MIAMI--(BUSINESS WIRE)--The FIFA U-20 World Cup Colombia 2011 tournament increased business for Colombian merchants. Visa cardholders’ spending between July 22 and August 27 grew around 20% compared to the same period in 2010, reaching over $1.4 trillion Colombian pesos (USD$ 822 million). Domestic consumption led the increase, with Colombian Visa cardholders spending 21% more in the period, while international cardholder transactions grew 7%.
“The FIFA U-20 World Cup has been an outstanding success for Colombia, soccer fans, and for Visa’s business,” says Yuri Morales, head of Sponsorships for Visa Latin America and the Caribbean. “Visa cardholders spending data shows the economic benefits brought to Colombia by the tournament, which heat up commerce and drove a significant increase in domestic tourism,” he concluded.
Visa spending data indicates domestic tourism has been greatly benefited by the tournament. The top three merchant categories in which Colombians spent more during the period include:
- Transportation, up 40%;
- Restaurants, up 26%;
- Airline Tickets, up 23%.
In terms of international Visa cardholders spending in the period, the main merchant categories benefited were:
- Hotel Accommodations, up 18%;
- Beauty & Spa, up 90%
- Restaurants, up 19%;
Visa spending data indicates that the United States continues to be the strongest contributor to inbound international tourism to Colombia in terms of transaction volume, being responsible for almost half of the international Visa cardholders spending, exceeding $46 billion Colombian Pesos (USD$ 25 million). However, inbound tourism from the United States experienced no significant change that can be attributed to the tournament during the period.
On the other hand, the data suggests that the FIFA U-20 World Cup Colombia 2011 attracted international soccer fans, especially from Brazil, which increased 79% between July 22 and August 27 of this year in comparison with the same period of 2010. According to Visa spending data, the top five countries which experienced an increase in inbound transactions in Colombia during the period are:
1. Brazil, up 79%
2. Mexico, up 46%
3. Spain, up 25%
4. France, up 20%
5. Canada, up 18%
Visa Mega Sporting Events Report
Visa has recently released a report that shows the effects of mega-sporting events and the impact they have on tourism spending in the event host countries. The report analyzes Visa cardholder spending patterns, known as VisaVue Travel data, of three recent mega-events: 2010 FIFA World Cup South Africa™, the Vancouver 2010 Olympic Winter Games and the Beijing 2008 Olympics Games. According to the report, events of this scale create significant increases in expenditure and give host countries a chance to shine on the global stage.
For each of the three events analyzed, there was healthy growth in Visa payment card expenditure during the event compared to the year prior:
- 82% for the 2010 FIFA World Cup South Africa™
- 93% for the Vancouver 2010 Olympic Winter Games
- 15% for the Beijing 2008 Olympic Games
FIFA World Cup
Daily Visa payment card expenditures made by all non-South Africans while in South Africa during the period from June 1, 2010 until July 31, 2010 were compared to similar data for the same two month period in 2009. As the FIFA World Cup™ itself lasted from June 11 to July 11, 2010, the data set provided comparative information for 10 days before and 20 days after the Cup. According to this data, the FIFA World Cup™ provided a platform for South Africa to showcase their nation to the world, up-leveling their global status and tourism levels increased throughout the year. While the FIFA World Cup™ played a significant role in the growth experienced in June and July, visitor arrivals were amplified all year. Spending levels by international Visa cardholders traveling to South Africa in December ($220M) and January ($200M) even rivaled the June ($222M) and July ($204M) World Cup months.
Olympic Games
One of the key factors for any Olympic host city and country is the legacy that is left behind. It is critical for countries to be in a position to leverage the global attention events like the Olympic Games can generate as well as maximize investments made in preparation for the influx of inbound travelers.
- In Beijing, visitors from the U.S., Hong Kong, the United Kingdom, South Korea and Japan accounted for more than half of all Visa card spend in China from Aug. 8-25, 2008. During that period, there were approximately 840,000 Visa transactions with an average daily spend of $10.6 million from international cardholders.2
- Vancouver experienced double digit growth in the total tourism spending by inbound Visa cardholders during the months of February and March compared to the same time period in 2009. In the heart of the Games, from February 12 – 28, there were approximately 1.14 million Visa transactions, with an average daily spend of $7.2 million from international cardholders.3
Since 1986, Visa has been a proud Worldwide Sponsor of the Olympic Games and will be the exclusive payment services sponsor and the only card accepted at match venues through 2020, including the London 2012 Olympic Games, the 2014 Olympic Winter Games in Sochi, Russia, the 2016 Olympic Games in Rio de Janeiro, Brazil, the Pyeongchang 2018 Olympic Winter Games in South Korea and the 2020 Olympic Summer Games whose site has yet to be selected.
Visa is also one of six global FIFA Partners with global rights in the Financial Services product category to all FIFA World Cup™ activities. Following its debut as an official sponsor at the 2010 FIFA World Cup South Africa™, Visa’s FIFA sponsorship includes the rights to the FIFA Women’s World Cup Germany 2011™ and the 2014 FIFA World Cup Brazil™.
About Visa
Visa is a global payments technology company that connects consumers, businesses, financial institutions and governments in more than 200 countries and territories to fast, secure and reliable digital currency. Underpinning digital currency is one of the world’s most advanced processing networks—VisaNet—that is capable of handling more than 20,000 transactions a second, with fraud protection for consumers and guaranteed payment for merchants. Visa is not a bank, and does not issue cards, extend credit or set rates and fees for consumers. Visa’s innovations, however, enable its financial institution customers to offer consumers more choices: Pay now with debit, ahead of time with prepaid or later with credit products. For more information, visit www.corporate.visa.com.
1 Source for all data related to Visa cardholder spending in Colombia: Credibanco
2 Based on daily international Visa card spend into China August 8 – 25, 2008
3 Based on daily international Visa card spend into British Columbia, Canada February 12 - 28, 2010