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List of Figures
Figure 1: International Tourist Arrivals and Tourism Receipts (2006- 2008) ... 3
Figure 2: Types of impacts of hallmark events ... 6
Figure 3: Selection of agreements between SA and FIFA ... 9
Figure 4: Objectives andKey Functional Areas of 2010 Tourism Plan ... 10
Figure 5: Impacts of FIFA World Cup 2010 ... 12
Figure 6: Impacts on tourism and key focus area of initiatives ... 15
V
List of Abbreviations
bn
Billion
DEAT
Department of Environmental Affairs and Tourism
FIFA
Fédération Internationale de Football Association
GDP
Gross Domestic Product
LOC
Local Organising Committee
m million
R
Rand (Currency of South Africa)
SA
South
Africa
SAT
South
Africa
Tourism
SMME
Small, Medium and Micro-Enterprise
TCC
Technical Coordinating Committee
UK
United
Kingdom
UNWTO
United Nations World Tourism Organisation
US
United
States
VFR
Visiting Friends and Relatives
1
1. Introduction
After the era of apartheid, events, festivals and conferences provide exciting
opportunities to market South Africa (SA) and its provinces, cities and towns as
preferred tourist destination and to generate benefits for the local economy. The
hosting of mega-sport events, such as the FIFA World Cup 2010 serves in addition
with excellent public relations opportunities to attract tourists before, during and after
the event. The exposure to international media and their audiences will have
significant impact on the country's tourism industry and will contribute to increase
growth and job creation, transformation and the alleviation of poverty. As a growing
sub-sector of the tourism industry, the staging of events is also a great way to reduce
the effects of tourist seasonality and is therefore becoming increasingly competitive.
With a very positive forecast for tourism influx in 2010, SA requires in the preparatory
phase and during the event a high level of professionalism to ensure the country's
readiness and show its responsibility towards its people, neighbouring countries,
soccer fans and the event itself. To induce sustainable benefits from staging the FIFA
World Cup 2010, SA's stakeholders elaborated initiatives and programmes to support
the countries overall economic objectives. SA will face challenges and setbacks, but
it will prepare for the event diligently and host what is known the world's biggest
soccer festival.
In the following paper I will present the current position and future outlook for SA's
tourism industry in chapter two. Chapter three will clarify the terms sport tourism and
its general impact on the tourism industry. SA's experience with hosting sport events
will also be depicted. After an introduction to the FIFA and the FIFA World Cup 2010
in chapter four, I will conduct a detailed presentment (chapter five) of the predicted
short- and long-term impacts of this mega-event on the country's tourism industry.
Herewith I will identify the related challenges and opportunities. Furthermore, in
chapter six, the reader will get an elaborated summary of the current preparatory
phase for the FIFA World Cup 2010, launched initiatives and projects focusing on
tourist, economic and socio-cultural impacts in SA. With my conclusions in chapter
seven I will complete the paper.
2
2. Tourism
Destination:
South
Africa
"Tourism is one of the driving forces of our country's economy, a major catalyst of
socio-economic transformation in South Africa, and one of the most important means
for South Africa to build its global brand and image."
3
2.1 Current Status and Future Outlook
Within the region of Southern Africa, which stretches from Angola to Mozambique
and from Zambia to South Africa (SA), the success of the regional tourism industry
mainly depends on a stable political and economical situation in SA. After the era of
apartheid and related isolation (early 1990s), SA rose to be the major tourist
generating country in Africa and it is awake to its responsibility to empower
development progress on this continent. Guided by the Tourism Act from 1996, the
country identified community empowerment and spatial development, sustainable
tourism, educational as well as a safety and security campaign as the key challenges
for its tourism industry, which accounts for over 8% of the GDP and around 1 million
jobs.
4
A warm climate, sites and products of cultural heritage, a mostly excellent road
network and a wide variety of national parks and game reserves serving a diverse
flora and fauna, provide visitors with a lifetime experience and an almost ideal
environment for outdoor recreation. Although domestic tourism demand accounts for
almost two-thirds of all tourism in SA, the international arrivals (mostly from UK,
Germany and the US) for VFR, business and leisure purposes is steadily growing.
Over the last almost 20 years, sports tourism has played a significant role in
international tourism arrivals in SA, especially since the Rugby World Cup in 1995.
The impact of sports is expected to further increase with the hosting of the FIFA
World Cup in 2010.
5
Gillian Saunders, Director at Grant Thornton Strategic Solutions
formulated it this way: "Although the World Cup is only 96 hours of football, it is
actually 4-6 solid weeks of tourism."
