Contribution of 2010 World Cup To Local Businesses in South Africa Free Essay Example, 2750 words

These world-class stadia constructions led to the dearth of resources for grass root football. However, many residents believed these constructions and the tournament would improve the image of the country. The improved image would have social and economic advantages. The country improved its image after the Apartheid era. This event helped the country revive its Africa Renaissance project. The stadia development cost the government R13 billion. A high-speed rail link, Gautrain, was connected to ling Pretoria and Johannesburg. This railway is estimated to have cost R25.5 billion. The rail would improve business people operating between the two cities and other towns in between. This rail would facilitate transport between OR Tambo international airport, Johannesburg city center, and other world cup points. It was projected that the tourism industry would generate R11 billion from this construction. The foreign direct investment would also increase. For example, Wal-Mart purchased a 51% stake of Massmart, a local retail business in South Africa. German printing company Roko Labels also invested in Cape Town. These companies increased competition for local businesses. However, some local companies were contracted to supply raw materials and other products to investors. We will write a custom essay sample on Contribution of 2010 World Cup To Local Businesses in South Africa or any topic specifically for you Only $17.96 $11.86/pageorder now The rights to broadcast the soccer matches are estimated to be at least R25 billion according to South Africa info (2009). The world cup event was televised by several media companies. The South African Broadcasting Corporation (SABC) was the official partner of the world cup. It was the ultimate booster for the event. Other broadcasting companies such as Supersport, located in South Africa, were also awarded broadcasting rights. Many companies were locked out of the world cup benefits. Small scale restaurants, hotels, and tour operators could not offer hospitality services to tourists. FIFA had partnered with an international company, Match AG, to provide hospitality services to the tourists (FIFA. com, 2008). It was the only company authorized to sell onsite hospitality packages, services, and match tickets.