Quantitative and Qualitative Effects of the 2010 World Cup

Osaka – Sunday, July 4, 2010

Big event such as the World Cup has positive effect on the economy and the society, both quantitative and qualitative, although the quantitative effect on the economy solely is usually discussed. In the case of the 2010 World Cup, it is estimated that it has positive effect on the Japanese economy equivalent to 300 billion yen.

The author has no comment to the rationale of the valuation of 300 billion yen. To her, the positive effect is beyond value of 300 billion yen; there are far more positive effects that cannot be valuated. In this article, the author would like to discuss both the quantitative and qualitative positive effects of the 2010 World Cup to Japan.

1. What is the quantitative positive effect of the 2010 World Cup?

The Yahoo! Japan news reported on June 30 that the Japan Soccer Team of the World Cup 2010 had positive effect on the Japanese economy equivalent to 300 billion yen, according to an estimation of an expert.

1) The constituent of the positive effect equivalent to 300 billion yen

On June 29, an expert in this field said in an interview of a newspaper that, according to his personal analysis and estimation the positive effect on the economy is equivalent to 290 billion yen for everything until the soccer team won the ticket to play in the final tournament and additional 10 billion yen for the final tournament game, totaling 300 billion yen.

300 billion yen does not include that of digital consumer electronics. What is included are mainly eating and drinking, World Cup goods, businesses related to watching and enjoying the soccer games, and DVDs and gaming that are to be launched later this year.

2) 300 billion compared with positive effect on the economy of other sport games

300 billion is smaller than that of the previous World Cup games but is far greater than that of WBC (World Baseball Classics) of March 2009 when Japan won the first prize to achieve second successive victory, which was estimated as approximately 55 billion yen.

Simple comparison of the two sport games (the World Cup and WBC) is impossible because of the difference in their history and size. However, it goes without saying that the “power” of the World Cup is enormous.

3) 300 billion yen compared to the previous World Cup games

300 billion yen for the 2010 World Cup is smaller that that of previous World Cup games. The positive effect on the Japanese economy for the 2002 World Cup, co-hosted by Japan and South Korea, was estimated as 2 trillion yen, from construction of new stadiums to overseas supporters visiting Japan. And for the 2006 World Cup held in Germany it was estimated as over 400 billion yen.

Big events such as the World Cup games are expected to give positive economic effect and usually private research companies officially estimate and announce. However, they decided not to do so for the 2010 World Cup held in South Africa. The reason they say is that precise estimation of positive effect solely of the World Cup is extremely difficult.

The over 400 billion yen for the 2006 World Cup is mostly of digital consumer electronics, and incentives and consumer spending stimulation measures are taken by the Japanese government for digital consumer electronics. Also, the fact that digital broadcasting is to start in July 2011 also is a stimulant for consumers to purchase new digital consumer electronics. Therefore, they refrained from official estimation and announcement for the 2010 World Cup.

2. What is the qualitative positive effect of the 2010 World Cup?

The author would say inspiration and learning are other positive effects on Japan and its people that cannot necessarily be valuated but are extremely important.

1) Inspiration from the Japan Soccer Team

The whole nation was inspired by the Japan soccer team when there were many depressing news elsewhere, and were united.

Frankly speaking, the advance review of the Japan soccer team was not good, which is another reason why private research companies did not officially estimate and announce the positive effect on the Japanese economy for 2010 World Cup. The mass media did not broadcast much about the team as previous World Cup. When the team left Japan at night, there were only 70 or so supporters at the airport to see them off, when 4200 people were at the Kansai International Airport to welcome the team back to Japan on July 1. And only the passionate soccer fans watched the first 2010 World Cup game that the Japan team played, which was with Cameroon.

Although the team had lost all 4 official games they played just before the World Cup but they won the first game with Cameroon by 1-0. Mass media and the general public were fascinated by the victory. Many people including those people who were not so interested in soccer (including the author) watched the games later played, which were with Denmark (won 3-1) and Holland (lost 1-0). Many TV programmes featuring the World Cup and the Japan soccer team went on the air after the victory over Cameroon. And the whole nation supported the first final tournament game with Paraguay and cried to the defeat, after playing extra time and then lost in penalty kicks.

2) Lesson learned from the Japan Soccer Team

What we learned from the Japan soccer team includes “teamwork (and leadership)” and “never give up”. In fact, the message from Mr. Okada, the coach, is about the two, which were delivered in the press conference held in a hotel in Osaka on July 1. To the author, the 2 lessons cannot be valuated but extremely precious, which are universal regardless of the country, industry, organization, era etc.

(1) Teamwork and leadership

At the press conference, Mr. Okada, looking back at the past 2-1/2 years, said that team building did not proceed as anticipated but made the team concept unchanged. There were ups and downs and the team did have hard times; however, they continuously worked hard without changing their vision and goal.

Teamwork is what has been introduced in many TV programmes lately as the key for the victory when, as experts point out which team members (players) also are fully aware off, the skill of each players are inferior compared with players in previous World Cup and needs much work to be done to catch up the world class level. Great teamwork of the Japan soccer teams was prominent from how the players behaved in the World Cup games and from the press conference as well. Mr. Okada let some team member did performances at the press conference, such as imitation and singing an African song.

In the press conference and in other interviews that went on the air, all team members emphasized the importance of the teamwork. They said that the Japan soccer team was superb and that they are so proud of being a member of the team. In addition, they were thankful for Mr. Okada who led them until that day, who said that the team members were all superb, wanted to make them play once more in the 2010 World Cup, and it is his inadequacy that they could not get into top 8.

It is clear that Mr. Okada’s was successful to lead and build an excellent team to maximize the team power. Each team members unleashed their potential and complemented one another to make synergy, i.e. making 1+1 bigger than 2.

(2) Never give up

In the press conference Mr. Okada also said not to give up even at hard times, as a message to children. He said that he was happy to see shining eyes of many young people welcoming him and the team at the airport. Then he delivered a message to children “I have been saying this to the team members as well. There are good and bad times in soccer and life, but the bad time is an opportunity for us to grow. The Japan soccer team members demonstrated through the World Cup 2010 games the courage to face up with difficulty when faced with obstacles. Never give up even in tough times”.