How Sports Events Contributes to the Economy of the Hosting Country

Over the recent years, discussion researches have been conducted  to determine the economic contribution associated with hosting major international Sports events. International Sports events refers to the big sports such as the Olympic Games aand FIFA World cup soccer. Many countries are aware of the financial gains attached to this parrticular  event if they happen to be the host. Many countries dream of holding an international game with not only social contemplation but mainly for financial gain intentions. However, hosting a sports events is attached with a heavy cost to invest in facilities such as stadiums, accommodation and transportation facilities and security reinforcement. As much there is a large amount of investment associated with these particular events, still countries see this event as lucrative and try all means to attract them in their counties as they take it as an opportunity of conveying their county’s image in the world. Sponsors from all parts of the world often seize this opportunity by supporting the host countries in preparations.

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According to the literature review, the Sports events not only boost the economy but also build the image of a country as well. For example, The 2008 Olympic Games in china significantly boosted China image as a country, and the changed imaged ended up contributing to its product image too. The  most affected sectors of the economy are transport and accommodation, the tourist industry, apparel industry and gambling industry. Taking the incoming 2018 and 2022 FIFA World Cup Soccer in Russia and Qatar respectively as an example, the countries is bound to gain more revenue in the transport and accommodation sectors. The Russian Airlines and road transport will be busy transporting visitors as football fans will be coming from all over the world. The accommodation industry will as well gain as visitors will flood in the hotels with volume bookings. The local apparel industry will benefit from deals of designing costumes and football jerseys for fans and soccer players too. Although its illegal gambling industry highly benefits from with Mega- events. Betting companies gain a huge amount of money in which can be invested in other sectors of the economy.

Apart from the short-term benefits associated with this Mega Events, there is another long-term benefit too. The events leave a highly reputable City with superb sports venues and, exemplary infrastructures such as roads airports and railway lines. For example, the 2010 World Cup Soccer led to the construction of excellent modern football stadiums with quality roads and the South Africans now still enjoys the facilities. Additionally tourist started flocking to South Africa to because of the reputation that the country gained after the event thereby earning the country some foreign income. The paper will focus on the in the economic gains attributed to Sports events to the host countries. 


Evaluating the economic significance of sports events on host country is of importance at both scholarly and business level. At scholarly perspective, document the importance of gains attributed to international sports events gives students sufficient resources, which could help them in researching about related topics. At the business perspective, the research will give potential investors worldwide portfolio ideas on where and how to invest in such events. However, the research will help countries realize the pending opportunities and try to engage in activities that will attract the events in their country. Many countries perceive the process of hosting as international event with many negativities such as  the need for high initial investment cost, short-term use of facilities, cost of security, fear of negative publicity and chances of paying high taxes. The research will provide a detailed insight, which tries to offer solutions to the above problem with an aim of encouraging Countries to try and host such events (Brannagan & Brix 2013). The research will achieve thus by presenting analytical evaluations in countries which have hosted mega sports events by highlighting all the benefits it accrued from it. However, the research intends to point out potential sectors within a country that can greatly benefit in case they host a Mega sports event. Moreover, the research can go ahead and pinpoint sectors which a country is likely to gain  form hosting international sports events. The entire process call for project planning if a country plans to prepare for an international even. For instance, it should plan on where to locate the stadiums and accommodation facilities and how to improve the already existing.

Research Problem

The problem prompting the research is; how sports events contribute to the economy of the hosting country. Countries my be reluctant to host sports events for the fear of negative factors rather than concentrating on the advantages attached to the step. For example, The 2022 FIFA world cup to be held in Qatar will bring more benefit than the arm. The event will create numerous employment opportunities, boost the transport and accommodation sector and promote other sectors of Qatar’s economy. Some country are aware of how the event can be lucrative and this is the reason why acquiring the hosting privilege is a process which entails massive bidding. However, Qatar has to prepare adequately in order to accommodate the event with utmost efficiency. Countries that are often not ready to host such events tend to raise response such as fear of congestion, which could hamper systems like communication and transport and the fear of insecurity too. The fear can be eliminated by planning in advance in contemplation of the impednding dangers. The research will outlie possible solutions to this problem because they are manageable (Andreff & Szymanski, 2006)

Research Objective

  • To determine the effect of Meg-Sports events to transport and accommodation industries of a host country
  • To determine the overall economic significance of 2022 FIFA world Cup in Qatar’s economy 
  • To evaluate how sports events affect employment opportunities in  the host country
  • To draw the importance of 2022 Qatar FIFA world cup  to  Qatar local businesses 
  • To ascertain the percentage contribution of sports events income to the GDP of a host country

Research Design 

Given the strength and complexity of the Qatar economy, the research needs a well-developed research design that will entail details geographic understanding of Qatar, sample size and sapling method determination, data collection method, data analysis method and a detailed timeline.

