Evaluation of How Beneficial International Sporting Events Are to Host Countries

Hosting an international sporting event comes with critical benefits for a nation. The hosting countries spend a sizeable amount preparing for the event, expecting to make profits. As much as it is possible to incur critical financial benefits, the host can also experience detrimental disadvantages of having such an event. The hospitality, tourism, and transport industries highly benefit from increased sales due to many visitors. The nation experiences the risk of diseases, security threats, and air pollution, among other concerns involved in hosting foreigners. Although the effects of such events are majorly felt in hosting cities, the rest of the nation is also involved in budgeting and experiences event impacts. This paper evaluates the positive and negative effects of hosting an international sporting event for a country regarding economic, sporting, social, and political factors. The critical evaluation involves a thorough literature review of scholarly materials related to the topic. Various studies reveal that the benefits of hosting international sporting events outweigh the disadvantages for the nations.

Economic Impact

Hosting nations enjoy increased tourism income and related economic benefits during and after such events. Hosting an international sporting event means a country receives millions of visitors, including players, national delegates, spectators, optimistic tourists, and other sportspersons (Subathra et al., 2022). The tourist destinations, hotels and restaurants, entertainment spaces, and transport sectors receive first-hand advantages. These industries experience increased sales and revenues due to accommodating and meeting the visitors’ needs (Subathra et al., 2022). For the success of such an event, a country must improve its infrastructure by building more sporting facilities, expanding, and repairing roads, among other things. Consequently, the hosting residents benefit from creating jobs and opportunities for short- and long-term investments.

Long-term investments and creating jobs work to the advantage of local citizens. According to Mair et al. (2023), during the process of hosting the FIFA World Cup 2022, Qatar created approximately 1.5 million new job opportunities. Qatar spent millions of dollars constructing the mega stadium, metro system, seaports, and airports (Mair et al., 2023). The hosting government offers long-term contracts to local traders for the needed developmental preparations. Furthermore, the banking industry benefits from increased money transactions, especially from foreigners (Subathra et al., 2022). These opportunities create a positive environment for government spending, thus contributing to general economic growth. A hosting nation earns a positive legacy for trading and economic boosting chances.

A negative side of hosting international sporting events is that nations may incur bidding losses due to low revenue returns and increased tax pressures to meet the hosting costs. When preparing to host such a highly reputable event, a nation bids for an expenditure that may earn them profits (Subathra et al., 2022). However, the incoming visitors can spend below the set budget. For example, Qatar spent at least $200 billion as a bid for hosting the 2022 football event (Mair et al., 2023). The nation set its expectations at $17 billion for revenue but only got $7.5 billion (Mair et al., 2023). A country that fails to meet the anticipated budget may impose increased taxes on its citizens to resolve the expenditure gap (Subathra et al., 2022). Increased tax burden leads to the closure of businesses, layoffs, and inflation, derailing a nation’s economic growth.

A country must increase security personnel and resources to host the event successfully. Security costs are some items in the budget that do not incur returns at the end of such events (Parent & Ruetsch, 2020). Hereafter, an increased security budget may cause the nation’s budget to go overboard. Parent and Ruetsch (2020) state that when an event costs more than it raises, the hosting government incurs an economic loss. The effect of such a loss is experienced nationwide and for a long time in developing nations (Subathra et al., 2022). Countries that attempt to host international events but are unsuccessful incur substantial economic losses (Parent & Ruetsch, 2020). Before a nation can be approved to host an international sporting event, it must spend millions evaluating, preparing, and submitting bids for selection (Parent & Ruetsch, 2020). If a country fails this evaluation, it is not compensated and suffers losses (Parent & Ruetsch, 2020). Therefore, a nation must spend more money to prove its ability to host such an event.

Sporting Impact

Hosting an international sporting event calls for increased focus on various sports, venues, and sponsorship which boosts the profile of a nation. When preparing to host a sporting event, sportspersons tend to pay more attention to primary and minor sports (Brannagan & Reiche, 2022). Consequently, minor sports sections may increase audience and enthusiasts, thus becoming major. A nation has to upgrade its sporting facilities and venues, which act to the advantage of the sports industry even after the event (Brannagan & Reiche, 2022). In such events, international sports interactions cause sponsorship opportunities for renowned players. The nation’s sports industry can create collaboration deals that boost general game performance (Brannagan & Reiche, 2022). When a country successfully hosts international sports events, it receives a hyper profile. A favorable profile allows local players international recognition and success (Brannagan & Reiche, 2022). Furthermore, a favorable sports profile allows a country to engage in enhanced sporting trade and talent development.

The disadvantage of hosting international sports events for a nation is short-term sport outburst. Although the sports industry of the host enjoys attention during this period, the attention slowly fades away after the event (Brannagan & Reiche, 2022). This may cause failure in minor sports activities that had picked up during the hosted event. Furthermore, the government may reduce sports expenditures after the event, primarily if losses were incurred. Another problem is that some facilities and venues that cost the nation a lot may be less utilized (Brannagan & Reiche, 2022). Such significant events call for expanding venues and sporting facilities to accommodate massive crowds. After the event, the local sports activities may not fully exhaust these facilities, thus remaining useless.

Social Impact

A nation that hosts international sporting events can share its culture and enjoy improved infrastructure. During such events, the residents can promote or sell their culture to the visiting nation (Mair et al., 2023). The culture is shared through art, sports, and culinary values and practices. Sharing culture with foreigners contributes to the recognition of a nation (Subathra et al., 2022). While interacting with the visitors, residents acquire an enhanced level of popular culture, improving ways of doing things (Mair et al., 2023). The infrastructure improvement enhances the living standards of immediate communities in the hosting nation. Furthermore, the communities are motivated to use the upgraded transport system and sports facilities to improve their lives (Subathra et al., 2022). The younger generation can use the newly acquired sports activities to develop new sporting skills (Mair et al., 2023). With a smooth flow of money into the country, the government can increase its developmental expenditures, thus supporting the community members. Socially, the hosting nation enjoys the pride that comes with the capacity to successfully host such an event (Mair et al., 2023). Although hosting the event brings many benefits, it also causes several adverse social effects on the communities.

Hosting an international event can cause disease, security, and air pollution concerns. Following the recent COVID-19 health crisis, hosting nations may fear the risk of epidemics brought by visitors (Mair et al., 2023). Although visiting personnel must have a medical clearance certificate, they may still have underlying health conditions that reveal upon reaching the hosting nation. Health outbreaks mean additional healthcare expenses for the hosting government (Subathra et al., 2022). No matter how minor, a threat to security could adversely affect the social security of visitors and residents (Mair et al., 2023). The hosting nation suffers from victim deaths, injuries, and additional medical costs in terror attacks. An additional population means more transport demands, which increases air pollution. An increase in a city’s population often deteriorates the general environment (Mair et al., 2023). Air pollution from increased carbon emissions significantly contributes to the worsening of climate change (Kobierecki & Strożek, 2021). Another social issue is that only the hosting cities get a chance to promote their culture or get various social benefits (Mair et al., 2023). While preparing the hosting venues, some local inhabitants may be required to vacate their land for development (Subathra et al., 2022). This may bring many inconveniences to the people living in these areas if the government delays their compensation.

Political Impact

Political systems of a hosting nation critically benefit from the presence of such events. When the governing political system excels in hosting the event, it earns credit from the citizens, thus making it possible for re-election (Gillett & Tennent, 2021). Local citizens are more likely to be thrilled by the current leadership hence give more chances to lead. A country with a political divide might put aside its differences to host the events (Gillett & Tennent, 2021). Therefore, hosting becomes a unifying factor that brings political stability. The governing bodies also have the advantage of interacting with international bodies, thus gaining global recognition, connections, and strength (Gillett & Tennent, 2021). A nation may later trade such relationships to build its future politics. According to Gillett and Tennent (2021), a country whose political profile rises by hosting international events may have added advantage globally. When making global political decisions in units such as the United Nations, the hosting nation may have more influence than others.

The hosting country can also benefit from global harmony and a message of peace during international events. According to Kobierecki and Strożek (2021), sporting events do more than bring people together by promoting peace and easing tensions. The sporting events may be for athletes and sportspersons to perform and promote global harmony (Kobierecki & Strożek, 2021). The hosting nation may use such platforms to eradicate its political tensions with other nations. Furthermore, the peaceful events’ positive environment also harmonizes the local citizens, minimizing political division.

Political problems that may arise with hosting these events include security threats which could cause political instability. A security threat that has a massive effect on a nation could cause political problems (Gillett & Tennent, 2021). The common threats in such events include cyberattacks, theft, and fraud, which could hurt visitors and local residents (Subathra et al., 2022). Insecurity causes national concerns and political division where the opposition blames the ruling parties. Many functions are adversely affected in such a climate, including trade (Gillett & Tennent, 2021). Political instability also shies potential trading nations from working with the host country. It also causes political uncertainties, hence poor public governance.

Personal Opinion

I feel that hosting international sporting events is beneficial for a country. First, an international responsibility comes with global recognition and other advantages. A nation earns credibility by hosting events other than sports. Business or trading events such as international summits will likely pick a well-recognized country for the venue. Another thought is that a hosting country becomes proud by accommodating such events, whether their sporting teams perform well or poorly. When the team of a hosting nation flies the national flag, the rest of the residents feel proud. Proud moments transform how sportspersons view various activities. The participating teams may have increased self-esteem, thus boosting their morale in playing. Most predicted adverse economic, sporty, political, or even social impacts have little effect compared to the achieved benefits.

Conclusion

International sporting events are highly beneficial to host nations. The countries enjoy economic, sporty, social, and political advantages related to hosting a vast population. Sectors such as hospitality, tourism, transport, and banking benefit significantly from the visitors’ expenses. A nation gets to share its culture and learn new others during these events. Politically, hosting countries earns favorable profile, good relations, and stability. The sporting events also bring global recognition, connections, and sponsorship of local sports. However, hosting international events is also disadvantageous. The host may incur financial losses if their budget runs over the visitors’ expenses. Unsuccessful events can also cause political instability, blames, and social anxiety. Indeed, a hosting country needs to work within an achievable budget. I believe hosting the events is more beneficial, no matter the negative impact.

References

Brannagan, P. M., & Reiche, D. (2022). Qatar and the 2022 FIFA world cup: Politics, controversy, change. Springer Nature.

Gillett, A. G., & Tennent, K. D. (2021). Populism and political motives for hosting the FIFA World Cup: Comparing England 1966 and Russia 2018. In A. Tomlinson & B. Clift (Eds.), Populism in Sport, Leisure, and Popular Culture (pp. 167-182). Routledge.

Kobierecki, M. M., & Strożek, P. (2021). Sports mega-events and shaping the international image of states: How hosting the Olympic Games and FIFA World Cups affects interest in host nations. International Politics, 58(1), 49-70. Web.

Mair, J., Chien, P. M., Kelly, S. J., & Derrington, S. (2023). Social impacts of mega-events: A systematic narrative review and research agenda. Journal of Sustainable Tourism, 31(2), 538-560. Web.

Parent, M. M., & Ruetsch, A. (2020). Managing major sports events: Theory and practice. Routledge.

Subathra, S., Sivanesan, K., Narmadha, M., Senthilkumar, K., Kitani, M. A., Essa, M. M., & Qoronfleh, M. W. (2022). Economic implications of hosting FIFA World Cup–A study with special reference to South Africa, Brazil, Russia and Qatar. In M. W. Qoronfleh & M. M. Essa Fifa 2022: Qatar, the legacy, (pp. 73-94). Nova Science Publishers.