The EURO 2024 European Football Championship will not only have a sporting impact on the host cities, but also far-reaching economic effects. Prof. Dr. Axel Faix from the Faculty of Business Studies explains in an interview with the Fachhochschule Dortmund online editorial team that hosting European Championship matches will significantly boost Dortmund.
Prof. Dr. Faix, according to media reports, Dortmund will incur costs of more than 20 million euros to host six EURO 2024 matches. Is it worth it for the city?
Axel Faix: Yes, you can assume that. Together with a research team, I have looked at various scenarios which, on average, suggest beneficial economic effects for the city in the region of 120 million euros. Our model calculation includes expenditure by guests visiting the city during EURO 2024 - but also by residents who, contrary to their other habits, do not leave the city. This includes expenditure on accommodation, food and drink, but also on fan merchandise, clothing and other leisure and cultural events, for example. We have also included income and tax effects.
We based our assumptions about the number of fans attending matches and fan festivals, their length of stay in the region and their expenditure on various goods on existing reference studies. Among other things, there is a very elaborate survey study that was carried out among guests during the 2006 World Cup and takes up numerous individual parameters that are also relevant for EURO 2024.
In addition to the beneficial economic effects for the city, an emotional return can also be expected, the extent of which depends on the actual course of the tournament matches and the atmosphere at the accompanying fan festivals and parties. The image of the city can benefit considerably from this in the medium to long term.
Can parallels be drawn between Euro 2024 and the 2006 World Cup?
Axel Faix: There are similarities and differences between the two major events. At the 2006 World Cup, it was relatively easy for a relatively young, largely newly formed national team, which was able to go into the tournament without any great weight of expectation, to win over the spectators and - in four weeks of sunshine - get them in a party mood. The current team, on the other hand, is strongly associated with the sporting disappointments of recent years.
Both tournaments are taking place in times that are characterized by Business Studies problems, so that "mood boosters" are well needed in each case. However, the background to EURO 2024 is much more difficult, as the population is more insecure due to wars, geopolitical crises, the aftermath of the coronavirus pandemic and the threat of climate change.
The visitor structure is also different: at the 2006 World Cup, a larger proportion of guests traveled from more distant regions of the world, for example from South America and Asia. This resulted in a broader "impact" of the tournament because people from all over the world came together. The guests who traveled from far away generally stayed in the country for a longer period of time - and in some cases undertook follow-up trips within Germany or Europe; they also had a higher willingness to pay for consumer goods.
Many of the guests expected at EURO 2024 come from Germany or other European countries close by. And in contrast to 2006, EURO 2024 is strongly focused on sustainability - the organizers are aiming to set completely new standards in this respect. The participating local authorities are focusing in particular on the mobility behavior of visitors. The advantage is that less money needs to be invested in stadiums and infrastructure compared to the 2006 World Cup.
What kind of fan behavior do you expect?
Axel Faix : In collaboration with the FanQ rating platform, we have been systematically investigating how fans' anticipation of the tournament develops since the beginning of 2023. We found that individual events such as international matches won or lost, the change of national team coach, etc. have a strong influence on the anticipation expressed in a certain period of time.
However, a longer-term trend could also be identified, namely an increase in anticipation with increasing proximity to the start of the tournament. If the general conditions are right, i.e. if the German team gets off to a good start and is able to spark enthusiasm in the stands, this can lead to atmospheric encounters in the stadiums and in the surrounding area, the momentum of which then spreads.
Analyses accompanying the above-mentioned surveys show that many people are willing to be inspired by soccer festivals despite the crisis situation described above. If the German team impresses with sporting success in the tournament and the weather is also favorable, there is much to suggest that EURO 2024 in Germany will really become a soccer festival, as it became legendary in 2006.