We explore why countries race to host global sports events. Is it a long-term economic boost or just a fleeting highlight?

The story

A few days ago, the ICC shared that the 2023 Men’s Cricket World Cup delivered an economic boost of $1.39 billion (₹11,637 crore) to India. Key highlights of the report

The World Cup created ~50k  jobs.

It attracted 1.3 million spectators.

19% of international visitors came to India for the first time, with more than 50% likely to recommend & return.

It was a win for India, at least in terms of economic gains, but what about what about other global sports events? Do they offer the economic advantages?

Qatar and the FIFA World Cup 2022

Remember Qatar hosting the FIFA World Cup in 2022? It spent about a whopping $200 billion more than ten times what most other host countries usually spend. Why so much? They had to build world-class infrastructure, from roads to fancy hotels. Financially, it was a poor investment. A sports tournament won’t add $200 billion to your GDP.

Well, Qatar supposedly did it to attract tourism and redefine itself as more than just another oil-dependent Gulf country, just like the United Arab Emirates (UAE).

The Good & The Bad of it

The main appeal of hosting major global events is the chance to step into the global spotlight and showcase your nation’s stature. On the upside, these events can boost tourism, improve infrastructure, and create jobs. But the downside? These benefits often fade just as quickly after the event, as seen with many countries post-World Cup.

In the end, short-term gains rarely justify the long-term costs.

To conclude

India reaped the benefits of the ICC World Cup because the infrastructure was built over decades.

Starting from scratch today just for the tournament? Probably not worth it.

The takeaway: lasting rewards come from long-term investments, not quick, short-term efforts.