Benefiting SA

Monday, 30 November 2009 08:23

Making the Fifa World Cup work for all

The 2010 Fifa Soccer World Cup in South Africa is eagerly anticipated, most importantly for the economic boom it will bring. Unless the country takes a strategic approach, however, the 2010 benefits may be outweighed by costs and an unequal distribution of gains.

Since development began towards the world’s biggest sporting event, some benefits are already becoming visible.

Major infrastructure development since South Africa was awarded the World Cup has been very important in lifting the economy and keeping it in a reasonably healthy state despite the global economic recession. Investment in infrastructure has also helped lessen the knocks on other major sectors such as manufacturing
and mining.

The infrastructure development that has taken place to date has been much needed – fixed infrastructure is critical to the long-term development of the economy. South Africa has become a building site with major development in the areas of roads, public transportation, airports and ports.

These are critical infrastructure and the country is able to make these investments because of prudent economic policy in the past. The World Cup has given the country an opportunity to do the things we would not have done as rapidly otherwise.

Beyond these infrastructure gains, the World Cup is also a significant opportunity for businesses in South Africa to generate a major boost in income, with the tourism industry one of the largest sectors that stands to gain.

Research from the University of Cape Town Graduate School of Business (GSB) has shown that large infrastructure projects can have great benefits for the South African economy.

The research, conducted in 2008 by UCT GSB economist Barry Standish and UCT MBA graduate Antony Boting, revealed that the Cape Town International Convention Centre (CTICC) generated 1 166 141 delegate-, visitor- and tourist days in Cape Town during the 2008 financial year and contributed R2.7 billion to the gross domestic product.

The primary factor in the contribution to GDP was “induced tourism”, according to the report. Induced tourism results from visitors who return to the city at a later stage – at R1.16bn, induced tourism is the second largest contributor to the economic benefits generated by the centre.

What this indicates, is that once-off visits to South Africa, such as for an event, can yield additional returns as many visitors revisit at a later stage.

The Fifa World Cup is the world’s largest sporting and media event, and figures from the previous World Cup show that billions tune in – the 2006 tournament had a total cumulative television audience of 26 billion viewers.

World Cups are extraordinarily profitable for Fifa through the sale of television rights and through its ongoing corporate partners and events-based sponsors, write Udesh Pillay, Richard Tomlinson and Orli Bass in Development and Dreams – The Urban Legacy of the 2010 Football World Cup, published by the Human Sciences Research Council (HSRC).

They point out, however, that there is considerable debate regarding whether World Cups benefit or harm the host country’s economy, and they note that benefits and costs can be overestimated.

The evidence of this can be seen in that some infrastructure projects in South Africa – notably stadia – have cost much more than were initially budgeted for.

With costs increasing, it has become all the more imperative that the country gets the most economic benefit during and after the 2010 World Cup, particularly in the tourism industry.

This industry will benefit from the estimated three million visitors expected for the tournament, and can benefit in the long term from an improved image abroad.

Research conducted recently during the Fifa Confederations Cup showed that the experience of foreign tourists during the tournament was generally positive, which bodes well for the influx in 2010.

The survey, commissioned by Cape Town Tourism in partnership with UCT, showed that 63% of the international visitors attracted by the tournament said they planned to return for the World Cup.

A total of 77.85% of the respondents said they felt safe at the stadiums and about 69% also said they felt safe in public places such as restaurants.

Almost 50% of respondents rented cars during their stay, and a third was travelling in groups of more than six.

A total of 71.2% said they were also attracted by South Africa’s culture, history and natural beauty.

However, ensuring that the Fifa World Cup delivers the economic gains through tourism must be planned carefully and strategies must be employed to alleviate constraints and maximise opportunities for not only urban areas, but also more rural regions outside the locations where games are to be played.

In the HSRC’s publication, Scarlett Cornelissen considers the prospects and challenges for urban areas in her chapter entitled, “Sport, mega-events and urban tourism: Exploring the patterns, constraints and prospects of the 2010 World Cup”.

She points out that tourism is interlocked with many other economic sectors such as transport, construction, gastronomy and retail, which makes gauging the net tourism impact of an event an intricate process.

Discerning a legible tourism imprint from previous sport mega-events has been a difficult endeavour. Emergent tendencies regarding tourism planning, she writes, suggest a significant differentiation in the types of planning and levels of progress.

“The country’s metropolitan regions have drafted more coherent tourism development programmes and are exhibiting more advance in their implementation than the smaller host cities. This derives from the varied manner in which tourism economies have expanded historically in the host cities and the fact that major metropolitan areas such as Johannesburg, Durban and Cape Town – and to a lesser extent cities such as Pretoria and Nelson Mandela Bay – have been able to nurture distinct tourism advantages vis-à-vis smaller counterparts.”

