Qatar to Invest $50B Hosting FIFA World Cup 2022 – A Cost or Benefit?

In December of 2010 FIFA selected Qatar to host the 2022 World Cup. Qatar, a tiny Arab nation the size of Connecticut with a population less then 1.5M will need to invest extensively in their infrastructure to support the estimated 3M fans that will attend. This includes building 9 new open air soccer air conditioned to mitigate summer temperatures over 100° F. The ruling Al-Thani family has committed to spending the estimated $50B1 required to upgrade the country’s infrastructure. So – this obviously seems like a bad economic investment. Or is it? Other events have shown that infrastructure can be converted to other uses when the event is over. The millions of fans will draw in tourist dollars to attend the event. Some of the indirect benefits will be improved GDP, higher employment, future improvements in tourism and the improved “brand image” of the country. We will examine from an economic analysis view if the games are a net benefit to the regional economy. Our analysis is based on the information released regarding the Qatar games along with analysis of the previous World Cup’s games, especially the 2010 World Cup in under-developed South Africa and other previous mega events such as the Olympics