Slide1: THE 2010 FIFA WORLD CUP SOUTH AFRICATM 13 March 2007 Leveraging the Event for the Benefit of the Global City Region – Opportunities and Challenges Dennis A. Mumble Chief Operations Officer


The ‘Event’: The ‘Event’ All Wrapped Into One Objective : Broad economic impact across all the venues 2. Preliminary Draw 4. Final Draw Nov ‘07 Dec ‘09 6. Team Workshop 2010 7. FIFA Congress 2010 8. FIFA HQ 2005/6 9. Opening Ceremony 2010 10. Closing Ceremony 2010 3. Cultural/ Music 2009 5. Referees Workshop 2010 1. Annual Sponsors and Partner Workshop 2006 2007 2008 11. Media Days 12. Broadcasting Conferences 13. Sponsor Conferences 14. Event Infrastructure Dev. 14. Other Infrastructure Dev.


Slide3: The New Partnership for Africa’s Development (NEPAD) was launched to open new space for economic progress of the continent. Excerpts from a letter from President Thabo Mbeki to President Sepp Blatter of FIFA There remains work to be done, but the successful hosting of the FIFA World Cuptm in Africa will provide a powerful irresistible momentum to this resolute African Renaissance The fundamentals of this Bid lies in our resolve to ensure that the 21st century unfolds as a century of growth and development in Africa Our Principles are firmly entrenched


4 Key Pillars of the 2010 FIFA World CupTM: 4 Key Pillars of the 2010 FIFA World CupTM Key Priority for 2010 COMPETITIONS/INFRASTRUCTURE TEAMS / BUILDING FAN BASE SOCIAL LEGACY BUSINESS OF THE SPORT PRIORITIES OF PREVIOUS WORLD CUP 2010


8 Key Principles: SOUTH AFRICA AS A STAGE Rest of the continent is the theatre Rest of the Continent must ‘See & Experience the World Cup’ DELIVER A WORLD CLASS EVENT The execution must reflect this excellence We must understand the reality of Afro-pessimism THIS IS A SPORT AND CULTURAL CELEBRATION It must be presented through 4 aspects Sports Arts & Culture (music & shows) Showcasing our unique history and heritage It must highlight the country’s culture of hard work ADDRESS THE INTERNATIONAL COMMUNITY Market Africa South Africa’s achievements 8 Key Principles


8 Key Principles (cont): CREATE AN ENDURING LEGACY Skills development, Tourism, Football, Infrastructure Investment Health promotion Youth Pan-African solidarity LEAVE A LEGACY (in South Africa) It must impact the people on the ground e.g. The tools we use must communicate properly to the people (not just Websites) It is a Commercial undertaking (a positive economic legacy for the country) Stage the event within the context of a sustainable Environment TRANSFORMATION Nation Building (entering our teenage years/preparing for adulthood) Economy LET’S DELIVER THE BEST WORLD CUP EVER! 8 Key Principles (cont)


5 Objectives  Guide 2010 FIFA World Cup™ activities : 5 Objectives Guide 2010 FIFA World Cup™ activities High Level Objectives “To deliver the World Cup, as a world class event, change the perceptions of the International community…… ensure a lasting legacy for the people of Africa.” Participation of Africa Mission 1 Strategic Objectives Participation by all ‘African countries’ Create a ‘sense of Africanness’ (unique) Deliver and run a World-Class event Develop SUSTAINABLE environment Increase well-being of communities Deliver event (and pre-events) on time Promote Africa as a place where ‘excellence’ is delivered Promote Africa as a place to do business in….and travel to Increased Economic activity and growth Increase economic growth (country) Deliver all events within budget Positive reporting on Africa for the next 4 years Develop national pride and unity Increased Investment Increased Tourism Leave an African and RSA Legacy Stage a World-Class event Change the perceptions of the International Community Social and Economic Transformation 2 3 4 5 Develop Continental pride and unity (Africa)


Slide8: A 4-Point African Legacy


Slide9: 1988 SEOUL OLYMPICS Broadcasting and communications technology were developed by a domestic team, showcasing domestic technology to the world. Accommodation facilities were built by private contarctors and were later used to alleviate urban housing shortages. Investments were made to improve facilities for the public in accordance with economic development: freeways, communications networks, and public lavatories with flush toilets. Past Events – Economic and Social Benefits


Slide10: From the outset one has to understand a defining difference between Barcelona and the coming World Cup 2010. The Olympics is a “multi-sport / single city event”. The World Cup is a “single sport / multi-city event.” During the Olympics Barcelona was on the front page of more than 15 000 newspapers around the world with a total estimated circulation of 12 million copies. More than 12 000 accredited journalists covered the games – the journalists outnumbered the athletes. An analysis of news coverage during the Barcelona Games showed that the journalists wrote on “non-sporting issues” as much as they did on the actual sports. The most important topics were urban transformation, the Catalan political questions, the high hotel prices, the traffic flow, the peculiarities of Catalan popular culture and the quality of nightlife and entertainment. South Africa will be in the global media spotlight long before the first whistle is blown which means that an adequate media strategy and brand building objectives should be in place at least one year in advance of the kick-off. Yvonne Johnston – IMC Report on Barcelona Olympic Games 1992 Barcelona Olympic Games


