The 2010 World Cup will contribute R55.7-billion to the SA economy, generate 415 400 jobs and contribute R19.3-billion in tax income.

Quantifying the economic impact of the FIFA World Cup isn't easy. The profits and overall benefits generated go well "beyond the mere staging of the event," according to FIFA media officer, Delia Fischer, who notes that benefits to the tourism sector, public infrastructure and job creation for the short and long term can only truly be fully comprehended after the tournament.

The JSE's Russel Loubser recently told a gathering of top businesses that the immediate benefit of the World Cup has certainly been seen in the boosting of local infrastructure that has emerged as a result of preparing for the tournament.

"SA is the country that achieved something the world thought was impossible — peacefully transforming from the apartheid state to a vibrant, energetic democracy. The 2010 FIFA World Cup is a unique opportunity for SA to showcase the country as a world-class organiser and a great host," says Fischer.

A lasting legacy in the host country

She adds that "infrastructural upgrades in the areas such as transport, electricity, communications and IT will help to further enhance business relationships and will be a lasting legacy in the host country".

According to research by Gillian Saunders of Grant Thornton, the 2010 FIFA World Cup will contribute R55.7-billion to the SA economy, generate 415 400 jobs and contribute R19.3-billion in tax income to government. Saunders, who has been meticulously working on impact studies for the tournament since 2000, projects that 483 257 tourists, will spend around R8.5-billion during their stay in SA.

With more than 480 000 visitors projected to enter the country, the FIFA World Cup accommodation office is responsible for the mammoth task of co-ordinating the accommodation for the event; to date it has contracted 44 096 rooms in total, including rooms in hotels, guesthouses, bed and breakfasts, lodges, time-share and university accommodation on campuses where students will be away for the winter vacation period. The World Cup has been a catalyst for the building of around 25 new hotels in SA in the last couple of years.

Cash in on benefits

For those set to cash in on the benefits, the event offers a wide range of opportunities for small and medium enterprises in particular as service providers for the host cities, FIFA, the organising committee and MATCH Hospitality.

With the intent of uplifting and empowering local communities, FIFA's master concessionaire for food and beverages, SA firm Headline Leisure Management — has trained 1004 community staff for the FIFA Confederations Cup and is set to train another 2700 for the FIFA World Cup to provide catering services for fans in the stadium venues. Among them are informal traders and small businesses.

However traders, both formal and informal, have been warned of the strict penalties looming for those who infringe on copyright laws for the tournament. FIFA's code of conduct stresses that designers and crafters need to adequately ensure the football body's logo and typeface are not used in wording or font designs. By way of example, the "2010" or the words "Twenty Ten" cannot be used in combination with the words "soccer" or "football". The Cape Craft and Design Institute lists these full details on its website for entrepreneurs planning to take advantage of the tournament.

Benefits to last after tournament ends

SA taxpayers will see their contribution to World Cup-related projects total R28-billion, with government spending touted to ensure benefits that will last well after the tournament ends. Stadium and precinct development costs stand at R9.8-billion, while transport infrastructure improvements take R13.6-billion off the budget.

The remainder of the projected expenditure includes broadcast and telecommunications (R300-million), event operations (R684-million), safety and security (R1.3-billion), event volunteer training (R25-million), ports of entry infrastructure (R3.5-billion), immigration support (R630-million) and communications, hosting, legacy and culture expenditures (R504-million).

Local municipalities have also been required to throw in their full financial support; the national government spend excludes the expenses individual 2010 FIFA World Cup host cities will have to meet in preparing for the tournament.

To date more than 20 000 jobs were created constructing the world cup stadiums. Construction workers have been given extensive skills training, which will enable them to meet the demand for skilled workers on other construction projects post 2010.

15 000 volunteers

A total of 4000 South Africans who volunteered for the FIFA Confederations Cup now have experience of a major sporting event, a boost to any resumè. The 2010 FIFA World Cup's 15 000 volunteers — the majority of whom are South Africans — will also experience working on a major international event.

In light of the country's own transformation objectives, the 2010 Organising Committee has committed to using Black Economic Empowerment (BEE) companies and Small-, Medium- and Micro-Enterprises (SMMEs). By 30 September 2008, 55 percent of the organisation's spend was through BEE companies and 26 percent through SMMEs according to Kholiswa Kleinbooi, project manager of the government's 2010 communication project management unit.

Eran Eyal of Springleap.com, a SMME company, says: "Recently an accomplished business associate mentioned to me: If you aren't involved or using 2010 in some way to leverage your business concerns, you shouldn't be in business. I believe that though the commercial implications of this period are significant, the far-reaching implications for SA — both in terms of infrastructure and tourism — are incredibly catalytic and more pertinent. Yes, there will be a large influx of tourism and spend over this period, but the real effects will be felt in the years to come when the word spreads that SA is a paradise on Earth for tourists. It's cheap, beautiful and developing at a rate of knots."

FNB CEO Michael Jordaan describes the upcoming event as "an unqualified commercial success story for SA," adding its "input would last much longer than the feel-good factor the country would experience during and immediately after the event".

Jordaan has revealed to media that FNB's management and board was sceptical of injecting massive amounts of money into the event, but was later convinced of the importance of investing $30m to buy the right to serve as a key sponsor; it's clear the bank expects decent returns as a consequence of its name in the limelight. And in the business of the world's biggest sporting event, it's clear that so do all of us.

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