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 event has endured a constant stream of criticism from all sides. In this highly polarized climate is this a chance to allow the Qatari and the world economy to flourish? Or should companies seek to disengage themselves from this dangerous vanity project?
It is expected that this World Cup will be the first to be held by the Middle East nation. But, at this point there’s still uncertainty about whether hosting it’s possible to host a World Cup in Qatar is technically feasible. With a land of just 11,571 sq km (12 times less than UK) It’s highly probable that the expected million of international guests will result in massive crowds during the event. There’s also the issue of whether it’s safe participate in soccer in the country’s harsh temperature. FIFA has already moved the tournament to Winter to be the very first time it has been done in their history. Temperatures are expected to be at around 30-degree Celsius.
Whatever the main issues the one thing is certain about this World Cup does signify is the ongoing shift of economic power to Gulf states. Gulf states. The nation that is rich in oil and gas of Qatar chooses to present its image as a nation by playing football, as Abu Dhabi have done with Manchester City, and Saudi Arabia is just beginning to do by launching Newcastle United. The world is watching. It’s a remarkable chance, yet one that certain industries could reap enormous rewards from.
Which industries can benefit most from Qatar World Cup?
As with every World Cup, the sure-winners will be in the transportation, hospitality and car-rental sectors. Restaurants and hotels all over Qatar are expecting their profits to rise throughout the tournament’s duration of a month. However, one area where Qatar is a unique situation is the lack of an existing infrastructure for football. From 2010 onwards, 8 brand new modern stadiums have been built with the largest being the 100,000-seater Lusail Stadium for the World Cup Qatar, around which the entire city has been constructed.
New cities bring the construction of new highways, public transportation systems new airports, brand new everything. In this bustle of activity it is clear that the industry of construction has benefited tremendously. It is estimated that the US alone has invested at the least US$10 billion in the project. In addition, Qatar has also benefited. Qatari sector of construction has seen growth by 5% in the past two years, according to the Oxford Business Group reports.
Another surprising beneficiary 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 technologies that could convert the the sun’s rays to air conditioning for stadiums.
The World Cup without beer
One possible obstacle to this 2022 World Cup is the fact that Qatar is a deserted country. Both the consumption and vending of alcohol is unlawful. The World Cup’s main sponsors are alcohol-related companies which include Budweiser. There’s also a concern about the fact that international fans won’t be less motivated to travel if they are not allowed to drink. FIFA is currently in talks to Qatari officials to determine what exceptions can be made, however it’s unlikely that Qatar will change their strict rules of religion.
While back in the UK It’s unclear what pubs are going to do with the Winter World Cup. In colder weather the traditional football beer gardens might not see the same results as they did during the previous summer. The final game of Euro 2020 saw the UK buy more than 13 million pints of beer according to according to the Daily Mail reports. It is yet to be determined whether the fans will stay in warm clothing to sustain those numbers.
Can Qatar profit by the World Cup long-term?
When Qatar was named World Cup hosts, their government officials predicted that the tournament could create 1.5million additional jobs for the fields of construction hotel, real estate, and construction (as as reported in Western Social Science). These jobs, however will only last for a short time. What Qatar hopes for the most is that the event will increase their profile internationally as a tourist attraction in the long run. The organizers of the tournament believe this is an opportunity for Qatar to leave a lasting and lasting legacy for itself and for the whole Middle East.
But, some experts are concerned that even with Qataris huge fortune, it may take years in order for Qatar to recover from this devastating financial disaster. This tournament already has cost the Qataris PS149billion in infrastructure costs, in addition to the PS224billion that was spent on the construction of the Lusail city. Lusail (the report by i).
Many are worried that, in the event that the tournament does not go smoothly or fails to entertain the country’s goal of sustaining legacy tourism could be a failure. For Brazil which hosted 2014’s World Cup in 2014, the economic boost from the event was only temporary and they ended up with a number of stadiums that are no longer in use and were able to force many people out of their homes with no reason.
The biggest concern for Qataris is safety at the stadium. Since 2017, a number of other Gulf nations have imposed air, land and maritime blockades against Qatar which have prevented the planned arrival of the required materials and resources to build stadiums. Problems with scheduling have plagued the Qatari stadium project since the construction began. If they’re not at par when it comes to when the 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 number of migrant workers. Indeed an Statista Report from last year revealed that of Qatar’s 2.6million inhabitants, 2.3million of those were migrants, with approximately 1.6million employed in World Cup stadia and infrastructure. The majority of these workers are out of South Asian countries like India, Pakistan, Nepal, Bangladesh and Sri Lanka.
Incredibly, The Guardian found that over 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 injuries to the head and neck, and hanging. But only 34 deaths can be said to be traced back to work in stadiums, which is usually due to respiratory failure or cardiac arrest. It’s not possible to confirm whether they were the result of continuous working under extreme temperatures or as the consequence of health issues.
The Qatar government has claimed that the death tolls are not unusual and in proportion to the number of employees. However it is true that the US state department has stated that the conditions of work are similar to those of slavery with certain workers being punished like the revocation of wages as well as beatings, and sexual assault.
Since the accusations were exposed, Qatar has committed to reforming worker’s rights through a partnership in conjunction with International Labour Organisation. There are those who believe they can see that this World Cup could, in time, lead to transforming working conditions all across the Gulf. However, many people aren’t persuaded. A survey conducted by morningconsult.com discovered that 11 percent of UK citizens strongly support decision to boycott the event. In light of this it is important for businesses to think carefully about how they interact in this event and the discussion surrounding it.
With the ceremony’s opening just 11 months away Qatar’s fate appears to be on the edge of a razor. If they succeed this could open the doors to a new age of sports and tourism excellence for the region, and provide numerous new business opportunities to develop into. Should they fall short, this project could be one of the biggest white elephants in the history of the world.