Hosting the world cup means hundreds of thousands of extra people flocking to the country for just over a month, bringing a positive impact on the economy and retail sector. However losing out on the 2018 World Cup has brought tragedy to the UK’s HR sector.
Had the UK won the 2018 World Cup bid, the HR sector would have been in for a recruitment bonanza as job creation soared. The obvious jobs associated with holding the World Cup would have been in the construction industry however there would have been an increase across many other sectors including retail, hospitality, leisure and marketing.
The manufacturing and selling of merchandise would have dramatically increased the economy and job creation within the retail sector. A study conducted following the Sydney Olympics found that 1.2 billion dollars could have been attributed to the retail sector throughout Australia during the games, with 5% of all tourist spending on merchandising.
The UK retail market is expected to fare pretty well from the 2012 London Olympics, creating an immense range of opportunities and challenges for the HR community, significantly within the retail hospitality category. The main beneficiaries within the broader retail sector are hotels, where the greatest impact will be felt in the aftermath of the event. In addition £232 million is expected to come to the restaurant sector, with London receiving 72% of this income, with the same amount expected to be spent in bars, evenly distributed throughout the UK. Further within the retail sector the finance, transport and tourism markets are expected to receive a substantial economic benefit.
Hosting the World Cup would not boost the economy on the same scale as they Olympics but would undoubtedly make a clear and significant impact. With the absence of a World Cup, the HR industry will now have to make up for the loss in recruitment through the 2012 London Olympics where at least 34,000 new, permanent jobs are expected to be created.