Many B.C. businesses won't benefit from the FIFA World Cup | Daily Hive

Many B.C. businesses aren't prepared to benefit from the FIFA World Cup

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With FIFA now just days away — and Vancouver’s hosting costs estimated to be up to $729 million for federal, provincial, and municipal governments — a new report from Merchant Growth suggests that small B.C. businesses aren’t ready to capitalize on the event.

According to the report, nearly two-thirds of B.C. businesses say they don’t expect a revenue impact from the FIFA World Cup. Further, 44 per cent said they won’t benefit from the games at all, and 25 per cent predicted that their location won’t see increased foot traffic.

“The World Cup is a major economic moment, but it will not benefit every small business equally,” said David Gens, Founder and CEO of Merchant Growth, in a release.

“Businesses with the right location, staffing and cash flow may be able to turn increased consumer activity into revenue. But for many owners, rising operating costs and tight margins mean they are being cautious about investing ahead of the opportunity.”

However, almost one-third of British Columbians say they plan to watch the 2026 FIFA World Cup at local or independently owned businesses, according to an Angus Reid survey. It also found that they plan to spend an average of $49 per visit on food and drinks.

Some businesses have been preparing for these potential customers: 13 per cent have increased inventory or product stock, 13 per cent have promoted their business on social media, six per cent have hired additional staff, and six per cent have created FIFA World Cup promotions, deals, or themed offerings.

But nearly one-fifth of small businesses said they don’t have the cash or financing to invest in World Cup preparations, and another 19 per cent said that rising operating costs have left no budget for extra investment.

Merchant Growth said that “small businesses are playing defense against cost pressure and trade uncertainty,” with 63 per cent saying that “Canada is either already in a recession or likely heading toward one” — before Statistics Canada announced last week that Canada’s GDP growth had slowed for two quarters in a row.

The cost pressures B.C. businesses are grappling with include increased cost of fuel, utility bills, labour, and commercial rent or lease increases.

Further, nearly 40 per cent of businesses said they are dealing with a consumer spending slowdown or weaker demand this summer, and 19 per cent said they are impacted by tariffs.

“For many owners, the lack of preparation comes down to the same cost pressures squeezing small businesses all year,” reads the press release. “Cost-conscious consumers will have a direct impact on small businesses. These customers will have tighter budgets, narrowing the margins for owners already absorbing higher input costs.”

What are your thoughts on Vancouver hosting the FIFA World Cup? Let us know in the comments or email us at vancouver@dailyhive.com

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