The most recent World Cup averaged around 3.57 billion viewers. Some of you may be wondering, “to host such a large-scale tournament, wouldn’t nations need billions upon billions of dollars to fund such an event?”. And yes, you are absolutely right, Qatar has reported expected spending to exceed $200 billion on infrastructure alone. But now lies the question of, why would such a miniscule country want to host such an expensive event. Is it pride? Or nationalism? Or is it simply just because Qatar gets an automatic playing spot in the tournament?
About Qatar
How can a tiny Middle Eastern country with hardly 2.8 million people ever raise enough funds to organize such a distinguished tournament? Well surprisingly, Qatar is ranked among the highest countries with the largest GDP per capita. However, no matter how wealthy a country may be the World Cup still has its costs surely?
Why Qatar
Putting in a bid to host the World Cup was an investment for the Gulf country. Qatar had decided that the benefits and profits exceeded the total costs for actually hosting it. Firstly and obviously, millions of new jobs are created because of the event. This includes jobs in industries like construction, accommodation, and entertainment. Additionally, in direct Macroeconomics, the value of the Qatari Riyal should appreciate in upcoming years. Ceteris paribus, meaning all other things being equal, foreign consumers will visit Qatar and convert their cash to the Qatari currency in order to stay, dine, and travel during the duration of the World Cup. Although there are obviously other volatile factors that affect the value of a country’s currency, the Qatari Riyal is projected to increase in value. Whether or not you are a football (soccer) fan or not, the World Cup unites a variety of people from all different kinds of ethnic backgrounds and cultures to follow the beautiful game they love!
