Foreigners to boost S.African economy during World Cup


Foreigners will inject 13 billion rand into South Africa’s economy during the World Cup, helping the soccer spectacular boost economic growth by 0.5 percentage points.

The estimated gross economic impact for South Africa, including indirect spending and infrastructure built over the past four years, will be 93 billion rand, according to a study by the accounting firm Grant Thornton.

But the bulk of this is internal government spending.

Gillian Saunders, who led the study, told journalists and economists on Wednesday that less foreign fans were expected to come than previously thought, but those that did would spend more compared to other tournaments like Germany in 2006.

With 50 days to go before kick-off, football fever is growing in South Africa but the global economic crisis, the tournament’s high cost as a long haul destination and fears of violent crime have reduced the numbers of foreign fans.

“We have revised the figures post the world-wide recession and major ticket sales phases, and some of the numbers are encouraging,” Grant Thornton’s Gillian Saunders said, presenting the study on the World Cup’s economic effect.

Grant Thornton has conducted in-depth research into the impact of the World Cup for South Africa, and its reports are seen as authoritative by other analysts.

The month-long soccer spectacular, first in Africa, starts on June 11.

National and regional governments have spent about 40 billion rand on stadiums, transport and airports.

Foreign fans should spend about 8.8 billion rand in the country and together with spending by governing body FIFA, other officials and teams, the economy will receive a 13 billion rand cash injection.

The study showed 373,000 foreigners were expected to visit South Africa for the tournament, about 230,000 of them ticket holders. This is higher than the most recent estimate by the local organisers of 200,000 foreign fans, but down on earlier predictions of 450,000 overseas visitors.

SOURCED FROM REUTERS

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