The World Cup was supposed to provide a tourism boom for the US, but now the fear is that it may never materialise.
The report indicates that the World Cup was supposed to provide a tourism boom for the US, but now the fear is that it may never materialise.
It further notes that a report, produced by the American Hotel & Lodging Association (AHLA), has found that bookings are well below expectations in almost every host city.
The AHLA stated this does not align with FIFA’s statement that more than five million tickets have been sold, and it creates a risk that “the anticipated economic lift may fall short”.
The AHLA is the largest hotel association in the US, representing more than 32,000 properties and over 80% of all franchised hotels.
Its report partially places the blame at FIFA’s door, accusing the world football governing body of block-booking far too many rooms for its own use and of creating false demand.
This, the AHLA said, led to artificially high pricing, which, after FIFA cancelled a large number of rooms, has been replaced by a vacuum of availability.
FIFA stated it does not recognise this accusation.
Hotels stated high match ticket pricing, local transport and tax costs, and the political backdrop have put visitors off.
For the hotels, this World Cup could fall flat.
The AHLA stated hotels spent years preparing and have made “significant investments” based upon official projections.
A study commissioned by FIFA, released last year, predicted that in the US the World Cup could create 185,000 jobs, adding $17.2bn (£12.7bn) in gross domestic product.
The hotels were planning for an influx of international travellers who book longer stays and spend more.
But the AHLA stated fewer overseas fans “threatens the broader economic impact” with just over three weeks until the opening game on 11 June.
The AHLA stated the large-scale bookings made by FIFA in all cities “shaped revenue forecasts, staffing plans and preparations”.
