The 2026 World Cup, which kicks off today, will be held across three countries and 16 cities, making it the biggest sporting event ever and a commercial bonanza.
The five-week soccer tournament is expected to engage around 6 billion people globally and draw 6.5 million fans to the games. A joint FIFA and World Trade Organization (WTO) study released last year projected that the competition would boost U.S. GDP by $17.2 billion and global GDP by $40.9 billion.
The White House said last year the tournament could generate $30 billion for the U.S. economy. By comparison, the Super Bowl generates somewhere between a few hundred million and roughly $1 billion, according to estimates.
Part of the economic boost will come from job creation. Hiring in May showed a significant jump in U.S. leisure and hospitality jobs that economists attributed in part to expected tourism from the World Cup.
During the tournament, dollars will flow to host cities across the country, including Atlanta, Boston, Dallas, Houston, Kansas City, Los Angeles, New York/New Jersey, Philadelphia, Seattle and the San Francisco Bay Area. In a recent study, SoFi, a digital financial services company, said each host city will see between $160 million and $620 million in incremental economic activity.
International visitors are projected to spend more than $5,000 per person during their time in the U.S., according to the U.S. Travel Association.
The World Cup, aside from being the world’s largest sporting event, is also expected to be one of the largest gambling events of all time. H2 Gambling Capital, a betting and gaming consultancy, projects people will wager $60 billion on the tournament through legal sportsbooks, including $2.9 billion from the U.S.
Disappointing hotel sales
While the event has generated high hopes for the U.S. tourism industry, hotel bookings have been more sluggish than expected.
Eighty percent of hoteliers across host cities said hotel bookings were below initial forecasts, according to a report released last month by the American Hotel & Lodging Association (AHLA). The industry group, which represents 30,000 members, cited international travel barriers and rising costs as reasons for the weak demand.
AHLA CEO Rosanna Maietta said in an email on Thursday that hotels are reporting an uptick in demand and that the industry expects late bookings to accelerate ahead of some games.
One of the main obstacles for fans has been the exorbitant price of World Cup tickets, which are rising due to dynamic pricing and as venues cater to wealthier fans, CBS News has reported. Including the cost of a ticket to a match, along with flights, hotels and other expenses, fans on average will shell out more than $2,100 to attend the World Cup, LendingTree estimates.
While the matches are expected to draw legions of fans from across the world, some seats could remain empty. As of Wednesday, 29 games were sold out, while 75 still had tickets available, according to the Associated Press. Those seats are likely to be pricey given that much of the remaining inventory is on the higher end of the price scale.
“Zero” long-term gains?
While the World Cup will provide a boost to the U.S. economy, that growth will be temporary, according to Goldman Sachs. Using data from previous World Cups dating back to 1982, the investment bank found that the event generates a modest rise in the host nation’s real GDP during the year of the tournament. But the long-term effects on economic growth are “effectively zero,” analysts said.
Host countries — which include the U.S., Canada and Mexico — will only benefit partially from the event, as much of the spending will take place in other countries, the investment bank noted in a report.
“While more beer will be bought and more football-related merchandise will be purchased as a consequence of the World Cup, most of that beer and most of the merchandise will not be purchased in the host countries,” Goldman analysts said.