Inflation and immigration fears threaten to dampen Miami’s economic benefits from the World Cup
theconversation.com
When the United States last hosted the World Cup in 1994, the event attracted far more fans than anyone expected. At that time, soccer was not as popular in America as it is today. Because of this, organizers had set low expectations for attendance. As the country prepared to host the tournament again in 2026, the hope for huge tourism numbers was very high.
However, the road to the 2026 event has been complicated by serious economic and political issues. The ongoing war in the Middle East has caused inflation to rise and fuel prices to soar. These factors do not create a good environment for tourism or for fans wanting to attend games. Recent reports from the tourism industry show that hotel reservations are lower than predicted. This drop is due to reduced confidence in international travel, along with growing uncertainty about U.S. immigration policies, global instability, tariffs, and inflation.
We are a professor of hospitality and tourism management and a professor in international sports management. We believe there is strong reason for concern in the eleven U.S. cities hosting World Cup games. Five additional cities in Mexico and Canada are also hosting matches. The days leading up to the event are crucial for these locations to capture the economic benefits of the tournament.
The month before the world’s largest sporting festival should be a time of excitement and celebration. Instead, several negative factors are dampening the mood. One major issue is the high cost of attending the games. Tickets, along with parking and public transportation, are incredibly expensive. This has led to widespread criticism. Even former President Donald Trump stated that he would not pay $1,000 for a match ticket once he learned of the high prices.
Transportation costs have also spiked in major host cities. In Boston, the Massachusetts Bay Transportation Authority planned to charge $80 for a bus ride to Gillette Stadium. A ride that typically costs $20 saw such a steep increase that it sparked complaints. In New Jersey, the transit agency originally set train fares from New York City’s Penn Station to MetLife Stadium at $150. After public backlash, they reduced the price to $105. While this was a concession, the fare was still far above normal rates.
According to a survey by the American Hotel and Lodging Association, hotel bookings are weaker than expected in all eleven U.S. host cities. However, Miami is in the best position among them. Only 45% of local hotel owners in Miami project a shortfall in bookings. In contrast, 75% of hoteliers in cities like Philadelphia and San Francisco reported bookings below expectations. The situation is even worse in Kansas City. Between 85% and 90% of hotel owners there report fewer bookings than expected. This number is lower than even a normal summer without a major event.