With the arrival of the FIFA World Cup in Vancouver just around the corner, polling suggests not everyone is excited to play host.
A new survey from Merchant Growth shows 63 per cent of businesses in this province don’t expect any revenue impact from the soccer tournament, and 60 per cent expect a 16 to 35 per cent bump to their bottom line.
Hash Aboulhosn, the organization’s chief growth officer, tells 1130 NewsRadio that Vancouver businesses have had a tough go over the last several years from dealing with COVID-19 restrictions, the U.S.-backed trade war, a shaky economy, inflation, and increasing costs, so the World Cup could be their chance to make a lot of money during peak summer season.
However, because money has been so tight, some owners may not be prepared to welcome fans or keep up with demand.
“That has left them in a more challenged position,” said Aboulhosn.
“And as a result, they haven’t been able to hire as much, haven’t been able to build up their inventory as much, maybe [not] do advertising in advance of the World Cup. Uncertainty about the economy is a major factor that impacts people’s confidence in their willingness to invest in their business, so that is a broader theme.”
Aboulhosn says it remains to be seen if businesses will miss the opportunity to score big.
“If we do see significant and record attendance, and we do see massive business and businesses aren’t able to adapt quickly enough, then it will be a missed opportunity. People are going to experience longer line-ups, inability to find places to watch the game, fewer tables, longer waiting times. However, if it doesn’t quite pan out like people expected and attendance is lower, then it’ll have been a very smart move for businesses.”
Related:
Aboulhosn says while the economy is struggling, some owners are frustrated that they weren’t given a financial leg up to showcase themselves to the world.
“For our particular clients, one of the biggest themes tends to be around speed. And this is a great example where businesses have held off, being uncertain about the World Cup. If a business, now, with two weeks to go, decides it wants to act and maybe invest in more tables, these programs are just not going to be fast enough to serve their needs. Sometimes the capital might be there but not on the terms or as quickly as they would otherwise want it. Sometimes, businesses find they’re either too big for a standard branch process at a bank but too small for your more conventional commercial banking, so they fall through the cracks.”
On the flip side, he says consumers are pumped for the World Cup and plan to head out to local restaurants and bars to catch the matches, despite affordability concerns. Merchant Growth says Gen-Z plans to spend, on average, $41 per visit; Millennials come in at $51 per visit; Gen-X at $60 per visit; and Baby Boomers at $56 per visit.
“I think for a business that’s had a rough few years to have their restaurant full for maybe a full two months of summer can make a massive impact,” said Aboulhosn.
“And of course, you’re going to get a wide spectrum. Tourists tend to spend a little bit more.”
The first of seven matches at BC Place will kick off June 13.