Russia's $11 billion World Cup hosting may yield $30 billion by 2023

With more than $11 billion spent by President Vladimir Putin’s administration in preparing nearly a dozen Russian cities to host the 2018 FIFA World Cup, economic experts predict that the tournament could yield as high as $30.8 billion by 2023.

The World Economic Forum website stated that organisers of the world football tournament in Russia for 2018 predicted that the total economic impact of the World Cup on Russia might not be felt till 2023 and could be as high as $30.8 billion by 2023.

Historically, the 2018 World Cup is the biggest of any sporting event which Russia has held since the collapse of the Soviet Union.

From Yekaterinburg in the Urals to Kaliningrad on the Baltic Sea, the tournament will reach cities few foreign visitors have seen before.

ALSO READ: US sanctions are killing Russian markets

The anticipated effect by the Russian government is created by spending on construction and general investment.

And with the belief that hosting a World Cup, or any other major sporting event, can boost a nation’s economy, the Russian government spent hugely on infrastructures, security, and general investment.

This is believed to attract tourists, initiating important infrastructure projects and showcasing countries and cities as good places to do business.

The strategy to ensure hosting World Cup boosts Russian economy

In a report by ESPN, the organisers of the 2018 World Cup in Russia said the boost for the country's GDP could amount to between 1.62 trillion rubles ($26 billion) and 1.92 trillion rubles ($30.8 billion) over the 10 years from 2013 through to 2023.

The organisers also noted that the economic impact of the tournament is also attributed to growing tourism as well as overall effects from government investments with over 220,000 jobs created.

Russian Deputy Prime Minister, Arkady Dvorkovich says the World Cup has a considerable economic effect noting that the tournament has already boosted the economic development of the host regions and will continue to have a positive long-term economic impact.

The organisers also noted that the $50 billion spent on the Winter Games Olympics has helped to turn the host city of Sochi into a major year-round tourism hub for Russians, although opposition activists accused the government of allowing waste and large-scale corruption.