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TSE Commentator

May / June 2010
Is the FIFA World Cup a good long-term investment for South Africa?
 Yes       No

Our Opinion

The opportunity outweighs the cost

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Yes, South Africa has spent a lot of money on a number of football stadiums that may not have much use once the event ends. And yes, the extra security costs being spent during the World Cup could likely be used to improve the daily lives of the population. So, it's understandable to think that the cost of hosting the World Cup is not a good investment compared to the initial economic return the organisers will receive. However, without these expenditures on security, stadiums and the many other investments that were made, South Africa simply could not have hosted the World Cup. And the opportunity to change the world's simplistic and often inaccurate perception of South Africa - in just one short month - would not have been possible. South Africa has grasped the opportunity to change the world's perception of what South Africa is. And all for only 4 billion US dollars. That's right, "only 4 billion". That amount represents only 1% of South Africa's GDP, the 22nd largest GDP in the world. Isn't this astonishingly little compared to the impact a better image abroad could have on potential exports over the next 10-15 years? And an increase in exports could result from only a marginal change in the world's perception. We think this opportunity certainly outweighs the cost of hosting the World Cup.

-TSE Consulting

It's the brand, stupid

The World Cup is well underway, and despite some criticism of what is happening on the pitch, the event is off to a great start. However, there is still some doubt about whether hosting the World Cup was really a wise investment for South Africa. Will the massive financial investment in a poor country
like South Africa ever pay off?


Greg Curchod, Director, TSE Switzerland

TSE offers practical tools to help you improve your management and communication skills.

Your Opinion

Is the FIFA World Cup a good long-term investment for South Africa?

No

33%



Yes

67%



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