Published on 11-Aug-06

ECLAC, 8 August 2006... The Cricket World Cup, coming to the Caribbean in 2007, brings good economic news to countries hosting the championship, the Economic Commission for Latin America and the Caribbean (ECLAC) forecasts.

ECLAC says World Cup 2007 Promises Big Boost to the Caribbean's Small Economies

ECLAC, 10 August 2006... The Cricket World Cup, coming to the Caribbean in 2007, brings good economic news to countries hosting the championship, the Economic Commission for Latin America and the Caribbean (ECLAC) forecasts.

The positive economic impacts of cricket's top event will be significant, ECLAC's recently-published Economic Survey of Latin America and the Caribbean, 2005-2006 states.

Nine countries -Antigua and Barbuda, Barbados, Grenada, Guyana, Jamaica, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, and Trinidad and Tobago- will host games beginning March 2007.

These English-speaking Caribbean nations can look forward to "considerable repercussions" on their external accounts, starting with increased public investment, states the ECLAC report. The construction sector is already experiencing dynamic growth, with new stadiums being built and others being refurbished. Investment in tourism-related infrastructure is also up, led by governments, with private sector participation.

The sporting event will affect the balance-of-payments current account of host countries in opposite ways, with revenues from the anticipated influx of tourists countered by outflows from increased imports, especially construction materials.

The greatest impact will be felt by members of the Organisation of Eastern Caribbean States, which groups some of the smaller economies in the region. In OECS states where matches are being held (Antigua and Barbuda, Grenada, St. Lucia, St. Kitts and Nevis and St. Vincent and the Grenadines), Cricket World Cup preparations could represent up to 10% of GDP, preliminary estimates by ECLAC indicate.

Donations received by Antigua and Barbuda for the construction and renovation of cricket stadiums led to an increase of capital transfer inflows from 2.4% of GDP in 2004 to 24.4% of GDP in 2005. In Jamaica, official estimates indicate that government spending related to the tournament will amount to 1.2% of GDP.

Governments are drawing up plans to seize World Cup marketing opportunities and turn international exposure from play-offs into sustained tourism, ECLAC notes. Governments will also be looking for ways to put stadiums and other new infrastructure to permanent use.

The tournament also poses challenges to the tourism industry, such as expanding hotel capacity in time for the event, and the possibility that airfare hikes could bring a drop in the number of visitors expected.