World Cup Not Generating Big Profits

The huge number of people visiting South Africa for the World Cup won't be as high as initial expectations. This is according to the firm Grant Thorton who estimate the amount of visitors will be around 373 000, considerably less than the early estimates of 483 000.

So now this has placed small and medium businesses under huge economic pressure because of the over-estimation of expected profits from the 2010 World Cup. However, it seems as if the overseas tourists will now stay for an average of 18 days which is four days longer than originally expected, and will obviously mean more ‘spending time’ in SA. But some economists have played down this projection saying it is optimistic.

So basically, overall, the World Cup is not expected to be such a huge cash injection to SME’s as originally expected. Maybe the main way they will turn huge profits is if they continue to jack up their prices with exorbitant markups to rip-off unsuspecting, wealthy tourists.

written by Rory

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