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Countdown Begins for Germany '06

LONDON-With the 2002 World Cup only hours away in Japan and South Korea, Germany, the host in 2006, is looking to learn important lessons. But a new report from Jones Lang LaSalle warns that economic regeneration is not the main reason for bidding for the event.

By Graham Parker | Updated on May 31, 2002

LONDON-As the world’s most eagerly-awaited sporting event gets under way an Japan and South Korea, a new report from Jones Lang LaSalle looks at the economic benefits of hosting the World Cup, and points to some important lessons for the 2006 host country, Germany.

South Korea has spent $1.5 billion on new stadia and $2.5 billion on infrastructure. And Japan has spent $3 billion on stadia and $5 billion on infrastructure. But the JLL report casts doubt on the return they will receive on this $12 billion investment: the largest sum ever spent on a football tournament. “We suspect that the World Cup will probably have little or no statistically significant macroeconomic impact on the host nations’ GDP,” said Ben Sanderson, an Associate Director in JLL’s Tokyo research team.

The hotel and retail sectors are likely to be the biggest winners. Hotel revenues in the host cities are forecast by JLL to rise by 30% during June, and there is likely to be a similar short-term gain for retailers.

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