Effect of the FIFA world cup on Qatar's economy

[Alpha Marine]

Qatar spent over $200 billion preparing to host the FIFA 2022 world cup. They spent that money on constructing roads, airports, public spaces, stadiums, gas stations, and more. They constructed seven new stadiums and renovated one to make it eight stadiums for the world cup. The cost of building these stadiums has been estimated to be $6.5 billion. They spent $36 billion to construct the Doha metro, and for the Pearl accommodation complex, they spent $15 billion.
While FIFA takes home most of the profit generated from TV rights, ticket sales, and sponsorship deals, it is estimated that FIFA will make $17 billion from the tournament.

There will most likely be an oversupply of some of the infrastructure, especially in real estate. It won't be the first time though. The Maracanã stadium in Brazil was abandoned after the 2014 world cup.

1.5 million people were in Qatar for the tournament but as stated earlier, 100% of the ticket sales go straight to FIFA’s coffer. About $4.6 billion was made from broadcasting and marketing rights and all of that goes to FIFA. During the tournament, FIFA covers most of the cost of running the world Cup but they pay about $1.7 billion to Qatar, the prize for teams that participated in the tournament is included in this money which is $440 million.

Since there were 1.5 million visitors in the Gulf country for the tournament, there will be a positive cash flow in tourism sales for hotels and restaurants and an increase in the sales of souvenirs and other consumption in general. The increase in investment and consumption should increase the taxes in the Qatar state budget but with the enormous tax breaks agreed with FIFA and its sponsors Qatar will not make much from that either. The exact loss on tax revenue is impossible to ascertain.

From November 1 till the end of the world cup, people without a match ticket were not allowed into Qatar, which means non-world cup tourists did not contribute to the GDP of Qatar through consumption. Other decisions were made that did not contribute to the cash flow. For example, from November 10th to December 23 the bus and metro access was free of charge for people with a Hayya card. This is a fan ID that allows ticket holders entry into Qatar and the stadiums.

Putting these into perspective, we can say that the FIFA 2022 world cup is not profitable to Qatar. In the short term, where most of the cash flow goes to FIFA, it does not make financial sense for Qatar to host the world cup.

On the other hand, for a country like Qatar, getting money from the world cup was never a goal for hosting the world cup, for obvious reasons. They're a small country with an abundance of money. They did all these based on the national vision 2030 plan. The plan includes improving the country's standard of living and its international relations

Not only does the vision 2030 plan include hosting the world cup and improving the standard of living while also improving international relations, but Qatar also plans to attract future sporting and cultural events. This is evident in the fact that Doha has been chosen as the host city of the 2030 Asian games. With the infrastructure they now have, they are in a pole position to bid to host other sporting competitions.
Five out of the eight stadiums constructed for the world cup will either be dismantled or converted for alternative purposes.

While for FIFA, short-term profit is a goal, the same cannot be said for about a country like Qatar.
They can afford to shoulder the losses incurred from hosting a world cup.
The fact that Qatar is not making financial profit from hosting the world cup, doesn't mean they have nothing to gain from it
Qatar's public debt will decline by 6.8% over the next four years. The infrastructural project will lead to positive cash flow in tourism, investment, consumption, employment, etc. The aim of all these is to reduce the over-dependency of Qatar on oil and gas. This will create new opportunities in other industries.

According to experts, Qatar's GDP will rise by 4.1% by the end of 2022. And will increase by 3.2% from 2022 to 2030.
Qatar's stock exchange (QSE) also increased up to 24% from the beginning of the year til mid-2022.

Aside from the fact that Qatar spent an absurd $229 billion in preparation for the world cup, none of these is a big surprise. For a host country, a world cup is not solely about making money and profit but about pride, honor, and publicity, and Qatar has achieved that, especially publicity because they just hosted what is arguably the best world cup ever.

[dansus021]

most of the media talk that qatar is overspent for FIFA, in my opinion its also big yes. even tho the Qatar is one of wealthiest country and after i watch some blog post that

"The economic benefits from hosting sporting mega events are often limited and far smaller than initially predicted. Predictions in the run up to Qatar 2022 claimed that hosting the FIFA World Cup would bring in $17bn to the local economy. One reason for this is attributed to the large increase in sports tourists arriving to watch the event." - https://www.ntu.ac.uk/about-us/news/news-articles/2022/12/expert-blog-will-the-fifa-world-cup-in-qatar-bring-economic-prosperity-to-the-middle-east

I think make it 200$ billion investment back is need of time the BEP itself maybe take more than 5 year

[Die_empty]

One of the positive impacts of hosting the world cup is that it promotes infrastructural development and tourism. Host nations usually ensure that there are adequate basic amenities that would be beneficial after the world cup. Another good part of hosting the world cup is that it promotes tourism which would attract foreign revenue and increase employment opportunities. It also introduces the host country to the world and can attract foreign investment.

