Economic Impacts of World Cup Football in South Africa - Coursework Example

Economic Impacts of World Cup Football in South Africa Introduction World cup football is one of the largely attended sports activities in the world. People move from their home countries to the host country of the world cup football, they stay there for almost the whole period of the tournament and engage in many other activities besides watching football. During this period, several economic activities take place since the people need services and many other products during their period of stay (Becker, 1986). Definitely, the tournament influenced the economy of the host country mostly in a positive way. The South Africa World Cup is one of such world cup football that experienced massive turnout of people from everywhere. This paper examines the real impacts of the tournament through a well-calculated impact assessment or measurement. The economic impact Assessment Tools In measuring the economic impacts of an event, certain tools or methodologies are applied in order to undertake a relevant and an appropriate economic action. During impact measurement or assessment, it is important to first identify the need of the entire process. Why it is considered necessary to outline the outcome of a particular event (Becker, 1986)? This is done through screening. In screening, the need to understand the influence the event had on a particular sphere is outlined. The analysis of the event should appraise the event and the activities associated with the event and with the whole process. It determines whether there is a need to make improvements or necessary changes. After the screening, there is the need to develop an effective framework of the event relationship with the receptors in the environment of operation. This is a high-level assessment that establishes the relationship between the two factors (the event itself and the environmental receptors through an interaction medium). Scientific judgment is employed alongside applying the previous event same as the one in question (Finsterbusch, 1983). An analysis of the existing conditions past the events is undertaken. This helps to relate the current existing conditions and the conditions then before the event. As such, relevant parameters are applied in order to establish whether there is a difference between the two conditions, and if there is a difference, is it positive or negative? The affirmatives prove the worth of the event in as far as the sphere on the subject is concerned (Donnelly et al, 2007). After identifying the conditions, it is then important to evaluate the significance of the impact. The impact should be able to relate to certain positives of the sphere concerned or at least create certain negative situations that affect in any way (Finsterbusch, 1983). Application of the IA methodologies on South Africa World Cup People attended the tournament en masse. Given the large number of fans, teams and the tournament officials who trooped in South Africa for the event, the event brought certain impacts on the economy of South Africa. To identify this impact, it is important to understand why the impact of the 2010 World Cup tournament in South Africa is necessary to establish. This is done through screening, which allows the investors of the tournament to be able to predict future behaviour of the same tournament in relation with the findings established (Maennig and Zimbalist, 2012). The relationship between the tournament and the surrounding environmental receptors is important in understanding how the economic activities, investors and other economic stakeholders received the tournament (Atkinson et al., 1985). It also regards to their expectations and preparations they made in response to the event. In the end, it determines how their plans and expectations did evaluate against the eventual outcome? Did it favours them or went against their expectations? Impact significance is an evaluation of the results of the event that involves the examination of how it influenced the economic paradigm of the South African business people and the entire commercial fraternity of the country. Through qualitative and quantitative research methods, economic position of the country is evaluated prior to the event and after the event (Fizel, 2006). Business people and investors are best placed to respond to the research concerns by responding on whether they benefitted from the tournament or whether they made losses. Verbal interview questions, use of both open-ended and closed questionnaires can be used in collecting data with regard to the impact of the World Cup especially how the economy behaved before the event, during the event and whether the gains or losses made during the tournament are still visible (Rodriguez and International Livestock Research Institute, 2007). In this regard, things like infrastructure upgrade in areas as roads, airports, hotels and many other important features are examined through observation and content analysis. How did different industries fair in the preparations of the world cup tournament, during the and after the tournament (Roche, 2002). The significance assessment of the impacts of the event does not only apply to the economic activities in South Africa during the world cup tournament but also before the eventual tournament and the long run effects of the tournament. The economic growth after the tournament, whether it changed the country’s GDP are of empirical necessity in this assessment (Maennig and Zimbalist, 2012). Benefits of undertaking an Impact assessment In as much, the tournament is important for entertainment and other social reasons like promoting unity and harmonizing racial diversity, it is business oriented. World Cup tournament host one of the major world investors like seeing in the past. For instance, the Coca-Cola Company has been a major investor in most of the tournaments (Fizel, 2006). They need to acknowledge their performance during the period. It is also supposed to play an effective role in improving the outlook of the host nation. The hosts need to benefit from the activities that were involved during the tournament (Dobson and Goddard, 2011). The businesses should be able to realize profits by almost double-digit percentages. Through impact assessments of the events, the major intention is to identify the difference the event creates in the lives of the people or the environment. The evidence collected from the process of impact assessment is vital tools that are supposed to be applied in introducing new productive changes, or energizing the enthusiasm of continuing to support and participate in the event (Barthwal, 2002). An evaluation of the performance of the event is important with regard to identifying whether it meets the expectations of the stakeholders. When the impact is negative, it is important to for the people concern to take affirmative action in order to deliver positive results in the next event of the same stature. Impact assessment is therefore productive economically in establishing the performance of economic activities (Fizel, 2006). References Atkinson, S. F., Leistritz, F. L., Canter, L. W., Canter, L. W., & Canter, L. W. (1985).Impact of growth: A guide for socio-economic impact, assessment and planning. Chelsea - Mich: Lewis… Barthwal, R. R. (2002). Environmental impact assessment. New Delhi: New Age International Publishers. Becker, H. A. (1986). Methods and experiences in impact assessment: [4. conference of the Internat. Assoc. for Impact Assessment, held in Utrecht, the Netherlands, from 27 to 28 June 1985]. Dordrecht [u.a.: Reidel. Dobson, S., & Goddard, J. A. (2011). The economics of football. Cambridge: Cambridge University Press. Donnelly, A., Dalal-Clayton, B., & Hughes, R. (1998). Adirectory of impact assessment guidelines. London: International Institute for Environment and Development. Finsterbusch, K. (1983). Social impact assessment methods. Beverly Hills u.a: Sage Publ. Fizel, J. (2006). Handbook of sports economics research. Armonk, N.Y: M.E. Sharpe. Maennig, W., & Zimbalist, A. S. (2012). International handbook on the economics of mega sporting events. Cheltenham: Edward Elgar Roche, C. (2002). Impact assessment for development agencies: Learning to value change. Oxford: Oxfam [u.a.. Rodriguez, L. C., & International Livestock Research Institute. (2007). A conceptual framework for integrated impact assessment of trypanosomiasis interventions. Nairobi: International Livestock Research Institute. Read More