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World Cup benefits some way off

Jul 13 2010 15:57 Print this article  |  Email article

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Johannesburg - It will take three to five years to see the economic benefits of the World Cup, a Human Sciences Research Council academic said on Tuesday.

It was however too early to tell how great these benefits would be, Dr Udesh Pillay, head of research on service delivery at the HSRC, told Sapa in a telephonic interview.

However, he added that the economic benefits had been overstated.

"When compared to the economic benefits that government projected three to four years ago, figures have definitely been overstated."

However, Pillay, who has edited a book about the legacy of the 2010 FIFA World Cup, said the tournament's legacy in social terms provided a very good foundation for SA to address its development challenges as a nation "in a more, rather than less, unified way".

South Africa had entered the World Cup as a divided and fractured nation, evident in service delivery protests, high unemployment and crime.

"The FIFA World Cup was a rallying point for us to come together and be proud."

However, Pillay warned that politicians should make sure this unique moment in the country's history was not lost due to political squabbling and ideological differences.

He noted that President Jacob Zuma had said he would use the tournament to accelerate service delivery.

"There is a feel-good factor in the country now ... there is pride, nation building and that gives SA a good basis to address challenges like service delivery.

"There is a goodwill factor here, and we must use this as a springboard when it comes to service delivery - no momentum must be lost."

Xenophobic attacks

Pillay said he had failed to understand press reports that equated the end of the World Cup with an outbreak of xenophobia. However, he said lack of service delivery did result in xenophobic attacks if foreigners coexisted with locals and had access to livelihoods locals did not.

Foreigners may have been "more entrepreneurial" before and during the event by selling World Cup-related merchandise.

"The local people may think that they've missed an opportunity and maybe retribution may take place."

Turning to job creation, he said figures indicated the soccer spectacle had created 120 000 employment opportunities.

"Most of these jobs were in construction and were short-term and workers were eventually retrenched ... but in the context of our employment challenges, the creation of 120 000 jobs is not insignificant."

However, there had been "big and bold" expectations a few years ago that the tournament would help alleviate employment, Pillay said.

"Once again, economic benefits were overstated."

He put the tournament's contribution to gross domestic product (GDP) at between 0.2% and 0.4%.

"This seems to be the emerging consensus."

Crime down

However, economists had predicted a contribution to GDP of over 3% four years ago.

Pillay estimated that 250 000 to 300 000 people had entered the country to attend the World Cup.

"Foreign arrivals in terms of tourism probably contributed R12bn at an average spend of R12 000."

He acknowledged that not everyone had had a profitable World Cup.

"The event was governed by FIFA regulations... SA had to enter into all sorts of agreements and those small-scale entrepreneurs who expected to participate in the mainstream economy were marginalised."

This, he said, included not only food vendors, but bed and breakfast establishments too.

"Some didn't cash in as expected and some are feeling terrible about it."

Pillay said crime had definitely decreased during the tournament.

"We had 45 000 additional police officers, and if we can make crime go down for the World Cup, then we can at least reach some midpoint where we can continue to sustain this high level of security."

  - Sapa

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Nonofo Oliphant Jul 21 2010 22:00
SA have relly hosted agreat and wonderful world cup.some countries were doubting us because of some qurrells we encounterd before,but we proved them wrong & thats what i really liked about u mzansi,we were united as one nation,continent &world.hope it stays that way!
 
Peter Mogale Jul 15 2010 08:24
We must not look at WC expenditure in isolation, In Economics we look at the multiplier effect of government spending. Take a stadium like Soccer City, it is a multipurpose event stadium that can earn R50m in revenue from one fully booked event. In order for it to pay for itself it would only take another 60 events to generate the revenue spent on it. Please let us not all be neighsayers. South Africa hosted a wonderful WC that has gone a long way to promoting SA and its people. Money well spent.
 
