Economics of Hosting a Worldcup

-

Cricket holds a special place in India, extending beyond being just a sport; it is a revered institution that unites the nation. After a 12-year wait, the 13th edition of the ICC Cricket World Cup has returned to Indian soil, generating an electrifying atmosphere that transcends both stadiums and homes. While the primary focus remains on thrilling matches and intense rivalries, there's another significant aspect at play: the profound impact on the Indian economy.


The World Cup extends far beyond the matches; it's an experience akin to an Indian festival. Thousands of passionate cricket fans from various nations will embark on journeys by road, air, and rail to witness the live action. They will make bookings for accommodations, savor local cuisines, and secure sought-after match tickets, which range from a modest Rs 500 to a staggering Rs 40,000-50,000!

Those who cannot travel to attend in person will be glued to their screens, streaming matches online and enjoying snacks. Snacks, cold drinks, and beer will be the preferred choices, often ordered through e-commerce and food delivery services.

Let’s have look on each industry tasting the success of hosting World Cup

The Food & Beverage Industry: Savouring Success

Have you taken out your phones while being glued to the screens to order something to eat and share with friends? If your answer is yes, then you are in the majority! The ICC Cricket World Cup 2023 is expected to significantly impact the Indian food and beverage industry. The tournament is expected to attract millions of visitors from both India and abroad, which will boost demand for food and beverage products and services. The food and beverage industry could generate up to ₹1,500 crore from the Cricket World Cup 2023. This impact will be felt across a wide range of subsectors, including restaurants, cafes, bars, and packaged food companies.

Online Gaming: The Digital Thrill

Have you spent half a day watching a match and thought if only you got paid for doing this, well we all have been there! And now there is a way to actually do it (whether we make money, or be a statistic in the house always wins rule), the risk takers are taking up this opportunity. The online gaming industry in India is expected to grow by 25-30% in 2023, with the Cricket World Cup being a major driver of growth. It is expected that the World Cup could generate revenue of around Rs 1,000 crore. The World Cup is expected to boost demand for all types of online gaming products, including cricket betting, fantasy cricket, and other skill-based games. Cricket betting is expected to be the most popular online gaming activity during the tournament, as fans will be looking to place bets on their favorite teams and players. Fantasy cricket is also expected to be popular, as fans will want to create their own teams and compete against other fans.

E-commerce and Online Sales: Shopping Spree Galore

We all remember the iconic advertisement by MSD asking us to watch the world cup on the new television, and many of us did comply with the request. The World Cup is expected to boost demand for a wide range of e-commerce products, including cricket equipment, apparel, electronics, and food and beverages, generating revenue of around Rs 2,000 crore. Cricket equipment sales are expected to be particularly strong, as fans will be looking to update their gear for the tournament. Apparel sales are also expected to be strong, as fans will want to purchase new jerseys and other merchandise to support their favorite teams.

The World Cup is also expected to boost sales of electronics, such as smartphones and televisions. Fans will want to purchase new devices to watch the matches on the go or at home in high definition.

Advertising, Sponsorships, and Telecast: Branding Beyond Boundaries

Let’s guess the number of brands on the jersey of the Indian cricket team, there are a total of 11 brands that have this privilege. Cricket matches are not just about boundaries; they’re about branding. The ODI World Cup 2023 is an excellent platform for advertising and sponsorship, with increased brand visibility and the possibility for stock increases. During this time, prudent methods can pay off handsomely. The official broadcaster has secured major sponsors, including Hindustan Unilever (HUL), M&M, and IndusInd Bank, with these high-priced sponsorship deals poised to generate substantial revenue. The cricket World Cup is expected to boost the revenue of the industry by Rs 5,000.

Event Management and Hospitality: The Welcome Mat is Out

The domestic travel and hospitality industry saw a huge boost in the run-up to India's G20 meeting, with increasing hotel bookings and soaring room costs. Airfares quickly followed suit. During the Cricket World Cup, a similar wave of passion washes across the industry.