Slide11: Important Lessons: Construction of facilities, roads, transport networks etc were completed well in advance of the event. Thus local people have already forgotten the period of inconvenience and started to enjoy the benefits of new infrastructure. It is important throughout the run-up and the actual event to emphasize the positive benefits that new facilities bring to local communities and to address the “bread vs. circus issue.” Local organizers and the public figures associated with the organization kept the message on course. They never strayed from the positive line, never expressed doubts, and consistently stated their convictions that there will be successful delivery. The Opening Ceremony was a staggering success that instilled a tremendous amount of national pride among residents and turned local public opinion around almost in an instant. The ceremony “totally liberated the collective energy that had been held back” … “nervous expectation turned into overwhelming joy and popular participation” … giving way to a feeling of “we have done it”. The Games provided Barcelona with an opportunity for urban renewal and the overhaul of vital infrastructure, roads, public transport. It revitalized the inner city and the precincts around the newly constructed sporting facilities. It brought back commerce and trade closely followed by entrepreneurs, the hospitality sector and the entertainment industry. This helped to change the face of the city. 1992 Barcelona Olympic Games


Slide12: USA 1994 FIFA WORLD CUPtm Hosting the FIFA World CupTM garnered increased participation in the sport, particularly among girls Worldwide corporate sponsors have seen that soccer can be supported in the US and have therefore increased marketing expenses targeting soccer Direct and indirect economic benefits were spread across nine cities throughout the US, giving a boost to multiple regions The event showcased the US skills in managing a mega-event Past Events – Economic and Social Benefits


Slide13: ATLANTA 1996 OLYMPICS The Olympics mobilised a 700,000 volunteer “Olympic Force” to contribute to community efforts through more than 1,700 community and civic groups. Job training programs provided college students with the opportunity to participate in the broadcast of the Games and other initiatives provided training to the economically disadvantaged to work on the construction of Olympic venues Public/Private Partnerships were established to market the city as a desirable business location Past Events – Economic and Social Benefits


Slide14: 1999 Cardiff Rugby World Cup In conjunction with the Millennium projects, Cardiff put in place infrastructure appropriate to the region’s needs, including the Millennium Stadium, a train and bus station, pedestrian improvement, and a river walk. In the run-up to the world cup, Cardiff County Council employees developed an internet product that was technologically cutting edge, contributing advanced skills to the human capital of the public sector. Staff went on to produce internet content for the Six Nations tournament. Past Events – Economic and Social Benefits


Slide15: Then there was Germany 2006


Slide16: There are Social Benefits … “Emile Durkheim asserts that a society is expressed and affirmed through its “assemblies, meetings, ceremonies, meetings and reunions” and that an individual who is integrated into his/her society is likely to be involved with its “ceremonies”. According to Durkheim, the strength of an individual’s integration into society is directly correlated with the extent of his participation in the ceremonies of that society. He argues that those individuals who are less integrated into their society and less involved in its ceremonies are more likely to manifest various forms of deviant behaviour.”


Slide17: GAUTENG 3 Match venues Opening Ceremony Opening Match Final Closing Ceremony FIFA HQ LOC HQ 2 Venue offices ASSOCIATED ACTIVITY FNB Stadium = R1.5bn Ellis Park = >R250mn Airport improvements = R2.5bn 2010 Transport improvements Training venues = R500mn? Tourism stock upgrades (hotels, tourism products) Services upgrades Development of the Gauteng football economy Accelerated programs  20 years into 4 years  capacity  skills to manage There are Economic Benefits …


Slide18: Tangible Benefits for Government R9,1 billion paid in taxes R21,4 billion contribution to GDP 159 000 annual jobs generated Intangible Benefits for Government Interest generated and profile raised of the country Increase in tourism and direct foreign investment Other similar events held in South Africa Foster confidence and pride in the local population The re-use of building materials for housing Relieve pressure on the welfare system Benefits … Challenges


Slide19: Tangible Costs for Government R8,4 billion upgrade of stadia and more on supporting infrastructure Intangible Costs for Government Negative impact on traffic flows Negative impact on residents living close to stadiums Negative impact on Local Governments (services) Possible soccer violence Increase in petty crime Displacement of normal tourism Costs … Challenges


Opportunities Exist in These Areas: Opportunities Exist in These Areas Marketing, Sponsorship & Media Sponsor (ViK) Management Marketing & advertising Licensing Rights Protection Ticketing & Sales International & Domestic Merchandise & Accommodation Communications Media operations and Production Hospitality Venues & Infrastructure Venues Accommodation International b’cast center Hotels Airports Rail and bus stations Conversion to municipal use Venue services (waste, food etc) Economic Impact IT, Internet & Telecom Solution Architecture & Integration Event systems Internet Hardware and software Testing & technical rehearsals Event network (voice and data) Network equipment & cabling Telephones and fax machines Wireless Transportation and Logistics Transportation infrastructure Public transportation Transportation planning Officials General public Transportation operations Warehousing and logistics Materials management Direct Benefits Event specific (Broadcast rights, Tickets, Licensing) Induced (Tourism, Local Business, Tax Revenues) Indirect Benefits Employment from construction, tourism, and event-related jobs Event Co-ordination Sports management Opening & Closing/other events Visitor services Accreditation Volunteer training and coordination Officials Cultural program Security General staff/management services


Slide21: Walt Whitman Rostow Professor of Economic History The University of Texas at Austin - 1990 “The answer is that if we can achieve through a consensus of where we would like to end up, we have a better chance of getting there than if we live by short-term views alone.”


Slide22: The key is an integrated approach to the planning for the event: Then there was Germany 2006


Slide23: THANK YOU