Economic impact of World Cup soccer

The opening ceremony of the World Cup took place  at Sao Paulo's Arena Corinthians Stadium on  June 12. American star Jennifer Lopez added glamour to the colourful ceremony. This was in contrast to the violent anti-tournament protest in the city. Military police clashed with the protestors demonstrating against the huge cost of hosting the tournament. There is fury over poor public service, discontent over a political system widely viewed as corrupt and deep anger over the 11.5 billion dollars spent on hosting of the World Cup. Jubilation in Sau Paulo was subdued due to street protests.
Any international sport is connected with large-scale economic impact. The economics of World Cup football is related to worldwide economic activities. It is not only the host country but also other countries whose economies get a big boost. Brazil's economy is gaining from the World Cup event in a big way.
International tourists are now heading towards Brazil. Business is getting a momentum in Brazil. Investment has been made in football related projects like stadiums and roads. Tourism alone can fetch $3 billion. Tourists numbering 27 million are expected to attend. Cities of Brazil have been decorated.
Stadiums and neighbouring areas in other countries where World Cup events will be held have been decorated. Lot of money has been spent for such purposes.
There are 12 venues in Brazil alone. Different companies of the world have produced jerseys, tea shirts, flags etc. Bangladesh is one of the big suppliers of jersey and other garment items. Factory owners, labourers and many other categories of people are passing sleepless nights to make sure that goods are supplied on schedule.
Football-lovers demand track suit, jersey, half- pant, socks, hat etc. But producers of these items do not release figures. The producers say that these items are made not only for profit but also for pride and pleasure. Jerseys are sold at $10/12 per piece. Shirts are sold at $ 6/7. Most  customers have preference for US polo items.
The Minister of Tourism of Brazil said tourists who will come to watch the game will spend a lot of money. They are fashionable people. They have the mentality to spend money. Their stay in Brazil has to be made comfortable. They will have to be entertained in such a way that they feel like coming back.
According to one survey, during this one month   while tourism industry will be stronger, business confidence will rise side by side. This will bring in positive impact on investment. It is also mentioned in the survey that 0.2 per cent will be added to the GDP of the country. The central bank of Brazil has informed that Brazil's GDP will increase by 1.7 per cent. In another survey, it was reported that the economies of South Africa and Germany were strengthened due to the hosting of World Cup football.
In 2010, South Africa added 0.3 per cent to its GDP because of hosting of the World Cup. Brazil may be hosting 2016 Olympics. This is to be held in the city of Rio de Janeiro. Brazil's economy is not in a good shape now. The World Cup may improve the situation a little bit. Lot of projects have been taken up for infrastructure development but many of them remain to be implemented. These remarks were made by an economist of the National Confederation of Commerce.
An amount of $11.7 billion was to be invested in connection with the hosting of World Cup. But up to May, an amount of $7 billion has been spent. Weak planning and red tape have been blamed for poor performance. It is reported that out of 93 projects only 37 have been completed. Many professional people say that so much money should not have been spent for the World Cup. Some amount could be spent for education, health, transport and housing.
The Federation of International Football Association (FIFA) has sold 3.3 million tickets for the World Cup. For final match one ticket will cost $990. The FIFA may get a total of $4 billion. This is a big success of the FIFA. Brazil hopes that this mega event will boost its economy in a big way. Plenty of television sets are being sold globally. This event is of great importance for the 7th largest economy of the world.
Bangladesh has at least exported jerseys worth $500 million for the World Cup. 'Made in Bangladesh' tag will be inserted in the jerseys of Brazil team in honour of the Rana Plaza death toll. Bangladesh is participating in the World Cup in this manner. The Brazil Football Confederation has taken this decision in honour of the dead of two great tragedies. Nike, Puma, Adidas and many other garment sellers have made their garments in Bangladesh. The supporters of 32 countries will enjoy World Cup matches in different parts of the world by wearing jerseys made in Bangladesh.
This year most of the matches will be held at night There are many people who enjoy the nightly games. The World Cup wave has also hit the media. All newspapers and television channels have made special arrangements. Special songs, advertisements and dramas have been organised.
A restaurant has been opened in Gulshan to cater to Brazilian food. Inside the restaurant, chairs, tables and cutleries have been arranged tastefully. Matches will be shown on big screens. Sehri will be served during Ramadan in the restaurant. There is a huge rush for buying television sets in Bangladesh. Low-cost TV sets  have reached the villages.
Football fever is everywhere.
The writer is an economist and columnist.
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