The Economic Impact of Hosting the 2010 FIFA World Cup by South Africa:
Is hosting the FIFA World Cup worth bribing for?
Hosting the FIFA World Cup is considered to be a valuable investment by the countries that bid for the sport mega-event. The economic impact of hosting the event is considered to be positive. This thesis examines two economic aspects that are affected by hosting the 2010 FIFA World Cup by South Africa. The estimated models find increased tourism during as well as after the event. During the World Cup 203,949 additional tourists travelled to South Africa. The legacy effects of the World Cup estimate that 345,484 additional tourists travelled to South Africa post-event. However, the expenditures of these additional tourists will not accumulate to the large investment for the event. The Random Effects model of the effects of the 2010 FIFA World Cup on South Africa’s international trade show a significant increase of South Africa’s exports both during as well as after the event. South Africa’s imports increased significantly in the years following the event.