How ICC World Cup 2023 is Shaping India’s Economy?
Whatever the sport, World Cups always create intensified moments of joy. Cricket is no exception; the ICC Men's Cricket World Cup is a widely anticipated event that causes a lot of enthusiasm. The 2023 World Cup is happening in India, the excitement surrounding the tournament is not surprising as Indians are obsessed with cricket.
The winning team in the 2023 Cricket World Cup will receive a stunning $4 million in prize money, while the runner-up will receive $2 million. Even the losing semi-finalists will receive a good $0.8 million. Teams have plenty of incentive to perform well because each group-stage victory adds 40,000 USD.
Economic and commercial aspects
The ICC Men's Cricket World Cup has a big impact on the travel and tourism sector. 320,000 supporters from Southeast Asia arrived at the 2019 World Cup, which was held in England and Wales and attracted 1.2 million foreign tourists. The tournament drew 752,000 spectators in total, and through increased expenditure in the local economy, supplier contracts, and consumer purchasing, it had an economic impact of about £350 million. A projected 1.5 million foreign visitors and a tourism expenditure of 5,705 crores are anticipated for the 2023 World Cup in India.
As per the economists from the Bank of Baroda, the World Cup 2023 might bring in an astounding $2.4 billion for India's economy. The tournament is also expected to earn $150 million in sponsorship revenue, which will bring general improvement in the economy. Due to the tournament, hotel bookings and prices have dramatically increased throughout the host cities, which has led major businesses including Lemon Tree Hotels and Indian Hotels Company to post a 1% to 2% boost in their share prices. Moreover, as per Airbnb, hotel searches have increased by 4000% linked to the India-Pakistan World Cup match.
Many cities have experienced significant price increases in hotel prices due to the ongoing tournament. Pune is at the top of the list with price increases of more than 360%, followed by Ahmedabad (308%), Dharamshala (300%), Hyderabad (230%), Chennai (220%), Lucknow (215%), and Kolkata (210%). The substantially inflated rates are partly caused by the lower hotel availability in certain cities. Prices have also increased in major cities like Bengaluru (205%), Mumbai (125%), and Delhi (165%). The cost of flying to popular locations like Ahmedabad, Mumbai, and Kolkata has increased by 40% to 60%.
Flight costs have increased by 20%-30% in other host cities. With hotel searches and airfares rising, the travel industry is experiencing significant growth. The ICC Men's Cricket World Cup 2023 is also benefiting the retail food sector. Food service providers like Zomato and Swiggy stand to gain the most because spectators are most likely to spend money on meals. These two giants are poised to benefit with over 65% market share. Burgers, Pizza, and Chips were the most frequently ordered foods during the 2023 World Cup match between India and Pakistan.
Viewership impact
This tournament is highly advantageous for online streaming services, particularly Disney+ Hotstar. India Vs. Pakistan at the 2023 Cricket World Cup led the charge with an astounding 300 million TV viewers and 35 million online viewers, making it one of the most viewed matches in the tournament. The 2019 match between the same rivals was keenly followed by it with 273 million TV viewers and an estimated 50 million online viewers. While the semi-final of the 2015 ICC Men's Cricket World Cup between Australia Vs. India attracted 309 million TV viewers and almost 25 million online viewers.
Interestingly, Disney+ Hotstar, one of the major online streaming services, saw the potential of the 2023 ICC Men's Cricket World Cup and decided to make it free to reach the incredible 540 million smartphone users. During the competition, subscriptions to the platform rose by 50%. Online streaming platforms are set to profit from the rise in viewers and ad revenue. Furthermore, the sales of the India jersey during the India-Pakistan match of the 2019 World Cup reached nearly 150 crores. During the 2023 World Cup, the popularity of the India jersey is expected to maintain high sales.
Not just the on-field athletes benefit from the ICC Men's Cricket World Cup, but the entire country and numerous businesses that are involved in this sporting event experience profits.