Legacy after the FIFA World Cup and the Olympic Games - Research Paper Example

What Legacy Is Left In Host Countries After Major Sporting Events Such As The FIFA World Cup And The Olympics? Introduction The impact of major sporting events and the legacy that is left behind is a matter of concern for any country intending to bid hosting. While these mega-events have numerous cultural and economic benefits in country, they are associated with large costs that draw a lot from the treasury of a country. On this note, it is crucial that any country intending to host such an event weigh the benefits versus the spending and find out whether it is a worthwhile decision to take. In countries such as Brazil that are eying to host such the FIFA world cup and the Olympic in the near future, it is crucial that they take prompt consideration, not only to weigh the benefits and costs but also to strategize on how such events can be resourceful to this country. The question that arises is whether such countries such invest in such events or channel these funds to other sectors such as health and development. This research aims at identify whether FIFA world and such Mega-Events have negative or positive legacies in the countries that host them. The research intends to measure the legacy through assessing the cultural and economic benefits that result from such events. By assessing the costs of hosting such an event and the monetary gains or benefits that result from such events, it is possible to conduct a cost-benefits analysis that can point out whether it is a worthwhile decision to invest in such ventures. The research will focus particularly on the information available in countries such as South Africa and England on the legacies that the countries experienced after hosting these events. The report aims at providing a platform that Brazil and any other countries intending to host such Mega-events can use to make worthwhile decision on whether to host or bid to host such events. By conducting both qualitative and quantitative analysis, it is possible to provide amicable recommendations on the worthiness of such decisions. The research will also provide recommendations on the way hosting countries to take advantage of such events to benefit optimally. Problem Statement As the awareness of hosting of Mega-events grows in the world, the countries are becoming wary of the impact of this on its economic and cultural balance. Due to the heavy economic demands that these events pose on the hosting countries, it is possible that any country intending to host such events consider the costs. In 2010, South Africa spent well over $2.7 billion in staging the FIFA world Cup in the country while Brazil anticipates to spend over $14 billion in hosting the FIFA World cup in the coming round (Maguire, 2011). Although it is clear that there are many benefits associated with these events in the host country, it is crucial to weight the cost versus benefits proportion to assess the legacy left by such events. Therefore, the choice between spending of such Mega-events and spending on social services such as health and education is becoming a great problem for many countries. As Brazil eyes to host both Olympic and World Cup, it is worried about the losses that might arise from hosting these events. This research provides a basis through which countries can decide if to or not to host such events in their countries. Aims and Objectives Main Aim To determine whether the effects left in the host countries after Mega-sporting events are positive or negative. Specific Objectives To measure the costs of hosting Mega-sporting events on the government and the society To measure the economic and cultural benefits that result from hosting Mega-sporting events. To make a cost-benefit analysis of hosting Mega-sport events in country Research Questions This research aims at answering two questions Is the cost of hosting mega-sport events higher than the benefit a host country gains during and after such an event? Is it a worthwhile decision to bid or to host Mega-sport events in a country? Research Hypothesis Hosting mega-sport events such as FIFA world Cup have positive economic and cultural benefits within the host country. It is a worthwhile decision for countries to bid for hosting such events within their country. Literature Review The matter of hosting major sport events such as FIFA world Cup and the Olympic have attracted a wide range of research in the recent past. Many authors feel that the matter is delicate and requires wise decision making based on facts and strong analysis of the costs and benefits within such countries. Preus (2013) points out that the history of the international analysis on the commercialization of such events dates back since in 1976. In 1976, Montreal experiences a terrible economic crisis after hosting the world games events. This kind of economic repercussion grew attention of many scholars who had ignored the impact that such events can have on the hosting countries (Eick, 2011). Today, there is a concession that mega-events impose high cost on host countries, funds that can be used to streamline the health, education and improve poverty level in the country. However, there exits who still feel that these kind of events have much more benefits in the host