Following England’s World Cup defeat to Australia on Saturday, economic experts have estimated the failure to make the quarter final stages by the host country could cost the economy £3bn.
Alex Edmans, of London Business School, told Conference News: “On average, when a country team loses a sports event, such as the World Cup, the stock market goes down significantly as it has a negative effect on investors’ mood.”
“This is not going to happen every day. The UK market has gone up today (5 October) due to an increase in the US stock market. However, the UK market would have been expected to go up even higher if England had not been defeated.”
Expectations now are that Britain’s pubs and bars will loose around £5m on sales per match. However, The Times newspaper referenced Neil Williams, of the British beer and pub association, who is still expecting to sell an extra 25m pints on the back of “huge numbers of overseas visitors”.
Emma Gray, of Marketing Birmingham, said: “We have been building up to this weekend for a number of years, particularly for the Rugby World Cup and around that we’ve had the capital infrastructure changes which have transformed the city through £1bn of investment.”
Tom Marlow, senior communications executive for Marketing Birmingham, remained optimistic in the wake of England crashing out. He told CN: “In my opinion – Saturday’s defeat shouldn’t have a bearing on our hospitality sector.”
Meanwhile, on the south coast, Caterers KUDOS, conducted a survey on Brighton volunteers to gain an insight into the length people would go to to participate in special events. The survey showed 90% of participants said they would travel 100 miles or more to volunteer at a once-in-a-lifetime event, with many claiming they do it just to give something back to the wider community.
KUDOS’ management and development manager, Imogen Lee, said: “The findings of the survey prove that money isn’t the be all and end all for everyone but it’s the experience that counts.”