The FIFA World Cup which will take place in Qatar is set to generate up to four billion dollars in revenue from tourist spending in the Middle East.
The major sectors projected to earn the most money from football fans and tourists are hospitality, f&b, sports merchandise and fashion during the World Cup period between November and December 2022.
Market research by the Dubai office of RedSeer Strategic Consulting revealed explains, “Though Qatar will corner the lion’s share – about 85 percent – of the projected revenue share from the world cup-related spends by tourists, the UAE, especially Dubai, will be the second most beneficiary of the revenue opportunity during the period.”
RedSeer, the global consultancy specializing in online services goes on to say that the rest of the revenue generated will be split amongst neighboring countries Saudi Arabia, Oman and Kuwait.
According to the study, digital channels will play a major part in inspiring tourists to spend more during the World Cup with two-thirds of consumers expecting an increase in their spending across sectors like f&b, sportswear, travel, and entertainment in that period.
“Over 60 percent of this spend increase is expected to happen through digital channels,” the study explains.
The expected rise in revenues during the World Cup this winter has seen digital outlets and social media channels come up with different ways to encourage potential consumers to patronize their services.
“This World Cup is special in many ways as it’s the first to be held in our region, first to be held in the winter – but most importantly – the first to be held in today’s user-lead content digital sphere,” Youssef Gadallah, head of business marketing and creative strategy for MENA services, KSA & North Africa at TikTok, told Arabian Business.
“The digital world – the user generated content specifically – has come a long way since the last world cup and we can expect a different world of coverage, highlights, trends, and creative entertaining content around this world cup like we have never seen before,” Gadallah said.
According to the RedSeer study, TV is still the top channel for viewing content related to football while social media, internet searches and applications will be important for the discovery of the product by potential consumers and increase the chances of said consumers spending money to purchase the product.
“About 90 percent of consumers enjoy following updates on football and about 75 percent expect to post about major events on digital media channels. The impact of this large following on social media channels – especially short-form video format ones – will be that two-thirds of consumers expect their spend to increase during the world cup across sectors like f&b, sportswear, travel and entertainment,” RedSeer said.
Akshay Jayaprakasan, senior engagement manager at RedSeer Strategy Consultants, Dubai, said that a huge increase in consumption is to be expected in the region as consumers are eagerly looking forward to this period of celebration.
“I believe the Qatar World Cup will create a strong legacy for the region, which will be looked back upon for many years to come,”
Huge expenses expected to bring huge returns
Qatar is estimated to be spending a mouthwatering $200 billion on the World Cup. They see it as investment that will pay dividends in the future as part of their Nation Vision program in 2030.
Qatar will also see a growth in tourism with the World Cup being the starting point for that occurrence. Already, over 50% of the annual foreign tourist visitations will occur during the World Cup period between November and December.
“The world cup and national plan 2030 together are expected to fuel tourism to help it reach about $35billion by 2030,” the study said.