The World Cup will draw millions of fans, but economic payoff is modest
The World Cup will draw millions – The 2026 World Cup, starting today, will take place in three nations and 16 cities, marking it as the largest global sporting event. Despite its massive scale, the financial benefits for the host countries remain limited, according to recent analyses.
A joint FIFA and World Trade Organization study estimated that the tournament could add $40.9 billion to the world’s GDP, with the U.S. expected to see a $17.2 billion boost. The White House projected a slightly higher figure of $30 billion for the American economy, though this may not fully capture the event’s long-term influence.
Compared to the World Cup, the Super Bowl generates economic activity ranging from hundreds of millions to nearly $1 billion. However, the World Cup’s impact, while significant, is described as “modest” by some economists. Part of the anticipated economic lift comes from job creation in the leisure and hospitality sectors, with May hiring showing a notable increase attributed to World Cup-related tourism.
Host Cities and Spending
Host cities such as Atlanta, Boston, and Los Angeles are set to benefit from increased spending. A recent report from SoFi indicated that each venue could see between $160 million and $620 million in additional economic activity. International visitors are projected to spend over $5,000 per person during their stay, according to the U.S. Travel Association.
The tournament is also anticipated to become one of the largest gambling events in history. H2 Gambling Capital estimates that $60 billion will be wagered through legal sportsbooks, with $2.9 billion coming from U.S. fans. This highlights the event’s dual role as a sporting and betting spectacle.
Disappointing Hotel Sales
Despite high expectations, hotel bookings in host cities have fallen short of projections. A report from the American Hotel & Lodging Association noted that 80% of industry members reported lower-than-anticipated reservations, citing travel restrictions and rising costs as key factors.
“Hotels are reporting an uptick in demand, and the industry expects late bookings to accelerate ahead of some games,” stated AHLA CEO Rosanna Maietta in an email.
High ticket prices have also posed challenges for attendees. Dynamic pricing and venue upgrades for affluent fans have driven costs, with fans spending over $2,100 on average for matches, flights, and lodging. While 29 games are sold out, 75 still have available seats, many priced at the upper end of the scale.
Long-Term Economic Effects
Goldman Sachs argues that the World Cup’s economic boost is temporary. Using historical data from World Cups since 1982, the investment bank found minimal long-term growth in real GDP for host nations. Analysts suggested that most economic activity will not persist beyond the tournament’s duration.
“While more beer will be bought and more football-related merchandise will be purchased, most of that beer and merchandise will not be purchased in the host countries,” noted Goldman Sachs analysts.
This suggests that the U.S., Canada, and Mexico may see only partial gains, as much of the spending is expected to occur abroad. The event’s legacy, though large in scale, may not translate into lasting economic benefits for the host regions.
