Analysis of the Impact of the Organization of Sporting Events: A Literature Review

Abstract

The competition among countries to host major sporting events goes far beyond merely entertaining their populations; it reflects deeper motivations and leads to significant impacts. Interested countries compete to present strong bids, meticulously prepared by experts and often developed in consultation with nations that have previously hosted such events. Morocco, for instance, seizes every opportunity to submit its candidacy for hosting global tournaments. Recently, it was selected to host the Africa Cup of Nations in 2025 and to co-host the 2030 FIFA World Cup with Spain and Portugal. These initiatives raise numerous questions about the underlying objectives of these efforts and the expected economic and social impacts, highlighting the need to examine past experiences to maximize benefits. Undeniably, the preparation for such events prompts governments to invest in necessary infrastructure, whether by modernizing existing facilities or building new ones as required. The debate in the literature generally focuses on assessing the social and economic benefits, such as revenue generation, tourism growth, and job creation resulting from these investments. Our study adopts a meta-analysis of existing literature since 2000, synthesizing international empirical research to evaluate the impact of these events on various sectors, with particular emphasis on their contribution to GDP, tax revenues, job creation, tourism, and social impacts. Our analysis reveals that the economic impact of sporting events is not always positive for all host countries, or at least it does not always meet initial expectations. Several studies indicate that the nations benefiting most from these events are developed countries with already established infrastructure. For these countries, the expenses tend to be lower compared to developing nations, which benefit less or, in some cases, suffer negative economic effects due to the costs associated with hosting. This is particularly true when these countries must incur debt to finance the necessary investments and projects.