The 'Cricket World Cup' Fever Sweeping India... Hotel Prices Near Stadiums Up 150%

World Cup to be held from the 5th to next month's 19th
Unable to find hotel, even booked hospital admission
Modi Prime Minister, ahead of next year's general election, uses it politically

In India, the country with the largest population in the world, cricket is more popular than soccer. As the 'Cricket World Cup 2023' opens on the 5th, the entire nation of India is heating up with a cricket fever. Expectations are growing that there will be economic effects such as soaring hotel prices near stadiums and rising stock prices in related industries.

[Image source=AFP Yonhap News]

According to Bloomberg and other sources on the 4th (local time), this Cricket World Cup will be held in India from the 5th until the 19th of next month. It will take place in 10 cities, including Ahmedabad, the largest city in Gujarat state and the hometown of Prime Minister Narendra Modi, with participation from 10 countries including India, Pakistan, and the United Kingdom.

This is the first time in 12 years that India is hosting the Cricket World Cup. Like other sports, the Cricket World Cup is held every four years. India is in a festive mood as the Cricket World Cup is being held in the country after a long time.

Pratik Kumar, an analyst at global investment bank Jefferies, revealed that average hotel prices on days when India’s matches are held have surged by up to 150% ahead of the Cricket World Cup. Hotels in small towns like Dharamsala are especially booming, with no vacancies for several days before and after India’s matches.

In Ahmedabad, home to the world’s largest cricket stadium, some cricket fans who could not find hotel rooms reportedly even made hospital reservations, claiming they would be admitted.

Moreover, the Cricket World Cup has also boosted stock prices of hotels, airlines, and media companies. Shares of India’s Chalet Hotels have risen nearly 7% in the past month. Bloomberg reported that rising advertising costs have lifted media stocks and are expected to invigorate consumer and leisure-related stocks as well.

Cricket, the national sport of the United Kingdom, was introduced to India in the 18th century and has been greatly loved in India even after its independence in 1947. The game is played by throwing a ball and hitting it with a bat, similar to baseball. One of the reasons for its popularity in India is that there is no physical contact during the game.

[Image source=AFP Yonhap News]

Due to its tremendous popularity, India’s cricket league, the Indian Premier League (IPL), recorded broadcasting rights fees of $6.2 billion (about 8.43 trillion won) over five years last year, surpassing $1 billion annually. The New York Times (NYT) assessed that this level is comparable to the National Football League (NFL, $10 billion annually), the English Premier League (EPL, $4 billion), and the National Basketball Association (NBA, $2.7 billion).

This has also sparked competition for broadcasting rights. In fact, in the first half of this year, a battle for Indian cricket broadcasting rights took place between Mukesh Ambani, Asia’s richest man from India, and Viacom18, a joint venture with Paramount Global, against global company Disney. Disney lost, and there are even opinions that it may have to withdraw from the local business.

Ayaz Memon, a cricket specialist journalist, told Bloomberg, "India is the Mecca of cricket," and added, "India has changed the way cricket matches have been operated over the past decades and has now effectively become the epicenter."

With cricket’s popularity so high, there is also analysis that Prime Minister Narendra Modi, ahead of next year’s general election, is politically leveraging the sport. Modi stirred controversy in 2021, two years before the World Cup, by naming the world’s largest cricket stadium in his hometown Ahmedabad, Gujarat, the 'Narendra Modi Stadium.' The opening ceremony, the first match, the final, and the closing ceremony will all be held at this stadium during this World Cup.

This content was produced with the assistance of AI translation services.