Business strategy

The Economics Of FIFA World Cup Qatar 2022

Revenue, Ticket Price And Cost Of FIFA World Cup Qatar 2022: The wait for the most-awaited football tournament globally, FIFA World Cup Qatar 2022, is finally over, with the first match set to be played on Sunday between Ecuador and the host Qatar at 9:30 pm IST. The iconic tournament is the most expensive ever as the Middle East country has reportedly spent a hefty $220 billion on its preparations. Here’s all you need to know about the total cost, expected revenue, and the tournament’s significance for the country’s economy:

With 32 countries participating, the football’s biggest tournament will be conducted between November 20 and December 18. The first game starts on November 20 between the host Qatar and Ecuador at the Al Bayt Stadium in Al Khor, while the final match take place on December 18 at the Lusail Stadium in Lusail.

Qatar’s Total Expenditure On FIFA World Cup Qatar 2022 Preparations

Since the announcement of Qatar as the host in 2010, the Middle East country has spent hugely on developing football stadiums apart from developing its infrastructure for organising the tournament between November 20 and December 18.

Qatar has built six new stadiums and renovated two existing ones, along with training sites, at a total cost of $6.5 billion-$10 billion, a significant increase from the proposed $4 billion in the initial bid.

The rest about $210 billion is associated with the costs of developing airports, new roads, innovative hubs with hotels, and sophisticated underground transportation, among others, according to US sports finance consultancy Front Office Sports. In Doha alone, over $15 billion was spent on an accommodation complex known as ‘The Pearl’ and while $36 billion was shelled out on the Doha Metro.

According to Russia’s news agency Tass, Qatar’s finance ministers admitted to spending $500 million per week for years during the course of the infrastructure project.

The Qatar’s $220 billion cost is hugely higher as compared with the $11.6 billion spent by Russia to organise the FIFA World Cup in 2018, $15 billion by Brazil in 2014, $3.6 billion by South Africa in 2010. Before that, Germany spent $4.3 billion in 2006, Japan shelled out $7 billion in 2002, France $2.3 billion in 1998, and the US $500 million in 1994.

FIFA World Cup Qatar 2022: Ticket Prices, Revenues

FIFA has said nearly three million tickets have been sold across the eight stadiums in Qatar ahead of the November 20-December 18 World Cup. The tournament is expected to deliver record revenue for FIFA, crossing the roughly $5.4 billion Russia brought in at the 2018 World Cup.

According to a study by Germany-based sports outfitter Keller Sports, match tickets in Qatar are 40 per cent costlier as compared with the previous FIFA World Cup Russia 2018. Tickets for the final match cost an a hefty 684 pounds (nearly Rs 66,200) on average.

Tickets to the football matches in Qatar this time cost an average 286 pounds (about Rs 27,700) per seat, compared with 214 pounds in the 2018 edition in Russia. “The ticket prices in Qatar are the most expensive ever for World Cup games in the last 20 years, with those for the final 59 per cent higher than four years ago,” according to Keller Sports.

As about three million tickets have already sold, the total ticket revenue is estimated to be about $1 billion (on 286 pounds or $340 per seat).

Apart from tickets, FIFA has already sold around 240,000 hospitality packages, nearly three million tickets, and broadcasting rights — Fox and Telemundo purchased rights to the 2018 and 2022 tournaments in 2011 for a reported $1 billion combined, according to Front Office Sports.

On the economic impact, though the $220-billion cost is associated with the FIFA World Cup 2022, it is part of the ambitious strategy for Qatar’s national development and modernisation. “The World Cup is a part of the Qatar National Vision 2030,” Qatar’s Ambassador to Russia Sheikh Ahmed bin Nasser bin Jassim Al Thani had told Russian news agency TASS last year.

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