The FIFA (International Federation of Association Football) world cup started in 1930 and is considered the most prestigious tournament globally. Like other mega sports events, FIFA World Cup (FIFA WC) has become a significant driver of economic growth and development for the host countries (Rascher & Rascher, 2013). Qatar was announced to be the host of the FIFA World Cup 2022 in 2010 after winning in the process of voting. Such mega-sporting events have proven to become a big deal for countries as they contribute to the economy`s development in various ways (Amponsah et al., 2018). These events are the means for the country to showcase their cultural diversity, infrastructure, and hospitality, along with attracting investments and tourists to the country, which can lead to economic and financial improvement (Barget & Gouguet, 2010). However, determining the financial impacts of hosting such an event is still debatable. Qatar played host to the FIFA WC 2022, which was celebrated worldwide and showcased the country`s vast social, economic, geographic, and religious spheres. As a mega sporting event, the event was marred with numerous controversies starting with the construction of venues, the infrastructure, the sociocultural restrictions, and the financial fair play of the entire event (Dun et al., 2022).
1. Research Aim and Objectives
The aim of the proposed study is to explore "the economic impacts of FIFA 2022 World Cup on Qatar". For this purpose, the objectives that will be used are as follows:
- To analyse the impact of hosting the FIFA World Cup 2022 on GDP, foreign direct investment (FDI), exports, and infrastructure of Qatar from 2020 to 2022.
- To compare the impact of hosting FIFA World Cup 2022 Qatar with FIFA World Cup 2018 Russia.
- To recommend FIFA about considering the economic development when hosting to other developing countries.
1. Literature Review
The FIFA WC is a massive global sports tournament that draws in countless enthusiasts and produces vast amounts of income, making it one of the most significant sporting events globally. As such, it has become a highly sought-after event for countries looking to boost their economies. Baade and Matheson (2016) conducted a research study that examined the financial influence of holding the World Cup in 17 nations that hosted the competition from 1970 to 2014. The study found a positive impact on GDP in the short term, with an average increase of 0.7% in the year of the event (Baade and Matheson, 2016). However, the long-term impact was negligible, with no significant increase in GDP in the five years following the event. Another study by Cornelissen et al. (2011) analysed the economic impact that the 2010 WC had on the South African economy. The study found that the event had a positive impact on GDP, with an estimated increase of 0.5% in the year of the event, although the impact was limited to certain sectors of the economy (Cornelissen et al., 2011). As such, the economic impact on GDP growth appears to be mixed, with some short-term benefits but limited long-term impact.
There have also been studies on the fiscal sustainability of hosting the event and the impact it may have on a government`s budget. A study by Allmers and Maennig (2009) analysed the fiscal sustainability of hosting the World Cup for eight countries that hosted the event between 1994 and 2014. The study found that hosting the event had a negative impact on the government`s budget balance in the short term, with an average deficit of 0.6% of GDP in the year of the event (Allmers & Maennig, 2009). However, the impact on the government`s long-term fiscal sustainability is limited (Szymanski & Szymanski, 2010). Fedderke and Romm (2013) also analysed the fiscal impact of hosting the 2010 event in South Africa. The study found that the event had a positive impact on the government`s budget, with an estimated increase of 0.4% of GDP in the year of the event.
Lastly, hosting the FIFA WC can influence international trade and investment between the host nation and participating nations (Bohlmann & Van Heerden, 2008). The event can allow a host nation to showcase its economy and attract foreign investment. However, it can also disrupt trade and investment flows due to the investment required to host the event. Jakobsen et al. (2013) analysed the impact of hosting the WC on a host nation`s international trade. The study found that hosting the event had a positive impact on a host nation`s exports, with an estimated increase of 22% in the year of the event (Jakobsen et al., 2013). The study also found that hosting the event had a positive impact on foreign direct investment (FDI), with an estimated increase of 8% in the year of the event.
1. Research Methodology
4.1 Research Approach
In order to conduct this proposed study, the researcher will adopt an inductive approach because it provides the ability for researcher to gather empirical observations, analyse patterns, and then theorise from those patterns (Crowther & Lancaster, 2012). Since this study will involve determining the financial and economic impacts of the FIFA 2022 World Cup, it will be effective to adopt this approach as a researcher will gather empirical pieces of evidence first and then use them to answer the research objectives.
4.2 Research Strategy
Research strategy is the technique that determines the manner in which the researcher aims to gather information for the study. Various research strategies include ethnographic research, observation, case study, survey, interview, and others. The strategy that best fits meeting the aim of the research is selected (Crowther & Lancaster, 2012). The strategy that this proposed study will utilise is a case study as it aims to evaluate the financial impacts of mega sporting events by using the case of FIFA World Cup 2022. The purpose of using a case study is that it will gather information related financial and economic impacts of the FIFA World Cup on the Qatar economy.