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World Cup 2010: South African Economic Perspectives And Policy Challenges Informed By The Experience Of Germany 2006

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  • WOLFGANG MAENNIG
  • STAN Du PLESSIS

Abstract

The paper provides an ex post analysis of the financial burden and economic benefits of the World Cup (WC) in Germany 2006. Based on the usual cost‐benefit measures, the experience of WC 2006 appears to be in line with existing empirical research on large sporting events and sports stadiums, which have rarely identified significant net economic benefits. The lessons from Germany 2006 provide a context for analyzing the potential risks and benefits for South Africa (SA), the WC hosts in 2010. For SA, a careful analysis might be even more urgent to assure the sustainability of investment in stadiums. The paper also argues that the “feel‐good” and public image effects of sports events should no longer be neglected in cost‐benefit studies of large sporting events, even though these effects have the character of experience goods, and their value are thus likely to be underestimated ex ante. (JEL L83, R53, R58)

Suggested Citation

  • WOLFGANG MAENNIG & STAN Du PLESSIS, 2007. "World Cup 2010: South African Economic Perspectives And Policy Challenges Informed By The Experience Of Germany 2006," Contemporary Economic Policy, Western Economic Association International, vol. 25(4), pages 578-590, October.
    • Handle: RePEc:bla:coecpo:v:25:y:2007:i:4:p:578-590
    DOI: 10.1111/j.1465-7287.2007.00074.x
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    More about this item

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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