Did the World Cup pay off? New data raises questions about economic boost

With the final World Cup match in Toronto tonight, many are wondering if it really has been an economic boon for the city, or just hype. Heather Wright reports.

TORONTO - For nearly three weeks, the World Cup has taken over downtown Toronto, with thousands of fans flocking to matches, the FIFA Fan Festival or nearby bars and restaurants.

But despite the influx of visitors, new data suggests total spending in Toronto has not surpassed expectations for the World Cup.

There has been plenty of criticism over the amount of money Toronto spent to host the World Cup, with officials often justifying the $380-million price tag by pointing to the expected economic spinoff. However new data shows that so far, the boost has been less than what some had hoped for.

According to data from Moneris, total spending in Toronto bars and restaurants from June 12 to June 26 was up just three per cent over the same period last year. Meanwhile, the Greater Toronto Hotel Association says hotel occupancy for the first full week of the World Cup was at 72 per cent, down from 88 per cent a year earlier.

“The net contribution from hosting large scale events like the Olympics or the World Cup is pretty close to zero,” said Moshe Lander, a sports economist and professor at Concordia University.

Lander says there are positives to hosting big events, but argued Canada did not have the proper soccer infrastructure to begin with, making this tournament even more costly to put on.

“We veered out of our lane, hosted something we had no business hosting and if it had been done in the name of civic pride, fine but I think a lot of people got caught up in the hype,” he said.

More data about the impact of hosting the World Cup will be released in the coming weeks and months, but experts say some of the longer-term impacts - things like repeat visitors, legacy infrastructure and uptick in grassroots soccer - won’t be clear for several years.

Toronto residents on returning to ‘normal life’

While the Fan Festival and watch parties will continue until the tournament wraps up on July 19, some residents are happy Toronto’s run as host is coming to an end.

“It’s been great,” said soccer fan Ahmy Elboraie. “The traffic control has been good... I think the city did a good job,” he said.

“This was fun and everything but now I go back to my normal life,” said Andy Carnation.

In Liberty Village, which is less than a kilometre from Toronto Stadium, bars and restaurants have been packed nearly every day with fans gathering before games or watching them on TV. The neighbourhood is used to big game day crowds, but this stretch has been different says Ashley Parent.

“It’s been intense,” said Parent, the assistant general manager at Fox & John’s Restaurant and Pub. “It’s been stressful but also really exciting.”