Real Economic Benefits from Mega Sports Events – Economist

Mega sports events have tangible benefits for the economies of host countries.

This is according to analysis by Johan Fourie, an economist based at Stellenbosch University.

Using a detailed dataset of tourist arrivals to South Africa from 1995 to 2013, Fourie and fellow researcher, Maria Santana-Gallego, examined how the 2010 World Cup affected tourism flows.

Their findings suggest that the tournament significantly boosted arrivals, particularly from countries whose national teams qualified. In many cases, tourist numbers from participating countries were between 20% and 100% higher than before, with positive spillover effects lasting several years after the event.

Writing about the 2010 FIFA World Cup, Fourie revisits one of football’s most infamous moments: Thierry Henry’s handball that helped France qualify at the expense of Ireland. While the incident remains a source of anger for Irish fans, Fourie shows that it had unexpected economic consequences for South Africa, the tournament’s host.

The research also shows that not all qualifying teams are equal. Larger and richer countries bring more fans, media attention, and spending power. When France qualified instead of Ireland, Fourie estimates that South Africa received about 28 000 additional tourists over the World Cup year and the following three years. At 2015 prices, this translated into roughly R878 million in extra tourism spending and more than 6 000 additional jobs.