What investment opportunities does the FIFA World Cup create?

Most people think hotels, restaurants and tourism companies are the obvious winners. But according to one investment analyst, the smartest opportunities may have nothing to do with football at all.

While those sectors often see a short-term boost, Sagicor Investments Assistant VP of Research and Strategy, Jodian Aris, says that’s not where the smartest investors focus.

“You don’t want to wait until the actual event and you’re seeing the crowd. You want to think about it prior to and anticipate what could come.”

Aris says investors should look years ahead.

When a host city is announced, governments begin spending billions on roads, stadiums, transportation systems and other infrastructure projects.

That’s often where some of the biggest opportunities emerge.

She also warns that higher revenues don’t always mean higher profits.

Hotels, restaurants and entertainment companies often face higher staffing, marketing and operating costs during major events, which can eat into their gains.

And despite the hype, the economic impact of major sporting events isn’t always as large or as long-lasting as many people expect.

So where should investors be looking?  Aris says the real winners are often businesses that benefit long after the final whistle.

That includes infrastructure, technology and companies providing services that remain in demand well after the tournament ends.

“The smart money looks at what is long-lasting and what can be sustained, and it goes in that direction.”

Closer to home, Aris says Caribbean investors may also find opportunities in sectors such as sports betting, recreation and businesses that can convert temporary event-driven demand into long-term customers.

The lesson? Don’t invest in the World Cup. Invest in what the World Cup leaves behind.

And that’s your Bottom Line.

If you had money to invest today, would you put it into tourism, infrastructure, sports betting or technology?