country than the economic spending that such countries incurs while preparing to host such events. Yet another school of thought has evolved reasoning that the benefits of a country depends on its potential and capacity to host such events, as this has a direct relationship with the amount of cost that the country incurs. This controversial point of view has become a source of confusion as many countries indulge in the euphoria of hosting such events. The literature research that exists has focused on the monetary costs and benefits that the host countries accrue during such events. Briedenhann (2011) and Swart et al (2011) agree that the economic benefits of hosting mega-events far much outweigh the losses in a country. While countries have to spend a lot in such events in preparing, they anticipate to benefits by far much than this. Swart et al. (2011) focuses on the benefits and the legacy that the FIFA world cup 2010 left in South Africa. While South Africa spent approximately $2.7 billion to prepare for this event, the benefits accrued were worth the investment. This author identifies that South Africa enjoyed sporting, urban, infrastructural, and economic legacies after the events. The country now enjoys the best sporting stadiums, urban development, job creation and the tourism attraction all that resulted from this Mega-sport event. The findings of this research show that such events can have both short and long-term and economic and non-economic benefits on the country. However, Briedenhann (2011) warns that such events may have long term impacts on the environment as they live large carbon footprints that amount to environmental pollution. This implies that while making an assessment, it is crucial to identify both economic and non-economic benefits and costs. Economic analysis of the impact on Mega sport events in various countries provide a clearer picture of the way countries can benefit from such events. The VISA (2012) measured the economic spending of visitors in a country by estimating the economic spending dynamics in host countries during sporting events. The argument of this research is that host countries benefit from the spending patterns of the visitors in host countries during such events. In its findings, In the 2010 FIFA world cup in South Africa, the country experienced a 82% growth in expenditure during this period. Statistics gathered in Vancouver during the 2010 Olympics shows that the country experienced a rise in expenditure by 93%. While such countries seem to have experienced high rate of growth, China experienced only a 15% growth during the 2008 world Olympics. This kind of statistics shows that different countries benefit differently and raises the question of what parameters are crucial in a country that influences its economic gain in a country (Bethlehem, 2013). However, it provides a basis for the argument that it is possible for a country to optimize its benefits to take advantage of such events to profit its economy. A concession exists that the political, economic and social and technological factors influence the benefits or the losses that a country experiences as forms of legacies after such an event. Bass (2008) argued that these factors need to be weighed before a country plans to host for such an event. This seems to provide a warning to countries such as Brazil that intend to host both Olympic and world cup to weigh the political, economic, social and technological factors that may influence the legacy that the country is likely to win after such an event. A PEST analysis of Brazil would be crucial in identifying the potential of the country to host these events and benefit from them. Political instability of the country is a threat to the country’s potential. To begin with, the public are unsatisfied and are exercising their democratic rights to fight against expenditure of over $14 billion on sports ('SWOT Analysis' 2012). On economic perspective, the country is experience reduced economic growth rate from 7.5% of 2011 to 3.5% in 2012 (Brazil Business Forecast Report, 2014). A critical social aspect in this country is the high poverty rate and increase in crime. In Brazil, over 40% of the world population are living in poverty, which can be associated with reduced employment rate and slow economic growth. Technologically, the country is well developed and has the potential to hold these events. Since the country has hosted the world cup before, it has the infrastructure necessary for this hosting. The failure of research to quantize the benefits of Mega-sport events in a country and their ignorance of non-economic benefits such as increase in tourism, employment rate and environmental impacts of such events in a country limits literature that exists. It is worth for a country to measure both economic values and non-economic benefits to provide the host countries with a ground to make reasonable decisions (Pillay & Bass, 2008). Moreover, although many researchers have pointed out that the internal environment in country determines the extent to which the country profits from such events, there is little literature advising on how countries can optimize benefits and reduce costs. This research aims at closing this literature gap by performing the cost benefits analysis of hosting countries and gathering