Gobal Econ World Cup Case Q2

Q2a) In 2010, South Africa was hosting the 2010 World Cup event, because of it, South Africa had capture many people attention especially who love football. In fact, the World Cup event have bring out a deep impact to South Africa, no matter the benefits and the disadvantages.

In order to prepare the World Cup Event, the spent more than R33-billion over a period of four years on infrastructure, close to R12-billion was spent on stadium infrastructure, such as the Cape Town Stadium. The other R11-billion was spent on transport infrastructure, such as establish a new airport, roads, hotels in Durban, rail system in the Johannesburg and expand terminals. It is obviously to see that the event can boost the infrastructure development faster. However, in order to prepare this event, the South Africa also need to spent almost US $ 7.8 billion in total. If the South Africa did not hosting the World Cup event, those huge expenditure can be spent on the other way, such as spent on the education development, social welfare or other infrastructure development instead of spending R12-billion to establish the stadium.

Apart from the infrastructure development, the event also bring the benefit on the tourism of the South Africa. According to the report, a total of 309,554 foreign tourists arrived in South Africa for the purpose of attending the 2010 World Cup and those tourists spent about R3,64 billion during their stay. 90% of them would consider to visit South Africa.

Also, there are about 130000 jobs were created because of the World Cup event such as those workers in construction and the hospitality industry.

However, can those effect sustain after the World Cup event? After analysis the unemployment rate and the tourism level of South Africa after the World Cup event, it can clearly to show that those benefit cannot be sustained.

According to the diagram a provided on the left hand side, we can observe that the unemployment rate after the World Cup event (fourth quarter of 2010) have significantly increase, from the 24% increase to over 25.5%.

According to the diagram b provided on the right hand side, we can observe that the total visitors after 2010 world cup have significantly decrease, which is almost 2 millions of visitors.

No matter the unemployment rate and the tourism