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Research Notes are more in-depth analyses undertaken by BER economists and consultants. They are intended to inform clients on critical issues in the macroeconomic environment, which may impact on the business environment. Research Notes are exclusive to BER Premium Insights Service clients. For more information, contact us.
Date Uploaded: September 16 2010 11:20
The calculations in this note show that around 186 000 international tourists arrived in South Africa during the World Cup. Realistic assumptions about the average expenditure of these tourists (based on the relatively high hotel and transport prices during the tournament) and expenditure during a normal June, yields additional expenditure by tourists of R2.5 billion (0.1% of projected 2010 GDP). South Africans spent an estimated R1.3 billion on World Cup tickets which reduces the impact of the tournament on the local economy as these tickets belonged to FIFA and were in effect imported services. This reduces the net direct impact of the tournament via tourist expenditure to 0.05% of GDP with an ultimate impact of around 0.1% of GDP assuming a realistic multiplier of 2 for the tourism sector.