World Cup Soccer
A Kick-Start for the
South African Economy?
By Diane Sukiennik and Michael Reiss
South Africa
at a glance
The 1,219,090 square kilometers of South Africa are located at the southern most
tip of Africa.
Climate Semi-arid, subtropical
Elevation ExtremesAtlantic ocean 0 m - Njesuthi 3,408 m
GDP Purchasing Power $495.1 billion (2009 estimate)
Currency Rand
Exchange Rate 7.25 rand = 1 USD (8/8/10)
South Africa got an instantaneous economic kick-start the minute it was selected as the location for the World Cup Soccer Games. Not since the remarkably peaceful dismantling of apartheid in 1994 has the world watched and cheered on this rainbow nation with such rapt attention.
As President Zuma explained, “The country’s transport, energy, telecommunications, and social infrastructure are being upgraded and expanded. This is contributing to economic development in the midst of a global recession, while improving conditions for investment.”
Foreign investment began to flow in as the plans for a stadium, a new airport for Durban, improved highway infrastructure, and a modern public transportation system were drawn (think “Gautrain”—Africa’s first high speed urban train). Now that the games are over, the lasting effect on the economy still remains to be seen. Some of the most hopeful projections for gains in GDP, job creation, and tourism dollars have been dampened by the world- wide recession.
But perhaps the most dramatic, valuable, and lasting impact will flow from the newly emerging national pride and potential for harmony that is heralded by the blowing of the vuvela and the welcoming smiles of a nation that has struggled with its status as a developed and developing country. As Simon Kuper and Stefan Szymanski say in their book, Soccernomics, “Hosting doesn’t make you rich, but it does make you happy.” It is expected that foreign investment will continue and tourism will expand as a result of the
recent visibility.
Beyond Economics: South Africa as a Tourist Destination
Besides economics, as a tourist destination South Africa has a tremendous range, diversity, and almost endless variety of experience to be had. Some might hesitate to venture so far away. However, it is worth the journey, for nowhere else on the African continent can you experience the variety and quality that South Africa offers. South Africa captures and captivates. You take a part of this magnificent country with you, and you leave a part of yourself, vowing to return. There is a tremendous range and diversity; an almost endless variety of experience to be had.
South Africa Hosting the World Cup has its Benefits
Though the event generates plenty of income for the country the attention and recognition are what pay off in the long run. Here are some interesting facts about South Africa post-world cup:
- R93 billion was infused into the local economy
- Between kick-off on June 11th June 20th, about 45,000 Visa transactions were recorded
- Encouraged billions of dollars of foreign investment into the country
- Pushed crime in South Africa to record lows during the playing period
- Created over 400,000 jobs in South Africa
THE PROOF IS IN THE NUMBERS
A recent report by credit card company Visa shows that spending by Visa cardholders increased to about $566m - or about R4.28bn - in the first quarter of the year, a sharp increase over the same period in 2009.
Political figure Dan Mokonyane’s thoughts on the effect of the World Cup on South Africa
When asked about the economic impact of the World Cup on the Gauteng economy, Mokonyane said: “The greatest impact that the World Cup will have on economic performance is that it has exposed the government to new and faster ways of working. The experience of the World Cup has improved the ability of government to govern and to deliver services at an even faster rate.”
Following is a sample itinerary that combines cities, towns, countryside, and game park experiences, all with an eye to cultural and culinary excellence:
Start at the Cape Grace Hotel in Cape Town (1). If ever a hotel were full of grace it would be the Cape Grace Hotel. Recognized internationally, its accolades include having been voted “Best Hotel in the World” by readers of Condé Nast Traveler.
Perfectly positioned on a private quay of the Victoria and Alfred Waterfront, the gracious hospitality of this boutique hotel is experienced from the moment you approach the door. Each staff member seems genuinely interested in serving and making your experience memorable.
They anticipate and exceed expectations at every turn in a quiet, unobtrusive manner. For instance, when asked about a fitness center, they present you with three options: equipment could be delivered to the room, a chauffeur could drive you to workout with a personal trainer, or you could be driven to the local upscale gym. All this and more is part of the Cape Grace Hotel experience, and all is immediately available at your request. capegrace.com
Just an hour from coastal Cape Town, but a world unto itself, is the South African Winelands (2). This area is one of the oldest and most venerable wine producers in the world.
The five star Relais & Chateau property, Le Quartier Francais Auberge, is the epitome of country French auberge living at its finest. While preserving the Provençal sensibility, Le Quartier offers its guests sophisticated, luxury accommodations overlooking the pool and lush gardens.
Attention to detail, service and proximity to all of Franschhoek’s pleasures sets this accommodation apart. Details such as under floor heating, wood burning fireplaces, air conditioning, ceiling fans, large sitting areas, and generous bathroom space as well as award winning dining make this an ideal choice for the discriminating traveler. lequartier.co.za
Moving away from Cape Town and the Winelands and going to the north in South Africa are the cities of Johannesburg (3) and Pretoria (4). There, you will find the boutique hotel Illyria House
This unparalleled lodging hosts dignitaries, princes, heads of state, business executives, and guests who appreciate the finest. Taking its name form the mythical, magical island created by Shakespeare for “The Twelfth Night,” this elegant guesthouse, Illyria House, is a treasure chest of the finest in accommodation, dining, salon concert entertainment, museum quality decor, expansive verandahs and lawns, and an enchanting secret garden spa facility.
Guests are assigned a personal butler who tends to every request and ensures that your stay feels more like coming home than merely staying at a hotel. The rooms and public spaces are furnished in the finest period antiques, tapestries, and Venetian chandeliers. Regularly scheduled live concerts in the salon provide the start to an evening filled with lively conversation, fine wines, and a sumptuous six-course dinner. Treat yourself to an unforgettable experience. Enjoy the hospitality and refinement of Illyria House. illyria.co.za
Just to the northeast of Johannesburg and Pretoria are the great safari lodges of Kruger Park (5). Safari experiences are part of the charm of a South African holiday.
Locations abound and offer as little as an afternoon to enjoy as long as you care to stay in luxurious digs surrounded by exceptional animal viewing.
Lukimbi Safari Lodge is a five star luxury lodge. It is one of the newest of the Kruger concessions. In addition to all the expected trappings provided by this level of accommodation, this is one of the projects that is eco-friendly by design as well as being part of the “Black Empowerment Initiative,” which is aimed at providing employment and training to citizens.
The result is a genuine African experience where everyone employed has a personal stake in the quality of your experience, since they benefit directly as a result. The lodge’s 33,000 acres offer prime game viewing in privacy and seclusion. The rangers and trackers are skilled, knowledgeable, and enhance your experience whether in the viewing vehicle or on foot.
lukimbi.com
For more on South Africa visit foodandwineaccess.com