Should apposite policies not be adopted by the smaller host cities, she argues, there is a risk that this geography of differentiation would be reinforced rather than ameliorated by the hosting of the 2010 World Cup. Tourism growth gains from the tournament, therefore, could be distributed unequally.

“The adoption of a regional approach to tourism promotion, where host cities draw upon tourism resources in neighbouring towns and rural areas, could constitute one means of offsetting this,” suggests Cornelissen.

“The linkage of tourist products in different locations through the use of routes and themes could be one of the mechanisms used. As a general approach, the themed promotion of all host cities in the form of suggested travel itineraries by the national promotion agency, South African Tourism, could help to strengthen tourism gains.”

Finally, Cornelissen concludes that one of the most important aspects is the need to integrate planning judiciously around the 2010 World Cup with wider urban development priorities.

In the chapter, “The 2010 World Cup and the rural hinterland: Maximising advantage from mega-events” in the same HSRC publication, Doreen Atkinson writes that non-host areas have several advantages over host cities.

“They do not have to invest in major and expensive infrastructure; unlike the host cities, they are unlikely to have displacement effects and, in fact, their tourism demand may increase; and their improvements do not require a long lead time for major infrastructural projects such as stadiums.

“In sum, non-host areas, particularly those situated near host cities or on main transport routes, have little to lose and a fair amount to gain in terms of bed occupancy and marketing visibility,” she writes.

Non-host communities may actively benefit due to the “displacement effect”.

“This happens when people who would have spent a holiday in a host city are deterred from such a locality due to the mega-event, and prefer to take their holidays in quieter areas away from the bustle of the host city.”

The international literature that Atkinson cites shows that innovative thinking, creative branding and assertive marketing can bring non-host areas into the mainstream for the duration of the mega-event.

“Localities have to organise and sell themselves. Governments, at all levels, are strategically placed to create and maintain strategic infrastructure, and to facilitate the networking of local players. The private sector needs to take the opportunity to invest in tourism infrastructure. Local entrepreneurs need to seize the new market windfall,” writes Atkinson.

“Even areas which are not selected as host cities have a range of options to position themselves to benefit from this windfall. Smaller towns can function as satellite areas and can maximise tourism activities in the hinterland around the cities. Towns which are located further afield, on main highways, can entice travellers to stay a night or two en route to their next match venue. Towns can also entice residents in the vicinity, as well as domestic tourists, to enjoy the matches in a fan park setting.”

For this to happen, she concludes, the major ingredients are entrepreneurship and networking.

“Rural tourism operators need to be very creative to put their areas on the radar screen of tourists and teams. Regional players need to network among themselves to brand their region (or sub-region) as a tourism destination zone.

“Government agencies need to broker these relationships – this is a major role for provincial, district and local governments.”

Dr Mills Soko, senior lecturer at the UCT Graduate School of Business

Floating hotels come to South Africa for 2010

Two of the world’s largest and most luxurious cruise ships will dock at South Africa’s harbours during the 2010 Fifa Soccer World Cup, bringing tourists to experience South Africa’s culture and passion for soccer.

Two vessels, each with more than 950 cabins, will head for Durban harbour and Port Elizabeth harbour respectively for the full month of the World Cup in a unique cruise experience that gives passengers a chance to live aboard the ship and experience harbour life, while also enjoying the soccer matches in the cities at which they dock.

Munich-based company, Moltke Promotion GmbH, has partnered with Cape Town-based tour operator, iKapa Tours & Travel, to provide transport solutions and day tours for ship passengers during their stay in South Africa.

“We are looking forward to playing host to visitors during 2010 and we believe that our extensive tours will offer enriching experiences for those who come to South Africa,” says Kobus van Heerden, managing director of iKapa Tours & Travel.

Chartered by One Ocean Club, a subsidiary of Moltke Promotion GmBH, the two cruise liners will complement the current luxury accommodation in the three coastal host cities – Durban, Port Elizabeth and Cape Town – and will provide a safe and controlled environment.

Clients can enjoy the beauty of the cities and surroundings by taking the day- and half-day tours offered by iKapa Tours & Travel and its partners.

“Our warm and generous hospitality is also another reason that we’re sure to see many of these guests come back to visit South Africa,” Van Heerden adds.

The MS Noordam, the vessel that will be based in the Durban harbour, will also visit the Port Elizabeth harbour twice – for the quarterfinal and for the playoff for the third and fourth place.

The MS Westerdam will be moored in Port Elizabeth harbour for the first 14 days of the tournament and will then be cruising between Port Elizabeth and Cape Town for the rest of the tournament.

The One Ocean Club team has extensive experience in utilising passenger vessels as floating hotels during major sporting events, and was involved with the Olympic Games in Sydney and Athens.

MediaWeb Online

Comments (1)