Colliers’ report, FIFA World Cup 2014: Brazilian Goals reveals that of those countries that hosted the World Cup since 1970, some 32 per cent went on to win the competition outright; 42 per cent finished in the top two positions; 47 per cent finished in the top three and a whopping 63 per cent were in the top four.
In an attempt to analyse the impacts of the goals and learn from the legacy of previous World Cups, Colliers International’s research teams from around the world have undertaken a global consultation to identify likely impacts of the World Cup on the economies and real estate markets of host countries. This paper draws on experiences dating back to the Mexican World Cup in 1970.
The study reveals that most of the benefits of hosting the World Cup are indirect and long term; therefore difficult to directly quantify. The findings suggest that measuring the success or failure largely depends on the host nation’s motivations for holding the event, which are not necessarily limited to financial gains.
The net gains to be made by Brazil from hosting the World Cup will be substantial, but they are unlikely to be realised during the event. The Report’s top findings that Brazil can expect to benefit from are:
• Winning: The key immediate advantage to hosting a World Cup is that it increases the chances of the host country team winning the event outright.
• Feel-good factor: The feel-good factor associated with the World Cup is hard to measure and individual to each host country, but it is widely acknowledged that hosting the event has a positive impact on patriotism and national unity.
• Profile/brand: Most benefits of hosting the World Cup are not financial, but rather linked to a nation’s ‘branding’ in the international community. Playing host will immediately raise the global profile of a country and might even change perceptions of the host nation, resulting in increased tourism and political benefits and alliances, but these accrue over many years.
• Infrastructure: Regardless of success - financial or sporting - a legacy of infrastructure remains, accompanied by improved roads, transport connections and telecommunications that might have not otherwise have been realised.
Walter Boettcher, Colliers International’s Chief Economist, EMEA said: “If you wish to promote a country and its main cities, as a large corporate might raise its own brand awareness, hosting a World Cup or any other mega-event, will deliver success. In contrast, if you wish to make a commercial profit, or if you want to increase popular support in your country, ample evidence suggests there are far easier ways to achieve these very different goals”.