India’s economy is set to experience a boost and will be $1.64 Billion richer after the World Cup. When the World Cup kicks off, India will experience an influx of tourists entering the soil for various reasons. A boost in tourism and investment is most likely within the span of the world cup. Hospitality of tourists and even for the players will account for a major increase in the economy.
India’s sports industry is a magnet for significant sponsorships and media spending, tallying an impressive $1.8 billion annually. A staggering 85 percent of this largesse gravitates toward cricket alone. Cricketing events alone command a lion’s share, with $900 million allocated to media spending each year, constituting 8 percent of the country’s total advertising spend. This year, the estimated spends by brands are $240 million, with a 10-second ad costing up to INR 30 lakh. The official sponsors include giants like Coca-Cola, Google Pay, Unilever, and more.
This all is sure to boost a ton of money into the Indian economy as the cost for any of this will be higher due to the simple economic concept of demand and supply matched with the capitalistic gains the various industries will want to have.The combined economic impact of such direct and indirect spending during the tournament would be at least $1.6 Billion.
Cricket is a religion in India. People are prepared to pay any amount demanded just to see their favourite cricketers walk down the aisle. Tickets for the matches are from a modest Rs 500 to Rs 40000-50000. The direct financial impact factors in spending on airfares, accommodation, stadium tickets, food and beverage, travel by domestic and international travellers. This also includes the BCCI’s spending on stadium renovations and on improving the infrastructure. The sum of all the costs of the above mentioned categories is counted as direct cost per match for an individual fan and differs from city to city.
Those cricket fanatics who are unable to travel, will be glued to their TV sets. The economists predict that total viewership—across television and streaming platforms—will surpass the previous edition’s record. This anticipation spells good news for broadcasters and sponsors, potentially reaping a handsome sum of ₹105 billion-₹120 billion in TV rights and sponsorship revenue. Guests would also come to India for tourism to its various picturesque locations. Tourists coming to India spend an average of 30% of their budget on airfares and 70% on tourism and associated expenses.
In a nutshell, whether India performs well in the tournament or not, the Indian economy is going to have an excellent “inning” in the span of a month or two.