The Business of World Cup 2010
World Cup 2010 is bringing in million of bucks to the local people in South Africa. Soccer city, Pretoria , Nelson Mandela bay are seeing thousands of foreign investments or spending into their cities. But the one question remains. Will the World cup 2010 provide significant boost to the country’s economy ?
The International Business Times ( IBT) reported that the present South Africa GDP had increment between 0.5 % to 2.2 % . It had created 300,000 new employments and permanently improved the infrastructure.
A background study on the South Africa economy is needed to validate the riches that world cup had brought in.
South Africa emerged from recession in the third quarter of 2009, and real GDP growth accelerated to 4.6% in the first quarter of 2010 from 3.2% in the fourth quarter of last year.
A positive indicator to South Africa’s service driven economy, is the impulse to the tourism sector.
Skeptics views, are saying that, the short term benefit from gigantic events management, will not be long lasting. This is based on, cities in America holding major events Super bowl and World Series received only short term gains from such major event.
However, spending by overseas tourist in South Africa is still encouraging according to global audit Grant Thornton.