Expected effects of the 2022 Fifa World Cup on Qatars economy Term Paper

Expected effects of the 2022 Fifa World Cup on Qatars economy - Term Paper Example This will strengthen Qatar’s national economy which shows a striking and buoyant performance amid slothful global conditions. In 2010, Qatar registered a Gross Domestic Product (GDP) of 14.0 %. The country projected that in 2011 the GDP would hit a 15.8 % mark. This steady growth in GDP presents Qatar as the fastest in economic growth among GCC region (Qatar First Investment Bank 4). Qatar is expected to benefit a lot from tourists’ activities. The estimate of the visitors in Qatar amounts to about half million people. This is largest number of tourism representing about a third of Qatar’s population. Due to this large numbers of tourists, Qatar intends to construct 90,000 hotels and restaurants. This surpasses FIFA’s requirement for Qatar to have 65,000 hotel rooms (Oxford Business Group 281). The country expects to receive many foreign funds from the visitors which will boost the growth of well performing economy. According to neoclassical growth theory, the explosion of population will lead to high Gross Domestic Product (Barclay 66). Doha has already witnessed 65% of total visitors that come from corporate sector. The overnight stays are expected to generate a lot of revenues for Qatar. Tourism industry anticipates raising the occupancy rates in order to capitalize on the FIFA World Cup. The basis of this expectation is from 2011 when hosted AFC Asian Cup. The large number f fans increased the rate of hotels to about 24 %. This was a remarkable rise when compared to the year 2010 (Oxford Business Group 285). The retailers expect to amass a lot of money from the sales. This is due to increased domestic and foreign consumption Qatar will refurbish her infrastructure to meet the FIFA standards. The country plans to use 100 billion US dollars to expand and construct new system of infrastructure. Some of expected infrastructural changes will feature stadiums, roads, communication systems, airports, and places of accommodation. Doha airport is under