ICC Cricket World Cup 2023: India's economy will benefit from cricket in addition to being entertained by it

In India, cricket is more than just a sport—it's an emotion. After a 12-year of long duration, the 13th ICC Cricket World Cup has returned to India, igniting an electrifying atmosphere that fills both stadiums and homes. Unquestionably, exciting games and intense rivalries are in the spotlight, but there's another game going on—the one that drives the Indian economy.

The ongoing ODI World Cup, a prestigious global event, is unique in the history of cricket. These major cricket tournaments electrify the nation, and the excitement extends beyond the stadiums. It is felt across multiple industries.

2019 world cup generated Rs 3,600 crores in revenue for nation

For example, the 2019 ODI World Cup in England generated Rs 3,600 crores in revenue for the country. Large sporting events like this generate a lot of consumer spending, which boosts the prospects of several industries like hotels, consumer electronics, and media.

As a result, the ongoing Cricket World Cup 2023 is more than just a tournament; it could be a catalyst for economic impact in India. According to one estimate, the World Cup will boost the Indian economy by Rs 13,500 crore!

So, let's take a closer look at how this world cup will different sectors of Indian Economy

Huge demand of travel services                                  

Months before the World Cup started; there was a huge demand for both domestic and international flights to India, with devoted supporters buying tickets even before they could guarantee a seat for the game.

Data from the market intelligence platform OTA Insight revealed that in the months preceding the World Cup, flight searches to India increased by 110% to 130%.

The final match will be held in Ahmedabad, and there are 787 flights scheduled to arrive there between November 13 and 19, according to travel analytics firm Cirium.

Last weekend the highly anticipated India vs. Pakistan match took place in Ahmedabad. The International Cricket Council reports that 35 million spectators watched the match on Saturday, setting a new record.

According to Bhargava of Waterfield Advisors, demand for international flights to India increased by 15%, especially before the games because of visitors from Australia, the United Kingdom, New Zealand, Sri Lanka, and the Netherlands.

Hotel rates in host cities rose by 125% to 300% annually with increased demand

Following a robust Covid recovery, India's hospitality sector has grown at an unprecedented rate, with demand still exceeding supply.

According to data from software company RateGain, during the October to November period, hotel rates in host cities rose by 125% to 300% annually.

Pune, the site of India's match against Bangladesh later this week, is the epicenter of price increases, with hotel rates rising by nearly 360%. RateGain reports a 310% increase in hotels in Ahmedabad.

Potential revenue of Rs.1,500 crore for the food and beverage sector

Food and beverage sales are predicted to increase as a result of the Cricket World Cup because fans will be consuming food and beverages as they watch the matches. According to Kotak Securities, the 2023 Cricket World Cup could bring in up to Rs.1,500 crore for the food and beverage sector.

$300 million in sponsorship and advertising revenue

1.6 billion People watched the previous Cricket World Cup in 2019 on average worldwide. Therefore, it should come as no surprise that well-known companies like Coca-Cola and Booking.com are supporting the event this year.

Disney Hotstar, the digital broadcaster of all 48 matches, is expected to earn $300 million in sponsorship and advertising revenue, according to Bhargava. Nearly half a billion dollars are anticipated to be made by India's ICC from this, of which 30% will go to the Board of Control for Cricket in India (BCCI).

Inflation concerns

Additionally, economists predict that the tournament will draw far more Indian viewers than the 552 million that it did in 2019—both on television and on streaming services. "On a conservative basis," the audience could bring in between Rs. 105 billion and Rs.120 billion from TV rights and sponsorship income.

The ICC Cricket World Cup may potentially contribute to inflation, according to the bank of Baroda's economist. This is due to the spike in airfare and hotel rates for the time of year, as well as the possibility of significant increases in service fees in the unofficial sector in the ten host cities beyond the effects of the festive season.

All things considered, between October and November, inflation may increase by 0.15% to 0.25%.

Also read: IND vs AUS Final: ICC World Cup 2023 guide to Telecast and Streaming Details

According to economists, the major cricket tournament will also boost government revenue through higher ticket sales taxes and goods and services taxes on lodging, dining, and food delivery, providing the nation with more fiscal room.