6
The future growth of tourism in SA is above all dependent on the national stability in
terms of politics, security and economy. As the so-called "Rainbow Nation", SA has to
3
Moeketsi Mosola, CEO South African Tourism, In: George, 2008, p IX
4
UNWTO, 2000, p 23 and Boniface, Cooper, 2009, p 435
5
Boniface, Cooper, 2009, p 434- 437
6
Southafrica.info, 2008
3
maintain a fair allocation of resources and opportunities to all ethnic groups
(13% of the population is of European origin, 11 % of Asian and mixed race and
around three quarters belong to different black-African tribes).
7
2.2 Tourism
Statistics
and
Forecasts
Additional funding for tourism and targeted marketing promotions (especially related
with regard to hosting the FIFA World Cup 2010) boosted SA tourism figures to an
increase in international arrivals by 6% in 2008. According to the UNWTO, SA is the
leading holiday destination in Africa with a market share of almost 25%.
8
Figure 1: International Tourist Arrivals and Tourism Receipts (2006- 2008)
9
In the Forecast 2020, UNWTO predicts that SA will remain Africa's number one
destination with over 30 million international arrivals (Inbound Tourism) and highest
growth rates of 8% per year on average for the forecasted period 1995-2020. This
growth will not only be attributed to arrivals from neighbouring countries but also from
international, long-haul source markets. SA's market share in tourism within the
African region is estimated to increase from 22% to 39%.
10
Furthermore, SA is the principal tourist generating country in Africa. UNWTO predicts
a growth of approximately 8.3% in outbound tourism related to a relatively high
disposable income in comparison to other African countries. South Africans will not
only experience the Southern African region but also travel internationally.
11
For further details, please refer to additional figures in the appendix 1-4.
7
Boniface, Cooper, 2009, p 438
8
UNWTO, 2009, p 9
9
Source adapted from UNWTO, 2009, p. 9
10
UNWTO, 2000, p 63
11
UNWTO, 2000, p 72
4
3. Sports
Tourism
Since centuries people travel to participate or observe sports; however the
relationship between the two have only recently become a topic for academic
researches. The increasing importance and recognition of sport as tourism segment
is in fact a global phenomenon. Research studies showed that 4% of the domestic
tourism market in SA comprises sport tourism.
12
3.1 Definition
In order to understand what sport tourism encompasses, it is essential to first clarify
the two components:
Sport: in this text I use the widest possible term of sport published by Standeven and
de Kop, 1999: "[Sport is] ...the whole range of competitive and non-competitive
active pursuits that involve skill, strategy, and/or chance in which human beings
engage, at their own level, simply for enjoyment and training or to raise their
performance to levels of publicly acclaimed excellence"
13
Tourism: "It comprises the activities of persons travelling to and staying in places
outside their usual environment for not more than one consecutive year for leisure,
business and other purposes not related to the exercise of an activity remunerated
from within the place visited."
14
Historically sport and tourism tended to be reserved to more privileged individuals.
However, economic and technical progress helped to distribute resources and to
democratize sport and tourism establishing the segment of sports tourism.
15
Sport Tourism is therefore defined as "All forms of active or passive involvement in
sporting activity, participated in casually or in an organized way [...] that necessitates
travel away from home and work locality."
16
Interdependences arise where sport
facilitates tourism by offering a growing range of valued tourist experiences and
tourism aids sports with providing participants and infrastructure.
17
12
Ritchie and Adair, 2004, p 2-3
13
Standeven and de Kop, 1999, p 8
14
UNTWO, 1991, quoted in Williams, 1998, p 3
15
Standeven and de Kop, 1999, p 34
16
Standeven and de Kop, 1999, p 12
17
Standeven and de Kop, 1999, p 5-6
5
3.2 Major
Sport
Events
One important category within sports tourism is the hosting of major sport events.
These large scale sporting festivals are labelled as "hallmark events" including one-
time or recurring events of limited duration. These events concentrate national and
international attention and create interest on the host country as tourism
destination.
18
The differentiation of such mega-events is conducted by their size,
scope and appeal as well as the number of sites. The FIFA World Cup belongs to the
group of first-order events, which have the widest reach in terms of prestige,
attendance, interest and, particularly, publicity. Speaking of participation and
spectatorship, this event is the largest sporting tournament in the world.
19
3.3 Impacts on tourism
Sport mega-events and its extensive media coverage are considered to provide
benefits and opportunities to the hosting country, especially with regard to its
economy and tourism industry. Economically, the immediate advertising and media
revenue as well as the increased interest and investment in domestic values and
infrastructural developments carry significant short- and long-term benefits. From a
tourism perspective, this type of event provides increased tourist flows and foreign
investment due to expected long-term effects caused by the prominence and
publicity before, during and after the event. So hosting a mega-event is generally
seen as an effective means of marketing and destination positioning.
20
While the impacts of hallmark events are often considered in their positive
consequences, there are negative effects and more categories of impacts to be taken
into account.
