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March 2009 |
The soccer World Cup is arguably the biggest show on earth. Certainly, no bigger show has ever been held in Africa.
/~In the 18 months leading up to it (the contest takes place in SA from 11 June to 11 July 2010), R500bn will have been spent on new infrastructure for it.
During the event, an expected R15bn will be spent by visitors to SA. After the event SA will experience a guaranteed tourist boom if it is any kind of success - because SA will have been showcased to 30-40bn viewers on TV.
This is according to Gary Bailey, former ambassador for SA's World Cup bid and a former player for Kaiser Chiefs and Manchester United as well as the English World Cup in 1986.
Bailey says SA is the smallest economy to ever have held the contest (for instance, the last four host countries were Germany, Japan, France and the US).
He says that the number of visitors to SA is likely to be 400,000 - although this could rise to 500,000 if an African team makes it to the finals. About 220,000 will be from overseas and a minimum of 180,000 from the rest of Africa.
If a total of 500,000 people arrive, then it will be 20 times the size of the 1995 Rugby World Cup, for which 25,000 people arrived.
Potential Suppliers:
400,000-500,000 compares with about 200,000 tourists normally in SA in the summer months, but many fewer in mid-winter (when the event will be held).
However World Cup tourists are of a different type - for instance, they require more transit than normal tourists because they follow their teams.
While the food at the actual events will obviously be mostly of the take-away type, "one has to look at the entire day of the fan", says Bailey.
Fans will only go to a venue to see their teams every third or fourth day. food will also be required at the accommodations that the visitors use, and there will also be demand for particular national foods.
He believes there will be four aspects to the demand for food:
- Hospitality food for commercial clients, sponsors and VIPs - a large demand, being contracted out to hospitality companies by Match Hospitality, a subsidiary of Fédération Internationale de Football Assoc (FIFA) (see separate article, page 8).
- Foreign visitors, including those wanting their own national foods - Russians, Polish, Croatians, Norwegians, Peruvians, etc. Nimble suppliers will watch which teams are playing where and will supply appropriate national foods for the fans involved. For instance if Japan is playing in Durban, they will supply Japanese foods there, with packaging printed in Japanese.
- South Africans on the move to the matches (a third of all tickets must be sold to South Africans).
- People at home who will stock up with snacks, beverages etc.
Not much aggregated information is available about food consumed from the last World Cup, except audited figures that 3.5m sausages were sold in fan parks in the four weeks of the contest, and that 3.5m litres of beer were sold in the stadiums.
Locations
Where will the spectator crowds gather, and what opportunities are there for SA food suppliers?
Public viewing sites will be of three types: stadiums, fan parks and public viewing facilities.
- Stadiums. A master contractor will be appointed by the FIFA local organising committee (LOC) to handle all food and drink provision in the stadiums (see overleaf). SA is building five new stadiums and refurbishing five existing stadiums. In fact, FIFA only wanted eight stadiums so there are some to spare (like Kings Park, Durban).
Says Bailey: "Incredible stadiums are being built in SA. For instance the new King Senzangakhona Stadium in Durban will have a 30-storey-high arch stretching over it. There will be 1km of big screens along the beach nearby. Likewise for Greenpoint - it has a beautiful setting with the mountain behind and the sea on the other side. None of the major German stadiums were in this kind of beautiful setting." In Johannesburg, Soccer City does not have a beautiful setting but it is being built in a traditional calabash format.
Supporters follow their teams around the country. There will therefore be tourism booms in Cape Town and Port Elizabeth.
- Fan parks, regulated by FIFA. Their locations are not entirely finalised but there are three already determined in Johannesburg (Sandton, Newtown and Soweto); four in Cape Town (near the central station, Phillipi, Bellville and Athlone); and two in Durban (including a 1km stretch on North Beach). Those wanting to sell goods in fan parks will be charged for the privilege, and the city authorities should be approached in each case. Promotion of brands will also be regulated by FIFA and will be primarily for the sponsors - in food/beverages, Budweiser, Coca-Cola and McDonald's. An area for possible promotion by food companies which are not sponsors - that is, all SA food companies - is inside shops (outside, brand promotion will not be allowed) close to the stadiums and fan parks, as this space is owned by the shopkeepers.
In the 2006 World Cup, 18m Germans and foreigners visited fan parks, where there were a total of 300 big screens. For instance, for the German-Poland game, an estimated 500,000 people gathered in a 2km corridor in the Berlin forest. They had to be catered for in terms of logistics, food, beverages, etc.
- Public viewing sites which are not regulated by FIFA but by individuals and organisations (like businesses, sports clubs and church groups). They may not charge for entrance, but they could charge for the privilege of sale of food, etc.
Protection of sponsors
Each sponsor has to pay $250m for the privilege and each sponsor is likely to spend a similar amount to leverage the opportunity.
FIFA owns the rights of promotion of brands for 1km around the stadiums, for its sponsors. In that area only Budweiser, McDonald's and Coke (in food/beverages) may be promoted and have their branding displayed. FIFA also has rights on every main route into the stadiums and every transport mode.
No one may use the branding of the World Cup itself without paying FIFA. FIFA is very strict about this - in Germany there were about 2,500 legal cases following infringements. Adams & Adams of Pretoria is one of FIFA's attorneys in SA.
A dry run
The FIFA Confederations Cup, to be held on 14-28 June this year, will be a dry run. Generally over 90% of those who attend Confederations Cup matches are local visitors.
It is a contest of the continental champions - for instance Egypt in Africa.
Tickets will be from R140 - they will enable supporters to see Brazil, Italy, etc. By contrast, tickets for the World Cup will be difficult to get hold of and expensive.
The Confederations Cup will be played in five South African cities - Johannesburg, Rustenburg, Pretoria, Bloemfontein and Port Elizabeth.
Concerns
Says Bailey: "10% of the concern about SA organising the World Cup is about transport and 90% about safety."
"In all nine host cities, the cities and the government have signed contracts guaranteeing the safety of visitors. If the visitors are not safe, FIFA will keep the entrance money.
"There will be 90,000 more law enforcement officers and FIFA is happy with the security plans. There is the potential to retain the tighter security after the World Cup. SA will be assisted by Interpol and many other police forces.
"Crime is SA's image problem internationally. Nonetheless tourism has grown to 9.1m visitors per year and last year grew at 11.5%, compared with 5% in the world. If we can improve our crime statistics, tourism will increase further, so it is a golden opportunity.''
On the possibility that the event might be moved from SA, he said SA does not own the event, nor does it run it - FIFA does. "It is therefore not SA's challenge. It may only be moved from SA if there is civil disorder. That is why plan B was first heard of when there was xenophobia in SA. Of course there is a plan B ... there always is."
"Provided we keep crime under control it will be okay and SA will be flavour of the world. Everyone in SA has to work to make this a success.''
- In the 2006 World Cup, Germany expected 800,000 visitors but got 2m visitors, and there were 3bn viewers for the final match. The event in Germany attracted many more people than SA will because it was just over the border for Europeans, whereas SA is a long haul flight for them. - Teigue Payne
FIFA Local Organising Committee (LOC): Tel 011-567-2010.
Match Hospitality: Tel 086-155-2010.
Bailey's website:
www.gameplan2010.com
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