The 2010 growth spark
Only the olympics can compare with the Soccer World Cup, and that multicode extravaganza presents challenges and risks that are not part of the soccer equation.
Whereas the Cricket World Cup, hosted by South Africa in 2003, added R2-billion to the nation’s wealth (and R1.1-billion in direct foreign spend), auditors KPMG believe that the 2010 soccer event will add as much as R21.3-billion – or an additional 0.94% – to South Africa’s gross domestic product (GDP). Germany’s experience in hosting the 2006 event added 0.07% to its GDP. About 10% of foreign tourists visit South because of sport. The country hopes that total tourist numbers will continue to be boosted by sports tourists after 2010. The national Department of Sport and Recreation has a slogan designed to showcase South Africa’s charms as a destination for sporting events and sports tourism: ‘Come visit, come play.’
The economic benefits of the Soccer World Cup go well beyond the money brought in by foreigners. South Africa’s national, provincial and local governments have all seen the event as an opportunity to create infrastructure that will serve to expand economic opportunities for many years to come. This positive impact will be strongly felt in the sporting-events sector and the construction industry through new and upgraded stadia, in the transport sector through upgraded airports and improved road and rail links, and in the leisure and tourism industry through new and upgraded accommodation.
All these sectors received considerable boosts in the years leading up to 2010, with the construction industry in particular experiencing growth that would have been inconceivable in the context of the global economic meltdown, had it not been for the spending associated with the Fifa World Cup.
The awareness of South Africa as a destination is guaranteed to rise exponentially after the event. The Spanish city of Barcelona made a concerted effort to leverage the exposure that came their way when the Olympics were held there in 1992. The results were spectacular: the number of tourists visiting the city rose from 1.87 million in 1992 to 3.37 million in 2001, and overnight stays increased between 1990 and 2000 by 105%.
Provincial preparations
The sun shines in the province of KwaZulu-Natal on average 350 days per year. It has an average winter temperature of 23 degrees and the ocean is 21 degrees all year round. The province already has a reputation as a tourist destination and it has good infrastructure to support it. KwaZulu-Natal also hosts many several famous sporting events: horse races, international surfing contests and a world-renowned ultramarathon, among many others. All of the above simply outlines the existing advantages enjoyed by the province, but the provincial government and the municipality of eThekwini (which runs the city’s biggest city, Durban) are determined to leverage the 2010 Fifa Soccer World Cup to achieve two main goals:
• To provide infrastructure to improve the economy and the lives of the citizens of
the province
• To position the province as an ideal sports tourism destination.
The province was the first in South Africa to launch its own World Cup website: www.kzn2010.co.za. eThekwini Municipality alone will spend more than R5-billion on projects related to the World Cup, and it is confident that its investment will reap generous rewards in the short, medium and long term.
Tourism
The World Cup is expected to attract 450 000 people to South Africa. KwaZulu-Natal can expect to attract a good proportion of these visitors. For the first time in its history, the world soccer body is contracting non-hotel accommodation such as national parks, bedand-breakfast establishments and lodges. While the event will benefit the entire tourism industry in the country, it is the smaller enterprises that stand to transform their businesses through the opportunities presented by the Fifa World Cup. Fifa is insisting that all contracted accommodation providers are graded by the Tourism Grading Council. This brings certain benefits in terms of being marketed and being able to gain access to Fifa websites. Several houses will no doubt also open their doors to visitors on a more informal basis.
There will be huge opportunities in cultural tourism and areas in northern KwaZulu-Natal, in particular, are gearing up for busloads of tourists wanting to do township tours. Related retail opportunities for arts and crafts will present themselves, and the provincial government has prepared communities for this by means of training and by building some formal covered markets where merchandise can be well-presented.
Transport
National government allocated a total of R160-billion to public transport projects in an effort to make the system more efficient. Projects specific to the event will receive R13.6-billion, with R70-billion also to be spent on the country’s road infrastructure.
The King Shaka International Airport is part of the ambitious Dube TradePort initiative and will serve to expand the province’s logistics and transport capacity. The provincial government has spent R480-million on upgrading roads. In busy Durban, plans are on target to introduce dedicated public transport lanes, create an innercity distribution system, and to upgrade major intersections. There are also three technology driven innovations: a high-tech freewaymanagement system; a CCTV road-monitoring system and a traffic call-centre. Park-and-ride facilities utilising existing car parks and busses will become part of the World Cup experience. A new Metrorail station will service the Moses Mabhida Stadium at a cost of R143-million. This ultramodern facility is part of a bigger provincial upgrade of the rail network, which includes the refurbishment of 20 trains, which will be ready by the time the World Cup comes around. The first phase of an integrated communications system, costing R25-million, will also be installed at five rail stations: Berea Road, Rossburgh, Reunion, Umlazi and Duffs Road and will include passenger communication equipment, electric noticeboards and emergency panic buttons.