But hosting the world cup also has its negative effect. Sometimes in a bid to host the world cup, some nations borrow or take loans, like in the case of Brazil in 2014. These nations would have to service this debt with their meager resources. Some of these infrastructures that were built become a waste of resources after the world cup because they were not well-planned or situated. In the case of the $900m Estádio Nacional de Brasília Mané Garrincha in Brazil that now serves as a bus parking lot.

It is also important to note that there is no significant relationship between hosting the world cup and economic growth. Hence, there is no guarantee that a host would economically benefit from the hosting of these games. Analysts unveiled that hosting the world cup had no long-term positive impact on the economy of both South Africa and Russia. Qatar might be different but it takes a lot of hard work to convert this short economic prosperity to a lasting one.

[coupable]

When I note the conditions of this session of the World Cup football compared to other sessions. What I see most distinguishes Qatar is its small size and that the stadiums are close to each other in a way that allows one fan to attend two matches of two teams that are not from the same group (first round groups).

[Davian144]

When I note the conditions of this session of the World Cup football compared to other sessions. What I see most distinguishes Qatar is its small size and that the stadiums are close to each other in a way that allows one fan to attend two matches of two teams that are not from the same group (first round groups).

That is one of several effects that Qatar can see and feel, because when there are many visitors or spectators who come to different stadiums at one time, it is clear that the revenue can increase. But if we look at the wider economy, especially for Qatar itself, it is the promotion of the state of Qatar which is already very advanced to the outside world and according to a news source that I have read,

that It really advances many medium term development projects that the country has and in many cases, many projects that would have been completed over a decade are already completed to showcase Qatar progressing during the World Cup, The World Cup advantage in QSE is expected to continue into next year as well, mainly from construction, real estate, tourism, and retail spending flowing to listed companies and the wider economy as a whole.

"Specifically, Qatar's goal is to use this event as a springboard to showcase its offerings, and hopefully increase international tourist arrivals from 2.1 million in 2019 to 6 million annually by 2030," said Saugata Sarkar, head of research at QNB Financial Services. _{Reference: [aljazeera.com]}

[Sithara007]

Qatar spent around $290 billion to host the 2022 World Cup. If they are ready to spent that much, then obviously they are not looking at the ROI. Qatar is not a major tourist destination, and in the future also the situation is going to remain the same. Even some of the infrastructural facilities that they have constructed will sit idle in the future. We need to remember that Qatar is a small country with just around 313,000 citizens (and an additional 3 million expat workers). Unless the population goes up by 10x in the near future, most of this $290 billion will go to waste.

[Bttzed03]

~

"Specifically, Qatar's goal is to use this event as a springboard to showcase its offerings, and hopefully increase international tourist arrivals from 2.1 million in 2019 to 6 million annually by 2030," said Saugata Sarkar, head of research at QNB Financial Services. _{Reference: [aljazeera.com]}

Looking at their tourist Visa requirements, it's likely that they can achieve or surpass that goal. Citizens from over 90 countries can visit Qatar and stay there for 30 to 90 days visa-free.

[mindrust]

Qatar is already a very rich country. They didn't host WC to make more money because they don't need money. Actually they lost money because of this event. If I remember right this was the most expensive world cup ever hosted. ($200 billion) There is no way Qatar can generate more than $200 billion to make up for the losses.

They might have lost money but they gained something else, they become more visible in the world. Now more people know about this small rich country. That was the biggest reason why they spent so much money on an organisation which they don't even like.

[adaseb]

Most countries that host these events know they are doing it for a huge loss. The country doesn’t really depend on any revenue generated from this. It’s already fairly well off.

This was pretty much discussed a month ago. And most people were surprised by it. However that is just the way these events are done. They are done at a loss.

[Alpha Marine]

Most countries that host these events know they are doing it for a huge loss. The country doesn’t really depend on any revenue generated from this. It’s already fairly well off.

