The FIFA World Cup is coming to Canada, but not without costs.
Moshe Lander, an economist and professor at Concordia University, said Canada’s economy will be affected “minimally.”
“It’s the big scam when it comes to these large-scale events, whether we’re talking about the World Cup or the Olympics, that people believe that there’s going to be these huge economic benefits.”
The reality, he explained, is “usually these events will actually lose you money.”
The cost of Toronto hosting has risen a few times since the games were first confirmed. Originally the estimate was $290 million, then the cost rose to $300 million due to inflation.
That ballooned another $80 million after Toronto was tapped to host a sixth game at BMO Field – soon to be named “Toronto Stadium” to fit FIFA regulations.
According to a city staff report, the pre-tournament FIFA World Cup economic impact assessment conducted by Deloitte Canada, estimated “that preparing for and hosting the … [event] will contribute up to $3.8B in positive economic output for Canada as a host nation.”
In the GTA, that data shows a potential $940 million benefit.
Lander said that since the government is responsible for creating a good image for the FIFA World Cup, it leads to the truth being obscured. “What … [they’re] presenting is only part of the story,” he said by excluding potentially negative outcomes.
“When you’re presenting your cost estimates, you’re presenting a best-case scenario, which is fine. But you’re not presenting a worst-case scenario. So, you are telling the truth that if everything goes perfectly, this is what could happen.”
As an example, when it comes to infrastructure, Lander thinks expanding the seating capacity in Toronto won’t matter.
“No one’s going to say, ‘I want to go to Toronto because BMO Field once held … [six] soccer matches 20 years ago.’ So it’s not going to increase tourism in the future.”
He added, “it’s temporary seating so it’ll just be taken down after it’s done. It’s not going to lead to any additional fans showing up for Toronto FC matches.”
He pointed out there is a difference between Major League Soccer – the league Toronto FC competes in – and international level soccer which includes national teams like Canada facing off against other nations.
Lander is referring to the noticeable gap in quality between the competitions. International and specifically European leagues contain the highest tiers of soccer, drawing mass appeal worldwide.
Kathy Motton, senior manager of corporate communications at Destination Toronto, said she sees tourism being driven by the FIFA World Cup in the short and long term with billions watching.
“We’re going to have access to all of those people around the world who are going to be watching and being inspired by Toronto … our skylines, by the diversity that they see on screen.”
She said the money spent by visitors, including fans, athletes and their delegations, “continues to circulate in the economy after they leave.”
Because of international viewership, Motton anticipated that the global event will inspire future visits to Toronto.