Banking on Cricket World Cup again

Barbados is expending significant sums this year on capital works and infrastructural developments in anticipation of major returns from the staging of the 2024 ICC Men’s T20 Cricket World Cup.

The island, with an outstanding and long history of cricket conquests and producing many of the games’ greatest exponents, has been awarded eight matches in the tournament as well as the prestigious final.

This will be Barbados’ second hosting of an ICC final, as we had the honour of staging the 2007 One-Day International Cricket World Cup in 2007.

The buildup to that event was just as intensive, with heightened projections of an economic impact that would positively change the lives of many citizens and provide a boost to the economy that was starved for foreign exchange.

Former Prime Minister Owen Arthur, who was an avid cricket fan, wagered a great deal of investment on the kind of returns the global sporting event would portend for the country.

One of the biggest investments was the $300 million redevelopment of the Kensington Oval. While there were questions about the redevelopment and whether it was a judicious expenditure at the time, there is no doubt that the structure has become an iconic symbol of the sport in the Caribbean.

Barbadians will also recall the US$15 million reportedly spent to keep Carnival Cruise Line vessels in the Bridgetown Port, in anticipation of the shortfall in inland accommodation. This, despite the decision of many individuals to undertake expansion of their homes and apartments to meet any deficit by hotels, guest houses and condominiums.

In 2024, there is no such over-promising in the accommodation sector. This could be as a result of the exponential growth in Airbnb-registered properties and expansion of the hotel room stock over the years.

However, it is abundantly clear that the administration is placing great currency on the expectation that the 2024 T20 World Cup will provide the additional boost the island requires at this time.

When the post-mortems are undertaken, the citizens will make their own assessment on whether the investments were worth it.

Around the world are many examples of countries and cities that have been left with huge bills and little to show after hosting major sporting events. With the few exceptions of Gulf states with deep oil pockets, states and cities are choosing to co-host such events in an attempt to share the risks and the costs.

The confidence level of our government is high based on the expected economic and intangible benefits from hosting the global cricket tournament final.

This is contrary to Jamaica, for example, which did not bid to host any of the matches, on the basis that the expected returns for the country did not support the kind of expenditure the island would have to make.

In its 2024 Fiscal Risk Statement, the government is banking on the cricketing events to contribute to the 3.8 per cent economic growth predicted in the current financial year which started on April 1.

Again, the tourism sector is expected to be the basis of this growth.

“The higher inflow of tourists is expected to be driven by increased airlift capacity, intensified marketing of cultural events by the Barbados Tourism Marketing Inc., increased cruise activity, and Barbados’ hosting of the 2024 Cricket World Cup,” the report outlined.

“The anticipated rise in tourism activity is expected to benefit auxiliary sectors such as manufacturing, wholesale and retail, as well as business and other services. Moreover, construction activity is expected to be buoyed by public sector projects along with several hospitality projects slated for the forecast period.”

At the same time, the Fiscal Risk Statement acknowledged that there are matters beyond the island’s control that could derail the economic trajectory the country is on.

There are wars taking place in Ukraine and Palestine which have the potential to expand with proxy states willing to act on behalf of those involved in the conflicts. This has implications for the price of oil and other products as well as shipping costs.

The other elephant in the room is the United States presidential election on November 5 and what a win for Donald Trump might portend for countries like ours in the Caribbean.