the tournament would increase tourism, create jobs, build useful infrastructure, etc. But she realised: “It wasn’t going to be giving us the benefits that we had told the country the World Cup was going to give us.” True, Johannesburg’s creaky transport links would improve a bit, but “it wasn’t as much as we had thought”. And so, over a year before kickoff, Gauteng quietly binned hopes of economic bonanza. Somehow the officials forgot to tell the South African people, but then running a province keeps you busy. In the event, predictably, the tournament went well over budget, and attracted few big-spending visitors. I recently got an e-mail from an official at one South African university, which had reserved 92,000 “bed-nights” for football visitors. Shortly before the tournament began, he says, Fifa’s booking agency returned 91,000 nights unused. “We are still trying to sell off the additional linen we had to purchase,” the official complains. If sports economists are right, the Cup won’t boost future tourism and foreign investment in South Africa either.

South Africa’s football lesson
Financial Times
October 30, 2010

Stadium Work Could Spread to Brazil for South African Companies

Some of the South African companies that helped build and renovate that country's stadia for the 2010 World Cup are bidding to do similar work in Brazil ahead of the 2014 World Cup.

Several have pitched for construction and renovation of some of the 12 stadiums in Brazil for the 2014 World Cup. The South American country last hosted the tournament in 1950.

While the South African government allocated more than R8.4-billion ($1.9 billion USD) for building and renovating 10 stadiums, Brazil will be spending a reported R18.6-billion ($2.6 billion USD) on its 12 stadiums.

Brazil eyes our stadium builders
Times
October 24, 2010

$12 Billion Boost

The South African government has announced that hosting the World Cup has boosted the country's economy by about 93 billion Rand (~$12 billion USD).

The South African government pumped R30 billion into transport and telecommunications infrastructure and 10 stadiums, which created 66 000 new construction jobs and saw R7.4bn paid over in wages, with R2.2bn going to low-income households.

Upgrading trains and roads took care of R13bn, while R20bn was spent on airports development and R3.5bn on renovations at ports of entry. Another R1.5bn was spent on broadcast technology and R1.3bn on safety and security, including the deployment of 40 000 extra police.

Maseko rejected predictions that World Cup stadiums would become white elephants in the wake of the tournament. "During the bidding process all host cities were made to submit plans about how the stadiums would be used after the tournament," he said.

World Cup's R93bn boost for SA
Pretoria News
July 15, 2010

Zimbabwe Sets Sights on South Africa's 2020 Olympics Bid

Officials in Zimbabwe look at the prospective bid from South Africa to host the 2020 Olympics as another opportunity to cash in on its neighbor's international attention -- an opportunity some say the country didn't take advantage of during the 2010 World Cup.

Zimbabwe – which is in an ideal geographical position to benefit from South Africa’s hosting of the Olympic Games – failed to capitalise on the just ended World Cup in a development that saw the country losing out on the financial benefits that result in being directly associated with football’s premier event.

Critics say Zimbabwe government failed to aggressively market the country’s tourist attractions like the Victoria Falls and Great Zimbabwe Ruins and that this resulted in very little people visiting the country during the tournament.

SA Olympic bid may benefit Zimbabwe
The Zimbabwean
July 16, 2010

South Africa Tourism Hike Expected After Cup

Tourism experts expect international tourism to South Africa to pick up as a result of the 2010 World Cup.

Gillian Saunders, director of Grant Thornton Strategic Solutions, said careful targeting could increase the number of overseas visitors to SA by 1.2million over the next five years, instead of the current 2.4million.

Annually, about 9.9million tourists visit SA, of which 7.5million are from the rest of the continent. Overseas visitors mainly come from the UK, US, France and Germany, but they could now also be coming from non-traditional markets like Brazil and China, she said.

World Cup success can open new tourism doors for SA
The Times
July 18, 2010

What Future Beyond the Cup?

As the World Cup fades away in South Africa, locals are left wondering whether the investment was worthwhile, and how the government will shift its focus to the country's pressing social and economic problems.

[I]t remains to be seen if the enthusiasm and unity fostered by the World Cup can be sustained, or if a national torpor will overtake a fractious country in which much of the population lacks basic services. If the resolve that led to a successful tournament can be marshaled to provide needed services, it could be testament to the power of sport to improve lives. But South Africans are wary that once the enthusiasm of the tournament dissipates, this country of 48 million people will return to normal, which is to say 25 percent unemployment and wide disparities between the rich and the poor.

