WORLD CUP IN GERMANY: WHO WILL BE THE WINNER?
This Friday 32 billion people (TV viewers and football fans) will be eye-witnesses of the start of the World Cup in Germany.
Let’s look at this sports event with relation to economy. German Institute for Economic Research says World Cup brings bad and good points for the national economy:
+ about 1 million tourists would like to visit Germany (football fans);
- but at the same time almost the same quantity of tourists would like not to come across with fans and they will refuse to visit Germany;
+ advertisers from Nike, Adidas, Coca-Cola etc. will fight for attention (and money) of football fans;
+ producer of sports ware and LCD television are sure that millions of dollars, that they spend on advertising, will be generously repaid.
But the World Cup means not only profits, but also losses!
Some economic experts think that British economy will lose about 4 billion pounds sterling, because employers will watch the games during their working hours (some of them will use the Internet to watch the games live), as a result - fall in productivity!
according to http://euronews.net
June 30th, 2006 at 2:33 pm
Every significant event in the world quickly becomes a common property. Sport is not an exception, all the more if we speak about football. For some football is nothing, some people feel neutral, but still rather sympathize than dyspathize. Some people represent the so-called football enthusiasts, fans, which like to spend their evenings with a bottle of beer in front of their TV. But for some football is a way of life, and we have to understand them.
Football championship is an event, which millions of people are looking forward to watching, say nothing of visiting. And as any major event it has some pros and cons. Of course, advertisers, sponsors benefit a lot, at the same time local as well as municipal authorities will have to work hard and do their best not to spoil all the show. But it’s not about extremities of employers, watching the championship during their work hours, come on…..it makes me laugh…..just imagine for a second – 4 billion pounds…..what an amount!
June 30th, 2006 at 2:42 pm
The answer is easy – the economics of Germany will be the winner, first of all by the increase of consumption of many goods: drinks, cigarettes, fan-and-sports-clothes, souvenirs, balls, sports equipment. The producers will achieve more income and will pay more taxes to the German budget. And more: there is a serious competition among the countries to have not only the World cup, but also many others competitions on their territory. The reason is not the interest, not the image, but money: all the international competitions are a great money-source for the country.
June 30th, 2006 at 2:45 pm
World Cup is the most expected event of this summer. Such great event is a wonderful opportunity for all football fans to meet in one place and have the wildest party of 2006. Besides, World Cup is a way to boost the economy. More than 50 000 working places were generated in Germany (euronews.net). That is really good news.
1 million of tourists will definitely spend a huge amount of cash. Local shops will have annual receipt at the end of World Cup. The same thing can happen with bars and restaurants. Tourists will buy many bottles of German beer and many packs of delicious frankfurter.
Almost the same quantity of tourists would like not to come across with fans and they will refuse to visit Germany. Well. That is not a problem. They will visit other European or non-European country. Football fans will spend money instead of tourists who refused to visit Germany.
Most of the famous brands want to sell as many of their goods as they can. Competition is force of economy. World Cup is one of the reasons to create something new and attract attention of visitors and local citizens.
I’m sure that all money that producers of different goods spend on advertising will return to their pockets and the German government will fill up the budget.
I agree that looses are inevitable. It concerns British economy, Ukraine economy, Portugal economy, etc. One thing balances another. That is the law of economy. However, German economy will have looses because of mad English fans. It is obvious.
Who will be the winner? I guess it will be Germany, but I hope it will be France, because I do really love this team.
June 30th, 2006 at 2:47 pm
The author claims that a great amount of tourists will come to Germany in order to see the matches, and this will bring profit to the organizers of the event. Moreover, for instance, advertisers from Nike, Adidas etc will get much attention from the football fans and this will help to increase the amount of money gained, as well. One more thing that should be taken into account, is that producers of sports ware and LCD television are sure that millions of dollars, that they spend on advertising, will be generously repaid. However the author wonders whether only profits loom ahead. He is strongly convinced that this World Cup will bring losses to the national economies of some countries, such as Britain, for example, as some employers will watch the games during their work time, and this correspondingly will lead to the fall in productivity. So, one can easily see that in general this is quite a contentious question, and one will find the answer only after this great event is over.
June 30th, 2006 at 2:48 pm
Of course every kind of world sport competition is a real event for the world and for the country where it is held. I do not think that Germany will have some difficulties with tourists. It can be a little decrease but not more. I even suppose that the football championship will attract not only football fans to Germany but also people who are interested in organizing this championship itself.
It will be a great competition among Adidas, Nike and other famous companies in order to gain popularity among football fans. It will be both profits and losses for countries, because most of people give up watching other programs, soap operas on TV in order to watch football games. As a result there will be a huge decrease in popularity of other programs.
The real minus from my point of view is that the games are shown when the most part of population is at their workplaces and in some way this can influence the productivity of their work.