This was pretty much discussed a month ago. And most people were surprised by it. However that is just the way these events are done. They are done at a loss.

The amount Qatar spent is what's a shocker. Prior to the 2022 world cup no country has ever spent up to $20m to host the world cup. I've seen different report the highest I've seen in any of them is $19 billion by Brazil in 2014. So going all the way to over $200 billion is questionable even for Qatar.

[pooya87]

Qatar's profit from FIFA world cup was never monetary although they still made good amount of profit from it. The main goal was to introduce their country to the world and both attract more tourists and more immigrants. It is interesting to know that nearly 90% of the small population of Qatar is not Qataris! They are foreigners who go there to work and some to live. For example out of the total 3 million people in Qatar, about a million are from India and Bangladesh (that's 1/3 of the population).
After the World Cup and how they introduced their country to more people, they hope to increase it further and diversify their population.

[oaz7t]

So they have not made any profits from this event? I thought they might have made the profit right from the visits of fan clubs, food sales, alcohol, travel/commute and much more. Millions of people were there right? Isn't the event long enough to generate a good amount of money for money For Qatar? Wow, I am surprised with the projections of Qatar and their expenditure. Nonetheless they will recover quickly if they have not. Maybe they just enjoyed hosting the world's most loved event and wanted to entertain themselves? Considering the country's wealth it might have been a side hustle for them.

[Fortify]

Qatar spent over $200 billion preparing to host the FIFA 2022 world cup. They spent that money on constructing roads, airports, public spaces, stadiums, gas stations, and more. They constructed seven new stadiums and renovated one to make it eight stadiums for the world cup. The cost of building these stadiums has been estimated to be $6.5 billion. They spent $36 billion to construct the Doha metro, and for the Pearl accommodation complex, they spent $15 billion.
While FIFA takes home most of the profit generated from TV rights, ticket sales, and sponsorship deals, it is estimated that FIFA will make $17 billion from the tournament.

There will most likely be an oversupply of some of the infrastructure, especially in real estate. It won't be the first time though. The Maracanã stadium in Brazil was abandoned after the 2014 world cup.

1.5 million people were in Qatar for the tournament but as stated earlier, 100% of the ticket sales go straight to FIFA’s coffer. About $4.6 billion was made from broadcasting and marketing rights and all of that goes to FIFA. During the tournament, FIFA covers most of the cost of running the world Cup but they pay about $1.7 billion to Qatar, the prize for teams that participated in the tournament is included in this money which is $440 million.

Since there were 1.5 million visitors in the Gulf country for the tournament, there will be a positive cash flow in tourism sales for hotels and restaurants and an increase in the sales of souvenirs and other consumption in general. The increase in investment and consumption should increase the taxes in the Qatar state budget but with the enormous tax breaks agreed with FIFA and its sponsors Qatar will not make much from that either. The exact loss on tax revenue is impossible to ascertain.

From November 1 till the end of the world cup, people without a match ticket were not allowed into Qatar, which means non-world cup tourists did not contribute to the GDP of Qatar through consumption. Other decisions were made that did not contribute to the cash flow. For example, from November 10th to December 23 the bus and metro access was free of charge for people with a Hayya card. This is a fan ID that allows ticket holders entry into Qatar and the stadiums.

Putting these into perspective, we can say that the FIFA 2022 world cup is not profitable to Qatar. In the short term, where most of the cash flow goes to FIFA, it does not make financial sense for Qatar to host the world cup.

For some nations they have more money than sense and this was never meant to be an economic boost for Qatar. It was simply intended to showcase their country to the world, which they did but it seems to have backfired in many ways because it showed how intolerant they are as a country and probably put any decent people off from visiting in future. However they have so much oil money it was simply a drop in the bucket, these huge stadiums will now no doubt go to waste or at least be heavily under utilized in future. Instead of putting this huge sum of money into something more productive like a sovereign wealth fund, they decided to fritter it away on a trophy project instead.

[naira]

Qatar will not care about spending or positive impact after the world cup. Because they are already the richest country and with the amount of income from the results of the world cup which may not be enough to cover. In my opinion, Qatar from the start just wanted to entertain and show the world that Qatar is capable of providing super luxurious, friendly and memorable services for visitors.