David Jul 14 2010 11:11
"When compared to the economic benefits that government projected three to four years ago, figures have definitely been overstated." 4 years ago the world was a very different place, economies were booming and money was aplenty. The fact that fewer people arrived and that benefits have been revised are not the fault of FIFA, SA or the SA government. Of course there were problems and some failings, the WC was a success whichever way you look at it
 
Pieter Jul 14 2010 08:24
"World Cup benefits some way off" means " we screwed up and we have to think of an excuse why the money is not there" With 100 billion we could have built a million houses or we could feed 9.2 million people for a year. Or we could even employ 333,333 people for a year. Instead we built stadium that was used for one month.
 
ROB LOBLAW Jul 14 2010 05:39
We just spent R100 billion plus on a slarge soccer event, that according to the government, added just 0.5% to our nationla GDP. This huge waste of valuable resources means that alot of money that was meant to be spent of poverty alleviation and improving the lives of the ordinary citizen are on the backburner. This country needs more learning institutions, schhols, hospitals and clinics and less shiny new stadiums that were only used for 1 month!!! This country is on the path to being a banana republic if it thinks that sports can feed the hunger of the poor!!
 
Kiwibok Jul 14 2010 02:37
No according to Zuma!! He is the president and should the facts!! hehehe maybe they have been drinke to much beer.
 
Alibaba Jul 14 2010 01:28
Maybe Chris Moerdyk also needs to read this. This is more likely what many of the "doomsayers" were meaning when we said "SA cannot host the SWC". Is it really morally justified to spend billions on stadiums etc., and have a few like Khoza and co line their pockets while there are millions of houses in arrears from the first election promises, millions not educated and unemployed, crime is out of control (btw, are those extra police officers going to stay on in the force, or are they going to be layed off?). I think our priorities are wrong, and when the population wakes up from the SWC euphoria and the hangover sets in, there's going to be trouble.
 
Brian Jul 13 2010 18:56
I arrived in SA in may to visit family. The reception I received from the locals was a little cold until it was realised that I was English and for me this doesn't bold well for future unity in SA if this attitude continues. You have a beautiful country with a rich history and the smooth running of the world cup has brought you to the attention of the whole world.From here for South Africa the way is up and only you can mess it up. Value what you have, Nelson Mandela called SA a rainbow nation and that's what it is, diverse and rich in history. This nation could be a future model for every country in Africa. God bless you
 
Louise Jul 13 2010 18:29
Are SA taxpayers footing the bill for the police's unplanned duties (that cost the force something like R700 a day per officer in overtime) when there was a labour strike by some security firms? Or is Fifa paying for this unplanned security?
 
sean @ simon Jul 13 2010 17:43
100% SPOT ON :) Exactly what I`ve been saying for the past 4 years ! What about the aftermath ??? The ``fat cats `` filled there pockets , s.a people are still on a high , but now all is over and wait till reality kicks in !!
 
nigel Jul 13 2010 17:19
this sounds like a very conservative assessment, it is widely known that benefits from WC's take 2 to 3 years to filter though, also recent figures from various sources indicate that more like 350000 to 400000 tourists came to watch the games, Im no expert, but I think we will find that most of the above figures are too conservative.
 
Tex Jul 13 2010 17:10
"World Cup benefits some way off" - could also read "World Cup Benfits way off the mark" Happened with the arms deal, happened with the ESKOM increase, happened with Gautrain ....
 
Pierre Jul 13 2010 16:59
We the consumers will end up paying for this world cup anyway.Watch our taxes!
 
Cecilia Jul 13 2010 16:57
As long there is a Non-Biased accountant that has no influence from Government at all. We will see the true story then.
 
simon Jul 13 2010 16:50
I thought this was such a "bonanza" according to Pravin Gordan. A bonanza is an immediate windfall, something that is of great and immediate benefit. The level of Orwellian doublespeak that has taken root over the past 16 years never fails to amaze me. When will it become obvious that this exercise was a hugely expensive affair, benefitting only a very small clique, and costing the rest plenty.
 
DeonGP Jul 13 2010 16:21
Service delivery of roads did improve faster than before, now can we please start making the hospitals and clinics better for the poor of the poor? The "poor" private doctors won't mind to help servicing the people in the future in the NHI in a few years time, our buildings and toilets are at least clean and most of us are nice.
 
 
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