The ICC Men's Cricket World Cup has resulted in a tremendous increase in demand for rooms and airfares, according to Booking.com. Make My Trip agrees, with a growing number of bookings made well in advance. According to data, visitors from the United Kingdom, Australia, the Netherlands, New Zealand, and Sri Lanka are flocking to India.

Culture: The invaluable export

The ICC Cricket World Cup occurring concurrently with India's festive season, encompassing Navaratri, Dussehra, and Diwali, creates a harmonious blend of sports and culture. This convergence not only ignites the spirit of celebration but also fosters cultural exchange, uniting people in shared excitement and traditions. The festivities surrounding these events extend beyond the cricket field, promoting a richer tapestry of cultural experiences, culinary delights, and handicrafts, thus contributing to a boost in exports and showcasing India's vibrant culture to the world. This unique alignment of the World Cup and India's festivals serves as a powerful catalyst for reinforcing cultural ties, igniting economic growth, and spotlighting the nation's cultural heritage on a global stage.

Hosting events like the ICC World Cup not only gives a boost to the Travel and Tourism sector of the country but also helps them project their soft power. It gives an opportunity to India to showcase its power as an economy and also receive boost to various industries and the foreign exchange reserve.

Comments

Post a Comment

Popular posts from this blog

A REGULATORY NIGHTMARE IN CRYPTO - Bhanu Sripada

-
Image
With governments growing unstable and citizens losing trust in sovereign national currencies, cryptocurrencies offer a universally accepted peer-to-peer transaction solution, which was the original intended purpose of bitcoin. Furthermore, they can be customized based on the application to suit the purpose. Governments and central banks are now trying to come forward with their own cryptocurrencies. This begs the question of the ability of governments to scan the nooks and crannies of this neo currency frontier for illegal activities, and if cryptocurrencies would usher in a peer-to-peer revolution, a new era of financing of crime or terrorism or both.    According to various research papers and articles published (even by the IMF and The New York Times), Bitcoin was a perfect medium of exchange for illicit activities on the dark web where the users could get away with using Bitcoin as a currency, as it is near impossible to trace it back to them. Close to one-half of Bitcoin ...
Read more

Balancing Act: Addressing India's Growing Credit-Deposit Gap and Its Financial Implications - Vansh Aggarwal

-
Image
  Balancing Act: Addressing India's Growing Credit-Deposit Gap and Its Financial Implications The growing disparity between credit and deposit growth in India's banking sector is indeed a significant issue with potential implications for liquidity, financial stability, and the broader economy. This divergence—where credit growth has outpaced deposit growth—can be traced to several interconnected economic, regulatory, and behavioural factors, and understanding them is key to addressing the potential risks posed by this trend.  1. Money Creation Process and the Expected Correlation  In theory, when a bank extends a loan, it simultaneously creates a deposit, since the borrower’s account is credited with the loan amount. This is how the banking system expands the money supply. However, the current situation in India reflects a break in this expected relationship, as the loan growth exceeds deposit growth. As of October 2024, bank loan growth in India stood at 12.8% year-over-...
Read more

Reviving India's Manufacturing Sector: Government Incentives as a Game-Changer - Raghav Modani

-
Image
  Reviving India's Manufacturing Sector: Government Incentives as a Game-Changer India has experienced the fastest growth rate among emerging economies, driven by its service sector and increasing consumer demand. However, the manufacturing sector, considered a crucial driver of long-term growth, remains largely underdeveloped. Currently, Indian manufacturing employs only 11% of the workforce and its contribution to the country’s GDP has remained stagnant. This contrasts sharply with other growing economies like Vietnam and China, where manufacturing significantly contributes to economic growth.  To give a scale of comparison, China, recognized as the "factory of the world," contributes 28.7% to global manufacturing output, supported by a well-established ecosystem with advanced infrastructure, extensive supply chains, and economies of scale. Manufacturing accounts for 27% of China's GDP, driven by strong government policies, investment in industrial parks, and a focu...
Read more