The Influence of the FIFA 2018 on the Quality of Service Offered in Russia Paper Example

1.1 Introduction

The FIFA World Cup tournament has been held in various countries including France, Germany, Brazil and South Africa. The sport draws people from different nations across the globe resulting in multiple adjustments in the host country to make it accommodative to the football fans. It brings about positive economic impacts by improving the hotel pricing strategies, service quality and value perceptions, tourism expectations and more business opportunities among others to the host country.

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However, after hosting the Olympics Games in Sochi 2014, Russian president Vladimir Putin wasn't sure whether the country would be ready for another mega event in such a short time (Makarychev & Yatsyk, 2017). FIFA organization is usually planned years in advance and includes a major financing. Hosting Olympic Games and World Cup in a 4-year interval improves international relations with different countries and demonstrates the countries vitality (Santos, 2014). Moreover, hosting such a mega sport event brings a positive return in investment, good reputation of the country, creation of thousands of jobs and massive tourism promotion, as well as attracting international travellers.

Russia had to invest around $20.8 billion in an infrastructure program in order to build and improve stadiums, hotels and accommodations, airport and transportation service, and communication infrastructure in order to host the 2018 FIFA World Cup (FIFA, 2013). In order to increase the value of the event in general, it is important to know and understand which circumstances should be developed to increase the event's value perceptions (Biscaia et al., 2017).

1.2 Rationale for the Study

According to Collins (2017), the quality of services is a complex and multidimensional concept that requires standardized analysis of customer's perceived expectation and performance gaps in a manner that is specific to the idea. One of the commonly used and scientifically recognized methods used to measure service quality in the service sector is the SERVQUAL (Service Quality) tool. The model's dimensions include reliability, tangibles, responsiveness, empathy, and assurance. The fundamental reason for this research to take place is to see how the quality of services, that were offered in Russia, were developed and, most importantly, improved in a better way. Russia's tourism and hospitality industry has grown more quickly, so there is an absence of ability and administrative skills, as well as an absence of skilled labor. Actually, the level of polished professionalism in the business is lower than in Western nations (Sheresheva, 2016). Russia's potential for tourism development is increasing, considering Russian history, culture, landscapes and novel sights. The visa administration is changing, and this will positively affect accommodation business improvement. The development of Russia's visa framework for various nations will step by step diminish obstructions for international travelers, particularly for those who are from Asia. During the research, it is important to see and understand how such a mega event like FIFA World Cup influenced and changed the quality of services.

Various studies have been conducted concerning the FIFA World Cup tournament and its contributions to the hosting countries over the years. However, compared to other countries, and taking in fact that Western, European, African and South American countries have different economics and politics, Russian Federation for the first time in the history became the host country of the World Cup, besides, it was held in Eastern Europe for the first time. Also for the first time the FIFA passed in the territory of at once two parts of the world - Europe and Asia. Interestingly, 46% of total number of the realized tickets were got by the Russian fans, and 54% - foreign. Therefore, in order to be ready to receive, accommodate and welcome all the foreign guests, Russian hotels, tourism developments had to be ready in all the perspectives.

1.3 Aim and Objectives

This research aims to analyse the influence of the FIFA 2018 on the quality of service offered in Russia. However, it does this by examining the impacts the tournament has on the previous countries that held it. Some of the aspects under consideration include its economic effects on the host country, its impact on hotel pricing strategies, tourism, service quality and value perceptions and the opportunities the sport offers to the host country.

Objectives:

1. To investigate the impacts of FIFA 2018 on the accommodation and tourism services
2. To analyse the economic impacts on quality of services in Russia
3. To evaluate the value perceptions of the event to the host country

The research paper begins with a wide recent literature review about service quality, value perceptions and how economy impacts on those kinds of events to provide the understanding of the topic. Further, the paper illustrates and describes the researched methods used to collect the data. Then, the results and discussion are presented in details. In the conclusion, the results and outcomes of the whole research are shown, as well as recommendations for further research.

2. Literature review

According to Mirelle (2015), hosting a major world event is advantageous to the host nation. From the year 2008 developing countries obtained the right to host international competitions. For instance, China was a host in the Summer Olympics, India hosted the 2010 Commonwealth Games, and South Africa hosted the 2010 World cup, and Russia was selected to hold the 2014 Winter Olympics. An event such as World Cup provides incentives for the creation of infrastructure and promotes international exposure thus increasing tourism and business alliances. However, it should be noted that hosting such major international events can also be a double-edged sword to the host nation since the nation is first required to invest huge amounts of funds towards making the stadia where the events will take place to the required standards (Fourie & Santana-Gallego, 2015).

