http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.15Change: 0.05
R/$ = 11.58Change: -0.02
Au 1195.87 $/ozChange: -1.05
Pt 1197.50 $/ozChange: 0.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Mar 19, 2010

SA may just break even on 2010 World Cup, research shows

Back
HSRC executive director of the Center for Service Delivery Research Programme Dr Udesh Pillay discusses South Africa's expenditure on the 2010 FIFA World Cup. Cameraperson: Nicholas Boyd. Editing: Darlene Creamer.
Engineering|SECURITY|Africa|Projects|Road|Safety|Security|System|Africa|South Africa|ZAR|Security|Gross Domestic Product|Security|Service|Transport|Infrastructure|Security|Udesh Pillay|The 2010 FIFA World Cup|The 2010 World Cup|The World Cup
Engineering|SECURITY|Africa|Projects|Road|Safety|Security|System|Africa|||Security|Security|Service|Transport|Infrastructure|Security||
engineering|security|africa-company|projects|road|safety|security-company|system|africa|south-africa|zar|security-facility|gross-domestic-product|security-industry-term|service|transport-industry-term|infrastructure|security-person|udesh-pillay|the-2010-fifa-world-cup|the-2010-world-cup|the-world-cup
© Reuse this



South Africa could possibly break even on the expenditure of the 2010 FIFA World Cup, but only in a best-case scenario, estimates Human Sciences Research Council executive director of the Centre for Service Delivery research programme Dr Udesh Pillay.

He explains that the country's expenditure on the event has been R63-billion, which is 6,4% of the 2010/11 gross domestic product (GDP). Currently, the only known revenue is R2-billion from FIFA and it is estimated that the event's contribution to the GDP will be 0,5%.

Taking these figures into account, Pillay says that the best-case scenario deficit that South Africa will experience is R26,1-billion, while the worst-case scenario deficit will be R56,1-billion. But these figures do not take ticket sales, marketing and merchandising into account.

He estimates that ticket sales, marketing and merchandising could add up to a total of about R20-billion, therefore it could be possible to break even in a best-case scenario, but there is a current possible conundrum. There are a total of 3,2-million tickets available for the event. To date, local supporters have bought about 350 000 tickets, or 11%, of these, resulting in 2,8-million remaining tickets.

If each foreigner buys about four tickets, this means that it is necessary for about 700 000 foreigners to buy tickets, but current estimates state that 450 000 foreigners, which Pillay says is already a high figure, will probably purchase tickets.

"If local sales do not increase and only 450 000 foreigners attend, the potential shortfall from ticket sales could be half-a-billion rand," he says.

There are also concerns regarding readiness, ability to cope, cost escalation, displacement of expenditure, safety and security, sustainability, institutional arguments, political will, the Zuma administration and strikes and protest action.

Pillay adds that five years ago, one in three South African hoped to benefit from the 2010 World Cup, but this fell to one in five in 2009 and only about 1% of South Africans now believe that 2010 will bring benefits from service delivery and upgrades in infrastructure. Upgrades have also been more sector-based for 2010, rather than at a municipal level and do not constitute part of the integrated development plans of the country.

However, there will be some positive spinoffs from the event and the legacy could be social, developmental and economic. He points out that a 0,5% contribution to the GDP is not insignificant and 130 200 direct, indirect and induced jobs have been created, although these are mostly for short durations and do not provide a large amount of skills transfer.

The expenditure has been South Africa's equivalent of a fiscal stimulus package and has given the economy a slight boost. It has created the momentum to accelerate the government's R846-billion infrastructure spending programme and led to an improved public transport system, that has been partially integrated.

The event also still offers some of the promise of development, poverty reduction, job creation, GDP contribution, accelerated service delivery, trade and investment, a tourism boost, sports development, expedited investment in infrastructure and increased international standing, as well as softer, less tangible legacies.

Pillay says that the World Cup is putting South Africa on the international map and the expedited investment in specific types of 2010 infrastructure is a big positive for the country. There have been developments, but less so the fulfilment of dreams.

"The huge hype provides hope and bodes well for a fractured society. The programmes continuing on 2010 projects, such as the road improvements, will continue to create a number of employment opportunities after the event," he concludes.

STORY HIGHLIGHTS
>> South Africa's expenditure on the 2010 FIFA World Cup has been R63-billion
>> Ticket sales, marketing and merchandising could add up to a total of about R20-billion

To watch a video of HSRC executive director of the Centre for Service Delivery research programme Dr Udesh Pillay discussing South Africa's expenditure on the 2010 FIFA World Cup go to www.engineeringnews.co.za and click on 'Multimedia' and then on 'Video Clips, or watch it on the Engineering News App on your iPhone.

 

Edited by: Martin Zhuwakinyu
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Economy News
Lumwana, Zambia
Canada’s Barrick Gold Corp will suspend operations at its Lumwana copper mine, in Zambia’s Northwestern province, after the country enacted legislation that raised the royalty rate on openpit mining operations from 6% to 20%. TSX- and NYSE-listed Barrick, the world’s...
Responding to “critical diagnostic data” provided by the Annual National Assessment (ANA) tool, which was introduced in 2010 to evaluate the standard of education in South Africa, President Jacob Zuma has acknowledged low levels of academic performance in...
Power cuts on Friday were unlikely as the national power grid was doing well, Eskom said. "There is a low probability of load shedding today. The grid is in good shape and unless something happens, the power will be fine," Eskom spokesman Andrew Etzinger said.
More
 
 
Latest News
China appears to have been routinely underestimating output from its sprawling steel sector, with official figures for last year alone 40-million tonnes below a key industry estimate - an amount equivalent to Germany's entire annual production. Beijing has vowed to...
Lumwana, Zambia
Canada’s Barrick Gold Corp will suspend operations at its Lumwana copper mine, in Zambia’s Northwestern province, after the country enacted legislation that raised the royalty rate on openpit mining operations from 6% to 20%. TSX- and NYSE-listed Barrick, the world’s...
The Labour Court in Johannesburg has set aside the 2011-2014 metal sector wage agreement, the National Employers' Association of SA (Neasa) said on Thursday. The 2011-2014 wage deal was the result of an agreement between the Steel and Engineering Industries...
More
 
 
Recent Research Reports
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
 
 
 
 
 
This Week's Magazine
South Africa remains an important manufacturing and export platform for Ford Motor Company, says executive chairperson Bill Ford. However, he adds that other countries on the continent are “becoming interesting”, and that the US carmaker is casting its net wider for...
TO BE PHASED INTO SERVICE The first MeerKAT dish, with another 63 to come
Germany’s Max-Planck-Society (MPG) and the Max-Planck-Institute for Radio Astronomy (MPlfR) are investing €11-million (about R150-million) into South Africa’s MeerKAT radio telescope array programme. The money will be used to design, build and install S-band radio...
Infrastructure spend in sub-Saharan Africa will grow from $70-billion in 2013 to $180-billion by 2025, says PwC capital projects and infrastructure Africa leader Jonathan Cawood. This is one of the findings of PwC’s Capital Projects & Infrastructure report on East...
Private-owned defence and aerospace manufacturer Paramount Group and the Ichikowitz Family Foundation unveiled its Anti-Poaching Skills and K9 Training Academy in Magaliesburg last month.
MATT BARKER Wireless networks should enable users to engage and must provide relevant information to them based on their activity and location
The inclusion of Bluetooth to provide sub-three meter accuracy and heightened functionality for users is one of the ways to change existing wireless networks into engagement networks. An engagement network differs from common wireless networks in that it enables the...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks