In 2010 The International Federation of Association Football (FIFA) stunned the world when it awarded 2022 World Cup hosting rights to Qatar. The World Cup has endured a constant stream of criticism from all angles. In the current climate of controversy could this be an opportunity that will allow for Qatari and global economy to grow? Or should companies seek to disengage themselves from this dangerous vanity project?
It is expected that this World Cup will be the first to be held by the Middle East nation. Even now there’s still uncertainty about whether hosting it’s possible to host a World Cup in Qatar is technically feasible. With a land of only 11,571 square kilometers (12 more than UK) It’s highly likely that the anticipated million of international guests could cause massive overcrowding at the event. There’s also the issue about whether it’s safe to take part in football games within Qatar’s extremely hot temperature. FIFA has already moved the tournament to Winter at the beginning of their history. Temperatures are expected to reach 30-degree Celsius.
In spite of the major issues that the current World Cup does signify is the ongoing shift of economic power to those of the Gulf states. Qatar is a gas and oil-rich country. of Qatar has decided to promote its image as a nation through football, much like Abu Dhabi have done with Manchester City, and Saudi Arabia has just started doing the same with Newcastle United. The world is watching. It’s an incredible risk, however certain industries could reap enormous rewards from.
Which industries can benefit most from World Cup Qatar?
Like any World Cup, the sure-winners will be in the hospitality, travel and car rental sectors. Restaurants and hotels all over Qatar are expecting their profits to increase dramatically throughout the tournament’s duration of a month. However, one area where Qatar is an exceptional circumstance is its absence of an existing infrastructure for football. From 2010 onwards, 8 brand new high-tech stadiums have been built including the stadium with 80,000 seats Lusail Stadium, around which the entire city has been constructed.
With the new cities comes the construction of new highways, public transportation systems new airports, brand new everything. In this bustle of activity it is clear that the industry of construction has benefited tremendously. In the US alone has invested at the least US$10 billion in the project. In addition, Qatar has also benefited. Qatari building industry recorded growth by 5% in the past two years, according to the Oxford Business Group reports.
Another surprising beneficiary of the soccer event is the sun’s energy sector. Confronted with the challenges of the heat that is oppressive in Qatar and humidity, the Qatari government has looked to invest in innovative solar technology that can convert the the sun’s rays to air conditioning for the stadiums.
The World Cup without beer
One obstacle that could be a hindrance in this 2022 World Cup is the fact that Qatar is a deserted country. Both the selling and consumption of alcohol is prohibited. A lot of the World Cup’s major sponsors are alcohol firms such as Budweiser. There’s also a concern about the fact that international fans won’t be more motivated to travel when they are not allowed to drink. FIFA is still in discussions to Qatari officials to determine what exceptions can be made, however it’s unlikely that the country will change their strict rules of religion.
In the UK It’s unclear what pubs will do during the Winter World Cup. In colder weather and a more traditional football-themed beer gardens might not see the same results as they did during the previous summer. The final match of Euro 2020 saw the UK buy more than 13 million pints of beer according to according to the Daily Mail reports. It is yet to be determined whether the fans will stay warm enough to keep those numbers.
Do you think Qatar profit by the World Cup long-term?
When Qatar was chosen as World Cup hosts, their government officials estimated that the event would create 1.5million job opportunities in the fields of construction hotel, real estate, and construction (as as reported in Western Social Science). These jobs, however are temporary. What Qatar hopes for the most is that this event boosts their standing as a tourist attraction in the long run. Organisers consider this to be an opportunity for the nation to build a long-lasting and lasting legacy for itself and for the whole Middle East.
Some experts are worried that, even with Qataris huge riches, it will take years before the nation can come back from this traumatic financial crisis. This tournament already has cost the Qataris PS149billion in infrastructure costs, not counting the PS224billion used to construct the Lusail city. Lusail (the report by i).
Many are worried that, in the event that the tournament does not go smoothly, or fails to provide entertainment the country’s goal of long-term legacy tourism may be a failure. For Brazil hosting 2014’s World Cup in 2014, the economic boost from the event was only temporary and they were left with a few stadiums that were no longer used and have forced thousands of citizens out of their homes with no reason.
The biggest concern for Qataris is safety at the stadium. Since 2017, a number of other Gulf countries have instituted air, land and maritime blockades against Qatar and prevented the planned arrival of the necessary material and resources needed to build stadiums. The scheduling issues have plagued the Qatari stadium project since the construction began. If they’re not in good shape when they are ready when World Cup begins, there is a chance that the sole result is one of disaster.
Human rights violations and the dreadful cost of football
For some, the World Cup is already a catastrophe. Qatar has a massive number of migrant workers. Indeed an Statista Report from last year revealed that of Qatar’s 2.6million people, 2.3million of those were migrants, with approximately 1.6million recruited to work for the construction of World Cup stadia and infrastructure. The majority of these workers are out of South Asian countries like India, Pakistan, Nepal, Bangladesh and Sri Lanka.
Surprisingly, The Guardian found that over 6,500 workers have passed away since Qatar was chosen as the World Cup host; that’s 12 deaths per week in the period between the years 2011 between 2011 and 2020. The most common causes of death were injuries to the head and neck, and hanging. But only 34 deaths could be able to be traced back to work in stadiums, which is usually due to respiratory failure or cardiac arrest. It isn’t possible to determine if they were the result of continuous working at extreme temperature or as the cause of an underlying health condition.
The Qatar government insists that the death tolls are not unusual and in proportion to the amount of workers. However it is true that the US department of state has previously stated that the conditions of work are similar to slavery with certain workers being punished like the revocation of wages as well as beatings, and sexual assault.
Since the revelations were made, Qatar has committed to reforming worker’s rights through a partnership in conjunction with International Labour Organisation. There are those who believe they can see that this World Cup could, in time, lead to transforming working conditions throughout the Gulf. But, many aren’t persuaded. A survey conducted by morningconsult.com discovered that 11 percent of UK citizens strongly support boycott of the event. This in mind companies should think carefully about how they interact in this event and the discussion surrounding it.
With the ceremony’s opening just 11 months away Qatar’s fate seems to be in doubt. If they succeed and succeed, it could lead to the doors to a new age of sporting excellence and tourism for the region, and provide numerous new business opportunities to develop into. Should they fall short, this project could end up being one of the biggest white elephants ever in history.
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