Tourism is the most reliable factor for huge economic growth

28Aug 2017
Muharram Macatta
The Guardian
Tourism is the most reliable factor for huge economic growth

It is known that hosting a 'mega sporting event' is extremely costly. It is stated, that hosting such event requires large amounts of expenditure on the infrastructure as well as on security; (as cited recently when an .........

English Football Team namely Everton Sports Club played against the Kenya Gor Mahia Football Club at the Benjamin Mkapa National Stadium).

However, there are a range of positive effects including economic effects that 'mega sporting event' can bring to the hosting area. We distinguish three main benefits of such events, which are called 'holy trinity of mega events benefits', namely economic growth, infrastructure legacies and image promotion; economic benefits are responsible for justifying 'mega event', covering all the investments and expenditures.

As far as 'mega event' is justified, it can be considered as a successful 'mega event'.  Everton Vs Gor Mahia held in the year 2017 can be a good example of a successful event. 

The games regenerated somehow the economy of the Dar es Salaam City. In our opinion, an international competition of that kind is a sign of improvement of a Tanzanian economy and a fundamental for its further development. Sport nowadays is popular as ever before. The number of sport competitions is increasing and are grabbing the attention of every one of all ages. 

Some of them are known as Major International Sports Events or 'mega sports events'. Examples of such competitions are Olympic Games, Football World Cup, Commonwealth Games and some other International Championships. 

They are becoming more and more famous these days. The number of countries and cities that want to host these kinds of sport competitions is increasing. 

Obviously, the reason for this is that 'mega sporting events' may bring a major number of short-term and long-term economic benefits to the hosting area.

On the other hand, economic impact is difficult to predict and to evaluate before the sporting competition. Therefore, not every 'mega sport event' can be successful, which means that not all economic impacts are positive. 

It is affirmed that "the costs associated with hosting a mega sporting event, such as the Olympics may outweigh the positive benefits for some residents, who may reduce or withdraw their support for the event".

The Impact of 'mega events' on a country's economy is a very controversial topic to discuss, because few researches were conducted on this. As it is further affirmed that organizing Major International Sports Event such as the Olympic Games and Football World Cup needs investments equal to approximately 10 to 20 billion U.S. dollars; it is also stated that, given this amount of finance, economic effects are undoubtedly beneficial. 

Economic benefits may follow from investment and sponsorship, tourism, telecommunications etc. The reason for this is the fame of 'mega sports events', as it involves foreign investors, tourists, mass media, and communication organizations.It is generally known that investment plays a major role in the economic growth of local area. As mentioned before, hosting a 'mega sports event' requires lots of finance, because new sports facilities must be improved and built and surely new infrastructures must be created. 

For example, as the requirement of FIFA, Football World cup host country must provide at least 8 modern stadiums. All the expenditures and investments done are likely to bring much more profit instead. Regarding an infrastructure development as foreseen by 3rd regime of retired Honourable President Benjamin William Mkapa and moreover the anticipated or proposed one in Dodoma by the 5th phase President Dr. John Pombe Joseph Magufuli, these and probably other refurbished ones may lead to the technological progress and better productivity in the economy of host country i.e. the Amani Stadium in Zanzibar.

As for construction sector, which include sporting venues, accommodation for participants and facilities for officials and the media, it is also expected to be very beneficial, as it is likely to provide new additional workplaces during the pre-event phase of the competition. 

In other words it can be stated that due to the infrastructure development unemployment can be reduced to some extent. For instance, according to the statistics, “due to the Olympic Games in Barcelona at least 88, 7 per cent decline in unemployment was registered from 1986-1992”.

In addition, there is another long-term positive impact of investment on local economy. Being already highly developed, infrastructure of the country automatically cut the costs for hosting another 'mega sports events' in the future, even if next event's organization cost may exceed the previous one.

The next economic impact major international sport events may bring to the host country is tourism development. Nowadays 'mega sports events', like Olympic Games and FIFA World Cup are supposed to be large tourism destinations, as they attract a major number of people. Therefore millions of people from all over the world tend to attend them every time they are held.

As a result, tourism as well as infrastructure development promote job creation, because a lot of markets, hotels, entertainment facilities like night clubs etc. are most likely to be created for the foreign visitors.

During the 'mega sport event' millions of people are able to go to the hosting country to watch it. Also they can purchase hotel rooms, meals, drinks, transportation, tickets on the games or matches etc. This means that tourism boosts the expenditure and promotes an increase in retail trade, which is very beneficial for the hosting economy. 

In addition, foreign visitors will undoubtedly be interested in the famous and historical places of the host country, which means a lot of sightseeing will be done including the national parks where a lot of animal species will be seen. 

Nowadays, tourism is the most reliable factor for huge economic growth. We have to believe that economy of Tanzania mainland and Zanzibar will significantly benefit in a direct way from the tourism development during the international soccer competitions.

When hosting a 'mega sporting event' it is very important to be able to provide the increase of awareness of hosting country as a tourism destination. For that purpose, involvement of the media is necessary.  

It is affirmed that media is very essential part of promoting the host area as a tourism destination. The reason for that are media-related advertisements and commercials can attract not only tourists, but also foreign sponsorships and investment. This, in turn, is very beneficial for the economy of the hosting country.

All the mentioned impacts are very important for the hosting area and before the organizing a 'major sport event' they should be deeply analyzed on a particular country in order to succeed. As sport is considerably developing these days, it tends to conduct more and more International Sports Events. 

Some of them have already reached a status of 'mega sporting events' like Olympic Games and FIFA World Cup. That means a lot of preparation and expenditure is required to host these events. 

It is obvious fact that the main reason why lots of countries and cities bid for hosting such events is that it may bring a lot of economic benefits to the local area. 

The impacts may be short- and/or long-term as well as positive (tourism development, new infrastructure, regeneration of a country's economy) or negative (high prices and evicting residents). 

However these effects are difficult to be examined and evaluated. Furthermore sports authorities often ignore some social and cultural impacts. 

As a result, some of the countries and cities, which host a particular 'mega sport event', do not gain the expected outcomes. In order to succeed in organizing a 'mega event' all the impacts should be deeply investigated towards the hosting country.  E N D S.