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Business Tourism and FIFA 2010 Soccer World Cup |
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The advantages of hosting the FIFA Soccer World Cup in South Africa in 2010 are now well known. The selection of South Africa as the host nation is an international vote of confidence in our ability to organise such mega events. This is also an unprecedented opportunity for Brand South Africa. Which is why failure is not an option and why South Africans are already straining every sinew to make sure that all goes smoothly.
In a country which is dedicated to the eradication of poverty and where rates of unemployment are very high, that is a lot of money to direct to a sports tourism event. Will it be worth it?
The Cup will inject an estimated R21.3 billion into the South African economy – R12.7 billion in direct investment – and transform our urban transport infrastructure. It all provides for rehabilitation of run down areas and all sorts of legacy products around sport development and sport tourism. The state will value add R7.2 billion in taxes. And, it is hoped, the Cup will garner over 200 000 new tourists – many of whom will be on business tourism incentive packages.
Against this must be set some concerns within the tourism sector about the impact on tourism, and on business tourism in particular. For instance, with the anticipated flood of arrivals in 2010, how will MICE be affected when it comes to accommodation and transport infrastructure? Will we scare off regulars or high-potential clients for the future? And what happens after the World Cup is over? If capacity is not managed in 2010, business tourism may face a major fall-off in the following years. And what about the impact of the shortages of skills and building costs in the run up to the event?
2010 is a fact of life and business tourism providers will have to deal with it. In fact, if some lateral thinking is applied, the benefits can be maximised. Here are some positive suggestions for the business tourism industry that can be implemented to make the most of the event’s business tourism potential:
- Small towns and cities should prepare soccer-friendly attractions – for instance upgraded soccer fields for where teams can enjoy quiet preparation away from the glare of publicity, e.g. East London or Gansbaai.
- “Satellite accommodation” to deal with peak accommodation demands during specific 2010 matches, e.g. stay in George and attend matches in Bloemfontein via daily airplane shuttle
- Design attractive pre- and post-tours to extend the soccer tourism stay and lock visitors in as future clients.
- Maximise on the build up to 2010 – the infrastructure improvements will be visible by 2008 and in 2009 preparations will include a cultural/musical festival, the Confederation Soccer Cup and the final draw for the World Cup.
- Maximise on entrepreneurial opportunities to consolidate infrastructure and safety and experience for the post-2010 era. Fully 30% of FIFA’s US$400m local spend for 2010 has been set aside for SMEs.
- Make South Africa a tourism-aware and tourism-friendly nation.
- Dispel negative stereotypes about visiting South Africa.
- Grab a share of the estimated “spectator spend” of R9.8 billion in 2010 (The Tourist, Sept ‘06).
- Expand the tourism skills base, with Deputy President Phumzile Mlambo-Ngcuka as an ardent supporter of a “skills revolution in which tourism benefits” (Mail & Guardian, 10-16/11/06).
The benefits then would seem to outweigh the costs. First is the strengthening of South Africa’s brand. Second would be the international public display of South Africa’s capabilities, expertise and modern infrastructure. Third would be the long-overdue revamp of public transport infrastructure. Fourth would be the intensified attention given to safety and security issues that have long bedevilled our tourism message. Fifth is that many jobs will be created. According to SAT estimates of 1 job created for every 12 new tourists visiting South Africa, we could see a growth of some 16 000 new jobs. It’s really up to us to maximise the opportunities created.
But the real benefit from a successful 2010 FIFA Soccer World Cup will be in how it builds the image and identity of South Africa worldwide, and it’s value as a business tourism destination.
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