Million of rands have already been spent on renovating ticket offices and public toilets, building new disabled toilets, painting buildings, fencing, resurfacing platforms, installing new station signage and upgrading station lights and public-address systems. Among the stations to have received upgrades in preparation for the tournament are Thembalihle, Greenwood Park, Briardene, Dalbridge, Congella, Montclair, Merebank, Malvern, Lindokuhle and Umlazi.
Training venues and fan parks
The provincial government has budgeted R137-million for the development of training venues for the World Cup and R5-million for the construction of fan parks for soccer fans not able to get tickets to matches.
These training areasand public viewing areas present considerable opportunities for entrepreneurs in fields as diverse as media, clothing, arts and crafts, printing, maintenance, entertainment, building supplies and food. At the 2006 World Cup in Germany, 3.5 million sausages were sold at fan parks.
The R115-million training facility at Richards Bay in uMhlatuze Municipality (uThungulu District Municipality) is a perfect example. The locals plan to upgrade from Phase One – which entails providing the fields and changing rooms required for it to be an accredited Fifa training ground – to Phase Two, which involves creating a really fine stadium that will become a regional asset and a potential generator of income.
Security
A sum of R95.3-billion over a three-year period has been earmarked for protection services and law enforcement by national government. This will culminate in 2010. Money will be spent on training, police stations and detention facilities. Railway police numbers will double by 2010.
The KwaZulu-Natal Provincial Government called on the police from Manchester, in the UK, to help them roll out a programme of volunteers who will support the police services. The progamme is called the Volunteer Social Crime Prevention Project.
Moses Mabhida Stadium
The spectacular Moses Mabhida Stadium is the symbol of the 2010 Fifa Soccer World Cup in KwaZulu-Natal.
Located near Durban’s beachfront, the massive stadium was built on the site of an earlier soccer stadium. The new stadium will host six pool matches and one of the event’s semi-finals. Built to accommodate 70 000 spectators, it also has the flexibility to be reduced to 56 000 in ‘normal’ times and expanded again to 85 000 should something like the Olympics ever be held in Durban.
The stadium is in the Kings Park sports precinct and is situated right next to the Absa Stadium, home of professional rugby in the province and with a seated capacity of 52 000. It is clearly the intention of the city of Durban to position itself as a destination for major events such as the 2018 Commonwealth Games and the 2020 Summer Olympics.
Originally budgeted to cost R1.6-billion, the final cost of building the stadium rose to R2.2-billion. The iconic arch straddling the stadium from south to north is made up of 56 separate pieces and weighs 3 500 tonnes The R448-million, 46 000-square-metre roof will hang from the arch supported by steel cables.
eThekwini Municipality’s tourist office allocated R35-million to the cable-car project. Twenty-five people at a time can be lifted 106m to the top of the stadium’s steel arch in cable cars imported from Italy. Features such as the cable car and restaurants, shops and meeting facilities are intended to generate money and make the stadium sustainable between sporting matches and events.
For the Moses Mabhida project, Lafarge South Africa supplied 80 000 cubic metres of concrete while DSE made 3 600 tonnes of structural steel. The lead firms on the project were Group Five, WBHO and Pandev.
Responsibility for the arch was given to German concern Pfeifer. Wiehahn’s recently established civils division took on the formwork (scaffolding). Because of the unique shape of the arch, this entailed the use of some creative strategies and the use of some equipment used for the first time in South Africa. The construction of the stadium created 3 000 jobs.
Skills training and volunteers
An amount of R21-million was set aside by the KwaZulu-Natal Department of Education for the training of young people in many disciplines related to the hosting of the World Cup.
In preparation for the 2010-fuelled construction boom, the provincial government invested R1.8-billion in a skills-training project targeting the construction industry. Approximately 350 000 students received training at the province’s further education and training colleges. The provincial Department of Arts, Culture, Sports and Recreation is running courses in language training and it has a tourism mentorship programme.
During the World Cup there will be chances for 25 000 volunteers to help the police, and then there will be a need for drivers, accreditation officers, translators and IT support. All of these people will be given specialised training that will stand them in good stead when they go in search of formal employment after the tournament. A total of 15 000 non-security volunteers will be required for the 2010 Fifa Soccer World Cup.
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