Photo: ChatGPT/BUSINESS Online
According to Forbes, citing a Bank of America study that analyzed bank card transactions in the 16 cities hosting tournament matches, total consumer spending rose by 6.3% compared to the same period last year. Tourists were the main drivers of this growth: their spending increased by 16.7% year-over-year.
At the same time, independent economists urge caution in assessing the scale of the economic impact. Victor Mathison, a professor of economics at the College of the Holy Cross who has spent many years studying the impact of major sporting events, considers FIFA’s forecast to be overly optimistic. According to his estimates, the stated figure implies an economic impact of about $400 million per match, which seems unlikely. Furthermore, a significant portion of the revenue from ticket sales and commercial rights goes directly to FIFA, while the host cities bear the main costs of security, transportation infrastructure, and tournament organization.
The experts’ skepticism is further supported by the experience of the previous World Cup, held in the United States in 1994. A study by Victor Mathison and economist Robert Baade showed that the actual economic impact of the tournament was $5.5–9.3 billion lower than initial forecasts.
The financial model of the current World Cup raises additional questions. Most agreements between FIFA and the host cities are not disclosed, making it virtually impossible to assess the distribution of revenues and expenses. It is known only that a significant portion of the costs is financed by local and federal authorities. For example, Houston received $65 million in federal funds to provide security during the matches.
The hotel industry, restaurants, and the entertainment sector are already reaping the greatest benefits from the tournament. At the same time, the tournament has had an unexpected commercial impact on food manufacturers as well. Increased demand among foreign fans has sparked a surge in popularity for the American Ranch dressing, prompting manufacturers to even release special packaging that meets air travel requirements.
The overall economic impact of the championship can be assessed after it concludes. For now, initial data indicate a noticeable increase in tourist spending, but do not provide grounds to conclude that FIFA’s projected multibillion economic impact has been realized.
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