The World Cup in South Africa has produced some clear winners, including the FIFA organizers that have earned $3.3 billion from the proceedings. Adidas has said they’ve sold a record number of soccer balls and jerseys this year, making its official sponsorship a resounding success.
Visa said that spending by foreign visitors in South Africa using Visa cards jumped 68 percent over June of last year. “This is a great strategic property for us,” said Visa’s chief marketing officer, Antonio Lucio.
However, the benefits for South Africa itself are a bit more mixed. Most of the construction jobs for building stadiums and infrastructure were temporary and unemployment remains around 25 percent.
“The World Cup took us forward 20 paces. Maybe we’ll go back 10 or 12 paces afterward, but we’ve still got a net gain,” said Lee-Anne Bac, a director of the financial consulting firm Grant Thornton. “We’ve got the momentum and we need to keep it going.”
Clearly, the benefits from visitors to hotels and restaurants will only lift the local economy in the short term. However, the investment in public transportation and good will from World Cup visitors could have immeasurable impact.
“The international media spotlight has been on our country,” said South African President Jacob Zuma said this week. “The world has seen this country in a different light. They have seen the warm, friendly people. They have seen the precision when it comes to planning and logistical arrangements.”
Source: MSNBC
