Sports are a portal for multilayered development, yet their position among other priorities raises serious concerns in public opinion. Nowadays, hosting sporting events is one of the most paramount keys to soft power, as part of the nation branding process. Elements of such, that are a sine qua non for making a strong push to the development, entail major compromises on different levels. This implies that investing in hosting sports events may incur significant expenses, failing to cover the needs of other vital sectors, especially in emerging countries.
The national image is the jewel in the crown of developing states' growth. Those lack major resources that may enable them to invest in other sectors, as they can be more complicated or require more stakeholders. Initially, the international image of a growing nation is what enables it to grow through tourism, as a sector that contributes substantially to the country's GDP without demanding much in return.
Accordingly, hosting sporting events can further enhance tourism. Sports Travel Magazine reported that a total of 100 million people travelled to attend sporting events in the United States alone during 2024. This generated over $100 billion as an overall financial impact (with $47.1 billion as delivered taxes), strengthening about 600,000 jobs.
Mega sport events such as the Olympics and World Cups can be a catalyst for tourism development if successfully leveraged in terms of destination branding, infrastructure development and other economic and social benefits, says the United Nations World Tourism Organisation.
Holding sporting events also furthers tourism by means of built infrastructure. Building sports facilities such as stadiums and arenas is often correlated with a momentous improvement in the overall infrastructure across the country. In his study, Al-Dosari (2022) concluded that the Qatar 2022 World Cup “significantly affected the development of infrastructure” in Qatar.
Additionally, hosting sporting events cements cultural identity and moulds a ground for fair causes. In 1995, South Africa held the Rugby World Cup, which symbolised the international unity of the post-apartheid era. As for Brazil, it is a country that uses football as a cultural identity marker, attracting millions of football-loving tourists. Football in the republic represents R$3.34 billion in wages and social security contributions.
It is true that developing sporting infrastructure may lead the financial resources for other critical sectors to recede. Nevertheless, it offers the opportunity to improve the quality of these sectors more than before. Considering that sporting infrastructure can generate revenues exceeding the outlays, it can contribute significantly to those other domains.
There are various examples around the world of sporting infrastructures that have generated more profit than the costs needed to build them. One of the most costly stadiums, in terms of construction, in the world is that of Tottenham Hotspur. It was built at a cost of around £1bn. However, annual financial results for 2017-18 reveal Spurs' income climbed from £310m to £380m, largely thanks to bigger crowds at the stadium.
Furthermore, South Africa in the 2010 World Cup could establish itself as a brand in international tourism. During 2010, the number of tourists visiting South Africa increased by 15.1% compared to 2009, as reported by the South African Government. This upswing was not only during the World Cup organisation year but was rather maintained in the years to come. In 2011, the growth exceeded that of 2010 by 3.3%. All this stemmed from holding such sporting events, generating profit that is to benefit other sectors directly or indirectly.
All in all, hosting sporting events by developing states has tremendous advantages. It serves as a springboard for tourism, contributing to the country’s GDP. This also positively impacts the process of nation branding, marketing the nation’s own cultural specificities and ‘the welcome’ effect. The country becomes a sustainable brand, promising to enhance diverse layers of social advancement.