There are only a few sporting events which can claim to attract a truly global audience and the World Cup is definitely one of them. Although there has been some controversy about the bidding process, worries about the political situation and indeed the reputation of Russian hooligans, ultimately that will all be forgotten when the teams face off. Thousands of football fans across the world, will have spent months planning their trips and indeed it’s a testament to the love of the game as Russia is not the easiest place to travel to.
For soccer fanatics everywhere, there really was a bit of nervousness the moment Russia was declared as the host of this yrs world cup. So far the fears seem to have been unfounded at least with regards the infrastructure required to host such an event. Undoubtedly the primary worries are about potential violence as well as what sort of welcome football supporters will be given but it’s likely that all of these will not be issues either as President Putin is keen to use the occasion in order to promote Russia.
He will not be the first leader to reckon on a huge economic boost on the back of the tournament. In passed years this has not been as large as hoped for, certainly the South African economy didn’t benefit quite as much as many had hoped. It certainly will bring an exciting atmosphere to the football fans who are little bit more adventurous than those of us who will have to settle with watching the Match of the Day stream over the internet.
What can the economy expect? Well it will almost certainly bring a short term boost to the economy in many sectors. The Russian Central Bank is hoping that the boost might be somewhat targeted as it has placed stadiums in areas of the country which require this type of financial investment. The increase in spending was probably required anyhow, so the chance to recoup some investment is definitely welcomed by Putin. He is obviously hoping to exhibit the country as a worldwide superpower once more, and it’s very likely that spending will be rather lavish in some public facing areas in addition to in safety and security.
There certainly ought to be an expansion in jobs and a similar boost in the demand for consumer product and services. This ought to continue the positive growth that the Russian economy has experienced in the last year after a sharp fall in the previous two years mostly pertaining to the oil price.
The competition is spread out over 11 cities and it is strongly believed will generate an additional.2% of gross domestic product in both the second and 3rd quarters. This does not sound huge but it is in fact a huge rise in response to a single event like this. President Putin’s hold on power though is heavily reliant on improving the living standards of the average Russian. There is a danger here though in that inflation is most likely to rise particularly in those cities as lots of visitors arrive in a short time.
These types of price rises will probably occur in things like hotels plus ordinary goods and services in line with the increased demand. The Russian authorities are however likely to clamp down on any excessive profiteering and abusing visitors. Lots of tourists have been in fact attempting to bypass these cost rises by scheduling using a VPN or proxies like these in order to access domestic prices wherever possible.