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Positive Impacts on Tourism during the Fifa 208 in Russia in hospitality businesses - Coursework Example

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Tourism refers to that pleasure experienced by travellers who travel to new places in search of specialized products and services,…
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Positive Impacts on Tourism during the Fifa 208 in Russia in hospitality businesses
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Positive Impacts on Tourism during the Fifa 208 in Russia in hospitality businesses

Download file to see previous pages... A 2018 world cup benefit the hospitality industry of Russia Russia is one of those countries benefiting from the tourism industry and in 2018 FIFA world cup, it will experience abnormal returns in its hospitality industry because it is expected to record the highest number of tourists ever (Kusluvan, 2003). Therefore, Russia will benefit in such ways as, it will end up with 15 world-class stadiums after the event; more than one hundred hotels are currently under construction implying growth of the hospitality industry and increase of revenue, which will finally boost the GDP of the country.
Let’s go through what took place in Brazil during the 2014 FIFA world cup. Brazil hospitality industry recorded increases in its hotel revenues (Siobhan, 2014). The total spending hit records in Brazil when international travellers spent US$188M on Visa accounts. This was a 152 percent increase year over year meaning the number of fans also increased compared to the previous figure of 2010 FIFA world cup in south Africa (Du & Maennig, 2011). There was a triple-digit rise in spending in various host cities compared to the previous period. Much of these increments were recorded by hotels, hospitals and other human-caring facilities. For instance, the number of tourists who arrived in Brazil in 2012 was 5.7 million but it was projected that the number would be 10.2 million with a 3% increase for Rio 2014.
Therefore, given the average e.g. room rate of $461 during the months of June & July, it is estimated that about $4.7022 revenue will be collected. For sure, hotels greatly benefit when the number of tourists in a given country goes up. This is because it is inevitable to eat and find a good resting place to spend the night while awaiting the following day’s activities. Rio de Janeiro, one of the FIFA hosting cities in Brazil, recorded handsome hospitality revenues in its history thanks to holding the FIFA world cup final match. Accommodation turned out being a problem ...Download file to see next pagesRead More
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