After the world cup was over and the visitors returned to their homes, many places were now abandoned. Among them, lodging and tourist attractions are now seen to be left alone. Behind the splendor of the world cup in Qatar, we will see cities that were originally bustling with people from all over the world become deserted. But once again Qatar already has sufficient financial resources.

[NotATether]

Looking at their tourist Visa requirements, it's likely that they can achieve or surpass that goal. Citizens from over 90 countries can visit Qatar and stay there for 30 to 90 days visa-free.

It doesn't make sense to me that they should block entry to non-matchgoers. Don't they have enough hotels and apartments to go around for them, after the matchgoers are considered?

[Findingnemo]

AFAIK, Qatar wanted to host this world cup mainly to bring a Pride for their nation among other middle east countries because they were suppressed by other governments in many ways so they throw any amount of cash to this Fifa tournament.

And surely this will be a good long term investment for tourism in their country. I read an article about the planning of their statium was designed in a way to reuse some of the parts for other purposes because they designed with detachable infrastructure so it won't be same like what happened to Brazil stadium.

[Marvell1]

Qatar spent around $290 billion to host the 2022 World Cup. If they are ready to spent that much, then obviously they are not looking at the ROI. Qatar is not a major tourist destination, and in the future also the situation is going to remain the same. Even some of the infrastructural facilities that they have constructed will sit idle in the future. We need to remember that Qatar is a small country with just around 313,000 citizens (and an additional 3 million expat workers). Unless the population goes up by 10x in the near future, most of this $290 billion will go to waste.

Similarly to you, I think they have spent an enormous amount of money and cannot get a return of their initial capital, let alone make a profit off of it. Obviously, their goal is not profit they want the world to know about them, about their culture, country, and people, I think that is what they are aiming for. A small country with and small population, but they are known as one of the wealthiest players in the world, so it is not surprising that they do not need the money.
The organization of the largest football event on the planet should not be viewed as a business festival, but unfortunately, it is gradually becoming apparent when all countries want to host it for that reason.

[hugeblack]

I have watched some World Cup activities and the fact is that our country (we live near Qatar) has spent billions of dollars to introduce the Emirates to the world, however, Qatar has done so quickly by hosting the World Cup.

As for the losses, I do not think that they will constitute a problem. Qatar leads the world in liquefied gas, and it will witness global demand, especially in the next year, and therefore Qatar will compensate for all the losses.
On the one hand, the infrastructure has developed rapidly in recent years, some stadiums will be dismantled and presented as gifts to some countries, airports and hotels have been developed and thus will accommodate any number of tourists.

[Davidvictorson]

Aside from the fact that Qatar spent an absurd $229 billion in preparation for the world cup, none of these is a big surprise. For a host country, a world cup is not solely about making money and profit but about pride, honor, and publicity, and Qatar has achieved that, especially publicity because they just hosted what is arguably the best world cup ever.

Yes, it is true. They didn't do it for the money because the money is actually insignificant. I want to believe that their principal aim of hosting the world cup was establishing themselves as a popular tourist attraction and, in a sense, purchasing people's adoration rather than being financially successful. They did everything they could to alter how others see them.

[stompix]

Qatar spent over $200 billion preparing to host the FIFA 2022 world cup. They spent that money on constructing roads, airports, public spaces, stadiums, gas stations, and more. They constructed seven new stadiums and renovated one to make it eight stadiums for the world cup. The cost of building these stadiums has been estimated to be $6.5 billion. They spent $36 billion to construct the Doha metro, and for the Pearl accommodation complex, they spent $15 billion.

So if Jakarta which is ranked at the top in traffic congestion, has about 33 million poeple in the metro area decided to host some Olympics or World tournament and build another metro line at the same time, it will count as a thing they did just for FIFA, right?   

$6.5 billion to $10 billion: The range of estimates on how much Qatar spent to build seven soccer stadiums for this year’s World Cup.

That's how much they've spent for the stadium, the rest is on infrastructure that most likely would have been built even if there would have been no world cup hosted ever. They've just taken the whole amount spent on infrastructure in the last 10 years and declared this was for the world cup, completely ignoring that other countries that have nearly the same characteristics,  like Singapore, are also spending insane amounts on those, Singapore spends 30 billion a year in infrastructure and has just issued another round of 90 billion for the exact same thing that is booed in Qatar, subway, rail, and many others.

For real now, they've included in these 200 billion even the sum spent on a new hospital!!!!