Extra Virgin October 2009
Money

Is 2010 Recession Proof?- David Mayfield

There are a few of us for whom the date 2010 and the word money bring to mind Paris Hilton. She is set to star in a film titled The Money next year as, god help us, herself. But the rest of us will think about the soccer world cup, and whether the economic downturn will spoil
the party. David Mayfield finds reason for optimism.

According to Southafrica.info:

"The World Cup's total contribution to South Africa's gross domestic product (GDP) will be a massive R55.7-billion, of which R33-billion will be in direct spending on stadiums and infrastructure (R17.4-billion in 2010 alone), spectator trip expenditure (R8.1-billion), ticket sales (R6-billion), rights and sponsorships (R750-million) and other items.

Just over 415 000 jobs will be created in tourism, transport, construction and other industries and inject an estimated 8.5 billion in tourist spending alone."

SA2010.gov.za adds:

"Small, medium and micro enterprises will be able to take up business opportunities created in the ripples of the 2010 World Cup. The hundreds of thousands of visitors who will pour into the country during the event will boost oportunities in accommodation, health services, travel services, short-term insurance, event management, logistics, arts, crafts and entertainment - to name but a few."

Consulting firm Grant Thornton, which published the report cited by Southafrica.info, said the current economic downturn had been taken into account.

"Of course the global recession will deter some would-be visitors," Gillian Saunders, a director at Grant Thornton, told Business Day recently, "but if we have a structurally weakened currency, South Africa will look like a very attractive holiday destination."

Local Organising committee Ex-chairman Danny Jordaan echoed those sentiments.

"If the world economy had crashed in 2004 [when South Africa was raising the budget for much of its World Cup preparations], it would have been a very different picture than four years later in 2008," Jordaan in a speech at Soccerex. "Most of the work has already been done."

Profits being entwined with the smooth running of the tournament, the main threat to its success is crime. Jordaan's plan? More police.

Jordaan said the impetus of 41 000 extra police officers - 31 000 officers and 1000 operational reservists - by 2010 would help allay fears around safety and security in the country.

Chin up, folks. Everything is going to be OK.

If it isn’t I’ll eat my pre-ordered Zakumi soft toy.


 


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