South Africa Wonders What Lies Beyond the Cup
The New York Times
July 12, 2010

South Africans: Was World Cup Worth it?

With the 2010 World Cup now over, locals are asking the inevitable question: was the World Cup worth the effort and investment?

The government certainly seems to believe so, which a cynic might point out is hardly surprising given that many of the governing elite and their friends and families treated the World Cup as an opportunity to party for a month at the taxpayer's expense. But this is not a time for cynicism, especially since there are clear indications that the goodwill South Africans of all colours and classes exhibited towards each other during the honeymoon period after 1994 has made a welcome comeback as a direct result of the World Cup.

South Africa: Was the World Cup Worthwhile?
Business Day
July 12, 2010

South Africans: Now What?

Now that the 2010 World Cup has ended, locals in South Africa are left wondering what will come after the event that has dominated the nation's attention for years.

Sport's biggest showpiece was six years in the planning and came to define the national agenda, shaping budget priorities, infrastructure development and daily conversations from townships to vineyards.

Over the past month it has put South Africa at the centre of the sporting world, silencing the critics with its smooth operation and vuvuzela-blowing joie de vivre. It has helped challenge the way Africa is perceived around the world.

But when the final whistle blows at tonight's final between Holland and Spain at Soccer City, and the global gaze shifts elsewhere, it will leave a World Cup-shaped hole in many South Africans' lives. Tomorrow morning they will wake up with one almighty hangover.

South Africans ponder life after the World Cup
Guardian
July 11, 2010

Measuring Impact of World Cup Will Take Years

The impact of the World Cup on South Africa will take many years to fully comprehend, according to this piece form Sports Illustrated.

Historian Peter Alegi views the whole thing as "a very expensive -- and very expansive -- branding operation. The World Cup is an opportunity to show that South Africa is a modern democracy, technologically advanced, business friendly and also an attractive tourist destination."

There is much to gain from such visibility. But it also carries risks.

Argentina's tournament in 1978 is an example. The country was ruled at the time by a sinister military junta, who, while murdering some 20,000 of its citizens also wanted to use the World Cup to make propaganda for its achievements. A U.S. PR firm was engaged to broadcast the message. But the junta found it hard to understand that the international press would not act like obedient soldiers. Some of the journalists would go looking for stories -- and an excellent one was the protest organization set up by mothers of the 'disappeared.' As a result of the World Cup, their tale was told all over the planet, bringing home to millions the true nature of the regime. There was no PR triumph, and the regime was not mourned anywhere when it collapsed five years later.

Legacy of South Africa's World Cup will take many years to measure
Sports Illustrated
May 26, 2010

Making South Africa's World Cup More South African

This piece from The New York Times looks at how South Africans have pushed against the corporate bent of the FIFA World Cup to make it a little more accessible to its people.

“This is not our World Cup,” explained Greg Fredericks, a senior manager for South Africa’s World Cup organizing committee. He noted the dominant role of FIFA, soccer’s Zurich-based world governing body. “It is FIFA’s World Cup. We are just the organizers. We are the stage.”

That might have been the end of the story, except that this is South Africa, the country that ended a vicious system of racial segregation 16 years ago to create a noisy, fractious, vibrant democracy. Poking a finger in the eye of authority is part of the national DNA.

And so South Africans have pushed back — to get easier access to tickets, to see their wealth of musicians included in the FIFA concert and to ensure that more World Cup souvenirs were made in South Africa. Along the way, they have won modest victories that will give the slickly marketed, corporate-branded, monthlong sports spectacular splashes of African authenticity.

South Africa Pushes to Make the Cup Its Own
The New York Times
May 23, 2010

German World Cup Success Lessons for 2010 Host South Africa

Germany is still seeing an economic benefit from its World Cup hosting duties back in 2006, according to this article, which looks at the lessons 2006 host Germany has for 2010 host South Africa.

Horst R. Schmidt, now treasurer of the German Football Federation (DFB), was also on the organizing committee, and is now advising South Africa as it gears up to host the first World Cup final on African soil.

Schmidt said the benefits of hosting the event were tangible, with Germany's economy still benefiting from the tournament four years on.

