Qatar suffers a heavy loss because of the World Cup? It’s a financial announcement from the government’s Vn88cx

Qatar’s GDP is only about 180 billion USD in 2022. But the host country has spent up to 230 billion to organize the first World Cup in the summer of 2022 – this information is announced on the VN88 page of the host country.

12 years ago, Qatar shocked the football world when it surpassed the US, Korea, Japan and Australia to officially win the right to host the 2022 World Cup.

Right from the moment they announced via Vn88.cx about spending too much, they have sobbed the hearts of the most dreamy football fans when they announced the project of completely building 7 new stadiums with designs. extremely unique and imbued with local identity. “Wonderful” are two words that many international newspapers have used to describe these designs.

Expenses for the dream

The cost of dreaming is of course extremely expensive. But Qatar has invested even more than that.

12 years later, according to Santer’s statistics, working at Vn88 mobile, dream stadiums have sprouted up in real life. But according to the host country’s announcement, these constructions only account for a small part of the estimated amount that the Gulf country has invested for the World Cup since 2010.

$230 billion is that number as of now. To imagine the giant, it is nearly 20 times larger than the amount that Russia spent to organize the 2018 World Cup. And at a more general level, it is nearly 5 times the cost of the last 7 finals hosts. . Too luxurious.

What categories did the cash flow into? In addition to completely building 7 new stadiums and refurbishing one stadium, Qatar also renovated the budget transport infrastructure withdrawn from Vn88cx to make hotels and telecommunications. They also built a completely new airport and more than 100 hotels with more than 20,000 rooms.

Looking at another aspect, this is not only the tournament of Qatar but of course also the face of FIFA. The most powerful body in the football world also spends heavily to operate the tournament. In which, some amounts have been announced as $ 440 million in bonuses for teams, $ 247 million to operate television, $ 326 million to spend for clubs with players attending the World Cup and in addition, 207 million USD to pay the salary of the staff serving the tournament.

You don’t have to be observant to realize that FIFA’s total spending ($1.7 billion) is nothing compared to what Qatar has been investing in for this historic tournament.

Economics professor Andrew Zimbalist of Smith College (USA) said through the social network Vn88, this is clearly a huge determination of Qatar for the football world because the GDP of this country is only about 180 billion. USD in 2022. That is, Qatar even spent more than 100% of its GDP on hosting the World Cup.

The above information is even more remarkable when Qatar’s revenue from this year’s World Cup is expected to be negligible. According to the sports economic magazine Sportico, the host country will welcome about 1.3 million visitors in a month of the event and earn $1.56 billion from hotels, restaurants, travel…

But even the piece of cake from that number of tourists does not belong entirely to the host country. Specifically, if World Cup tourists purchase goods, beverages or any other items from FIFA partner brands, they will almost not contribute to Qatar’s tax revenue because FIFA and the financial brands Support them with “Vn88 mobile” that requires homeowners to reduce taxes to a minimum during World Cups. Sometimes, it is also a proposal from the host side to win the right to host. Remember, Germany once offered $ 272 million in tax breaks during the campaign to host the 2006 World Cup.

In addition to the fact that FIFA does not share in the revenue of television rights, sponsorship money and even ticket sales, Qatar is determined in the spirit that it will suffer a heavy loss.

From another perspective, it can be affirmed that they have been very willing to play to maximize the branding campaign from this global event. With more than a decade, Qatar has been preparing for this finals longer than any previous host country. Since the ball hasn’t even rolled, they have wanted to create the greatest and most extravagant World Cup in history.

All those efforts have no other purpose but to expand the media influence of this young nation with the age of 51 years to their region and the world in general in all respects: culture, tourism to economic leverage, foreign trade and investment.