What Hosting the 2010 World Cup Has Done For South Africa

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Many critics have been questioning the benefits to South Africa of the 2010 world cup, but there is no doubt of the enormous benefit that will accrue to the tourism industry. These critics question whether the world cup 2010 should have taken priority over other social priorities, and if there will be any financial benefits to the country. There is a general agreement that the government will break even on its capital outlay. The President, Jacob Zuma, told a recent conference in Cape Town that the government is satisfied that the 2010 World Cup has been an economic success, with a good return on the investment of R33 billion spent on transport infrastructure, telecommunication and stadiums. This had created an estimated 66 000 new construction jobs and the ZAR1.3 billion spent on safety and security included the permanent addition of 40 000 new policemen and women. South Africa's Minister of Finance confirmed that the World Cup will add ZAR 38 billion to their country's economy.

Whilst many argue that the funds could have been better spent on housing or a number of other social priorities, there is very good reason for the tourism industry to be pleased with the outcome of the World Cup, because of the changed perception of South Africa by the rest of the world. There has been surprise and admiration for the country's ability to host such a successful international tournament, and it has moved up in the perception of the world alongside the developed nations, shedding its stereotype image as a backward country.

The Internet, blogs and social media are full of positive reports from those who have visited South Africa during this tournament. The positive public relations has been massive, and it is now perceived as a safe, friendly and positive place to visit and to do business. The real benefit of hosting the 2010 World Cup is the showcasing of South Africa to the world which will grow their tourism. The enormous amount of social networking has created a public image that almost no amount of government spending could have created and this has been enhanced by the many influential and public figures who visited during the World Cup, including former US President Bill Clinton who stated in Cape Town:

"South Africa has branded itself in this World Cup in a very special way. Lots of people did not think you can pull it off. South Africa is being given a chance to set standards the world can learn from."

South Africa has much to be positive about- their stock exchange keeps outperforming most of the rest of the world, and the currency has appreciated some 30% in the past year because of the massive inflows of foreign investment capital looking for excellent returns and interest rates when compared to the rest of the world. The country now has an image of a warm, stable and peaceful society and is also one of the most beautiful countries in the world. The many positive reports by people who had been surprised to find that South Africa is not riddled with crime, unlike the negative image that had previously been portrayed, will help to change many perceptions. South African Tourism did an excellent job of ensuring great international coverage on the TV networks during the tournament when the interest in the country was at an all-time high. A prestigious web based hotel booking portal has released information that reveals that Cape Town rates 9th as the most favored destination for 2010 for their clients.

Danny Jordaan, CEO of the 2010 World Cup Organizing Committee sums it up: "They said we could not build the stadiums in time: we did. They said we could not provide the infrastructure in time: we did. They said we could not deliver the TV broadcast capability to the rest of the world: we did." There were stories of crime and terrorism and even an outbreak of giant snakes, he said. There was even a rumor that a big earthquake would hit on opening night. All this fear-mongering was aimed at suggesting that South Africa was too unsophisticated to host the games. The fact is, the South Africa World Cup is a huge success, among the best run in history--and possibly the most profitable for FIFA ever."

Tourism brings in about 4% of South Africa's total GDP; and is a significant employer for a country with a great deal of semi-skilled labor. Growth in tourism will result in growth in job creation, as is shown in the new tourism strategy released by their Minister of Tourism; which seeks to create up to 225,000 new direct jobs and 400,000 indirect jobs in the tourism sector and increase tourism's direct contribution to GDP from ZAR R64bn or 3.4% in 2009, to ZAR R125bn by 2015.

The official statistics on visitors for the period show an increase in the number of tourists from most of the traditional markets for South African tourism, but there are new markets evolving as a result of the coverage of the World Cup, such as the USA who appears to have discovered South Africa since they constituted the largest number of visitors from any country. The country should exploit this massive and affluent market as a result of the favorable image portrayed of the country during the World Cup. The tournament has been an unqualified success for South Africa, but the most important benefit will not be the immediate economic benefit, but the on-going growth on tourism, such as Germany experienced with a growth of 30% in tourist numbers after they hosted the 2006 World Cup tournament, and this benefit will spread to a wide section of their economy.

About the Author: Dennis is a guest house owner residing up in Cape Town, and is passionate about promoting tourism in South Africa, and particularly in the Western Cape.
He is actively involved in the tourist industry, and also consults in the field of business logistics management.
Interests include:
Internet marketing and SEO.
Collector of classic British Sports cars- notably Triumphs and Classic Minis.
Other hobbies include blogging, classical music, Opera, and Asian cuisines.
His guest house offers affordable Cape Town holiday accommodation:
Website: http://www.horizoncottages.co.za Barefoot in the sand is his blog offering news, views and information for visitors to Cape Town, South Africa: http://horizoncot.blogspot.com