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The cost of being a host city for next year’s African Cup of Nations has risen from an estimated R34 million to more than R43m, according to a report to be submitted to Nelson Mandela Bay Municipality's Sport, Recreation and Cultural Services Committee on Friday.
The R43 million is the figure provided by National Treasury and the National Department of Sport and Recreation.
The Metro is scheduled to host four national teams for the duration of the group stages and five match days, the last two games will be a double-header, a quarter final and possibly a semi-final.
In a report to the Committee, Executive Director Zolile Siswana says that apart
from assistance from national and provincial government, the only other source of revenue available to the Metro is from ticket sales where it will pocket 25% of the takings.
An average attendance of 25 000 would result in total income of between R2.4 and R4.5 million depending on the price of the tickets.
In addition, it has been agreed that private sector sponsorships can be obtained, although there is no clarity on how this will operate.
The report says that National Govern-ment has committed to providing public liability insurance and the training and supplying of kit for volunteers, while province has committed R15.4 million for the tournament.
It notes that R7 million is already included in the 2012/13 budget for the completing of the upgrading of the Wolfson Stadium with the Metro having to find an additional R11.7 million no provision has been made in the budget for the event.
With regard to the economic spin-offs, the report states that based on SA Tourism indicators, it is expected that the tournament will contribute R152 million to the Gross Domestic Product of the Metro, in addition to which approximately R30 million will flow to low in-come households.
The entertainment industry, especially local artists, will receive R3 million.
(Source: Metro Minute - to subscribe mail metrominute@iafrica.com)
