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The Benefits Of The 2010 World Cup 2010 To South Africa

South Africa’s critics, both internal and overseas have questioned the wisdom of hosting the 2010 FIFA World Cup, and have raised concern as to whether the expense of hosting the World cup in South Africa should have taken priority over pressing social priorities, such as housing. The question is raised as to whether there will be any financial benefits to the country. There is now general agreement that the government expenditure will be recouped. The South African President, Jacob Zuma, stated recently that the government is satisfied that the 2010 World Cup has been an economic success, with the investment of R33 billion having been spent on transport infrastructure, telecommunication and stadiums bringing a good return on the investment . This investment has created an estimated 66 000 new construction jobs and the ZAR1.3 billion spent on safety and security included the permanent addition to the Force of 40 000 new policemen and women. South Africa’s Minister of Finance confirmed that the World Cup will add 38 billion South African Rand to their country’s economy.

Whilst many argue that the funds could have been better spent , there is very good reason for the South African tourism industry to be pleased with the outcome of the World Cup, because of the changed perception of the country in the eyes of the world. The country's ability to host such a successful international tournament has surprized many and South Africa is now perceived alongside other developed nations, shedding its image as a backward African country.
The media and social networks abound with positive reports from those who visited South Africa during the World Cup. The wide spared positive reports and feedback have resulted in the perception of South Africa as a safe, friendly and positive tourist destination. The real benefit of hosting the 2010 World Cup will be the showcasing of South Africa to the world and which will grow their tourism. The enormous amount of social networking has created a positive image that the amount of government spending for the event could not have created, which has been enhanced by the many influential and public figures who visited South Africa during the World Cup, including former US President Bill Clinton.

South Africa has much to be positive about to the rest of the world; the massive inflows of foreign funding and investment capital seeking excellent returns and interest rates shows that the country is also seen an attractive place to do business. South Africa’s image is now one of a friendly, stable and peaceful society to which may be added one of the most beautiful countries. 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 perceptions of those considering a holiday there. The South African Tourism organization ensured extensive international coverage on TV networks during the tournament, at a time when the interest in the country was at a high. A prestigious web based hotel booking (hotel.info) portal has released information that reveals that Cape Town ranks 9th as the most favored tourist destination for the 2010 summer with their clients.

The CEO of South Africa's World Cup Organizing Committee summed it up as follows: "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’s contribution to South Africa’s GDP is about 4 % and is a major source of employment for a great deal of the country’s unskilled and semi-skilled labor. Growth in tourism will result in growth in job creation, as is projected in the new tourism strategy released recently by their Minister of Tourism. This strategy aims to create up to 225,000 new direct jobs and 400,000 indirect jobs and will increase tourism's direct contribution to the GDP from ZAR R64bn or 3.4% in 2009, to ZAR R125bn by 2015. The new stadia and improved transport systems will also be put to good use for future events, both National and International. The country has previously demonstrated the capability to successfully host events such as the Indian Premier cricket league and the Confederation football cup. There is already a bid by South Africa to host the 2020 Olympic games , which will put the facilities to good use and attract many visitors if the bid is successful.

Official statistics for the World Cup period reveal a significant increase in the number of tourists from many European and Asian countries but there new markets are expected to evolve as a result of the positive coverage of the World Cup. One of these is the USA as they made up the largest number of visitors from any country. South Africa should exploit this affluent market and take advantage of the favorable image portrayed of the country. The tournament has been a remarkable success, but the most important benefit to South Africa will not be the immediate financial benefit; it will be the continuing growth in tourism, which has already shown modest growth during the recessionary period before the World Cup. They may hope for the type of growth experienced by Germany who enjoyed a growth of 30% in tourist numbers after they had hosted the 2006 World Cup tournament, and this benefit will spread to all parts of the economy.

Critics of the hosting by South of the FIFA World Cup tournament have argued that the money could have been better spent on social projects including housing and that the majority will receive no benefit. There are those who claim that the tournament will saddle South Africa with debt and fruitless expenditure. There are immediate economic and infrastructure benefits to the country but the most important benefit will be the anticipated growth in tourism as a result of the favorable perception that the world now has of this beautiful country.

By: Horizon Cottages

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About the Author : Dennis is the owner of a self catering resort in the coastal valley suburb of Cape Town , and is passionate about promoting tourism and Internet marketing of South Africa His affordable self catering guest house in the Noordhoek valley may be found at website : www.horizoncottages.co.za News views and updates on Cape Town are published in his blog "Barefoot in the sand."

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