21
Over the last decades, scholars have conducted researches on the
impacts of such events in several sectors. The identification of these effects the
interdependences between the different categories as well as the complexity and
difficulty to appropriately measure the impacts has been an important task for
research studies until today.
22
In order to give a complete picture, I follow the
approach of Ritchie (1984) to summarize positive and negative effects of different
types of impacts caused by hallmark events (refer to figure 2).
18
Ritchie, 1984, p 2
19
Cornelissen, 2004, p 40
20
Cornelissen, 2004, p 41
21
Ritchie, 1984, p 4
22
Cornelissen, 2004, p 39
6
Figure 2: Types of impacts of hallmark events
23
In this paper I will focus on the most significant impacts of the FIFA World Cup 2010
on SA's tourism industry from an economic and socio-cultural perspective and its
interdependences by applying the method of secondary research.
3.4 South Africa and the hosting of sport events
As it is generally agreed that sport furthers national pride and social cohesion, mega-
events offer a very significant ideological dimension to the host. SA has been one of
the more active African countries engaging in the international mega-events `market'.
Since the end of the apartheid era the country constantly applied for staging sport
events with the objective to positively influence its national identity. It has success-
fully hosted the Rugby World Cup in 1995 and in 1996 the Africa Cup of Nations.
24
With the 2003 Cricket World Cup representing to date the largest event to be hosted
in Africa, SA undoubtedly gained legitimacy. It displayed itself as an African country
which is able to hold a large-scale sport event and seized the important opportunity
to (re-)brand the country from a national and international perspective.
25
23
Source adapted from Ritchie, 1984, p 4
24
Cornelissen, 2004, p 42 - 45
25
Cornelissen, 2004, p 48-51
7
Although SA also made failed bids to host first-order events like the 2004 Olympic
Games and the 2006 FIFA World Cup, it finally succeeded with the bid and its
acceptance (May 2004) to stage the FIFA World Cup 2010.
8
4.
The FIFA World Cup
'Develop the game, touch the world, build a better future' (FIFA Mission)
26
4.1 FIFA History and the World Cup
The International Federation of Association Football, commonly known by its French
acronym, FIFA was founded in Paris in 1904, governed by Swiss Law and today
based in Zurich, Switzerland. To date, FIFA supports 208 member associations
financially and logistically through various programs. The associations, in return,
commit to respect the statutes, aims and ideals of the football's governing body and
promote and manage the sport accordingly.
27
Apart from its main task to organize
and steer international football as a sport running institution, Joseph S. Blatter, FIFA
president, emphasizes the socio-cultural dimension as well as its economic and
political power in the world due to the popularity, especially with FIFA's flagship
event, the FIFA World Cup.
28
In the late 1920s, FIFA decided to launch a professional football tournament with
international participation (Olympic tournament was recognized as the world
championships for amateur football). In 1930 the first FIFA World Cup was staged in
Uruguay and ever since, although the 16 tournaments have seen only seven different
winners, the global popularity and prestige of this event has constantly grown.
29
Today the competing football loving nations are not only focusing on winning the
tournament, but also on hosting this mega-event to gain international awareness and
esteem.
4.2 Prerequisites for hosting the FIFA World Cup
Only nations (represented by FIFA member associations), which plan to apply for
staging the FIFA World Cup, will receive bidding and hosting documents including full
details on the prerequisites from FIFA officials. There are however general published
requirements with regard to infrastructure and facilities that have to comply with
FIFA's highest quality and latest technological standards
30
. Until the start of the
tournament the hosting country has to have approximately 12 stadiums with
26
http://www.fifa.com/aboutfifa/federation/mission.html
27
FIFA, 2009a
28
FIFA, 2009b
29
FIFA, 2009c
30
The FIFA document library contains several PDF forms dealing with topics as on FIFA statutes,
codes of conduct and ethics, laws of the game, stadium guidelines on infrastructure, security and
safety, media and communication and power supply (FIFA, 2009d)
9
minimum capacities of between 40.000 for group matches and 80.000 for the
opening match and final at its disposal. In addition, transport and accommodation, TV
broadcasting, information and telecommunication technology need to be facilitated at
its highest standards. As a dress rehearsal the hosting country commits to stage the
FIFA Confederations Cup one year prior to the event.
31
FIFA will grant the right to host the mega-event only if the national government
commits to the delivery of 17 guarantees. These guarantees that in the case of SA
are provided by various government departments cover obligations concerning the
nation as a whole and the host-cities in particular. Please see figure 3 for a summary
on these constraints:
32
Figure 3: Selection of agreements between SA and FIFA
33
31
FIFA, 2009e
32
SA Government, 2009
33
SA Government, 2009
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