The ICC Cricket World Cup 2023 is set to kickstart in India from next week. As our nation gets set to host the men’s Cricket World Cup for the fourth time (earlier ones in 1987, 1996 and 2011), every Indian must be praying to win the cup.
While that remains to be seen until the World Cup ends, one thing that will happen for sure is the boost our economy will get.?
Regardless of the World Cup result, the Indian economy will be approximately $1.64 billion (Rs 13,500 crore) richer.?And that's a conservative estimate,as per a BQ Prime report.
With the ICC World Cup 2023 kicking off soon, fans from India and overseas fly into different cities; buy tickets to watch matches at stadiums; book hotels to stay; eat and drink at restaurants-to-roadside food stalls; purchase memorabilia and merchandise; visit tourist destinations and do more.
Also, the aviation and hospitality sectors will be the key beneficiaries. Air traffic will surge along with a significant uptick in the demand for airport services. Hotels, too, are set to reap the rewards from the World Cup frenzy, with room rates soaring eight to 15-fold for bookings during the India-Pakistan clash, according to multiple reports.
Demand for restaurants and fast-food chains is set to surge, catering not only to tourists but also to the millions of Indians opting for home delivery. According to the calculation, the combined economic impact of such direct and indirect spending during the tournament would be at least $1.6 billion, as per the BQ Prime report.
Also Read:?Why The BCCI Does Not Have To Pay Any Tax On Multi-Crore IPL
The direct financial impact factors in spending on airfares, accommodation, stadium tickets, food and beverage, and intercity travel by domestic and foreign travellers. It also covers the?Board of Control For Cricket In India's spending on infrastructure and renovations for the event.
The average per person spending was calculated for five cities—Delhi, Mumbai, Kolkata, Chennai and Ahmedabad. This was then used to calculate spending on each match at 10 cities in India that are hosting games. Ahmedabad was included in the initial five since it will host two high-stakes games: India versus Pakistan and the finals.
Attendees
Assuming 100% occupancy across all matches in all stadiums, the total number of attendees is estimated at 24.8 lakh. Based on data for the past two World Cups, an average of 20% of the visitors are international and 40% each are Indians from outside and within the home city.
Key Costs?
The primary expenses an individual will incur include airfares, hotel accommodation, stadium admissions, food and beverage, intercity transit and tourism.?
Air Travel?
This covers round-trip expenses to and from the city hosting the match on dates coinciding with high-stakes matches. The international travel costs are excluded, since these would not necessarily accrue to Indian airlines,?as per the BQ Prime report.
Hotel Stay?
This is calculated based on the average per night tariff of three, four and five-star hotels during the World Cup.
Stadium Admissions?
This is simply the price of the match ticket for each of the cities.
Eating And Drinking?
This covers three meals a day, priced at three, four and five-star restaurants. One meal is assumed to be low cost.
Intercity Travel?
Expenses are computed by considering a round trip between the airport and the stadium. An extra allocation of Rs 350 is added to cover additional travel costs for each visitor.
The Direct Impact?
The sum of all these costs mentioned above will be the direct cost per match for an individual fan. And it varies with each city. For instance, an attendee travelling from Delhi to Mumbai will spend Rs 30,200, while the one travelling from Mumbai to Delhi will spend Rs 29,600.
Cost Per Attendee Home City?
The average cost for visitors from within a city stands at Rs 7,600 per match, implying a total cost of about Rs 755 crore. Intercity And International The average cost is estimated at Rs 32,100 per match. With 14.9 lakh intercity and international attendees, the total direct impact of this cohort will be Rs 4,781 crore.
Indirect Impact Tourism?
This only factors in international travellers, assuming they wouldn’t spend significantly on airfares just to watch matches. Tourists coming to India spend an average of 30% of their budget on airfares and 70% on tourism and associated expenses, according to estimates shared with BQ Prime by a travel agency. The average round trip cost for travellers from nine participating countries, other than India, is Rs 63,000.?
The remaining 70%, therefore, works out to Rs 1.47 lakh. Since the 70% also includes the direct spending to watch a match, that is deducted. So, an international attendee is estimated to spend at least Rs 1.14 lakh on tourism. In all, international travellers are estimated to spend about Rs 5,705 crore on tourism in India during the World Cup, as per the BQ Prime report.
Infrastructure?
According to media reports, the BCCI is spending Rs 50 crore on each of the 10 World Cup stadiums, totalling to Rs 500 crore spent on infrastructure and stadium-based renovations. So, the total indirect financial impact from tourism and infrastructure is estimated at Rs 6,200 crore.?
Total World Cup Impact?
The combined direct and indirect impact is Rs 11,750 crore.?Over and above that, an additional 15% impact is assumed to account for other smaller and diversified spending on merchandise sales for buying from local vendors, according to estimates by an economist, who spoke on the condition of anonymity. That takes the?total estimated economic impact of the?Cricket?World Cup 2023 to Rs 13,500 crore, or about $1.64 billion?at prevailing exchange rates.
Also Read:?From CSK To RCB: Brand Value Of All IPL Teams
For the latest and more interesting financial news, keep reading Indiatimes Worth.?Click here.