Portugal’s collaboration with Spain and Morocco to host the 2030 FIFA World Cup is projected to yield nearly €400 million in tax revenue, according to a study conducted by
consulting firm PwC.
The economic impact
The PwC report, commissioned by the Portuguese Football Federation (FPF), estimates that the economic activity driven by the World Cup will generate between €312 million and €394 million in tax revenue. This figure accounts for approximately 0.37% of Portugal’s 2023 tax revenue. The income stems from taxes on consumption, production, and salaries tied to the event. For every euro invested in sports infrastructure, the return in tax revenue is projected to be €36, with total infrastructure investments estimated at €9 million.
The report also highlights that these investments include expenditures on stadiums and training facilities, contributing significantly to the national economy. In total, infrastructure spending is expected to reach €10 million.
Positive impact on the economy and tourism
Hosting the World Cup is predicted to bolster Portugal’s balance of payments, resulting in a net surplus of more than €600 million. This surplus will be driven by international visitor spending and investments in organizational activities.
According to PwC, the event could attract between 300,000 and 500,000 international visitors to Portugal, generating direct expenditures of €500 million to €660 million in sectors such as accommodation, dining, transportation, and leisure. Combined with organizational expenses and infrastructure investments, total spending in the local economy could exceed €730 million.
The total economic impact on Portugal’s GDP is estimated at €700 million to €900 million, representing 0.27% to 0.34% of the 2023 GDP. FIFA’s local organizational expenses are also expected to contribute around €140 million.
Job creation and social benefits
The World Cup is projected to create between 18,000 and 23,000 jobs in Portugal across various sectors, generating an estimated €330 million in salaries. The event will also promote labor diversity, with around 11,000 of these jobs expected to be filled by women and 1,200 to 1,500 by young people under the age of 24.
The tournament will also have intangible social benefits, enhancing citizens' quality of life. According to the study, perceived well-being, measured through citizens’ willingness to pay, is valued at €81 million to €88 million. For every euro invested in sports infrastructure, the event is expected to generate €8.5 in well-being returns, fostering national pride, social cohesion, and a positive global perception of Portugal.
Long-term benefits and legacy
The World Cup is expected to enhance Portugal’s global reputation and create new opportunities for international trade and relations. The PwC study anticipates an increase in foreign direct investment (FDI) of between €104 million and €313 million.
“The long-term benefits are diverse and far-reaching, contributing to Portugal’s overall development and leaving a lasting legacy beyond the immediate socioeconomic impact,” the report concludes.
Stadiums in Portugal
The 2030 World Cup matches in Portugal will be hosted at three venues: Estádio da Luz and Estádio José Alvalade in Lisbon, and Estádio do Dragão in Porto.
This landmark event is set to elevate Portugal’s standing on the global stage while bringing substantial economic, social, and cultural benefits to the nation. Photo by Florent Dusonchet, Wikimedia commons.