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Football letdown for SMEs

Jun 29 2009 11:12 Leani Wessels & Nolulamo Matutu

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Johannesburg - While South Africa's hosting of the Confederation Cup has generally been lauded, some smaller firms are disillusioned.

"We definitely did not see much enthusiasm in the weeks ahead of the Confederation Cup," said a retailer who sells Bafana and other soccer teams' jerseys and memorabilia. "It didn't mean much for us in terms of sales."

Rose Taxis chairperson Jonathan Kgobe feels the cab service sector was sidelined. "The Confederation Cup did nothing for us - we were not involved at all and have not noticed a difference in cab usage," said Kgobe.

This was after being asked to apply for a special permit from the Road Transportation Board allowing cabs to transport delegates during the Confederations Cup. He said there were the few who benefited, such as minibus firms, but he has "no expectations for the 2010 Fifa World Cup".

"They completely overestimated the financial impact and were hopelessly optimistic about the number of visitors for the World Cup," said Nico Czypionka, an independent economic adviser.

But Lindsay Daniller, manager of enterprise development for 2010 at Tourism Enterprise Management (TEP), said small enterprises knew the Confederation Cup would not mean an automatic increase in business.

"There was a clear message to operators that this is a very different kind of tournament as most of the people who go to the Confed Cup are locals." According to Daniller, it was never pitched in any other way by the event's organisers. However, "unexpected profits" were seen by some operators, especially small wheels businesses who transported spectators to the stadiums.

According to Daniller, plans are in place to help small local businesses access the opportunities the World Cup will bring. "We're looking for the gaps where small businesses can benefit - we'll be offering visitors the chance to go to restaurants that big operators might overlook and tours that include heritage sites; we're very positive about what the World Cup will mean for us."

World Cup spinoffs

Bryan Hirsch from Pioneer Financial Planning affirms Daniller's opinion. "It might not have a major impact on our economy now, but we're exposing the country to the world and showing them what we can do."

Fifa officials were generally positive on South Africa's hosting of the Confederation Cup - seen as a dry run for the Fifa World Cup - saying everything was in place.

"The legacy is that the World Cup has created jobs and stopped an economic downfall in South Africa," said Fifa president Sepp Blatter in a statement.

"The infrastructure expansion triggered by the World Cup dampened the effects of the downturn. The biggest spinoff is the infrastructure spending and the positive thinking," said Czypionka.

Infrastructure investment ahead of the World Cup has had a significant effect, growing the construction industry by an average 15% over the last three years.

With an estimated 400 000 visitors expected for the World Cup, the hospitality sector is also gearing up.

Sun International's Public Relations Manager Thokozile Qoboza said its hotels are already fully booked for 2010 and this has been the experience for most hotel groups.

Fifa secretary general Jerome Valcke said SA is 15 000 beds short for the World Cup and Bloemfontein was already up to its full accommodation capacity during the Confederation Cup.

"Most hotels have been fully booked throughout this period and the 2010 World Cup should be no different," said Lizelle du Plessis from travel agency South African Golfing and Safari Tours.

- Fin24.com

 
 
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