The direction of football has changed since the mid-1990s compared to the 1980s and even before. Football underwent a transformation that went beyond the advancement of technical methods and the notable integration of scientific applications into the game.
The growth of television and media has significantly boosted commercial activities, with large corporations leveraging athletic events to increase visibility and brand awareness. This trend has intensified during the World Cup in America and continues in the lead-up to the 2034 World Cup in Saudi Arabia, further highlighting the importance of these events.
Big Brands Spend Millions on Football Marketing
Football’s popularity has led to commercial entities like McDonald’s, MasterCard, and General Motors paying around €20 million to FIFA during the 1994 World Cup in the United States, showcasing their brand marketing strategies in the sport.
According to John Griffin, the 1994 World Cup’s chief press officer, the organisation hosting the competition would subsequently make between €20 and €25 million from fan ticket sales and sponsorship rights.
A 1993 report by The Christian Science Monitor revealed that businesses that paid to have their name featured in a major tournament would receive significant marketing rights. An estimated 2 billion people would watch them, more than the number of people who watched the 1993 NFL season.
Hoyt Harper, vice president and chief marketing officer of ITT Sheraton, one of the tournament’s sponsors, highlighted the following when discussing the fantastic opportunity that these tournaments provided to sponsors: “They will have a one-of-a-kind chance to promote our finest hotels by sponsoring this major event, and there are numerous amazing marketing opportunities for this sponsorship in the US and abroad.”
According to a study by economics professors Peter Rosendorff and Andy Neumer of the University of Southern California, the tournament alone was predicted to generate $4 billion in U.S. spending, including ticket sales and visitor spending in the host nation.
At the time, Rebecca Caruso, spokesperson for McDonald’s, highlighted the tournament sponsor’s expansion of marketing and promotion efforts to include the tournament and its football programmes, citing football’s widespread appeal as a significant factor in this promotional sponsorship. The 2034 World Cup in the United States, more than 40 years after the 1994 World Cup, can be analysed based on the economic achievements of the time, particularly in the realm of television broadcasting and advertising.
The 2034 World Cup: A Key Factor in Saudi Tourism’s Renaissance!
According to tourism experts, hosting the 2034 World Cup in Saudi cities—particularly Riyadh—seems to drastically alter Saudi tourism and hasten the nation’s economic diversification. The international governing body of the sport has granted the Kingdom the right to host the competition in 15 stadiums throughout the Kingdom.
Speaking about Saudi Arabia’s sports tourism industry, Minister of Tourism Ahmed Al-Khateeb emphasised that the industry has expanded quickly since the introduction of the Kingdom’s Vision 2030 nine years ago. In support of his argument, the Kingdom has hosted over 80 international athletic events since the inception of this vision and has received 2.5 million tourists over the last four years.
Saudi Arabia is currently working to diversify its economy by lowering its historical and ongoing reliance on crude oil extraction and refining revenues. This will have a significant economic impact in the future by making the country’s tourism industry one of the most important goals and pillars of Vision 2030.
Therefore, by the end of this decade, the Kingdom hopes to have 150 million tourists thanks to its ambitious national tourism strategy. According to Arab News, Federico Pienovi, Globant’s Chief Business Officer and Chief New Markets Officer, stated that Saudi Arabia has a great chance to grow in a number of industries during this mega-event (the World Cup).
He declared, “The Kingdom of Saudi Arabia’s tourism industry will undergo a significant change due to hosting the FIFA World Cup. A significant accomplishment of the Kingdom of Saudi Arabia’s Vision 2030 strategy, the 2034 FIFA World Cup will accelerate economic diversification away from oil by boosting infrastructure, smart city development, tourism, and hospitality.”
Read more: The Entrepreneurship World Cup Included Six Saudi Enterprises Qualification
Enhancing KSA’s International Presence
Federico added that the competition puts the Kingdom on the map of future leisure and business travel, which speeds up the Kingdom’s goals to attract more visitors. The Director of Sports and Entertainment at Oliver Wyman, Guillaume Thibault, echoed Federico Benovi’s remarks by stressing that over 10 million foreign tourists will visit the Kingdom of Saudi Arabia for this huge football event.
Saudi Arabia’s national strategies in the areas of tourism, transportation, and quality of life will likely be accelerated by the event. This will also create numerous job opportunities during the tournament and in the construction of stadiums and sports facilities. It is noteworthy that the 2010 World Cup, for instance, helped South Africa’s GDP grow by 10% and created tens of thousands of jobs for the local populace.
When discussing Saudi Arabia’s World Cup hosting, Max Klante, Managing Director and Partner at The Boston Consulting Group, stressed that important athletic events like the 2034 World Cup, Formula 1 races, and the upcoming Asian Games will present Saudi Arabia to the world as a top travel destination. He went on to say, “The combination of culture, media, entertainment, and sports improves its global visibility and fosters the sustained expansion of tourism.”
Long-Term Effects of the Title
In addition to increasing travel to the Kingdom, hosting essential athletic events will bolster the development of the nation’s sports and tourism infrastructure for many years to come. Strategically and carefully planned, these mega-events affect tourism, investment, and job creation in addition to the tournament itself, creating a lasting effect. An additional illustration of the long-term positive effects of athletic events on host nations is the $17 billion that the 2012 London Olympic Games brought to the British economy.
Read more: Smart Stadiums: A Step to Saudi Arabia’s Sports Leadership
