More than US$800m spent on airports, roads, stadia, other facilities for Cricket World Cup - Scotia Bank
Stabroek News
April 27, 2007
Caribbean host countries for Cricket World Cup (CWC) 2007 spent more than US$800m on the upgrading of their airports, roads, power generation and information technology systems and on the development of stadia and temporary facilities in preparation for the event according to an assessment of the region's hosting of the world's third largest sports event done by Scotia Economics, the economic research department of Scotia Bank. And the study estimates that foreign direct investments in the region in the wake of CWC could reach between US$500m and US$700m. The study concludes that the infrastructure left behind in the wake of CWC augurs well for the future of the region's development.
According to the study the anticipated 5.5 per cent growth rate in the Caribbean region's economy this year is due in large measure to the economic benefits that the region will derive from its hosting of CWC.
The assessment of CWC 2007 which was released a week ago is the first publicly available report on the economic impact of the matches on regional economies. It notes that CWC-related projects provided employment for more than 10,000 people.
And the study predicts that the region will have a significant direct and indirect effect on foreign investment and infrastructural development in the nine host countries that will continue well after the conclusion of the event.
Scotia Economics' Vice President Pablo Breard is quoted in the study as saying that the short-term benefits will be mirrored in the positive longer term gains for the region as a result of exposure for the tourism sector, improved infrastructural development and regional cooperation. Breard noted that while in the past the Caribbean has faced challenges such as inadequate infrastructure, the need to compete with other tourist destinations and significant macroeconomic imbalances, the financial investments and political advances achieved through CWC will help Caribbean nations tackle these challenges in the years ahead.
"You could say that Cricket World Cup will deliver an 'all rounder' to the West Indies. The event has triggered considerable near-term investment spending on hotels and facilities construction, boosted demand for goods and services and inspired strong foreign currency inflows," Breard said.
The study also said the games could affect the current accounts of host countries in opposite ways with tourism receipts balancing such buoyed imports as construction materials.