Opportunities and Challenges of Hosting the 2030 FIFA World Cup in Morocco
The Moroccan Institute for Policy Analysis recently released a report on the opportunities and challenges of hosting the 2030 FIFA World Cup in Morocco. The report highlights both the economic potential and the significant financial and organizational challenges Morocco faces in hosting the 2030 FIFA World Cup. Hosting this prestigious event would not only boost Morocco’s international image but also provide a chance for long-term infrastructure development. However, to make the most of these opportunities, Morocco must carefully address the challenges that come with hosting the 2030 FIFA World Cup.
Expected Opportunities:
The report confirms that Morocco hosting the 2030 World Cup, in partnership with Spain and Portugal, represents “a major financial challenge and a significant economic opportunity.” According to preliminary estimates, the total cost of organizing the tournament will range between 15 and 20 billion dollars across the three host countries, with Morocco’s share of the budget potentially reaching between 5 and 6 billion dollars, equivalent to 50-60 billion Moroccan dirhams.
The report mentions that Morocco plans to finance this massive project through various sources, including allocating about 25 billion dirhams from the national state budget between 2024 and 2030, directing these funds towards building stadiums, training centers, and other sports facilities. Additionally, public companies will contribute 17 billion dirhams towards infrastructure and transport networks, while Morocco aims to raise around 10 billion dirhams through low-interest loans, international donations, and financial aid from partner countries.
Economic and Social Benefits:
The report emphasizes that hosting the World Cup will contribute to the development of sports infrastructure, with several stadiums being built or renovated, including the Ben Slimane Stadium at a cost of 5 billion dirhams, in addition to stadiums in Tangier, Rabat, Casablanca, Marrakesh, Agadir, and Fez, each with an estimated cost of 1 billion dirhams. Around 60 training centers will also be created or updated, with a budget of approximately 3.5 billion dirhams.
Regarding non-sports infrastructure, the event will improve transport systems, including updating airports, building new highways, and expanding the high-speed train network, which will positively impact various economic sectors. It will also lead to an increase in the number of tourists, not just during the tournament but also in the long term, providing sustainable job opportunities.
The report also highlights that hosting the World Cup will serve as a global promotional campaign for Morocco, boosting its international image and increasing its fame as a tourist and investment destination. Furthermore, it will enhance the communications sector by expanding and modernizing digital infrastructure and accelerating the rollout of 5G technology.
Potential Challenges:
The report reviews previous experiences of hosting the World Cup, noting that such events may lead to negative economic outcomes if not managed effectively. It stressed that the economic returns from an increase in stadium visitors may not be sufficient to offset the massive costs of organizing the event. The report cites Brazil’s 2014 experience, where the hosting cost reached 2.5 billion euros, while the gains over five years amounted to only 134 million euros—twenty times less than the cost.
The report also mentioned that the impact on the labor market may be limited, as comparative studies of unemployment rates before and after such events have shown no lasting effects on employment. In some cases, the event may lead to a temporary increase in demand for labor, but after its conclusion, many of these workers may find themselves unemployed.
Conclusion:
Despite the potential challenges, hosting the 2030 World Cup in Morocco presents an important opportunity to enhance its international image, develop its infrastructure, and stimulate the national economy. However, to maximize the benefits of the event, careful planning, sustainable investments, and strategies are required to ensure that the benefits extend beyond the conclusion of the tournament.
