Businesses in emerging markets value the ability of big sporting events to attract investment to their economies, while their counterparts in developed economies view them as less important, according to a new report from the Grant Thornton International Business.
Business leaders in India are of the opinion that sporting events help in building relationships with existing clients and act as a great team building tool.
According to the research, in Latin America, almost three quarters (74 per cent) of business leaders believe that major sporting events are important in attracting investment to their economy and across the BRIC nations, over half (54 per cent) hold this view.
In contrast, far fewer businesses in the EU (42 per cent) and North America (44 per cent) believe in the ability of big sporting events to attract investment, dropping to just over one in three (36 per cent) in the G7. The report notes that developed economies must work hard to maximise the economic opportunity these events present and win support from businesses.
Mr Vinamra Shastri, Partner & Practice Leader, Business Advisory Services at Grant Thornton states that emerging economies “use these mega events to allow a worldwide audience to ‘window shop’, before making their investment decisions. It is an opportunity to showcase their infrastructure, their masses of consumers, their organisational ability and their willingness to be a part of the global village”.
The home advantage in sporting events “is not only linked to an improved medal haul, but the research indicates that it is also considered very important in garnering additional investment. For more established economies, international sporting competitions are still a great opportunity, but appear to be just one element of a much bigger offensive to attract investment,” he adds.
With the start of the 2012 Olympic Games in London, businesses in the UK are far more enthusiastic than their G7 counterparts, with 61 per cent saying big sporting events are important for attracting investment. The UK government anticipates that the London Olympics will bring £13 billion of economic benefits over the next four years and almost £6 billion in the form of foreign direct investment.