Geographic Area

The research design stems from the geographic location of the Country location in the case study. Qatar is located in the Middle East neighboring countries like UAE and Saudi Arabia. There have been raised concerns about Qatar’s climate concerning the FIFA world cup 2022. Proponents have argued that Qatar does not have good climatic conditions for playing football. However, Qatar organizers have countered has countered these claims by reporting they have designing  climate controlled stadiums, according to the organizers the stadiums will be zero-carbon  emitting to curb the excess day time temperature which hits an average of 40 °C  during the day in the Europe off-season period of June and July. The host cities in Qatar are Al-Shamal, Al-Khor, Um Slal, Al-Rayyan, Doha, Al-Daayen, and Al-Wakrah. The paper will focus on the stadiums in Al-Rayyan and Doha cities. Al-Rayyan has several stadiums, which will be used for group stages matches. Stadium such has Al-Gharafa stadium, which will be renovated as part of the plan. The reason for choosing the Al-Gharafa stadium in Al- Rayyan city it is because the city is the largest municipality city in Qatar, however, the stadium will held group matches and are expected to accommodate a large numbers of fans than any other city. Doha is another city which  neighbors Al- Rayyan  to the East and characterized with numerous stadiums like Sports City Stadium and Qatar University Stadium. Doha being the capital city, it is a population density which ranges from 20,000 people per km² to 25 people per km² with,60 % of the country population residing here. Therefore, the  economic activities are expected to dominate here.

Sample Size and Sampling Method

Drawing from the objectives and the problem of the research, the sample size will be selected to cover the intended parts only. The sample size will include, four means of transport that is railway, road, air and water, seven different hotels from all the seven hosting cities, these are Al-Shamal, Al-Khor, Um Slal , Al-Rayyan, Doha, Al-Daayen, and  Al-Wakrah, three local and two foreign gambling sites and  representative from Qatar government treasury department.  

The research will use systematic random sampling  to avoid limitation posed of simple sampling. However, systematic random sampling is preferable due to its simplicity and periodic quality. Using this technique, I intend to pick the first item of the object in each population sample size selected. The next step is to select the second item or object from the list. The technique will give me a chance to incorporate the degree of system or process into the random selection objects or item. Another advantage of the technique over simple random sampling is the assurance that the sample size population will be evenly sampled whereas simple random sampling only allows a  clustered sampling which can cause in accuracy.

Data Collection Method 

The research  will use three data collection methods, these are;  interviews and questioner’s, and observation as forms of  primary sources of data.  Interviews can not only be conducted live, but it can also be carried online using skype, tinder or any other official internet communication platforms. The interview questions will be framed to provide the answers demanded by the objectives of the research. On the other hand, questionnaires will  be designed online with the question matching the demand of the research questions. Observation techniques will be applicable when observing the behaviors changes in the transport industries. The three techniques are classified as primary sources of data because they incline to deliver firsthand information  from the targeted population.

Data Analysis Method 

Date analysis is the vital stage of the result in a research, and the result accuracy and reliability are prioritized. Since the use of questionnaires constitutes a survey, quantitative techniques will be used to calculate the findings from transport, and accommodation changes in profit and clients numbers. Line and bar graphs can be drawn from the records to try to predict the probable behaviors of these sectors of the economy with and without the impact of the sports event. Additionally, the date obtained from interview and observations will be analyzed using interpretive analysis method. An interpretive analysis method involves comparing and evaluating notes recorded during the data collection period and providing inferences to suggest a possible outcome. Daily interpretive techniques is a reliable because its results are accurate since it is done daily, and one can easily extrapolate cues from the respondent’s expression. 

Data collected from Qatar government treasury will include the country’s GDP, revenue collection form the targeted sectors and expenditures related to 2022 FIFA world cup. The data will be analyzed using accounting tools to determine the behaviors of the country economy by checking if there are elements of favorable or adverse national income. An adverse national income will indicate a possibility of Qatar having a national debt. 

Time Line Of The Research 

The research will take a lengthy span of three months. The reason for scheduling it up to two months is because Qatar climate conditions  is unfriendly characterized with a hot day and cold nights which will limit the research team’s working hours.

Aug 27, 2019 in Economy
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