Cricket World Cup, that got underway on Thursday, could boost the country’s economy by as much as ₹22,000 crore ($2.6 billion), economists at Bank of Baroda estimate.
The economists that conducted the study expect total Indian viewership for the tournament, including both on television and digitally, to be far larger than the 552 million seen in 2019. That could generate ₹10,500 crore to ₹12,000 crore in TV rights and sponsorship revenue “on a conservative basis.”
With matches spread out across ten cities, fans are expected to fly in and around the country while spectators from abroad are slated to travel as well. It will see a boom in the travel and hospitality sectors.
The tournament also coincides with the festival period that starts in September and will be crucial to the retail sector as well. Economists expect people to make “sentimental purchases of merchandise.”
But it could also lead to inflation. It has already been seen with hotel prices and airline ticket prices seeing a massive surge for venues where India will play especially Ahmedabad, venue for the high-octane India vs Pakistan fixture on 14 October. Economists expect overall inflation to rise rise between 0.15%-0.25% for October and November.
“Ahmedabad has seen a 200% increase in room reservations compared to August,” said Rajesh Magow, group chief executive at MakeMyTrip, as per Reuters.
“On India match days, fares have shot up on average by 150% for select hotels and 80% for select flights compared with the prior week,” brokerage house Jefferies said in a note.
“On the other hand, the event should provide boost to food delivery, quick commerce, alcohol/beverage, soft drinks, media, online gaming etc.,” the report said. “We expect companies to run world-cup specific promotions on match days to tap this consumption boost.”
The tournament will also support the central government with more money coming in via tax collections on ticket sales, GST on hotels, restaurants and food delivery.
from Firstpost Sports Latest News https://ift.tt/XNfhUe7
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