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Portugal’s involvement in the organisation of the 2030 Football World Cup, together with Spain and Morocco, will generate tax revenue close to 400 million euros (ME), according to a study by consultancy firm PwC.
By TPN/Lusa, in News, Portugal, Business, Tourism · 23 Dec 2024, 09:02 · 0 Comments
“The economic activity driven by the event should contribute to tax revenue between 312 and 394 ME, which represents 0.37% of the 2023 revenue”, says the economic and social impact study of Copa2030, prepared by that company for the Federation Portuguese Football Association (FPF), to which Lusa had access.
This amount is the result of taxes derived from consumption, production and salaries associated with the impact of the event, and these results represent a return of around 36 euros in tax revenue for each euro invested in sports infrastructure, the value of which should be around nine ME.
“[The value] includes investments directly attributable to the World Cup planned in stadiums and training centers, the expenditure of which is made in the national economy. In total, an investment of 10 ME is estimated”, anticipates the consultancy.
The event will also positively impact Portugal’s balance of payments, generating a net surplus of more than 600 ME thanks to spending by international visitors and investment related to organizational activity.
As indicated by some conclusions of this study released by the consultancy on December 11th, the day on which FIFA officially announced the Ibero-Moroccan candidacy as the organizer of the event within six years, Copa2030 will attract between 300 and 500 thousand international visitors to Portugal, generating a direct expenditure estimated between 500 ME and 660 ME in key sectors such as accommodation, restaurants, transport and leisure.
“This economic flow, added to organization expenses and investment in sports infrastructure, will contribute to a total expenditure in the local economy of more than 730 ME”, estimates the entity, which adds that “this economic dynamism will result in a positive impact on the national GDP, estimating an impact of between 700 ME and 900 ME, equivalent to 0.27-0.34% of the 2023 GDP”.
In organizational expenses, the company accounts for “FIFA organization expenses activated locally, attributable to the event”, in the order of 140 ME.
Jobs
In terms of the job market, he anticipates that “between 18 and 23 thousand jobs in Portugal should be associated with the event, including those associated directly, indirectly and induced, in the different sectors”, which will generate around 330 ME in salaries.
“The World Cup will promote labour diversity, with around 11 thousand female jobs [more than half of the jobs associated with the event] and between 1.2 and 1.5 thousand young people under the age of 24”, highlights the consultancy.
In addition to employment, the event will generate intangible benefits in the quality of life of citizens, since, according to the analyzes carried out, perceived well-being, measured through the Portuguese people’s willingness to pay, has an estimated value of between 81 ME and 88 ME.
“For every euro invested in sports infrastructure, a return of around 8.5 euros in well-being will be generated, reflecting the transformative impact of the event on social cohesion, national pride and the perception of Portugal as a united and hospitable country”, emphasizes the company.
By hosting the 2030 World Cup, Portugal will raise its “global reputation” and will have new “opportunities for trade and international relations”, indicates the consultancy, which expects, for example, an increase in foreign direct investment (FDI) between 104 ME and 313 ME.
And he concludes: “The long-term benefits are multiple and diverse, contributing to the country’s integral development and leaving a lasting legacy that goes beyond the immediate socioeconomic impact.
The Estádio da Luz and the Estádio José Alvalade, both in Lisbon and the Estádio do Dragão, in Porto, are the Portuguese ‘stages’ that will host games of the 2030 World Cup.
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