The upcoming ICC cricket world cup will give a boost to the economy of Australia and New Zealand. The ICC Cricket World Cup is the premier One Day Championship. The tournament has changed a lot since its inception.
Colored clothing, huge sponsorships and sports tourism are only few of the benefits for the host countries. Last tournament was hosted and won by India. Australia has been the most successful team with four tournament wins.
Economic benefits of the Event
Advertisement – This major tournament acts as an advertisement for the host. It helps to tell the world about the hospitality of the nation. This naturally results in attracting the tourists and eventual expansion of the tourism industry.
Investments – The event work as the perfect place for investment in infrastructure. The best example is the Football world cup in Brazil which helped build the tottering infrastructure.
Culture – The event will help show case the unique culture of the host nation and help the travel industry.
Hotels – One of the major beneficiaries of major sports event is the hotel industry. There is a sudden increase in revenue.
Sales – There is an increase in consumption of various articles like Television, cola and cricket equipments.
Multi National Presence – The presence and active participation of companies like Nike, Adidas and cola giants have a positive effect on the economy.
Australian government has eased the visa rules for the international visitors across the country.
It will further the economy which is already growing at healthy rate. It is the best time to host the World Cup and I hope Australia wins.
We have a habit of complaining about the condition of the economy. It’s ingrained into our consciousness, so much so that we don’t even question the reality. Australia, according to most reports and studies, is one of the most stable, richest economies in the world. The average Australian was found to be one of the richest in the entire world, with less than 10% of the country’s population living under $10,000 a year (far, far below the global average of 70%).
In the past 30 years, the country has experienced a steady level of development as well. On an average, the country has experienced 3.3% of annual growth, which is no mean feat. Hardly any countries in the world have been able to experience such a peaceful economic growth. This growth has been so steady that there are a number of youth in the country that have never experienced an economic depression in their lifetime.
The country has been lucky enough to be situated in the fringe of global economic battles in this century, which has given it a unique stability one can not find in other situations. The country has a few problems, sure, but things are not as bad as they could have been, and that is worth celebrating.
Australia and a number of other countries are experiencing a fall in the price of oil. This long awaited good news comes after a period of unhappiness about the direction in which Australia’s economy is headed.
The drop in oil price comes because of the fact that we officially have more petrol than we are actually using. The prolonged period of trouble and strife in the Middle East combined with the excess supply of oil both caused a reduction in the price of petroleum, diesel and other related products in Australia. It’s expected that we will be seeing bowser prices we haven’t seen in a long time now.
This is certainly good news for all motorists, who will be spending lesser money on travel. The reduction in aviation fuel price means that flights can be expected to cut down on flight costs a bit too. Even couriers and post will cost lesser, if this phenomenon lasts a little longer. It is expected that cargo prices will also be going down soon. In fact, one can expect prices of perishables to go down as well (since the perishables are the products that are delivered on a daily basis and will be affected by price of transport).
A number of industries will be affected positively and negatively by this falling trend, but the long term impact is yet to be fathomed.
The cost of construction is on a historic high in Australia. Over the past year, the cost of building has increased by 4% which is not just higher than the historic average, but is also higher than the growth over the past five years. The housing market is incredibly buoyant right now, and it has affected the cost of construction throughout the country.
The buoyancy of the housing market might have increased the profit margins of the construction companies in Australia, and increased the cost of all equipment too. This situation has not done anything to increase the wages or the benefits of the people involved in construction work. The construction workers are not responsible for this increase in construction cost, and they are certainly not reaping the benefits of the same.
Houses and office spaces have become more expensive to buy, but the rents have not gone up in a proportionate manner. In fact, the cost of renting is at an all- time low since after the 2000s. While this might not be good news for people looking to buy houses now, or for people trying to rent their home out, it is good news for people who already have a mortgage, for the RBA has reduced mortgage to a mere 2.5%.
After a decade of negotiations and talks, Australia and China are going to enter into a free trade agreement together. The deal will be drafted and signed in 2015 and will promote the existing economic relations between the countries.
This deal will benefit Australia, for it will provide local winemakers, dairy farmers, and other professionals tariff free access to Chinese markets. 85% of Australian export to China (including beef, leather and minerals) will be freed from tariffs. The Chinese market is quite substantial in size and it will prove to be a goldmine for Australian suppliers in the future. China, on the other hand, will be able to export shoes, vehicles, clothes and electronics into Australia, duty free. China will also be able to invest up to the tune of 1.02 billion in the Australian market, without being subject to governmental review. Regulations in the service sectors of both the countries will be loosened.
Australia has been promoting it’s relationship with South Asian countries over the past few years. The area is valuable in terms of trade, and in terms of market. This is the third economic fair trade agreement Australia has signed with a South Asian country in the past year- previously, treaties were signed with South Korea and Japan.