Euro 2024 Football: The Economic Impact on Host Cities

The Euro 2024 has been one of the most spectacular events so far, and deservedly so. Some of the best teams in the world, not just Europe, have come together to play in the regional competition that reminds viewers of the betting limits in roulette – some stakes are small, but some are high. 

France versus Spain, we are looking at you. Just like roulette games available for Australians, Euro 2024 soccer games have drawn a huge crowd from all across the continent, with national fans flocking to Germany, the host country, and the ten host cities. 

The cities include Berlin, Munich, Cologne, Dortmund, Düsseldorf, Frankfurt, but also Gelsenkirchen, Hamburg, Leipzig and not least -  Stuttgart. But can these cities expect to get anything out of this bargain other than rowdy and often tipsy soccer fans who have a penchant for demonstrating their support for their teams in the most boisterous manner possible?

As it turns out, Germany is set to scoop up a huge chunk of extra revenue. This comes at a good time, too, as Germany’s economy is only projected to grow by 0.3% in 2024, and the Euro 2024 can actually have a nice booster effect on things. So, how is exactly the Euro 2024 impacting the Germany economy.

Real terms impact significant, but with a grain of salt

Germany has had it tough over the past few years. It had to scrap a major energy project, absorb energy shock, allocate additional spending on social benefits and cushion the damage of the pandemic, all of which led to slower-than-expected growth.

Today, Germany is touted as the worst-performing economy of the OCED, a club of mostly rich countries. This is why economists are looking at Euro 2024 with a mix of hope and anticipation. On the one hand, the economic impact of the event cannot be that large as to move the needle in GDP by that much.

Yet, there is an important psychological impact that is equally important. With 600,000 fans coming in, the expected spending associated with Euro 2024 by foreign tourists is pinned at €1.5 billion, which is a significant number all by itself. Of course, some sectors will have it much better. 

Food and accommodating are naturally going to reap the largest benefits, as people traveling to see Euro 2024 games will naturally be looking to enjoy the game either live at the stadiums, but many will be equally comfortable hitting pubs and sports bars around the actual venues and enjoying the arguable benefits of having good brew, good food, and better view of the action on the ground thanks to expert camera work. 

Is this going to translate into a huge economic impact all by itself? Not necessarily, but it will certainly boost how the economy is perceived by locals. Consumer confidence by itself can drive better economic windfall in the coming weeks and months.

Of course, a much larger boost to economic and national confidence would have been Germany winning the championship, but this is off the books now. Interestingly, though, studies suggest that economic performance for host countries are usually boosted both during the event and in the aftermath.

Not all cities are equal in Euro 2024, but they are enjoying the windfall

Another thing to observe is that some cities are going to be much better impacted by the Euro 2024. With 10 games to watch, the economic windfall will be smaller for certain venues, and this is all very normal and expected. 

However, most researchers agree that even though some places would get much less footfall, tied mostly to a few games at the very best, the fact remains that they are getting more traffic, people, and spending than they would usually get during his time of the year in off-Euro 2024 year. 

Gelsenkirchen may be less important n the soccer map than are Berlin and Cologne, but it’s equally enjoying a strong boost in consumer spending which is translating into higher consumer confidence and business satisfaction (again with the small caveat that these effects are mostly felt in the hospitality and food sectors).

The Great Equalizer

Competitive as Euro 2024 may be, it has helped create a truly international community of people who are similarly excited about the competition and they have created a vibrant economical setting in which further economic boons may be realized.

The fact that Germany has created such a good job of hosting the event indicates that this is only the beginning for the country as an international focal point of soccer competitions. Fans from Slovakia, Ukraine, Germany, France, and Spain have been able to walk out on the streets of the host country and celebrate and commiserate together. 

Many have stayed after their team had been eliminated to revel in the festivities and perhaps envily bask in the joy of others. One thing is certain – although Euro 2024 won’t have a GDP-moving impact on Germany, its effect has been felt economically across the country’s largest cities.