Team India - the men in blue – did not pick up the grand trophy in the finals of the ICC Cricket World Cup. However, the event was still a win for both the team and the economy. Unbeaten until the finals, Team India displayed exceptional teamwork, camaraderie and technical excellence - which in turn translated to higher spends across many sectors.
Mastercard's aggregated and anonymised data shows that the hospitality industries in India were the biggest beneficiaries as the extended festival that is the ICC Cricket World Cup rolled across the country, with cricket fans from around the world [1] gathering to cheer for their respective teams.
The ripple effects of such a massive sporting event to the economy are manifold:
Hotels and restaurants – the ultimate winners
India vs. Pakistan – One of the most intense cricket rivalries is between India and its neighbouring country, Pakistan. Hosted in the city of Ahmedabad, which has a stadium capacity of more than 100,000, the build-up to this historical match was palpable. The lure of the match had tourists from abroad and within the country flocking to the city. Cross-border spend by tourists was a key driver [3] with in person restaurant spending (excluding fast food) increasing by a whopping 400% in Ahmedabad. Quick-service restaurants also benefitted with tourists boosting spend by 40% in Ahmedabad. Domestic spend [4] on online food delivery increased by nearly 300% in Ahmedabad and roughly 30% in Mumbai.
India vs. England – Played in the erstwhile city of Nawabs, [5] Lucknow, famous for its culinary delights and rich culture, attracted fans from across the globe. Direct flights and strong social linkages with neighbouring countries acted as a catalyst to cricket. This translated to growth in cross-border spend of more than 600% across hotels (booked in person and online) and eating out in the city, stimulated by inbound tourists visiting Lucknow at a rate that is not typical for the city outside of an event like the World Cup. Domestic, in person dining and hotel spend (in person and online) also increased by nearly 50% in Lucknow.
The finals: India vs. Australia – Played in the city of Ahmedabad, Team India was undefeated throughout the tournament when it went into the finals against Australia. Hotels in the city witnessed spend growth (in person and online) by domestic travellers and foreign tourists of 52% and 56%, respectively. Eating out also surged with cross-border, in person spend in restaurants (excluding fast food) increasing by more than 100% and quick-service restaurants by more than 200%.
Chart 1: Index of domestic spend on accommodation from t-14 through t+1 of the match days
Note: Indexed to t-14 for India vs. England and the finals and t-7 for India vs. Pakistan
SOURCE: MASTERCARD ECONOMICS INSTITUTE
Chart 2: Growth in spend on match days [6] vs. same days of the week in the previous weeks
v/s
v/s
v/s
Note: This figure is not drawn to scale; QSR stands for Quick-service restaurants
SOURCE: MASTERCARD ECONOMICS INSTITUTE
Australia had a better game on the day of the finals and took home the trophy. The other winner was the Indian economy. From small businesses, local eateries, mom-and-pop stores and budget hotels to luxury accommodations and fine-dining restaurants – the multiplier impact of the ICC World Cup on the Indian economy has been an all-round win, underscoring the importance of sporting and other major cultural events on local and national economies.
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Footnotes
1 Countries included for cross-border spends include: United Kingdom, Australia, New Zealand, Bangladesh, Afghanistan, Netherlands, Sri Lanka, South Africa, United Arab Emirates, Singapore.
2 India vs. Pakistan and the finals – India vs. Australia
3 Growth in cross border spend is calculated using spend on t-1 through t+1 on the match day vs. the same days of the week in the previous weeks. The base for India vs. Pakistan is a week earlier while for India vs. England and the finals is two weeks earlier as the preceding week were Dusshera and Diwali respectively.
4 For growth in domestic spend the following metrics have been used: Restaurants, bars, and online food delivery = spend on match day vs. the same days of the week in the previous weeks. Hotels = t-1 through t+1 on the match day vs. the same days of the week in the previous weeks. The base for India vs. Pakistan is a week earlier while for India vs. England and the finals is two weeks earlier as the preceding week were Dusshera and Diwali respectively.
5 Mughal ruling prince or powerful landlord.
6 Based on the definitions above
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