"A lot of Italian tourists go to the stadium in Berlin and look where their team won the World Cup, or in cities like Cologne the number of visitors are seven to 10 percent higher than before," he said.

Germany's World Cup legacy: What can South Africa learn?
CNN
May 10, 2010

South Africa Safer Than Spain and Germany for British Tourists

South Africa is safer for British tourists than Spain or Germany, according to a report from the British Foreign and Commonwealth Office. British tourists are expected to be the largest group of foreign visitors to South Africa for the World Cup.

The report, which examined the behaviour of British tourists from April, 2008, to March, 2009, measured how much help Brits needed from their different consulates abroad.

And the results may surprise you. Of the 451 580 Britons who visited South Africa in the 12-month period - and a further 212 000 living in the country - there were 23 arrests, 23 hospital admissions and 48 deaths, due to either accidents, natural causes or murder. No rape or sexual assault cases were reported.

SA safer for tourists than Spain or Germany
The Star
March 25, 2010

UK and SA to Join Police Forces During Cup

South Africa and the United Kingdom have made a deal to jointly handle policing during the World Cup, which is expected to increase the amount of police on the ground during the event -- an issue that had worried many in South Africa and beyond.

The agreement on police co-operation includes intelligence sharing, measures taken in the UK to stop hooligans travelling to South Africa and the roles and remit of each country's police forces, the department said in a statement.

SA, UK sign World Cup policing agreement
Independent Online
March 9, 2010

Immigrant InfluX Expected in South Africa as Result of World Cup

With an estimated 3-5 million undocumented immigrants already in South Africa, officials are expecting the 2010 World Cup to act as a magnet for even more. They're hoping to avoid an influx, but with restrictions being modified to ease entry into the country, the immigrant population is expected to rise.

South Africa is spending nearly $145 million to streamline entry for the games. It is the first World Cup host to offer an “event visa” for visitors from countries lacking visa-free arrangements with the host government.

They will have to show a purchased match ticket, an address while in South Africa and a return ticket home.

Fears over World Cup immigrants
Associated Press via The Times
July 23, 2009

Soccer in South Africa in Photos

This collection of photos from The Boston Globe's The Big Picture photo blog shows soccer in South Africa. Most shots are of kids playing, and some are a bit on the cheesy/rose-colored side, but they offer a nice visual display of the sport in the country.

Soccer in South Africa
The Boston Globe
June 24, 2009

South Africa a 'Hotspot' for Investment

South Africa is a hotspot for investment according to Sultan Ahmed Bin Sulayem, chairman of Dubai World, main equity partner of the newly opened One & Only luxury hotel in Cape Town.

He considers South Africa a relative investment hotspot, notwithstanding the current global economic climate. "Our strategy is to invest in high-end assets in key destinations around the world which deliver real, measurable results. Our South African portfolio is certainly performing to these criteria."

South Africa's increasing presence on the global stage, specifically in terms of sport tourism as host of the Fifa 2010 World Cup and the Indian Premier League amongst other high profile events, means that there are vast levels of demand for additional amenities for hospitality and tourism, explains Dubai World Africa Services (DWAS) managing director Mike Griffin.

Source:
'SA a property investment hotspot'
Property 24
April 15, 2009

Tournaments Bring Sport Boom to South Africa

This article looks at the sporting boom that's coming to South Africa, including the Indian Premier League cricket tournament and the 2010 World Cup.

Next year, it will stage soccer’s World Cup. This year, it is host to a tour by the British and Irish Lions rugby team, the game’s biggest event other than a World Cup. This weekend, the Cricket World Cup qualifiers come to their conclusion, while South Africa has recently seen a head-to-head contest for the de facto world championship of the sport as its team failed to displace Australia from the top of the International Cricket Council’s rankings.

All of these are scheduled events, planned well in advance. But the bonus comes over the next few weeks as South Africa stages the 2009 edition of cricket’s Indian Premier League, which starts on Saturday in Cape Town.

The eight team, 59-match tournament has been transferred from India following the inability of the cricket authorities there to agree on a schedule with the national government, fearful of the security implications of staging a major sporting event at the same time as a general election.

Source:
India Sends Its Cricket Riches to South Africa
The New York Times
April 18, 2009