The boost to the economy from the 2010 FIFA World Cup should increase tax revenue by R1,5-billion a year, Economic Development Minister Ebrahim Patel said in written reply to a Parliamentary question on Monday.
Quoting estimates from the Union Bank of Switzerland, Patel said that infrastructure investments associated with the event created about 300 000 employment opportunities.
The bank estimated that tax earnings on tourism alone came to about R1-billion. Spending by tourists alone this year was expected to be about R8-billion, increasing the gross domestic product (GDP) by 0,54%.
"The broader long-term stimulus to the GDP should increase tax revenues by around R1,5-billion a year," he said.
Patel said that UK-based chartered accountants Grant Thornton expected the soccer tournament to sustain 280 000 jobs in 2010 alone.
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