2.1 Impacts on Accommodation and Tourism

2.1.1 Russia

In Russian Federation, travel and Tourism is one of the largest economic sectors globally, this is because tourism creates jobs, creates exports and generates prosperity. The country insists on the important role that tourism and travel play in the global economy, whereby it points out that one out of ten jobs globally are supported by the sector. According to an analysis conducted by the ICAO (2018), the tourism sector accounts for 10.4% of the global GDP. In addition, the tourism sector led to the creation of a total of 314 million jobs. The 2018 FIFA world cup in Russia can be compared with the impacts of the 2014 Olympics on tourism sector; this is according to the Head of State of the Federal Agency for Tourism in Russia. Football fans from all over the world visited in large numbers and posted images online, shared information on hospitality thus presenting Russia as a beautiful country for a travel destination. The number of tourists that visited as a result of the tournament increased from 14 to 18%. In this regard, the 2018 FIFA World Cup in Russia boosted the Tourism and Travel sector of the nation as the different heads of states, several VIPs and regular diehard fans of soccer spent several days and weeks in the nation as they rallied behind their home country teams.

Currently, Russia is the 16th largest tourism country globally (UNWTO, 2018). Following the expectation of the FIFA World Cup tournament in the nation, the international tourism expenditure by foreigners into the Russian economy increased by 7% in 2017 (WTTC, 2018). In this case, several international organizations saw an opportunity of potential growth and boom in Russia as it hosted the FIFA 2018, thereby increasing their investment in the nation. In the same way, the Travel and Tourism Sector recorded annual growth of 3.28% in 2017, compared with the 2.2% growth recorded the previous year (WTTC, 2018). During the tournament period, the WTTC data showed that the major cities in Russia recorded +50.5% year-over-year increase in the forward bookings for international arrivals. This translated to increased economic activities in the Travel and Tourism sector of Russia. The positive impacts of FIFA 2018 in the Travel and Tourism sector further translates to positive economic growth given that the sector contributes to 4.8% of the Russian GDP.

2.1.2 South Africa

The South African government expected that the World Cup would boost their tourism industry. The tourism sector predicted 8.7% increase as a result of the world cup. The government expected a total of 305,000 tourists to visit the country for the event. In this regard, the government had predicted that the tourists would spend $ 444 million on food, accommodation, and shopping (Sport & Recreation South Africa (SRSA), 2012). According to Peters, Victor and Stefan (2014), there was an increase in the number of visitors from countries that have strong ties to South Africa meaning the state was in a position to boost their international image.

According to the SRSA (2012) report, the FIFA 2010 World cup had a positive impact on the mind-set of those who had visited the country during the event. Prior to the event, South Africa had a negative reputation due to it being associated with apartheid and racial discriminations. However, fans who attended the events had lots of positive experiences, which further contribute to the positive impacts on their perception, hence selling positive images of the country as a potential tourism destination. The report further demonstrated that most of the people who visited South Africa during the event were expected to come back to explore the beautiful sceneries the nation has as tourists, further improving the Travel and Tourism sector of the nation. The report further demonstrates that 309,554 tourists visited South Africa to watch the FIFA World Cup finals, making them spend 3.64 billion Rands in the nation during the world cup events.

The SRSA (2012) further reports that the world cup led to 9% increase in the total awareness of South Africa as a leisure destination, with over 90% indicating that they found the country to be much better than they had expected before the events. In this regard, the FIFA 2010 improved the perception tourists have towards South Africa, and in turn improve the nation as a value-for-money destination.

2.1.3 Brazil

Brazil who hosted the 2014 World cup expected to welcome a total of 600,000 tourists. A study conducted by Clemes, Gan & Ren (2011) indicate that many tourists that visited the country were over 480,000 individuals between first to 20th June 2014 which means a total increase of 120 % increase compared to the previous months. In the same way, the hotel sector in 12 host cities reported an increase of over 45 % in their rate of occupancy. According to Joao Saldanha Media Centre (2014), the Forum of Brazilian Hotel Operators (FOHB) expected a total of 250,000 hotels...