information that can point out the crucial parameters that determine the benefits of a country after holding such sports mega-events. Therefore, it will provide viable recommendations that countries such as Brazil can depend on while preparing for these events. Methodology This is a primary research that will focus on quantitative and qualitative approaches, or mixed approach to collect and analyse data. A mixed approach is superior in that it eliminates the weaknesses of both quantitative and qualitative approaches, hence providing a good basis to make conclusion from both numerical data and descriptive data (Creswell & Plano, 2011). The main purpose of this research is to measure the cost and benefits of the hosting major sports events. For the purpose of this research, the South Africa 2010 FIFA World Cup and the England Olympics will be used as samples and to compare the costs and the benefits of these events. The quantitative approach will be used to measure the financial costs and benefits of the two countries, which will help in making a cost benefit analysis for the two events. The qualitative approach will assess the factors that determine the benefits of a country during such an event. For the purpose of data collection, questionnaires and abstraction methods will be used. The questionnaires will have both closed and open format questions to collect both qualitative and quantitative information. The rationale for choosing questionnaires is that they are easy to administer especially where distance in a limitation for the research. The questionnaires will be validated through a pilot study involving ten students from out institution. This will ensure that the information collected will satisfy the research questions. On the other hand, the abstraction methods will focus on statistical data provided by monetary bodies such as the World Bank, Government websites and the VISA partnership. Abstraction methods are easy methods of collecting information as they required little commitment but provide globally acceptable data (Creswell & Plano, 2011). This method will focus on the expenditure on infrastructural development, employment, purchases and any other spending during this period in the two countries. Also, this will provide data on the monetary benefits that include visitors spending, tourism benefits and organizational profits. This will provide adequate information to make a cost benefit analysis. For the purpose of this research, the data analysis will be a two-step approach. First, the statistical package for social sciences (SPPS version 11.0) will be used to compute the mean expenditure and cost for each country, and to deduce the economic benefits for each. In the second step, the software method will be used to compare the results for each country and generate comparative graphs for the profits of the two countries. The qualitative information will be analysed through interpretive techniques to make a connection between the benefits of the countries with the political, economic, social and technological factors in these countries (Creswell & Plano, 2011). The analysis will help to arrive at amicable conclusions and provide a basis through which suitable recommendation can be made. The research is expected to last for two semesters after which the findings, the data analysis, conclusions and recommendations will be presented in a documented report. Bibliography Bethlehem, L 2013, 'Thinking beyond the event: The legacy impact of the FIFA 2010 soccer World Cup on South African cities', Journal Of Urban Regeneration & Renewal, 6, 3, p. 241, Publisher Provided Full Text Searching File, EBSCOhost, viewed 28 March 2014. Brazil Business Forecast Report' 2014, Brazil Business Forecast Report, 1, pp. 1-53, Business Source Complete, EBSCOhost, viewed 28 March 2014. Briedenhann, J 2011, 'Economic and Tourism Expectations of the 2010 FIFA World Cup - A Resident Perspective', Journal Of Sport & Tourism, 16, 1, pp. 5-32, Hospitality & Tourism Complete, EBSCOhost, viewed 28 March 2014. Cornelissen, S, Bob, U, & Swart, K 2011, 'Towards redefining the concept of legacy in relation to sport mega-events: Insights from the 2010 FIFA World Cup', Development Southern Africa, 28, 3, pp. 307-318, Academic Search Premier, EBSCOhost, viewed 28 March 2014. Creswell, J. W., & Plano, C. V. L. 2011. Designing and conducting mixed methods research. Los Angeles: SAGE Publications. Eick, V 2011, 'Lack of Legacy? Shadows of Surveillance after the 2006 FIFA World Cup in ] Germany', Urban Studies (Sage Publications, Ltd.), 48, 15, p. 3329, Maguire, J 2011, 'Invictus or evict-us? Media images of South Africa through the lens of the FIFA World Cup', Social Identities, 17, 5, pp. 681-694, Academic Search Premier, EBSCOhost, viewed 28 March 2014. Pillay, U, & Bass, O 2008, 'Mega-events as a Response to Poverty Reduction: The 2010 FIFA World Cup and its Urban Development Implications', Urban Forum, 19, 3, pp. 329-346, Academic Search Premier, EBSCOhost, viewed 28 March 2014. 'SWOT Analysis' 2012, Brazil Defence & Security Report, 3, pp. 7-10, Business Source Complete, EBSCOhost, viewed 28 March 2014. VISA World Partner, 2011, Mega-Sporting Event; Generating Visitor Spending. Available at: < http://usa.visa.com/download/corporate/_media/mega-sporting-events-report.pdf > Read More