http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.23Change: 0.00
R/$ = 10.57Change: 0.01
Au 1306.20 $/ozChange: -1.15
Pt $/ozChange:
 
 
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 Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jul 30, 2010

SA’s hosting of FIFA World Cup brought economic benefits

Back
Construction|Johannesburg|Africa|Gautrain|KPMG|Pipelines|PROJECT|Roads|Africa|Brazil|South Africa|Gautrain|Product|Transport|Gautrain|Devon Duffield|Frank Blackmore|Gautrain|Infrastructure|Power|Trevor Fowler|Cables|Pipelines|2010 World Cup|The 2020 FIFA World Cup|The 2020 Olympic Games|The Soccer World Cup|World Cup
construction|johannesburg|africa-company|gautrain-company|kpmg|pipelines-company|project|roads|africa|brazil|south-africa|gautrain-facility|product|transport-industry-term|gautrain-organization|devon-duffield|frank-blackmore|gautrain|infrastructure|power|trevor-fowler|cables|pipelines|2010-world-cup-sports-event|the-2020-fifa-world-cup|the-2020-olympic-games|the-soccer-world-cup|world-cup
© Reuse this



The hosting of the 2010 FIFA World Cup, which has pumped an estimated R93-billion into the local economy, has rebranded South Africa and created a favourable climate for direct foreign investment and tourism growth, says KPMG senior economist Frank Blackmore.

"One does not have to be an economist to know that things went well," he said at a KPMG post-2010 World Cup panel discussion in Johannesburg this week.

The June 11 to July 11 sporting event contributed around 0,5% to South Africa's yearly gross domestic product growth, and from around 4% to 6% to the country's quarterly growth.

Currently, South Africa's tourism rate is around 20% higher than it would normally have been for this season of the year, and it is believed that for every ten tourist coming into the country, one job opportunity is created.

A recent survey by African Response found that 96% of World Cup visitors to South Africa said that they would possibly return to the country, while 92% would recommend the country to friends and family as a holiday destination.

Murray & Roberts construction executive director Trevor Fowler, who also participated in the KPMG panel discussion, said that the money spent on infrastructure for the event had provided South Africa, as a developing country, with some "much-needed" infrastructure.

"Our roads have seen great improvement, public transport has been elevated to a level not experienced in the country before, we have built stadiums of the highest global standards and hotels, accommodation and other facilities had been constructed that can now be used by the people of South Africa, tourists entering its borders and other sporting events.

"In fact, the country had already received some enquiries from Brazil, that will be hosting the next World Cup in 2014, to assist them in their planning efforts."

Fowler further said that the Gautrain, for instance, had far exceeded expectations. "We initially estimated that between 3 000 to 6 000 people a day would use the train, and currently we are seeing around 13 000 people using the train a day on weekdays and 20 000 people on weekends.

"This has also shown us that a significant public private partnership, such as the Gautrain project, can be executed with great success."

Blackmore also pointed out that the almost R800-billion infrastructure "cracker" helped mitigate the effects of the global recession. "While the rest of the world were licking their financial wounds, we here in the south were beavering away."

Meanwhile, with South Africa's newly found confidence in hosting big sporting events, the country has indicated that it would consider putting in an official bid for the 2020 Olympic Games.

However, Fowler pointed out that this would essentially be quite different to hosting the soccer World Cup, seeing that there were a large number of different sports and events, and thousands of athletes that would have to be accommodated in one city over a three-week period.

He said that a lot of new infrastructure would be needed, such as large swimming pools and athletic tracks that would not necessarily be that easy to use after the event.

Nevertheless, Fowler said that the building of the infrastructure, especially in a developing country such as South Africa, could be beneficial.

He pointed out that government was also keen on continuous investment in the country's infrastructure, and that a national infrastructure plan was currently in development and would be put in place by the end of the year. "This also includes things such as pipelines, undersea cables and power infrastructure."

All in all, KPMG audit director Devon Duffield said that all the money that was spent during the 2010 World Cup was still circulating in South Africa, and that money that was circulating faster defined the creation of wealth.

 

 

Edited by: Mariaan Webb
© Reuse this Comment Guidelines
 
 
 
 
 
 
 
 
Other Infrastructure News
Economic Development Minister Ebrahim Patel
Economic Development Minister Ebrahim Patel says government will be prioritising six ‘I’s as part of its “radical economic transformation” agenda for the coming five years. Delivering his Budget Vote in Parliament on Tuesday, Patel said the six components...
Engineering and construction group Wilson Bayly Holmes-Ovcon (WBHO) has launched a sponsored American Depository Receipt (ADR) programme in the hopes of opening up investment in the group to international investors, particularly US investors. The ADR programme was...
In an update to shareholders, financially distressed civil engineering group Protech Khuthele Holdings, this week, said it was still awaiting the appointment of a liquidator. This followed after business rescue practitioner Gavin Gainsford, earlier this month,...
More
 
 
Latest News
Updated 26 minutes ago This four-page brief covers key developments in South Africa’s water sector over the past 12 months, including details of South Africa’s water policy, water infrastructure, nonrevenue water and water quality issues, as well as prospects for the sector.
Nersa's Thembani Bukula
A standardised tariff for electricity resellers is needed to avoid consumers being overcharged, energy regulator National Energy Regulator of South Africa (Nersa) said on Tuesday. "The pressing problem right now is that there is a standardised tariff that they...
Economic Development Minister Ebrahim Patel
Economic Development Minister Ebrahim Patel says government will be prioritising six ‘I’s as part of its “radical economic transformation” agenda for the coming five years. Delivering his Budget Vote in Parliament on Tuesday, Patel said the six components...
More
 
 
Recent Research Reports
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.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
Real Economy Insight: Steel 2014 (PDF Report)
This four-page brief covers key developments in the steel industry over the past 12 months. It provides an overview of the global and South African steel and stainless steel markets, South Africa’s major steel producers and events that have shaped these markets.
 
 
 
 
 
This Week's Magazine
Local aerospace company Denel Aerostructures (DAe), part of the State-owned Denel Group, has won a fourth contract to manufacture parts for the Airbus A400M military air transport and air-to-air refuelling aircraft. The new contract, which was won in an international...
Bob Skinstad
Although CEO Mark McChlery and chief marketing officer Bob Skinstad likened themselves to children in a playground when taking on the task of “reengineering and repositioning” the Seartec brand, the “young, dynamic and enthusiastic guys” were like proud...
An increasing number of buyers, in both the new and used car markets, are opting for finance structures that lower their monthly repayments, says asset financing company WesBank. These include the use of large balloon payments (also known as residuals), as well as...
Tertiary education institutions can use search engine giant Google’s Chromebook to provide secure mobile end-point devices for students on which they can share documents, work collaboratively on documents and access education materials and applications being used...
Local ceiling and partition company Abbeycon has beaten global competition at the Saint-Gobain Gypsum International Trophy competition, which was held last month in Berlin, Germany.
 
 
 
 
 
 
 
 
 
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