Beyond the Game: Understanding the Economic Value of Sports Events Through the South African Cultural Observatory Sports Impact Calculator.
BY
30.09.26
Sporting events are more than moments of competition, national pride, and entertainment. They are economic activities that can stimulate tourism, create employment, support local businesses, and generate revenue across multiple sectors of the economy. From hotels and restaurants to transport providers, retailers and event service companies, the economic value of sport extends far beyond the stadium.
The South African side (Springboks) and New Zealand (All Blacks) rivalry offers an illustrative example of how a major sporting event can create economic opportunities and stimulate spending across South Africa (SA). These two rugby teams are the most successful national teams, with a rivalry that stretches back more than a century. Their first encounter took place in 1921, when the Springboks toured New Zealand, establishing a sporting relationship that has developed into one of the most recognised rivalries in international rugby.
According to the South African Rugby Union and various media outlets, the 2026 Rugby's Greatest Rivalry Tour generated an estimated R3.7 billion economic footprint, comprised approximately R1.7 billion direct spend in direct revenue, with the remaining R2 billion generated through indirect and induced effects. A tour involving these teams generates an interest well beyond the match venues, bringing economic activity to host cities and surrounding communities. Hotels accommodate visitors, restaurants serve spectators, transport providers facilitate travel, and retailers benefit from increased demand. Revenue streams include sponsorships, stadium ticket sales, merchandise, and local spending, but most importantly, the event creates opportunities for temporary employment.
Economic impact assessments are valuable because they provide a structured way to communicate the contribution of sport to stakeholders. The South African Sport Impact Calculator (SASIC), is designed to assess the economic contribution of sporting events. It provides a structured process for capturing event information, identifying relevant spectator and participant spending, and estimating the broader economic impact. Rather than relying solely on ticket sales or attendance numbers, the calculator considers the characteristics of the event and the spending behaviour associated with the people involved.
According to STATS SA 2026 2nd quarter unemployment figures, SA lost 340,000 jobs, resulting in a total of 8.5 million people being unemployed. An increase of 0.9% from 32.7% in the 1st quarter to 33.6% in the 2nd quarter. This makes understanding and measuring an events value essential for demonstrating how sporting events affects local businesses, communities, and the contribution to South Africa's economy. Understanding the value is important in empowering government institutions, sporting federations, corporate business and other stakeholders. It gives then a more accurate, informed understanding of an event's economic contribution to job creation and GDP and supports the funding and sponsorship decision making process.
For more information on the free sports calculator, click here: https://www.southafricanculturalobservatory.org.za/sports-calculator