In 2010 in 2010, the International Federation of Association Football (FIFA) stunned the world when it awarded 2022 World Cup hosting rights to Qatar. In the years since, this World Cup has been subject to an endless stream of criticism from all angles. In this highly polarized climate is this a chance to allow the Qatari and global economy to grow? Or should companies seek to disengage themselves from this obscene vanity project?
It is expected that this World Cup Qatar will be the first to be held by the Middle East nation. Even now there is still doubt about whether hosting the possibility of a World Cup in Qatar is physically feasible. With a land of only 11,571 square kilometers (12 more than UK) It’s highly probable that the expected thousands of international fans will result in massive crowds during the event. There’s also the issue about whether it’s safe to take part in football games within Qatar’s extremely hot temperature. FIFA has already moved the tournament to Winter to be the very first time it has been done in their history, and temperatures are expected to be at around thirty degrees Celsius.
In spite of the major issues the one thing the current World Cup does signify is the shift in economic power to those of the Gulf states. Qatar is a gas and oil-rich country. of Qatar chooses to present its image of national pride by playing football, as Abu Dhabi have done with Manchester City, and Saudi Arabia has just started doing the same with Newcastle United. The world is watching. It’s a remarkable risk, however certain industries can reap huge advantages from.
Which industries will profit most from Qatar World Cup?
As with every World Cup, the sure-winners will be in the hospitality, travel and car rental sectors. Restaurants and hotels throughout Qatar expect profits to increase dramatically throughout the tournament’s duration of a month. But, the reason Qatar is an exceptional situation is the lack of a infrastructure for football. From 2010 onwards, 8 brand new modern stadiums have been built including the 10,000-seater Lusail Stadium, around which the entire city is being built.
New cities bring the construction of new highways, public transportation systems and airports. New everything. In this hub of activity it is clear that the industry of construction has profited enormously. It is estimated that the US alone has invested at the least US$10 billion in the project. Moreover, it is estimated that the Qatari sector of construction has seen growth rate of 5% over the past two years, according to the Oxford Business Group reports.
One of the more unexpected beneficiaries of the football celebration is solar power sector. Confronted with the challenges of the oppressive heat in Qatar and humidity, the Qatari government has been looking to invest in modern solar technology that can convert the the sun’s rays into conditioning for stadiums.
The World Cup without beer
One obstacle that could be a hindrance to 2022’s World Cup is the fact that Qatar is a country that is dry. Both the consumption and vending of alcohol is unlawful. A lot of the World Cup’s main sponsors are alcohol-related companies such as Budweiser. There’s also the issue of how international fans will be less motivated to travel if they are not allowed to drink. FIFA is still in discussions about the matter with Qatari officials to determine whether an exception could be made, however it’s unlikely that the country will change their strict religion.
In the UK It’s unclear what pubs will do during the Winter World Cup. In colder weather the traditional football beer garden might not see the same results like they did last summer. The final match of Euro 2020 saw the UK purchase more than 13 million pints according to according to the Daily Mail reports. It is yet to be determined whether the fans will stay warm enough to keep those numbers.
Can Qatar profit by the World Cup long-term?
When Qatar was chosen as World Cup hosts, their government officials predicted that the tournament would create 1.5million job opportunities in the fields of construction as well as real estate and hospitality (as stated in Western Social Science). The jobs, of course will only last for a short time. What Qatar hopes for the most is that this event will increase their profile internationally as a tourist attraction for a long time to come. Organisers believe this is an opportunity for Qatar to build a long-lasting and lasting legacy for themselves and for the whole Middle East.
But, some experts are worried that, even with Qataris huge riches, it will take decades in order for Qatar to come back from this traumatic financial crisis. It has already cost the Qataris PS149billion in infrastructure expenditures, in addition to the PS224billion used to construct the Lusail city. Lusail (the report by i).
Many are concerned that in the event that the tournament does not go smoothly, or fails to entertain the nation’s hopes of long-term legacy tourism may be a failure. For Brazil hosting 2014’s World Cup in 2014, the economic boost from the tournament was not long-lasting and they ended up with a few stadiums that were no longer used and have forced thousands of citizens out of their homes with no reason.
Their biggest concern is the safety of their stadiums. Since 2017, a number of other Gulf nations have imposed land, air and sea blockades against Qatar which have prevented the planned arrival of the necessary materials and resources to build stadiums. Problems with scheduling have plagued the Qatari stadium construction since the construction began. If they’re not at par at the time that they are ready when World Cup begins, there are concerns that the only result will be one of catastrophe.
Human rights violations and the devastating cost of football
For some, the World Cup is already a catastrophe. Qatar has an enormous contingent of migrants. Indeed the Statista study from the year 2017 indicated that of Qatar’s 2.6million people, 2.3million of those were migrants, with an estimated 1.6million employed in World Cup stadia and infrastructure. The majority of these workers are of South Asian countries like India, Pakistan, Nepal, Bangladesh and Sri Lanka.
Surprisingly, The Guardian found that more than 6,500 workers have been killed since Qatar was chosen as the World Cup host; that’s 12 deaths per week in the period between the years 2011 until 2020. The most frequent causes of death include the impact of a blunt injury and hanging. But only 34 deaths can be said to be traced back to the work of stadiums, usually due to respiratory or cardiac arrest. It isn’t possible to determine if they were caused by continuous working at extreme temperature or as the cause of an underlying health condition.
The Qatar government has claimed that the deaths are not unusual and in proportion to the number of employees. However it is true that the US department of state has previously stated that the conditions of work are similar to those of slavery and some employees have been subjected to punishments including the denial of pay or beatings, as well as sexual assault.
Since the revelations were made, Qatar has committed to reforming the rights of workers in conjunction along with International Labour Organisation. There are those who believe it is possible that the World Cup could, in time, contribute to changing working conditions all across the Gulf. But, many aren’t persuaded. A poll conducted by morningconsult.com discovered that 11 percent of UK citizens strongly support decision to boycott the event. This in mind companies should be mindful of how they interact with the tournament and the discussion surrounding it.
With the official opening just 11 months away Qatar’s fate appears to be on the edge of a razor. If they succeed this could open an era of sporting excellence and tourism in the region, with numerous new business opportunities to develop into. In the event of failure, this project could end up being one of the biggest white elephants in the history of the world.
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